AI in Food and Beverages Market Report 2025

The AI in food and beverages market size has grown exponentially in recent years. It will grow from $9.4 billion in 2024 to $13.61 billion in 2025 at a compound annual growth rate (CAGR) of 44.8%. The growth in the historic period can be attributed to quality control and assurance, supply chain optimization, consumer demand for personalization, efficient production processes, and regulatory compliance.

The AI in food and beverages market size is expected to see exponential growth in the next few years. It will grow to $56.47 billion in 2029 at a compound annual growth rate (CAGR) of 42.7%. The growth in the forecast period can be attributed to advanced product development, enhanced customer engagement, sustainable and eco-friendly practices, precision agriculture, and dynamic pricing strategies. Major trends in the forecast period include enhanced customer experience, blockchain integration for transparency, robotic process automation (RPA), AI in flavor and product development, and food safety monitoring.

The growing demand for dietary supplements is anticipated to fuel the expansion of the AI market in the food and beverage sector in the future. Dietary supplements consist of additional dietary elements, including vitamins, minerals, herbs, amino acids, and enzymes. This rising interest in supplements is mainly attributed to an aging population, heightened health consciousness, and increasingly busy lifestyles, leading consumers to seek convenient options for enhancing their health and well-being. AI technology assesses individual health information, preferences, and dietary requirements to provide tailored supplement recommendations, which improves consumer satisfaction and adherence to supplementation routines. For example, a survey conducted in October 2022 by the Council for Responsible Nutrition, a non-profit trade association based in the U.S., included 3,133 adults aged 18 and older, of which 2,342 reported using dietary supplements seasonally, occasionally, or regularly. Notably, 75% of Americans incorporate dietary supplements into their daily lives. Thus, the growing demand for dietary supplements is a key factor driving the AI market in the food and beverage industry.

The swift growth of hotels and restaurants is projected to drive the development of the AI market within the food and beverage sector in the coming years. Hotels and restaurants are defined as establishments that offer accommodations, meals, and various services to travelers, tourists, and the general public. Artificial Intelligence (AI) is increasingly being adopted in multiple areas of the hospitality industry to boost efficiency, enhance customer experiences, and optimize operations. For example, data from the Office for National Statistics, a UK-based statistical authority, reveals that the number of licensed restaurants in the UK rose from 29,680 in 2021 to 31,420 in 2022. Consequently, the rapid growth of hotels and restaurants is a significant factor driving the expansion of AI in the food and beverage market.

The AI in food and beverages market is witnessing a prominent trend driven by technological advancements, with companies actively adopting new technologies to maintain their competitive positions. In March 2023, Tastewise, an Israel-based software company, introduced TasteGPT, a chatbot technology aimed at enhancing productivity for its clients, including brands. The chatbot significantly reduces research and development periods by providing quick responses to business queries on innovation and insights.

Major players in the AI in food and beverages market are directing their efforts towards developing innovative solutions, such as AI-powered recipe apps. These apps utilize Artificial Intelligence (AI) technologies to enhance user experiences in discovering, planning, and preparing recipes. In August 2023, Samsung Electronics Co., Ltd., a South Korea-based electronics manufacturing company, launched the 'AI-powered Food' app. This app, designed with integrated artificial intelligence, offers personalized recipes and food recommendations to users in eight languages across 104 countries. With over 160,000 recipes, the app assists users in discovering new dishes, ordering ingredients online, and creating tailored meal plans.

In July 2022, Diageo plc, a UK-based beverages company, made a strategic acquisition by purchasing Vivanda Inc. for an undisclosed amount. This acquisition allows Diageo to apply FlavorPrint technology to various industries, contributing to the growth of its digital marketing and sophisticated analytics skills. By leveraging FlavorPrint, Diageo gains a deeper understanding of consumer taste preferences, paving the way for innovation and personalized customer experiences. Vivanda Inc., based in the US, operates as a provider of a customer engagement services platform in the AI in food and beverages market.

Major companies operating in the AI in food and beverages market include Raytec Vision SpA, Rockwell Automation Inc., ABB Ltd., Honeywell International Inc., TOMRA Sorting Solutions AS, Sesotec GmbH, Martec of Whitell Ltd., Key Technology Inc., Greefa Co., Sight Machine Inc., Compac Sorting Equipment Ltd., Agco Corporation, National Recovery Technologies LLC, Bulk Handling Systems, Buhler AG, QualySense AG, BoMill AB, ClarifAI Inc., BBC Technologies, Intelligent X Brewing Co., International Business Machines Corporation, Microsoft Corporation, Google LLC, Amazon.com Inc., Siemens AG, Schneider Electric SE, Emerson Electric Co., Yokogawa Electric Corporation, Mitsubishi Electric Corporation, Omron Corporation, Fanuc Corporation, GEA Group AG, Tetra Pak International SA, Krones AG, Sidel International AG, Alfa Laval AB, SPX Flow Inc., JBT Corporation.

North America was the largest region in the AI in food and beverages market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global AI in food and beverages market report during the forecast period. The regions covered in the ai in food and beverages market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ai in food and beverages market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in the food and beverages industry involves the application of advanced AI and machine learning techniques to manage aspects such as food waste, deliveries, and food safety. This integration utilizes big data analytics and machine learning models to extract valuable insights into consumer demands and preferences, aiding in the creation of food and beverage products that align with market trends.

The primary categories of AI in the food and beverages sector include hardware and software. Hardware encompasses both internal and external devices and machinery that enable users to perform essential tasks such as input, output, storage, communication, and processing. Understanding the specific hardware challenges faced by the food industry is crucial for effective implementation. AI is adopted by small, medium, and large enterprises for various purposes, including food storage, consumer engagement, quality control, safety compliance, production and packaging, maintenance, and more. This implementation occurs through diverse channels, encompassing traditional (offline) and online marketing channels utilized by hotels, restaurants, food processing industries, and other relevant entities.

The AI in food and beverage market research report is one of a series of new reports that provides AI in food and beverage market statistics, including the AI in food and beverage industry global market size, regional shares, competitors with an AI in food and beverage market share, detailed AI in food and beverage market segments, market trends, and opportunities, and any further data you may need to thrive in the AI in food and beverage industry. This AI in food and beverage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The AI in food and beverages market includes revenues earned by entities by improving product development, creating more individualized marketing campaigns, optimizing pricing and promotions, and better understanding consumer preferences. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The AI in food and beverages market consists of sales of management of the supply chain, best cleaning practices, and food safety monitoring processes. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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