AI in Food and Beverages Market Size, Share and Growth

AI in Food and Beverages Market Size, Share 2034

The global AI in food and beverages market size stood at USD 11.75 billion in 2024 and is forecasted to expand from USD 16.36 billion in 2025 to approximately USD 320.94 billion by 2034, at a compound annual growth rate (CAGR) of 39.20% during the forecast period from 2025 to 2034. Technological advancements, digitalization and consumer demand for the high quality and safe food and beverages along with regulatory pressure significantly driving the market.

Key Highlights

• By region, North America dominated the market with the highest share 33% in 2024. The expansion of AI in food and beverages market is driven by its advanced technological infrastructure, such as reliable IT systems, data centers and fast internet, that enable the installation of AI. 
• By region, Asia Pacific is expected to grow at a significant CAGR during the predicted period. swift urbanization and rising middle class boosting the demand for the convenient and high-standard food and beverage products. 
• By technology, machine learning segment registered the maximum market share of 30% in 2024. Food and beverage companies are adopting machine learning technology to attain forecast accuracy, shifts in consumer behavior and preferences, seasonal variations, and market disruptions, thereby gaining advantages for market growth. 
• By technology, robotics and automation segment is expected to grow at a significant CAGR in between 2025 and 2034. The food and beverage sector exploring innovative solutions to meet the rising demand for food while maintaining quality and safety standards which is increasing the food automation and robotics.
• By deployment, cloud segment contributed the biggest market share in 2024. Cloud-based services have improved customer experience by streamlining ordering processes and enhancing delivery services. 
• By deployment, on-premises segment is expanding at a significant CAGR in between 2025 and 2034. On-Premises solutions remain particularly attractive for companies with high security, compliance, and data sovereignty requirements.
• By end-use, food processing segment dominated the market in 2024. AI-driven technologies are streamlining and optimizing food manufacturing processes, leading to significant improvements in production efficiency.
• By end-use, supply chain management is expected to grow at a significant CAGR over the projected period. Food and beverage industries utilizing AI to optimize the flow of materials from the acquiring of raw materials to processing and delivery to aid them operate more effectively. 
• By application, quality control and safety compliances segment held the largest share in 2024. AI is transforming food inspection and quality control, enhancing contamination detection, checking product consistency, upgrading shelf-life predictions, risk prediction.
• By application, production and packaging segment expected to grow at a significant CAGR during the forecast period. AI-powered robots can manage processes such as sorting, packaging, and assembling items which is boosting the AI in food and beverages market. 

Industry Coverage

Reducing Waste and Enhancing Efficiency: Leveraging the Market 

Food waste represents a $1 trillion worldwide issue, and AI is among the limited tools that can effectively address it on a large scale. Food businesses prepared for the future will progressively employ AI for demand forecasting, predictive sourcing, and preventing spoilage. AI technologies will examine climate information, buyer behaviors, and past sales to accurately forecast production levels and timing, minimizing excess inventory, shortages, and waste. McKinsey anticipates that artificial intelligence will decrease food waste and create an economic opportunity of $127 million by 2030.

Trends in AI are transforming the food sector, influencing everything from production and safety to tailored diets and more efficient supply chains. As businesses address food waste, safety issues, workforce shortages, and changing consumer needs. This increase is driven by the demand for personalized nutrition, enhanced safety regulations, improved supply chain efficiency, and sustainability, signifying a new chapter in global food production. 

What are the Key Trends in the AI in Food and Beverages Market?

