This growth can be attributed to the rise in the food safety concerns within the food industry, which has led to an increase in the adoption of food traceability technologies across the globe. The market is forecast to grow from $11.63 billion in 2016 to $16.09 billion by 2022.
The global increase in the number of food recalls has posed serious threats to the public health as well as to the growing economy. On an average, the direct cost of a product recall borne by the food company varies between US$10 million to US$12 million, in addition to the loss of sales.
The major concerns pertaining to food safety have put human life and companies at stake. The food industry addressed the issue with the introduction of food safety procedures such as the Hazard Analysis and Critical Control Points (HACCP)—which attempts to avoid hazards rather than attempting to inspect finished products for the effects of those hazards. The HACCP system can be used at all stages of a food chain, from food production and preparation processes including packaging and distribution.
With the rise in the issues such as false labelling and the occurrence of the Bovine Spongiform Encephalopathy, also known as the mad cow disease, there has been a decline in the trust for the food products among the consumers within the food industry.
The growth for this market is driven by factors such as improvements in the food recall process, ease of compliance in global regulation, greater visibility within the inventory system, improved return processes, and rapid shift in consumer preferences. However, the market consists of certain challenges which are inhibiting the overall growth such as overlapping and conflicting demand of food traceability systems, lack of unifying requirements, and weak technical system prohibiting rapid response time.
Traceability is gaining widespread recognition in developed and developing countries and therefore tends to be global, dynamic and complex in nature. The market is expected to progress a substantial extent due to the rising global population and food sufficiency concerns.