AI in Food Manufacturing Market Size to Cross USD 9.51 Billion in 2025

AI in Food Manufacturing Market Size, Growth, and Trends 2025 to 2034

The global AI in food manufacturing market size is projected to expand from USD 9.51 billion in 2025 to USD 90.84 billion by 2034, growing at a CAGR of 28.5% during the forecast period from 2025 to 2034. The growth is fueled by the rising adoption of automation, robotics, and machine learning in production processes, increasing demand for quality control and predictive maintenance, and the need to enhance efficiency, food safety, and traceability.

Last Updated: 20 October 2025 Category: Food and Beverages Processing Equipment and Technology Insight Code: 5884 Format: PDF / PPT / Excel

AI in Food Manufacturing Market Size, Share and Regional Analysis

The global AI in food manufacturing market size reached at USD 7.40 billion in 2024 and is anticipated to increase from USD 9.51 billion in 2025 to an estimated USD 90.84 billion by 2034, witnessing a CAGR of 28.5% during the forecast period from 2025 to 2034. Technological advancements, digitalization and consumer demand for the high quality and safe food along with regulatory pressure significantly driving the market.

AI in Food Manufacturing Market Size 2025 to 2034

Key Highlights

  • By region, North America dominated the global market with the largest share of approximately 45% in 2024.
  • By region, Asia Pacific is expected to grow at a notable CAGR of approximately 30% from 2025 to 2034. 
  • By application, quality control & inspection segment held the major market share of approximately 40% in 2024.
  • By application, process optimization is projected to grow at a CAGR of approximately 28% in between 2025 and 2034.
  • By technology, machine learning & predictive analytics segment contributed the biggest market share of approximately 38% in 2024.
  • By technology, robotics & automation segment is expanding at a significant CAGR of approximately 30% in between 2025 and 2034.
  • By component, software platform segment dominated the market by holding the share of approximately 42% in 2024. 
  • By component, hardware & sensors segment is expected to grow at a significant CAGR of approximately 26% over the projected period.
  • By food type, processed & packaged foods segment held the major market share of approximately 35% in 2024.
  • By food type, beverages & dairy segment is expected to grow at a CAGR of approximately 25% in between 2025 and 2034.
  • By end use, food & beverage manufacturers segment contributed the biggest market share of approximately 50% in 2024.
  • By end use, contract food manufacturers segment is expanding at a significant CAGR of approximately 28% in between 2025 and 2034.

Industry Coverage

Study Coverage Details
Growth Rate from 2025 to 2034 CAGR of 28.5%
Market Size in 2025 USD 9.51 Billion
Market Size in 2026 USD 12.22 Billion
Market Size by 2034 USD 90.84 Billion
Largest Market North America
Base Year 2024
Forecast Period 2025 to 2034
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

What is AI in Food Manufacturing Market?

The global ai in food manufacturing market involves the deployment of artificial intelligence technologies to optimize production, quality control, supply chain, and predictive maintenance in food manufacturing operations. AI applications include computer vision for defect detection, robotics and automation for processing and packaging, predictive analytics for demand forecasting, and machine learning for recipe optimization and process efficiency. The market growth is fueled by rising demand for improved food safety, operational efficiency, traceability, and cost reduction, along with the integration of Industry 4.0 technologies across food processing facilities.

AI in Food Manufacturing Market Outlook

  • Industry Growth Overview: The AI in food manufacturing market is experiencing significant growth driven by its application across the entire value chain, from farm to fork, with a strong emphasis on the food processing sector. Key growth areas include automation in production and packaging, enhanced quality control and safety, and supply chain optimization through predictive analytics and AI-powered monitoring. 
  • Sustainability Trends: AI is transforming food processing and manufacturing by enhancing automation and quality assurance, guaranteeing uniformity and safety. In supply chain management, AI improves transparency and traceability, boosting food safety and minimizing waste. The incorporation of AI into food systems actively supports the aims of sustainable food design by promoting resource efficiency, reducing waste, and improving overall system resilience. They are supporting startups and internal initiatives aimed at automation, quality assurance, food safety, and customized products. 
  • Major investors: Numerous global food, beverage, and technology firms are significantly investing in AI to enhance their competitive position. Key investors in AI for food manufacturing feature venture capital companies like Y Combinator and S2G Ventures, along with direct corporate funding from industry giants such as Kellogg's and McDonald's.

