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AI in Food and Beverage Market To Hit USD ~311 Bn


The global market for AI in the Food and Beverage industry is expected to grow significantly, from USD 8.3 billion in 2023 to an impressive USD 311.6 billion by 2033, at a Compound Annual Growth Rate (CAGR) of 43.7% from 2024 to 2033. This growth is driven by the increasing demand for automation to improve productivity, as well as strict regulations that aim to enhance food safety. The integration of industrial IoT and big data also contributes to this growth.

North America, particularly the United States, is expected to be a major contributor to this growth, as the region is emphasizing the adoption of AI in food processing. Large food processing companies are investing heavily in AI to improve operational efficiency, reduce human error, and increase output. Innovative applications of AI in the market, such as plant-forward robot chefs commercialized by SavorEat and Sodexo, demonstrate the potential of AI in the food and beverage industry.

Recent mergers, acquisitions, and funding activities are also driving the growth of the AI in Food and Beverage market. In March 2024, GEA, a leading supplier to the food and beverage industry, acquired CattleEye, an agricultural software company from Northern Ireland known for its advanced AI solutions, to enhance its dairy sector capabilities. This acquisition demonstrates the increasing integration of AI in agricultural practices and dairy management.

The beverage sector is also witnessing strategic investments, such as AB Akola Group’s acquisition of a minority stake in Lithuanian beverage startup OMG Bubble Tea for €1.9 million. This investment highlights the potential of AI and technology-driven innovation in beverage production and consumer engagement strategies. Additionally, Cal-Maine Foods acquired various assets from Tyson Foods, indicating the consolidation of the sector and the drive towards incorporating advanced technologies to streamline operations and enhance product offerings.

These transactions show the important role of AI and technology in shaping the future of the food and beverage industry, driving innovations, and fostering growth through strategic partnerships and acquisitions.

Key Takeaways

  • The AI in Food and Beverage Market in the Food and Beverage industry is expected to grow at a staggering CAGR of 43.7% from 2024 to 2033, reaching a projected value of USD 311.6 billion by 2033.
  • In 2023, the estimated market size for AI in Food and Beverage was USD 8.3 billion.
  • AI’s role in product development is pivotal, with algorithms predicting flavor profiles and textures, facilitating faster innovation to meet changing consumer demands.
  • Large enterprises currently dominate the AI market in Food and Beverage, holding over 68.3% share. However, SMEs are gradually adopting cost-effective AI tools, narrowing the gap.
  • Quality Control & Inspection leads the AI application segments with a market share of 39.5%, followed by demand forecasting.
  • Food & Beverage manufacturers constitute the largest end-user segment, capturing 74.2% of the market, leveraging AI for production optimization and product safety.
  • North America leads the global AI market in Food and Beverage, accounting for over 41.8% of the total share in 2023, driven by advanced technological infrastructure and innovation.
  • Oracle Corporation, ABB Ltd., Honeywell International Inc., and IBM Corporation are among the key players driving AI adoption in the industry.

AI in the Food and Beverage Statistics

  • 75% of people are open to trying foods and drinks made or improved by AI.
  • AI suggestions could boost online food sales by 15%.
  • 60% of industry experts think AI will really change how supply chains work within 5 years.
  • Using AI to predict needs can cut down on food waste by 20%.
  • AI in manufacturing could make things 25% more productive by 2025.
  • Quality checks done by AI could mean 30% fewer mistakes in products.
  • AI chatbots might handle 80% of customer questions, making service better.
  • 70% of food and drink companies plan to spend money on AI to make new things in the next 3 years.
  • AI forecasting could make stocking up 50% more precise.
  • 45% of shoppers like AI to suggest products to them.
  • AI in recipe development could cut costs by 10%.
  • Marketing with AI could get 20% more people engaged.
  • AI for equipment care could mean 30% less downtime.
  • 80%+ of company leaders think AI will shape the industry’s future big time.
  • AI safety checks can spot bad stuff with more than 95% accuracy.
  • 55% of companies use AI to manage customer relations.
  • AI can spot food trends with 70%+ accuracy.
  • AI in packaging could reduce waste by 15%.
  • 65% of people would pay more for AI-made eco-friendly products.
  • More than 60% of companies use AI for insights, strategies, and better operations.
  • Platforms like Tastewise and BevSuite help big brands like PepsiCo and Nestle by using AI to understand trends and improve marketing.

Use Cases

  • Quality Control and Sorting: AI systems, like those developed by Tomra, are trained to recognize and sort food products such as french fries by size, shape, and color. This enhances quality control and reduces waste by ensuring only the best products make it to packaging.
  • Predictive Maintenance: By analyzing data from machinery in real time, AI predicts when equipment needs maintenance before it breaks down. This approach helps minimize downtime and maintain consistent production quality.
  • Supply Chain Optimization: AI algorithms optimize supply chain logistics, taking into account various factors such as demand, production capacity, and material costs. This ensures efficient production planning and can significantly reduce waste.
  • Rapid A/B Testing: AI enables quicker and more accurate A/B testing for new products, allowing companies to gather consumer feedback efficiently and refine products before a wider release.
  • Time to Market: Advanced analytics powered by AI streamline business workflows, helping companies quickly react to market opportunities and challenges with agile product development processes.
  • Food Safety Compliance: AI technologies, such as those deployed by KanKan, monitor compliance with health regulations in kitchens and food processing facilities, ensuring that safety standards are consistently met.
  • Cleaning and Sanitation: AI-driven systems developed in collaboration between the University of Nottingham and Martec of Whitwell are being tested to optimize cleaning processes in food manufacturing, potentially halving cleaning times and costs.
  • Product Development: AI is guiding major food companies in developing new products. For example, Coca-Cola uses data from self-service fountains analyzed by AI to identify popular flavor combinations, like Cherry Sprite, for potential product lines.
  • Consumer Preference Insights: Kellogg Company’s Bear Naked Custom allows customers to create their own granola mixes online. AI suggests ingredient combinations likely to taste good together, based on analysis of thousands of possible pairs.

