Digital Food Safety Market Projected to Grow

NEW YORK — According to the report "Digital Food Management Solutions Market by Application and Geography — Forecast and Analysis 2022-2026" by global technology research and advisory company Technavio, the digital food management market will witness a year-over-year growth of 14.98% in 2022, with a compound annual growth rate of 15.55% , or $2.39 billion, during the forecast period. The food safety segment will be the largest contributor to market growth during the forecast period, according to the report.

The report is segmented by application (food safety, marketing and others) and geography (North America, Europe, APAC, South America and Middle East and Africa).

Digital food safety (DFS) is the concept of converting and converging manual food safety practices into a centralized software solution. The growth of the food safety market segment is attributed to factors such as the growing importance and stringency of food safety standards, an increase in the involvement of government agencies in food safety via regulations and the rising demand for analytical instruments in the food and beverage industry.

GEOGRAPHICAL MARKET ANALYSIS. North America will provide maximum growth opportunities in the digital food management solutions market during the forecast period, the report says. According to Technavio’s research, the region will contribute 46% of the global market growth. 

VENDOR INSIGHT. According to the report, the digital food management solutions market is fragmented. Vendors are deploying growth strategies such as acquiring regional or local vendors to compete in the market. The report analyzes the market's competitive landscape and offers information on several market vendors.

KEY MARKET DRIVERS AND CHALLENGES. The growth of the food service industry is driving the growth of the market. Rapid urbanization has resulted in an increase in the disposable income of people globally, the report says. Hence, the demand for convenient and easy-to-prepare food products has increased.

Food service establishments are focusing on maximizing profits, enhancing customer service and reducing costs. The use of digital food management solutions helps in improving efficiency and reducing mismanagement of food delivery, says Technavio.

The increasing operational costs will challenge the digital food management solutions market during the forecast period, according to the report. Customers prefer online food vendors that provide higher discounts, Technavio reports. However, the increasing cost of food products and ingredients is driving the prices of food items. Thus, the unpredictability in the pricing of food items will have a negative impact on the profit margins of online on-demand food delivery services vendors, the report says.