Technological Shift in AI in Food Manufacturing Market

Technological transformation in the AI food manufacturing sector is significantly speeding up the research and development of innovative food items through generative AI and machine learning. In the future, AI's function in the food sector is anticipated to advance, featuring increased autonomy, clarity, and customization. With AI systems increasingly making important decisions regarding food safety and quality, the demand for transparency is growing. AI will offer transparent explanations for AI-generated results, boosting confidence among regulators and consumers. These advancements result in enhanced efficiency, diminished waste, better safety, and increased sustainability. 

  • For instance, Nestlé employs AI-powered cameras on its production lines to oversee the manufacturing process instantaneously. The AI system quickly detects variations from quality benchmarks, marks faulty items, and eliminates them from the production line

Government Initiatives

  • India intends to enhance artificial intelligence (AI) in food processing to increase efficiency, assist farmers, and reduce environmental impact, officials announced at a conference hosted by the National Institute of Food Technology Entrepreneurship and Management (NIFTEM). The government supported a plan to implement AI tools in the sector, with backing from the Secretary of the Ministry of Electronics and Information Technology. 
  • AI Institute for Next Generation Food Systems (AIFS): Backed by a $20 million USDA grant, AIFS is a collaboration of universities investigating how AI can develop a more sustainable, nutritious, and resilient food system. 
  • AgrifoodTEF: This focused TEF, initiated in 2023 with a €60 million funding, aids small-to-medium agritech businesses (SMEs) in experimenting with AI and robotics innovations. It offers a collection of more than 200 AI services for applications such as enhanced irrigation, better food processing traceability, and eco-friendly livestock farming.

AI in Food Manufacturing Market Regional Insights 

North America Dominated the AI in Food Manufacturing Market in 2024.

The implementation of cutting-edge technology for its infrastructure, including dependable IT systems, data centers, and high-speed internet, supported the expansion of AI in the food and beverage industry in North America. The increasing demand for functional food, plant-based options, and personalized nutrition has also contributed to the market growth in the area. Enhanced food quality and increased automation in numerous processes also contributed to the expansion of AI in the regional food and beverages sector. For example, Afresh, established in 2017 by Matt Schwartz and Nathan Fenner, is a company located in San Francisco that utilizes artificial intelligence (AI) to enhance the fresh food supply chain and minimize food waste.

U.S. AI in Food Manufacturing Market Trends

The market in the U.S. is projected to grow considerably during the forecast period, fueled by the nation’s technological dominance and considerable investments in AI research and infrastructure. Trends in the U.S. AI in food manufacturing market include technological advancements and a growing business adoption of novel artificial intelligence technologies to enhance production and strengthen supply chains. AI-driven systems are employed for inspection, real-time surveillance, and quality assurance to ensure food safety and reduce risks. The demand from consumers for tailored and convenient items drives the use of AI for personalized suggestions and improved production methods.

Asia Pacific is Expected to Experience the Fastest CAGR in the AI in Food Manufacturing Sector.

Driven by swift industrial digitization, smart factory advancements, and robust AI and IoT investments. Thriving manufacturing centers, forward-thinking governmental measures, and increasing demand for precision-crafted, tailored goods drive the area to the leading edge of industrial change. The rise in population, swift urbanization, and the increase in disposable incomes in the area is fueling the demand for processed food items. As the food industry expands and there is an increasing emphasis on technological advancements, Asia Pacific provides higher opportunities for the adoption and development of AI solutions in food processing.

India AI in Food Manufacturing Market Trends

Artificial Intelligence is transforming industries around the globe, and India's food sector is no different. Covering agriculture, food manufacturing, sales, and distribution, AI is transforming the industry's operations, offering enhanced efficiency, sustainability, and customer contentment. Businesses throughout India are embracing AI to uphold the utmost standards in food production. Robotics and vision systems powered by AI guarantee cleanliness and accuracy, while tools for predictive maintenance minimize downtime, enhancing efficiency and cost-effectiveness in the production process. As India experiences more urban growth and digital reach, the adoption of AI in the food sector is anticipated to speed up.

