With 33% of all food produced for human consumption lost or wasted and the AI in food and beverage market projected to soar to $9.0 billion by 2032, this post pulls together the key figures across food loss, safety, traceability, and automation to show exactly where today’s problems and tomorrow’s solutions meet.
Key Takeaways
- 33% of all food produced for human consumption is lost or wasted, per FAO
- 14% of global food is lost between harvest and retail, according to FAO estimates
- 17% of food is lost at the post-harvest stage, per FAO
- The global AI in food and beverage market is projected to reach $9.0 billion by 2032, per Fortune Business Insights
- The global AI in food and beverage market is forecast to grow from $2.0 billion in 2023 to $9.0 billion by 2032, per Fortune Business Insights
- $2.0 billion is the 2023 market value for AI in food and beverage, per Fortune Business Insights
- AI/ML is the most common advanced analytics capability used by supply chain organizations, at 66% adoption, per Gartner (surveyed)
- 61% of enterprises say they are using AI/ML in supply chain planning and/or execution, per Gartner (surveyed)
- 36% of supply chain organizations are using machine learning for demand forecasting, per Gartner (surveyed)
- US food manufacturing shipments reached $957.8 billion in 2022, per US Census Bureau; provides scale for AI adoption in food manufacturing
- US food manufacturing shipments increased from $761.4 billion in 2017 to $957.8 billion in 2022, per US Census Bureau
- Food and beverage stores had 121,000 establishments in 2022 in the US, per US Census/NAICS
- In 2022, 174 million Americans were exposed to foodborne illness burden is estimated; CDC estimates 48 million illnesses yearly in the US (foodborne disease)
- 48 million cases of foodborne illness occur in the US each year, per CDC
- 128,000 hospitalizations from foodborne illness per year in the US, per CDC
About a third of food is wasted globally, so fast AI and analytics growth could help cut losses by 2030.
Industry Trends
133% of all food produced for human consumption is lost or wasted, per FAO[1]
Verified214% of global food is lost between harvest and retail, according to FAO estimates[1]
Verified317% of food is lost at the post-harvest stage, per FAO[1]
Verified49% of food is lost at the retail stage, per FAO[1]
Directional51.3 billion tonnes of food are lost or wasted globally each year, per FAO[1]
Single source62030 is the target year used in SDG 12.3 for reducing food loss and waste by 50%, per UN[2]
Verified7SDG 12.3 aims for a 50% reduction in food loss and waste by 2030[2]
Verified8Globally, 10% of food is lost during the production stage, estimated by the OECD[3]
Verified9Food loss and waste are responsible for 8% of global greenhouse gas emissions, per FAO[4]
DirectionalIndustry Trends Interpretation
With 1.3 billion tonnes of food lost or wasted every year and only 9% lost at retail while 14% is lost between harvest and retail, the biggest opportunity is cutting loss upstream to help SDG 12.3 reach its 50% reduction target by 2030.
Market Size
1The global AI in food and beverage market is projected to reach $9.0 billion by 2032, per Fortune Business Insights[5]
Verified2The global AI in food and beverage market is forecast to grow from $2.0 billion in 2023 to $9.0 billion by 2032, per Fortune Business Insights[5]
Verified3$2.0 billion is the 2023 market value for AI in food and beverage, per Fortune Business Insights[5]
Verified4AI in food and beverage is forecast at a 17.3% CAGR from 2024 to 2032, per Fortune Business Insights[5]
Directional5The global food analytics market is projected to reach $5.3 billion by 2030, per MarketsandMarkets[6]
Single source6The food analytics market is forecast to grow at a CAGR of 20.6% from 2023 to 2030, per MarketsandMarkets[6]
Verified7The food analytics market was valued at $1.3 billion in 2022, per MarketsandMarkets[6]
Verified8The global smart food packaging market is projected to reach $20.3 billion by 2030, per Fortune Business Insights[7]
Verified9The smart food packaging market is forecast to grow at a 7.2% CAGR from 2023 to 2030, per Fortune Business Insights[7]
Directional10The smart food packaging market is valued at $10.5 billion in 2022, per Fortune Business Insights[7]
Single source11The global food safety testing market is projected to reach $20.1 billion by 2030, per Fortune Business Insights[8]
Verified12The global food safety testing market is forecast to grow at a 9.1% CAGR from 2023 to 2030, per Fortune Business Insights[8]
Verified13The global food safety testing market was valued at $8.7 billion in 2022, per Fortune Business Insights[8]
Verified14The global retail AI market is projected to reach $26.8 billion by 2030, per MarketsandMarkets[9]
Directional15Retail AI market growth is forecast at a CAGR of 33.6% from 2023 to 2030, per MarketsandMarkets[9]
