Market Research Report
Artificial Intelligence (AI) in Food & Beverages Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||635794|
|Published||Content info||100 Pages
Delivery time: 2-3 business days
|Artificial Intelligence (AI) in Food & Beverages Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: June 1, 2019||Content info: 100 Pages||
The Artificial Intelligence in Food and Beverages Market is expected to register a CAGR of over 65.3% during the forecast period 2019 - 2024. Changes in consumer demands towards preferring fast, affordable, and easily accessible food options has led to a transformation in the food and beverages industry, with market leaders leveraging advanced technologies, such as artificial intelligence and machine learning to scale operations and help companies stay relevant in a dynamic market environment.
The AI has been actively gaining prominence over the last five years, with many of the companies actively investing in exploring the potential of technology in the industry. This emerging technology of AI is helping F&B companies with supply chain management through the logistics, predictive analytics and also the transparency.
Organisations are increasingly digitizing their supply chain to differentiate and also to drive revenue growth which is improving the efficiency across the supply chain. Supply chains are generating a massive amount of data, where AI is helping the organization to analyze this data and gain a better understanding of variables in the supply chain by anticipating future scenarios.
AI in supply chains is helping businesses to innovate rapidly by reducing the time to market and establishing an agile supply chain which is capable of foreseeing and also dealing with the uncertainties. This is driving the growth of AI in the food and beverages sector.
AI provides many benefit to the F&B industry, but the high cost of large-scale deployment in the sector is restricting the market to grow. There are thin margins in the industry already, and many food and beverage companies have limited resources and cannot make significant investments, like Google or Amazon.
F&B brands usually build tightly integrated and customized in-house technology that would reflect the unique needs of the company. In today's world, the battle for AI so competitively that leading technology companies are spending over USD 650 million annually for desirable candidates.
Companies who have the fortune of established data analytics capabilities and also the team of competent developers can safely build their own AI platform. F&B players are without such resources are seeking out solutions and providers by clearly defined goals needs, goals and also budgets.
The scope of the Report
Changes in consumer demands towards preferring fast, affordable, and easily accessible food options has led to a transformation in the food and beverages industry, with market leaders leveraging advanced technologies, such as artificial intelligence and machine learning to scale operations and help companies stay relevant in a dynamic market environment.
Investment made by the former chairman of Tata Sons, in Techbin Solutions Pvt Ltd's Niki.ai (which is an AI fueled chatbot that conducts conversations with consumers to assist them to order a wide range of services with the help of a chat interface), is depicting the investments and growth of the usage of chabots.
AI is being applied to understand the consumer behavior, which is expected to lead to more accurate predictions. It can further enable marketers and organizations to reach out to the customers at a personal level, engage in deeper interactions, and enhance their overall experience with the brand.
Furthermore, many consumers are adopting chabots, as they can effectively work on the offline mode. An American express report stated that more than 50% of the customers are willing to spend more in the companies that provide superior customer service. This opens up a tremendous opportunity for AI, which, in turn, is likely to fuel the growth of AI in the food and beverage sector.
AI can also help to analyze, monitor, and deduce the customer behavior and sentiments across the various social media channels. Therefore, when AI builds an in-depth customer profile, it matches it to their social experiences about the product. With the help of such powerful insights, firms can now aim to improve the customer experience and make it more productive, thereby leading to the growth of the market.
The market for AI in food and beverage sector is growing in North America, with the United States leading the way. North America held a market share of 29.1% in 2017, which is second-largest region for AI in the food and beverage market.
In North America, the readiness for adoption and high fractional increase in replacement AI are the leading drivers of their economic impact, which reflects the regions leading stance on AI and its implementation, and also the high automation potential that is expected to occur at the regional level, between now and 2030.Besides, food processing is one of the major manufacturing sectors in the United States. According to the United States Department of Agriculture, 16% of value of shipments from all the US manufacturing plants comes from the food processing plants.
For most part, this sector is a very high-volume and low-margin industry. Finding new ways to gain modest increase in efficiency can make the difference between a facility turning a profit or a loss. Due to such functional constraints, many of largest food processing companies are shifting to AI technology, in order to improve the various aspects of the process. This is supporting to growth of the AI in food and beverage sector in the region.
The Artificial Intelligence in Food and Beverages Market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability. The companies operating in the market are also acquiring start-ups working on Artificial Intelligence in Food and Beverages Market to strengthen their product capabilities. In August 2018, Key Technology introduced VERYX digital sorters for fresh-cut leafy greens. VERYX is the world's only belt-fed sorter that can inspect product entirely in-air with top and bottom sensors, in order to detect and eliminate all foreign materials (FM) and product defects. By combining Key's expertise in sorting and conveying, these integrated VERYX systems are specifically designed to handle the challenges of sorting leafy greens.