Recent Developments

  • In 2022, SavorEat collaborated with Sodexo to pilot plant-forward robot chefs in the US, marking a significant step towards the commercialization of meat alternatives.
  • Wings and Rings partnered with Miso Robotics to introduce Flippy 2 in restaurants, leveraging AI to maximize kitchen efficiency amidst labor shortages.
  • A Colombian robotic delivery start-up expanded its contract with Sodexo to deploy over 1,200 robots across 50 US college campuses, highlighting the scalability of AI solutions in operational logistics.

Key Players Analysis

  • Oracle Corporation has played a significant role in the AI revolution in the Food and Beverage sector. They have accomplished this by improving supply chain efficiency and operational productivity. By leveraging AI and machine learning technologies, Oracle helps businesses optimize almost every aspect of their operations, from supply chain management to personalized customer engagement. The company’s AI-powered solutions are designed to analyze vast amounts of data, which allows business leaders to make informed, real-time decisions that can significantly reduce waste and improve profitability.
  • ABB Ltd. is deeply involved in the Food and Beverage industry, focusing on ensuring safer and more sustainable operations that utilize less energy while maintaining continuous performance. Their solutions are designed to improve production continuity, enhance safety, and achieve sustainability goals. With over 130 years of experience in electrification, ABB supports food and beverage producers in delivering operations that meet and exceed modern standards for efficiency and environmental responsibility.
  • Honeywell International Inc. is making significant contributions to advancements in the Food and Beverage sector through the application of AI and other technologies. They focus on enhancing efficiency, improving traceability, and ensuring the protection of brand reputation, all while adhering to strict regulatory standards. Honeywell’s solutions are geared towards helping businesses in this sector effectively meet operational and business challenges.
  • Rockwell Automation, Inc. plays a crucial role in boosting cybersecurity for the Food and Beverage industry. They provide specialized strategies to safeguard against cyber-attacks that can potentially impact critical operational systems such as refrigeration. Such attacks may result in misdirected materials, tampering with recipes, or intellectual property theft. Their solutions are designed to secure older systems and offer continuous monitoring to ensure the safety of operations, product quality, and consumer safety.
  • IBM has been at the forefront of implementing Generative AI in the Food and Beverage sector, revolutionizing various aspects such as recipe generation, taste, and aroma modeling, and more. IBM’s Chef Watson has created over 10,000 unique recipes, highlighting the vast potential for AI to transform culinary creativity and enhance consumer experiences.
  • NVIDIA Corporation is driving a revolution in the Food and Beverage industry with AI solutions such as AGRi360, which helps farmers and food processors in predicting crop diseases and optimizing the supply chain. By using NVIDIA AI on Microsoft Azure, they deliver AI-powered transformation, thereby significantly reducing the time required for training AI models and speeding up inference jobs. This enables real-time, actionable insights for the industry.
  • TOMRA is distinguished in the food and beverage sector for its advancements in sorting and grading solutions, utilizing artificial intelligence (AI) to set new standards. Their technology enhances product hygiene, solves labor challenges, increases throughput, and maximizes yield. Furthermore, TOMRA’s optical sorting machines are highly effective in detecting and removing foreign materials, cross-contamination, and product defects, thereby significantly improving line efficiency and food safety.
  • Analytical Flavor Systems offers a platform called Gastrograph AI, which utilizes artificial intelligence to provide deep insights into food and beverage products. Their technology leverages the world’s largest sensory database to help companies create or optimize products tailored to consumer preferences across different demographics and markets globally. This innovative approach aims to reduce development time and costs, enabling brands to confidently launch products that meet the evolving tastes and preferences of their target audience.
  • Staqu Technologies has developed JARVIS, an AI-powered video analytics software, enhancing customer experiences, safety, and operational efficiency in various sectors, including food and beverage. Leveraging artificial intelligence, deep learning, and patented technologies, JARVIS transforms CCTV footage into actionable insights, showcasing Staqu’s capabilities as a leading solution provider in intelligent video technology.


The Food and Beverage industry has been experiencing a rapid growth of Artificial Intelligence, which is driven by technological advancements, increased automation, and strict safety regulations. Despite facing challenges such as high deployment costs and data security, the sector is expected to continue growing, thanks to strategic partnerships and a focus on improving consumer engagement and operational efficiency. The industry’s shift towards integrating AI highlights a transformative phase that aims to enhance productivity and ensure food safety, making AI a critical component in the future of the food and beverage industry.

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