The future perspective for the Europe AI in food manufacturing market is extremely optimistic, marked by sustained strong growth and considerable technological advancement. The market is anticipated to experience a greater incorporation of AI, machine learning, and advanced robotics, resulting in highly intelligent and self-sufficient food production systems. There will be a continuous emphasis on hyper-personalization in food production, necessitating extremely adaptable and modifiable automation systems. Germany's food and beverage industry is progressively shaped by changing regulatory environments, particularly the European Union's Food Information to Consumers Regulation and data protection policies in accordance with GDPR. These changes seek to improve transparency, traceability, and consumer safety, presenting opportunities for AI incorporation.

Germany AI in Food Manufacturing Market Trends

Germany's AI in food manufacturing sector is progressively utilizing AI-driven sustainability advancements to enhance supply chain processes and reduce waste. Germany’s food industry is increasingly leveraging AI-powered sustainability innovations to optimize supply chain operations and minimize waste. The integration of AI with IoT sensors and blockchain technology is poised to revolutionize traceability and transparency in food sourcing.

  • In April 2025, the Lufthansa Group launched the “Tray Tracker,” a cutting-edge, AI-driven tool designed to assess and decrease meal returns during flights. The mobile technology examines meal returns from the onboard catering of flights at the dishwashing area. Artificial intelligence identifies if a meal is partially consumed, fully consumed, or remains untouched (Source: Lufthansa Group)

Segmental Insights

Application Insights

Which Application Segment Dominated the AI in Food Manufacturing Market?

Quality control and inspection segment led the AI in food manufacturing market in 2024. Today's consumers seek food that is safe, fresh, and of high quality. To satisfy these requirements, businesses must implement enhanced quality control practices. Human inspections are insufficient now. AI in food and beverage quality assurance guarantees that items consistently adhere to safety regulations. AI systems analyze vast quantities of data swiftly and identify issues before they escalate into significant problems. AI is changing the way inspections are conducted for different food items, such as meat, dairy, seafood, and grains. AI in quality control systems for food and beverages automatically checks for defects, contamination, and foreign substances. This guarantees that only safe, top-quality products reach consumers. 

Process Optimization Segment is Observed to Grow at the Fastest Rate During the Forecast Period. 

AI-driven process monitoring brings a new degree of intelligence offering manufacturers real-time visibility, predictive analytics, and self-sufficient decision-making abilities throughout the production line. AI-driven process monitoring systems enhance current processes by providing real-time visibility and actionable insights, which contribute to lowering energy use, waste, and excessive maintenance. AI enhances delivery routes and schedules by examining current traffic situations and past delivery records. It enhances inventory control and can forecast supply requirements, fostering a stronger and more efficient supply chain. 

Technology Insights

Why did the Machine Learning & Predictive Analytics Segment Dominate the AI in Food Manufacturing Market in 2024?

Machine learning & predictive analytics segment held the dominating share of the AI in food manufacturing market in 2024. Predictive technology in food production utilizes real-time data and learning models to help manufacturers enhance their production management. A key advantage is the capacity to track equipment performance throughout the day. Machine learning algorithms enhance production efficiency and dependability by reducing equipment downtime. Machine learning can examine consumer data from social media, reviews, and sales statistics to spot emerging trends and forecast flavor preferences, facilitating quicker creation of new products.

Robotics and Automation Segment is Seen to Grow at a Notable Rate During the Predicted Timeframe. 

The use of automation and robotics in food manufacturing has resulted in significantly quicker production. Collaborative robots currently fill numerous bottles and packages while performing other intricate tasks more effectively than humans ever did. Reduced ongoing expenses and rapid production enable a robot to create identical food items at a much more economical price. Contemporary, reprogrammable robots can be modified to execute numerous tasks, offering operational versatility as requirements evolve. Automation reduces human interaction with food during processing and packaging, greatly diminishing the chances of contamination from external sources, illnesses, or human mistakes. 

Component Insights

How did the Software Platforms Segment Dominate the AI in Food Manufacturing Market?