• Personalized nutrition is an emerging concept to customize nutrition supplements for consumers by studying their genetics, lifestyle patterns, and lab-test information. Incorporating AI with personalized nutrition and food production is driving prominent advancements in health results and the overall productivity of the food industry.
• Consumer demand for the sustainability is reshaping with the integration of AI in food and beverage sector. AI is a potent and encouraging technology that can help develop a more sustainable food system, by enhancing productivity and efficiency and flexibility of the food system, as well as lowering its environmental footprint and improving its social advantages. 
• MOA Foodtech, fermentation startup, by utilizing AI converted a waste into the functional foods while Tomorrow, a Seattle-based startup is dismantling the refrigerator segment, using AI to extend the shelf life of product. Investors are financing on the AI-driven food sustainability trend to expand their portfolio and combat consumer demand for sustainability. 
• The integration of AI fulfills consumer demand for the latest flavor and texture in food. Through the examination of consumer trends and preferences, AI can speed up product development. Food and drink companies utilize AI to craft novel recipes, enhance tastes, and even create completely new food product ideas. Examining large datasets enables businesses to swiftly recognize new trends and adjust their products to satisfy changing customer needs. 
• Due to labor shortages and elevated turnover rates in the food sector, restaurants are progressively utilizing AI-driven automation to enhance efficiency and satisfy consumer preference for convenience. Robotic chefs powered by AI can now assess ingredients, accelerate cooking processes, and maintain food safety without requiring human involvement. 
• Today's customers are very concerned about what they eat and the methods used to produce it. To stay current, businesses utilize AI to ensure their products are safe and of high quality. AI can detect hazardous substances, monitor contamination levels, and inspect food for flaws. This assists companies in complying with safety standards and maintaining customer confidence. 
• The worldwide need for eco-friendly and effective food and nutritional supplements is increasing, and plant-based choices have surfaced as a viable answer. Utilizing AI technologies in creating plant-based foods allows companies to speed up product innovation, improve flavor and texture, boost nutritional profiles, and adapt to shifting consumer tastes.

Market Opportunity 

Emerging Markets Advancing AI in Food and Beverages Market

Emerging markets offer substantial unexploited potential for the global AI in food and beverages market. A major opportunity in emerging markets is tackling issues associated with food safety, quality control, and supply chain efficiency. AI-driven solutions can assist emerging market participants in improving food safety standards, establishing quality control protocols, and optimizing supply chain processes to guarantee prompt delivery of goods to consumers. As consumer tastes develop and become more refined, there is an increasing desire for customized nutrition, creative flavors, and convenient food options suited to regional preferences and cultural tastes. AI technologies allow food and beverage companies to evaluate consumer information, recognize new trends, and create tailored products and marketing strategies that connect with target audiences in developing markets. 

Market Challenge 

Higher cost and absence of skilled personnel impeding the market

Implementing AI solutions can be expensive, posing a challenge for smaller companies to adopt them. The initial investment needed for AI implementation, including buying hardware and software as well as recruiting skilled personnel, can pose a challenge for numerous F&B companies. A significant obstacle to AI adoption is the absence of a skilled and informed workforce. Deploying AI technologies necessitates a group skilled in both data science and the food and beverage sector. 

Regional Insights 

North America dominated the AI in food and beverages market in 2024.

The expansion of AI in food and beverages market is driven by its advanced technological infrastructure, such as reliable IT systems, data centers and fast internet, that enable the installation of AI. Furthermore, considerable investment in research and development expenditures boosts in progress innovation in AI technologies, majorly in the food and beverage sector making the widespread endorsement of AI. Additionally, growing demand for the personalized nutrition, functional and plant-based food encouraging the manufacturers to integrate the AI to meet the consumer demand and enhance the quality and efficiency of the product.

The United States held the prominent position in the AI in food and beverages market.

This significant growth is boosted by changing consumer demands for affordable and easily accessible food products. Therefore, industries are integrating the AI in the food processing, quality control and supply chain to improve the productivity and efficiency. Furthermore, AI’s important role in improving efficiency, reducing waste, boosting food safety measures, and permitting personalized nutrition solutions is a major factor driving market growth.

• In 2024, US agrifoodtech startups secured $6.6 billion for AI-driven startup, a 14% increase from last year’s $5.8 billion, as stated in AgFunder’s latest Global AgriFoodTech Investment Report. (Source: AFN-agfundernews)
• In March 2025, GrubMarket, the AI-driven technology enabler and digital innovator of the U.S. food supply chain sector, and the biggest private food technology firm in America, revealed that it has secured approximately $50 million in a considerably higher valued Series G funding round from 3Spoke Capital, Liberty Street Funds, ROC Venture Group, Joseph Stone Capital, Portfolia, Pegasus Tech Ventures, and other undisclosed investors. This funding round places GrubMarket's valuation at more than $3.5 billion. (Source: prnewswire)

Asia Pacific expects the significant growth in the AI in food and beverages market during the forecast period.

swift urbanization and rising middle class boosting the demand for the convenient and high-standard food and beverage products. AI technologies provide solutions to optimize manufacturing, distribution, and marketing processes to complete demand of consumers effectively. Consumer will pay more on premium food and beverage products as net incomes will rise across many nations in the Asia Pacific. AI can aid industries customize their offerings, improve product quality, and offer personalized experiences that resound well with discerning customers in these sectors. AI-driven tools that allow precision agriculture, including predictive analytics, drones and autonomous machines, can aid farmers to increase crop yields in despite of environmental disruptions and rural labor shortages.

