Leveraging Technology for Effective Food Traceability in the Industry

Leveraging Technology for Effective Food Traceability in the Industry

date

Mar 24, 2025

Blog Food and Beverage Leveraging Technology for Effective Food Traceability in the Industry

The food industry is essential because it provides nourishment to people worldwide. Besides feeding the population, it also plays a significant role in the global economy. The Food Traceability: Technologies and Global Markets is expected to generate $23.8 billion in revenue in 2024 and is projected to grow to $38.5 billion by 2029, with an annual growth rate of 10.1%.

The food industry plays a crucial role in feeding millions of people, but there are still areas that need improvement. One major issue is food waste, which often occurs because food doesn't reach the right places at the right time. As a result, while some regions face food shortages, excess food goes to waste elsewhere. Shockingly, around one-fifth of the food produced for human consumption is lost or wasted globally — that's equivalent to one billion meals every single day.

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What is Food Traceability?

Food traceability is the process of keeping track of where food and its ingredients come from and how they move through the supply chain. It records each step, from production and processing to distribution. This system is especially helpful during food safety issues, as it allows authorities to quickly identify the source of contamination, remove unsafe products, and prevent more people from getting sick.

Why Is Traceability Important in Food?

The need for food traceability comes from two key groups: consumers and regulatory authorities. Consumers want to know where their food comes from and trust that it's safe, while regulators ensure that companies follow safety standards. Both are equally important.

Consumers drive your sales and success, while regulatory bodies have the power to shut down your operations if rules are not followed. The main goal for both groups is food safety, especially when it comes to correctly labeling allergens that could harm people with allergies.

Food Traceability: Technologies and Global Markets

The global market for food traceability is expected to grow from $23.8 billion in 2024 and is projected to reach $38.5 billion by the end of 2029, at a compound annual growth rate (CAGR) of 10.1% during the forecast period of 2024 to 2029.

What’s Driving the Demand for Food Traceability?

  • Consumer demand for transparency: People today want to know exactly what they're eating and how it's made. They’re curious about the ingredients, where they come from, and how the food is processed. As a result, simple, natural products with clear labels and fewer ingredients are becoming more popular. This is pushing companies to be more open and transparent about their products.
  • Regulatory requirements: Governments around the world are tightening food safety rules to protect people's health. For example, the Food Safety Modernization Act (FSMA) in the U.S. has made it mandatory for companies to track their products and quickly respond to safety issues. To meet these regulations, businesses are now using advanced technology to improve transparency and trace food products more efficiently. A good traceability system not only helps companies follow the rules but also protects their brand and builds customer trust.
  • Response to incidents: Recent food poisoning cases and product contamination have made people more aware of food safety. These incidents show how important it is to have a strong traceability system that can quickly find and remove contaminated products. This not only helps prevent large-scale recalls but also protects public health. In fact, a good traceability system can be the key to stopping a small problem from turning into a major crisis.
  • Brand protection and reputation management: A food safety issue can seriously harm a company's reputation and cause customers to lose trust. With a proper traceability system, companies can show they care about quality and safety, which helps build customer confidence. By using traceability technology, businesses can reduce risks and protect their brand's image.

Technologies Enabling Food Traceability

A range of technologies is driving the advancement of food traceability systems, offering solutions for data capture, storage, analysis, and sharing:

  • Blockchain: Blockchain technology offers a safe and transparent way to track every step of the food supply chain. It works by recording each transaction as a block, which cannot be changed, creating a clear and trustworthy record that authorized parties can access. This helps improve transparency, reduces the risk of fraud, and makes product recalls faster and more efficient. It's especially useful for tracking high-value products and verifying where they come from.
  • Internet of Things (IoT): IoT devices, like sensors and smart tags, help track important data such as temperature, location, and other conditions throughout the food supply chain. With this real-time monitoring, businesses can quickly respond to issues, maintain product quality, and improve delivery efficiency.
  • Automated Data Collection: Automated systems like barcode scanners and RFID readers make data collection faster and more accurate by reducing manual work and human errors. These systems can connect with other software, like ERP platforms, to store all data in one place. RFgen’s mobile devices allow workers to easily collect data directly from the factory floor, warehouse, or distribution center, providing real-time visibility. They also help track products at every stage of the supply chain, from receiving raw materials to food production, packaging, and delivery.
  • Enterprise Resource Planning (ERP): ERP systems help businesses manage and organize data from different parts of the company in one place. They allow companies to track inventory, monitor production, and manage supply chain activities more efficiently. When combined with automated tools like barcode scanners and other traceability technologies, ERP systems provide complete visibility and control over the entire process.
  • Cloud Computing: Cloud-based platforms provide a flexible and affordable way to store and manage large amounts of traceability data. They also make it easier for different teams and partners in the supply chain to share information and work together.
  • Artificial Intelligence (AI) and Machine Learning (ML): AI and machine learning can help analyze traceability data, spot trends, and predict potential issues. This allows businesses to take action early, prevent food safety problems, and improve supply chain efficiency.

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    Divya Dhamija

    Written By Divya Dhamija

    Divya Dhamija is a Senior Executive of Marketing Operations at BCC Research, with a master’s degree in business. She specializes in optimizing marketing strategies and content creation and is dedicated to driving organizational growth through strategic marketing initiatives.

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