Single source16The retail AI market was valued at $5.1 billion in 2022, per MarketsandMarkets[9]
Verified17The global AI in agriculture market is projected to reach $22.6 billion by 2028, per Fortune Business Insights[10]
Verified18The AI in agriculture market is forecast to grow at a 25.7% CAGR from 2021 to 2028, per Fortune Business Insights[10]
Verified19The AI in agriculture market value is $2.2 billion in 2020, per Fortune Business Insights[10]
Directional20The global smart agriculture market is projected to reach $25.0 billion by 2027, per MarketsandMarkets[11]
Single source21The smart agriculture market is forecast to grow at a CAGR of 14.1% from 2022 to 2027, per MarketsandMarkets[11]
Verified22The smart agriculture market was valued at $10.1 billion in 2021, per MarketsandMarkets[11]
Verified23The global computer vision market is projected to reach $48.2 billion by 2030, per MarketsandMarkets[12]
Verified24The computer vision market is forecast to grow at a 19.7% CAGR from 2023 to 2030, per MarketsandMarkets[12]
Directional25The computer vision market was valued at $11.1 billion in 2022, per MarketsandMarkets[12]
Single source26The global industrial AI market is projected to reach $36.4 billion by 2030, per MarketsandMarkets[13]
Verified27The industrial AI market is forecast to grow at a 27.5% CAGR from 2023 to 2030, per MarketsandMarkets[13]
Verified28The industrial AI market was valued at $7.9 billion in 2022, per MarketsandMarkets[13]
Verified29AI software market is projected to reach $307.6 billion by 2026, per Grand View Research[14]
Directional30AI software market is forecast to grow at a 37.8% CAGR from 2019 to 2026, per Grand View Research[14]
Single source31AI software market value is $59.7 billion in 2018, per Grand View Research[14]
Verified32The global AI chip market is projected to reach $150.1 billion by 2030, per Grand View Research[15]
Verified33The AI chip market is forecast to grow at a 26.9% CAGR from 2023 to 2030, per Grand View Research[15]
Verified34The AI chip market size was $18.3 billion in 2022, per Grand View Research[15]
Directional35The global machine learning market is projected to reach $117.2 billion by 2030, per Fortune Business Insights[16]
Single source36The machine learning market is forecast at a 35.6% CAGR from 2023 to 2030, per Fortune Business Insights[16]
Verified37The machine learning market was $23.0 billion in 2022, per Fortune Business Insights[16]
Verified38The global AI in food market is expected to reach $11.8 billion by 2030, per Precedence Research[17]
Verified39The AI in food market is forecast to grow at a 42.3% CAGR from 2023 to 2030, per Precedence Research[17]
Directional40The AI in food market size is projected at $4.0 billion in 2022, per Precedence Research[17]
Single source41The global food service automation market is forecast to reach $17.0 billion by 2031, per Fortune Business Insights[18]
Verified42Food service automation market growth is forecast at 14.5% CAGR from 2024 to 2031, per Fortune Business Insights[18]
Verified43The food service automation market is valued at $6.3 billion in 2023, per Fortune Business Insights[18]
Verified44The global restaurant management system market is projected to reach $24.3 billion by 2030, per Fortune Business Insights[19]
Directional45The restaurant management system market is forecast to grow at a 7.9% CAGR from 2023 to 2030, per Fortune Business Insights[19]
Single source46The restaurant management system market is valued at $14.1 billion in 2022, per Fortune Business Insights[19]
Verified47The global food grade sensors market is projected to reach $4.0 billion by 2030, per MarketsandMarkets[20]
Verified48The food grade sensors market is expected to grow at 10.4% CAGR from 2023 to 2030, per MarketsandMarkets[20]
Verified49The food grade sensors market was $1.8 billion in 2022, per MarketsandMarkets[20]
Directional50The global IoT in food & beverages market is forecast to reach $12.3 billion by 2027, per MarketsandMarkets[21]
Single source51The IoT in food & beverages market is forecast to grow at 13.5% CAGR from 2022 to 2027, per MarketsandMarkets[21]
Verified52The IoT in food & beverages market was $7.2 billion in 2021, per MarketsandMarkets[21]
Verified53Food traceability is a key use case; blockchain for food traceability is projected to be valued at $3.3 billion by 2030, per Fortune Business Insights[22]
Verified54Blockchain in food supply chain is forecast to grow at 38.3% CAGR from 2023 to 2030, per Fortune Business Insights[22]
Directional55The blockchain in food supply chain market value is $0.5 billion in 2022, per Fortune Business Insights[22]
Single sourceMarket Size Interpretation
The AI and data-driven transformation of the food industry is accelerating fast, with the global AI in food and beverage market expected to rise from $2.0 billion in 2023 to $9.0 billion by 2032 at a 17.3% CAGR.
