Innovation

From logistics to catering, here is where AI will change the food world the most

According to PwC, the Ai market in food will be worth $43.4 billion in 2028, a fivefold increase from $8.2 billion in 2023

by Maria Teresa Manuelli

19 July 2024

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Il Cyber Burger con carne coltivata «inventato» dalla Ai per Carne&Trita

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In 2028, the artificial intelligence market in the food industry will be worth 43.4 billion dollars, a fivefold increase from 8.2 billion in 2023 with a CAGR of 39.5% over the period 2023-2028. This is highlighted by research conducted by PwC Italy's Innovation Team. "The impact of GenAI and the strategic use of data," comments Vincenzo Tanania, Innovation director of the consulting firm, "are shaping a new data-driven business paradigm, focused on personalisation, efficiency and sustainability.

Record growth

In 2023, AI in the food sector in North America reached a value of $3.5 billion, with a 42.7% share of the global market, which, according to PwC, will rise to 43.4% in 2028. Europe, with a 27% share and a return of $2.2 billion, ranks second in the global market, thanks to the performance of Germany and France, followed by Italy, Spain, the Netherlands and Switzerland. Asia Pacific is the third largest market in 2023, but is projected to be the region where the use of AI in the food supply chain will grow the most in the coming years.

Logistics application top

Looking at segments of the agri-food supply chain, logistics accounts for 34.5% of the AI market, thanks to the use of advanced automation systems that enhance warehouse efficiency and responsiveness. AI, used to improve packaging, and the adoption of automated visual inspection systems ensure timely deliveries and preserve product integrity throughout the supply chain.

More quality control

But in the coming years it is quality control that will drive innovation in the sector and will reach an estimated market value of USD 6.2 billion in 2028, with an average CAGR of 40.6% (2023-2028). Innovation in quality control is linked, on the one hand, tostricter regulations on food safety and transparency standards and, on the other, to consumer demands on product provenance and process sustainability. Thus, advanced algorithms for real-time supply chain monitoring, the application of predictive technologies for preventive maintenance and the integration of intelligent traceability systems are the tools that will facilitate the transition.

From precision agriculture to tourism

Today, the fields of application for generative AI are increasingly numerous. Think, for example, of precision agriculture. Or to the world of hospitality, where AI is already widely used in marketing, communication, sales departments to create content, to find ideas for their editorial plan, to make draft menus or price lists, save the date for events, with the possibility of considerable enhancement for reputation and sales management.

In the food and wine tourism sector, for instance, 10.1% of companies already make use of AI-based chatbots to request assistance and/or information on various products and services, 9.1% for purely tourism-related products and services; naturally, the highest percentage concerns the very young (18.4% and 12% in the 18-24 age group).

Catering applications

The Horeca sector also benefits. According to a survey by the financial technology company SumUp, half of the Italian retailers surveyed have accelerated the digitisation of their business. And they consider it essential to implement AI-based analytics tools to gain insight into customer behaviour and propensity to purchase through data analysis, preferences and consumer feedback. This enables the creation of personalised and targeted offers and services, improving the customer experience and increasing sales. For example, it helps to create the menu with the best balance between raw material cost and selling price, to stay in touch with customers to follow their tastes, but also to analyse consumption to optimise procurement and stock management.

But there are those who go further. Bread & Trita presented in November the Cyber Burger, the first hamburger in Europe created by Artificial Intelligence. Without knowing the Italian law, but knowing how topical the issue of sustainability is, the AI focused on cultured meat. 'An impossible recipe, which we have revisited to make it real,' explains co-founder Pabel Ruggiero. 'That is why today our sandwich is totally plant-based'. To which are added lettuce, balsamic vinegar, brie cheese, black pepper guacamole, smoked vegan bacon and crispy onion. All enclosed between two slices of organic charcoal bread.

While the Consortium Mozzarella di Bufala Campana Dop has launched the first AI project against Italian sounding. The system called 'Nina' is based on a platform that, thanks to artificial intelligence, checks on the web with 'scraping' techniques all the references it encounters on Mozzarella di Bufala Campana Dop. It analyses them trying to detect the presence of imitations, counterfeits, evocations and abuses.