• Leveraging frameworks like the National Smart Agriculture Action Plan (2024–2028) and the 14th five-year agricultural plan (2021–2025), the updated strategy prioritizes artificial intelligence and innovative technologies in advancing China’s agricultural modernization. (Source: My News)

Artificial Intelligence represents state-of-the-art technology for India's food and beverage sector. India's farming industry, essential to the Indian economy, is greatly benefiting from innovations powered by AI. AI technologies help farmers enhance crop production by forecasting ideal growth conditions, tracking plant health, and identifying pests and illnesses. AI has demonstrated its potential to revolutionize food production through enhanced quality control and safety measures. India's vibrant food retail sector is using AI to tackle significant issues such as food waste and inventory control. AI systems examine past sales records, seasonal patterns, and customer tastes to forecast demand precisely. Multiple governmental programs aimed at the growth of the food and beverage industry promote the incorporation of AI in this sector. 

• In November 2024, The NAIM national artificial intelligence mission is a program initiated by the Government of India to utilize the potential of artificial intelligence for economic advancement and social progress. The objective is to establish India as a worldwide frontrunner in AI research, development, and implementation in multiple sectors. (Source: Just Agriculture)

Segmental Insights 

Technology Insights

What made machine learning the dominant segment in the AI in food and beverages market in 2024?

The machine learning segment dominated the AI in food and beverages market with the largest share in 2024. Food and beverage companies are adopting machine learning technology to attain forecast accuracy, shifts in consumer behavior and preferences, seasonal variations, and market disruptions, thereby gaining advantages for market growth. Sophisticated machine learning algorithms examine large volumes of data, such as sales figures, customer preferences, and ingredient prices. Through the extraction of actionable insights from this data, AI technology allows food companies to pinpoint popular menu items, grasp customer preferences, and adjust menu offerings accordingly. Machine learning algorithms can detect patterns to enhance production parameters, resulting in an improved manufacturing process and increased efficiency. Machine learning plays a crucial role in managing food throughout the supply chain as it can analyze data to monitor all connections within the chain. 

Robotics and automation segment is observed to grow at the significant rate during the forecast period.

The food and beverage sector exploring innovative solutions to meet the rising demand for food while maintaining quality and safety standards which is increasing the food automation and robotics. Automation technology improves the intelligence of the production line, enabling the complete production process to occur without human involvement, which not only reduces manual operation errors but also maintains and refines the manufacturing process. Japan has consistently led in robotics and automation, and their recent $7.8 million funding for AI-driven culinary robots is poised to transform the food service segment.

Deployment Insights

How cloud segment dominated the AI in food and beverages market in 2024?

The cloud segment held the largest share of the AI in food and beverages market in 2024. Cloud-based services have improved customer experience by streamlining ordering processes and enhancing delivery services. Insights and data analytics obtained from cloud platforms have enhanced operational efficiency and guided decision-making for companies. Cloud services within the food and beverage sector offer effective and creative solutions for diverse processes. These services transform inventory management systems and optimize supply chain operations by leveraging remote servers available on the internet. The merging of artificial intelligence with cloud services allows companies to streamline operations like inventory control and customer support. Chatbots driven by AI can help customers with order placements or offer tailored suggestions based on their tastes. 

The on-premises segment is seen to grow at a notable rate during the predicted timeframe.

Businesses with strict needs for data sovereignty, security, and compliance continue to find on-premises solutions particularly appealing. Additionally, they provide accurate cost control and customized options. By eliminating reliance on external servers, on-premise deployment reduces the risk of downtime even in low-connectivity scenarios and guarantees dependable performance and high availability.

End-use Insights

Which end-use segment held the dominating share of the AI in food and beverages market in 2024?

The food processing segment led the AI in food and beverages market in 2024. Food manufacturing processes are being streamlined and optimized by AI-driven technology, which is increasing production efficiency significantly. To find trends and improve production parameters, machine learning algorithms examine enormous volumes of data gathered from sensors, production lines, and historical records. AI is being used more and more by food and beverage processing industries to increase operational efficiency and deliver consumer goods on schedule in order to meet market demand opportunities.

The supply chain management segment is expected to grow at the significant rate in the AI in food and beverages market during the forecast period.