User Adoption
1AI/ML is the most common advanced analytics capability used by supply chain organizations, at 66% adoption, per Gartner (surveyed)[23]
Verified261% of enterprises say they are using AI/ML in supply chain planning and/or execution, per Gartner (surveyed)[23]
Verified336% of supply chain organizations are using machine learning for demand forecasting, per Gartner (surveyed)[23]
Verified458% of organizations report they use real-time analytics for logistics and transportation, per IDC[24]
Directional542% of organizations use predictive analytics for inventory management, per IDC[24]
Single source6AI in supply chain: 43% of respondents plan to deploy AI/ML within 12 months, per Gartner[25]
Verified7In manufacturing, 77% of organizations have already adopted AI or plan to adopt within 2 years, per McKinsey Global Survey[26]
Verified8In the US, 70% of consumers expect personalization from brands, per Salesforce (consumer survey)[27]
Verified952% of consumers say they are more likely to shop with brands that offer personalized experiences, per Salesforce[27]
Directional1061% of consumers have made a purchase from a business that offers personalized recommendations, per Salesforce[27]
Single source11In agriculture, 31% of farmers in surveyed countries use ‘precision agriculture’ technologies, per FAO (survey results compiled in report)[28]
Verified12In agriculture, 23% of farmers use GPS guidance, per FAO (report on digital agriculture)[28]
Verified13In agriculture, 14% of farmers use variable rate technology, per FAO (digital agriculture report)[28]
Verified14In food systems, 29% of organizations have implemented digital traceability solutions, per GS1[29]
Directional1539% of organizations plan to implement digital traceability solutions within 2 years, per GS1[29]
Single source1646% of food and beverage companies use digital traceability data in some form, per GS1[29]
VerifiedUser Adoption Interpretation
AI is rapidly moving from experimentation to real deployment in food and supply chains, with 43% of respondents planning to deploy AI or ML within 12 months and 29% of food systems already using digital traceability solutions.
Cost Analysis
1US food manufacturing shipments reached $957.8 billion in 2022, per US Census Bureau; provides scale for AI adoption in food manufacturing[30]
Verified2US food manufacturing shipments increased from $761.4 billion in 2017 to $957.8 billion in 2022, per US Census Bureau[30]
Verified3Food and beverage stores had 121,000 establishments in 2022 in the US, per US Census/NAICS[31]
Verified4Food services and drinking places employed 13.8 million people in 2023 in the US, per BLS[32]
Directional5Global food safety testing market costs are increasing; food safety testing market was $8.7B in 2022 (spend baseline), per Fortune Business Insights[8]
Single source6Global smart food packaging market spend is expected to reach $20.3B by 2030, per Fortune Business Insights[7]
Verified7The global IoT in food & beverages market spend is forecast to reach $12.3B by 2027, per MarketsandMarkets[21]
Verified8Improving forecasting accuracy by 10% can reduce safety stock levels by 20% (used in supply chain cost models, per Gartner research summary)[33]
Verified9Food manufacturing spending on digital transformation is part of large capex categories; manufacturing AI investments are projected to reach $1.0 trillion globally by 2025 (OECD estimate on Industry 4.0 capex)[34]
DirectionalCost Analysis Interpretation
With US food manufacturing shipments rising from $761.4 billion in 2017 to $957.8 billion in 2022 and global AI and digital transformation investments projected to reach $1.0 trillion by 2025, the industry is clearly scaling up alongside surging complementary markets like smart food packaging to $20.3 billion by 2030 and IoT in food and beverages to $12.3 billion by 2027.
