Global Smart Food Market Overview

The Global Smart Food Market size is expected to grow from USD 612.38 billion in 2023 to USD 1,644.37 billion by 2032, at a CAGR of 11.6% during the forecast period (2024-2032).

The smart food market is a rapidly evolving sector driven by consumer preferences towards healthier, more sustainable, and technology-driven food options. This market includes products like plant-based alternatives, fortified foods, and artificial intelligence-based personalized nutrition. The demand for smart food options is growing due to health-conscious consumers' awareness of the impact of their dietary choices on personal wellness and environmental sustainability. Key factors driving the market include the rising prevalence of lifestyle-related health issues, increasing awareness of the environmental impact of food production, and the convenience of ready-to-eat meals. Advancements in technology, such as smart packaging, are supporting these trends.

However, the smart food market faces challenges such as high costs associated with developing and marketing innovative food products, regulatory hurdles, and food safety concerns. Opportunities for growth lie in niche segments like personalized nutrition, where companies can leverage data analytics and consumer insights to tailor products to individual dietary needs. Collaborations between food technology companies and traditional food manufacturers can also foster innovation and expand market reach.

As consumer awareness and demand for healthier, sustainable options increase, we expect the smart food market to continue growing. The integration of technology in food production and distribution will play a pivotal role in shaping the future of this market. Companies that prioritize transparency, sustainability, and consumer engagement will be better positioned to capitalize on emerging trends.

Market Dynamics And Factors For Smart Food Market

Drivers:

Growing Demand and Consumer Awareness for Smart Food

The smart food industry is experiencing rapid growth and development coupled with the demand to protect the consumer's health and interest which has led to the foundation of various regulatory policies and frameworks across the globe. Changing the dietary patterns of consumers due to modern lifestyles has been driving the growth of the smart food market. Increasing purchasing power of consumers has been resulting in shifting preferences towards a more balanced diet, which is expected to boost the growth of the smart food market during the forecast period. Growing food insecurity in developing economies is a key factor driving increasing developments in smart food technologies. The low glycemic index of smart foods helps in managing blood sugar levels and preventing diabetes, which is boosting the adoption of smart food solutions among health-conscious consumers. Smart food serves as an adaptation and mitigation strategy for climate change and is environmentally sustainable, which is contributing to the growing demand for smart food solutions. Farmers are increasingly adopting smart food solutions owing to the potential to increase crop yield. The rising need to reduce risks of chronic diseases among the growing global population is driving smart food choices, and in turn, contributing to the growth of the smart food market. Increasing government support regarding the adoption of smart foods is boosting developments in the smart food market.

Restraints:

Lack of Market Growth in Underdeveloped Regions

Lack of awareness regarding smart foods in underdeveloped economies is a factor restraining the growth of the smart food market, and the trend is expected to change during the forecast period due to increasing programs and campaigns to raise awareness in this regard.

Segmentation Analysis of Smart Food Market

By Food Type, the functional food segment revenue growth rate is projected to incline rapidly during the forecast period. The functional food segment registered the largest revenue share in the smart food market over the forecast period. Functional foods are defined by the presence of many components, some of which are classed as nutrients, that influence a variety of key functions in the body, resulting in improved wellbeing and health and/or a reduction in the risk of certain diseases. As a result, in addition to relieving hunger and delivering essential nutrients, these foods also help to avoid nutrition-related disorders and improve the body's physical and mental health. Demand is being driven by an increase in the consumption of food products containing functional ingredients. Functional ingredients' health-promoting characteristics are driving demand for functional food products among health-conscious consumers, and this trend is likely to continue during the projection period. Functional foods are nutrient-dense and aid in the prevention of nutrient deficiencies as well as the promotion of growth and development, which is boosting demand and consumption among health-conscious consumers.

By End Products, the dairy products segment registered the largest revenue share in the smart food market over the forecast period. Dairy products segment revenue growth rate is anticipated to incline rapidly during the forecast period. The smart food market is predicted to grow at a faster rate throughout the forecast period, thanks to rising dairy consumption and a growing worldwide population. Demand for high-quality dairy products is increasing as consumers' dietary habits and patterns change, and their disposable income rises as a result of their modern lifestyle. Consumer awareness of the numerous benefits of healthy food habits and diet, as well as changing lifestyles, are now driving revenue growth in the dairy products section of the smart food industry. Demand for dairy products is likely to rise as companies in the fast-moving FMCG industry increase their investments.

Opportunities:

Opportunity in Hitherto Underutilized Crops 

Augmenting recognition that, hitherto underutilized crops could offer lucrative and new opportunities in the advent of climate change, as they are uniquely suited to marginalized environments, provide nutritional diversity, and enhance agro-bio-diversity within farmer fields.

Regional Analysis of Smart Food Market

The Asia Pacific region is set to become the leading player in the smart food market due to rapid urbanization, increasing disposable incomes, and growing health and nutrition awareness among consumers. As populations in countries like China and India continue to expand, demand for innovative and healthier food options is surging, prompting a transformation in food preferences.

Technological advancements in food production and distribution, such as precision agriculture, smart packaging, and data analytics, are enhancing efficiency and sustainability. Consumers are increasingly attracted to products that utilize these technologies, as they provide transparency regarding sourcing, nutritional content, and environmental impact. The integration of artificial intelligence in personalized nutrition solutions is also gaining traction.

Governments across the Asia Pacific region are recognizing the importance of transforming food systems to address challenges such as food security and climate change. Initiatives promoting sustainable agricultural practices and reducing food waste are being implemented, creating a supportive environment for smart food innovations. There is a significant opportunity for investors to tap into this burgeoning market, with a projected annual investment need of USD 350 billion. Public-private partnerships are emerging as a viable strategy to drive innovation and scale solutions across the food value chain.

Players Covered  In Smart Food Market

• ADM (US)
• Kellogg Company (US)
• Arla Foods (Denmark)
• Aveka Inc. (US)
• Balchem Corporation (US)
• BASF SE (Germany)
• Cargill Inc. (US)
• Firmenich SA (Switzerland)
• Ingredion Incorporated (US)
• International Flavors & Fragrances Inc. (IFF) (US) and other major players.

Key Industry Developments In Smart Food Market

• In February 2022, responsAbility, in collaboration with KfW as the anchor investor and CGIAR, has launched a groundbreaking investment solution aimed at transforming food systems to combat climate change. This innovative strategy will provide long-term expansion debt to businesses in the food value chain across Asia Pacific, Latin America, and Africa, addressing critical issues like food loss and resilience for smallholder farmers. With an estimated USD 350 billion needed annually to reshape global food systems, responsAbility’s initiative seeks to unlock USD 4.5 trillion in new business opportunities. The partnership aims to implement climate-smart practices on 300,000 hectares while reducing approximately 8 million tonnes of greenhouse gas emissions.