Food and beverage industries utilizing AI to optimize the flow of materials from the acquiring of raw materials to processing and delivery to aid them operate more effectively. Variety of AI technologies are utilized in supply chain management, such as manufacturing automation, data-driven machine learning models, optimization algorithms, and generative AI.

• In February 2024, Industries that have already used of AI-enabled supply chain management have lowered logistics costs by 15%, enhanced inventory levels by 35%, and improved service levels by 65%. 70% of the informant from a study of CEOs of over 150 industries confirmed that AI is delivering a strong return on investment. (Source: gjia-GeorgetownUniversity)

Application Insights

Why did quality control and safety compliance segment dominate the AI in food and beverages market in 2024?

The quality control and safety compliance segment held the dominating share of the market in 2024. AI is transforming food inspection and quality control, enhancing contamination detection, checking product consistency, upgrading shelf-life predictions, risk prediction, and compliance monitoring to improve public health and safety. Additionally, with increasing customer awareness and demand for transparency, there is rising pressure on food manufacturers to guarantee the highest safety standards. Artificial Intelligence is transforming the field of food safety by offering advanced tools and techniques to combat food safety challenges. AI-powered visual inspection systems of Nestle are reshaping quality control in food production along with this, Danone’s collaboration with Sight Machine has improved real-time monitoring in dairy firms. 

• In May 2025, FoodReady, a topmost supplier of food quality and safety software and consulting solutions, declared major update to its platform, such as, strong novel AI-powered tools, an integrated inventory management module with intelligent IoT tracking, and improved traceability attributes to aid compliance with changing FDA regulations like FSMA 204. (Source: BusinessWire)

The production and packaging segment is observed to grow at the significant rate in the AI in food and beverages market during the forecast period.

AI-powered robots can manage processes such as sorting, packaging, and assembling items so that employees in food production roles can focus more on complicated and rewarding tasks, offering them more space to enhance their skills. Recently, more than 20% of the food and beverage companies has already opted AI technologies for production and packaging. AI allows smart packaging solutions, integrating sensors and data analytics to check and control various factors including temperature, freshness, and shelf life. This guarantees that food items remain in ideal condition throughout the supply chain. 

Recent Developments in the AI in Food and Beverages Market

Datassential

• Launch: In May 2025, Datassential, the top food and beverage intelligence platform, announced the introduction of its new generative AI search and summary, an innovative feature that reshapes how foodservice professionals utilize the industry's most comprehensive collection of insights and information. This innovative generative AI feature is unique to Datassential One, the newly introduced all-in-one platform that integrates Datassential’s top-tier functionalities. (Source: Datassential)

Yum! Brands, and NVIDIA

• Collaboration: In March 2025, Yum! Brands, which owns Taco Bell, KFC, Pizza Hut, and Habit Burger & Grill, collaborated with NVIDIA to speed up the creation of cutting-edge AI technologies for Yum! establishments worldwide. Delicious! Brands, the biggest restaurant firm globally with more than 61,000 sites, is NVIDIA’s initial AI restaurant collaborator. This partnership united the two leaders to incorporate AI into the restaurant and retail sectors on an unparalleled level. (Source: Yum)

Starday

• Investment: In April 2025, Starday, the AI-powered food innovation firm transforming category growth, revealed that it has secured $11 million in Series A funding to boost retail expansion and establish unique collaborations with retailers and CPG brands to develop tailored products. Starday secures $11 million in Series A funding to enhance data-driven food innovation and retail partnerships. (Source: Businesswire)

AI in Food and Beverages Market Leading Companies

• Rockwell Automation Inc.
• TOMRA Sorting Solutions AS
• Milltec Clarfai, Inc.
• ABB Ltd.
• INTELLIGENT Brewing Co.
• Honeywell International Inc.
• Sight Machine Inc.
• Raytec Vision SpA
• Key Technology Inc.
• Google LLC
• Impact Vision
• SAP SE
• NVIDIA Corporation
• Buhler Group
• IBM Corporation
• Microsoft Corporation

Segments Covered in the Report

By Technology 

• Machine Learning
• Computer Vision
• Natural Language Processing
• Robotics & Automation

By Deployment 

• Cloud
• On-premises

By End-use 

• Food Processing
• Supply Chain Management
• Hotel & Restaurant

By Application

• Food Sorting
• Consumer Engagement
• Quality Control and Safety Compliance
• Production and Packaging
• Maintenance
• Others

By Region 

• North America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)
• Latin America