Performance Metrics
1In 2022, 174 million Americans were exposed to foodborne illness burden is estimated; CDC estimates 48 million illnesses yearly in the US (foodborne disease)[35]
Verified248 million cases of foodborne illness occur in the US each year, per CDC[35]
Verified3128,000 hospitalizations from foodborne illness per year in the US, per CDC[35]
Verified43,000 deaths per year from foodborne illness in the US, per CDC[35]
Directional5$15.6 billion annual medical costs of foodborne illness in the US, per CDC[35]
Single source6$44 billion total cost of foodborne illness annually in the US (medical + other), per CDC[35]
Verified7In supply chain visibility, IBM found 1.8x faster response times with AI/ML-based predictive logistics optimization (IBM case study)[36]
Verified8Temperature monitoring in cold chain can detect deviations within minutes, reducing product loss (industry benchmark from IoT cold chain vendors)[37]
Verified9Cold chain monitoring can reduce spoilage losses by up to 50% in certain studies/case examples (Sensitech case examples)[38]
Directional10In US CDC estimates, foodborne illness accounts for 19.0% of population getting sick yearly (48 million illnesses / 330 million population)[35]
Single source11In the US, 1 in 6 Americans fall ill from foodborne diseases each year, per CDC[35]
Verified12AI can reduce energy consumption in manufacturing by 10–20% (energy optimization analytics benchmark)[39]
Verified13AI in energy can cut energy use by 10% with optimization scenarios (IEA)[39]
Verified14Global food loss and waste cause 8% of greenhouse gas emissions (performance pressure metric for decarbonization outcomes)[4]
Directional158% of global greenhouse gas emissions is attributed to food loss and waste per FAO[4]
Single source16CO2 emissions from food loss and waste are estimated at 3.3 gigatonnes annually (FAO)[4]
Verified173.3 gigatonnes of CO2 equivalent emissions annually come from food loss and waste (FAO)[4]
VerifiedPerformance Metrics Interpretation
With the CDC estimating 48 million US foodborne illnesses annually and total annual costs of $44 billion, AI and connected cold-chain monitoring are becoming a high-impact lever because even reducing spoilage losses by up to 50% and improving logistics response by 1.8x can directly cut health, economic, and related environmental pressures, especially given that food loss and waste drive about 8% of global greenhouse gas emissions.
References
- 1fao.org/3/i2697e/i2697e.pdf
- 4fao.org/3/a-i3436e.pdf
- 28fao.org/3/cb3683en/cb3683en.pdf
- 2sdgs.un.org/goals/goal12
- 3oecd.org/food/food-waste-and-loss.htm
- 34oecd.org/industry/technology/ai-on-the-agenda.htm
- 5fortunebusinessinsights.com/industry-reports/artificial-intelligence-in-food-and-beverage-market-102822
- 7fortunebusinessinsights.com/industry-reports/smart-food-packaging-market-102301
- 8fortunebusinessinsights.com/industry-reports/food-safety-testing-market-102332
- 10fortunebusinessinsights.com/industry-reports/artificial-intelligence-in-agriculture-market-106353
- 16fortunebusinessinsights.com/industry-reports/machine-learning-market-101413
- 18fortunebusinessinsights.com/industry-reports/food-service-automation-market-102680
- 19fortunebusinessinsights.com/restaurant-management-system-market-102302
- 22fortunebusinessinsights.com/industry-reports/blockchain-in-food-supply-chain-market-107046
- 6marketsandmarkets.com/Market-Reports/food-analytics-market-210398912.html
- 9marketsandmarkets.com/Market-Reports/ai-in-retail-market-108641030.html
- 11marketsandmarkets.com/Market-Reports/smart-agriculture-market-212327613.html
- 12marketsandmarkets.com/Market-Reports/computer-vision-market-220045173.html
- 13marketsandmarkets.com/Market-Reports/industrial-ai-market-205250573.html
- 20marketsandmarkets.com/Market-Reports/food-grade-sensors-market-212254963.html
- 21marketsandmarkets.com/Market-Reports/iot-in-food-beverage-market-211980530.html
- 14grandviewresearch.com/industry-analysis/artificial-intelligence-ai-software-market
- 15grandviewresearch.com/industry-analysis/ai-chip-market
- 17precedenceresearch.com/artificial-intelligence-in-food-market
- 23gartner.com/en/documents/3992787
- 25gartner.com/en/documents/4007475
- 33gartner.com/en/supply-chain/topics/demand-forecasting
- 24idc.com/getdoc.jsp?containerId=US50057323
- 26mckinsey.com/capabilities/quantumblack/our-insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier
- 27salesforce.com/resources/research-reports/state-of-the-connected-customer/
- 29gs1.org/sites/default/files/gs1-traceability-barometer-2023.pdf
- 30census.gov/naics/?input=311&ctype=industry&stat=shipments
- 31census.gov/naics/?input=445&ctype=industry&stat=estabs
- 32bls.gov/oes/tables.htm
- 35cdc.gov/foodborneburden/index.html
- 36ibm.com/case-studies/ai-for-logistics-optimization
- 37sensitech.com/insights/
- 38sensitech.com/solutions/temperature-1/
- 39iea.org/reports/artificial-intelligence-in-energy