Software platforms segment dominated the market with the largest share in 2024. Food producers depend on AI software systems to streamline and improve quality assurance methods that were once manual, sluggish, and susceptible to mistakes. Software platforms function as the core system for merging AI technologies, allowing manufacturers to leverage data for essential applications in quality assurance, supply chain enhancement, and product development. Dashboards give managers an overview of essential performance indicators (KPIs) such as production efficiency, yield rates, and operational expenses. This facilitates quicker and more knowledgeable strategic choices in areas such as product creation and resource distribution.

Hardware & Sensors Segment is Expected to Grow at the Fastest Rate in the Market During the Forecast Period. 

Hardware and sensors facilitate ongoing, automated surveillance that exceeds the speed and precision of manual inspections. Sensor technology driven by AI, including hyperspectral imaging, chemical sensors (electronic noses), and biosensors, can autonomously detect foreign substances, pathogens like Salmonella or E. coli, and chemical residues in both raw and processed food. AI hardware delivers the necessary processing speed and efficiency to surmount these challenges and drive a new era of intelligent food systems.

Food Type Insights

Which Food Type Segment Dominated the AI in Food Manufacturing Market in 2024?

Processed & packaged foods segment held the largest share of the market in 2024. AI aids in enhancing processing parameters to more effectively preserve the nutritional content of cooked foods. AI allows for greater accuracy in tasks such as cutting and can enhance cleaning effectiveness and food safety standards. AI-driven smart packaging solutions have transformed the food sector by improving the tracking, preservation, and safety of food items across the supply chain. These sophisticated packaging solutions include sensors, data processors, and communication technologies to gather and evaluate information concerning the state of the food and its surroundings.

Beverages & Dairy Segment is Observed to Grow at the Fastest Rate During the Forecast Period. 

Artificial intelligence has the potential to transform the dairy and beverage supply chain in numerous ways. It encompasses the entire range of the value chain from predicting demand to overseeing production and supply chain, grasping the market and customer requirements. The application of AI as a formulation tool has gained traction in crafting recipes for dairy product production. AI algorithms are capable of handling vast quantities of data to enhance product formulation for preferred flavor, texture, and nutritional characteristics, providing a tailored experience for consumers.

End Use Insights

Which End Use Segment Dominated the AI in Food Manufacturing Market in 2024?

Food & beverage manufacturers segment led the market in 2024. AI is revolutionizing the food and beverage sector by allowing customized food items designed for individual tastes and dietary requirements, attracting health-aware consumers. AI-driven predictive analytics enables businesses to anticipate demand with greater precision, minimizing overproduction and waste, particularly for perishable items. AI is boosting sustainability efforts by optimizing resource use, minimizing food waste, and enhancing energy efficiency, in line with international environmental objectives.

Contract Food Manufacturers Segment is Seen to Grow at a Notable Rate During the Predicted Timeframe.

Artificial intelligence in contract packaging involves employing data-driven models to organize, execute, and validate packaging tasks carried out by external co-packers. Artificial Intelligence (AI) is revolutionizing the food contract manufacturing sector by improving processing, packaging, sorting, and shipping to meet increasing global food needs. AI facilitates complete traceability from ingredient procurement to the finished item. This enables rapid replies during recalls and fosters consumer confidence through openness, which is essential in the current market.

Recent Developments in the AI in Food Manufacturing Market

Marketpoint Recall

  • Launch: In October 2025, Marketpoint Recall has introduced a new AI-driven, cloud-based food recall platform aimed at assisting brands in handling incidents with efficiency, oversight, and clarity. The system connects consumers, retailers, regulators, and manufacturers in one unified workflow. It reduces expenses, improves efficiency, and protects brand image. (Source: New Food)

Nestlé and IBM

  • Collaboration: In July 2025, Nestlé R&D collaborates with IBM Research to create new technologies that harness the capabilities of Artificial Intelligence and deep tech to realize groundbreaking innovations. This joint research effort has resulted in the creation of a generative AI tool capable of discovering innovative high-barrier packaging materials. (Source: Nestle)

Circus SE

  • Launch: In May 2025, Circus SE, an expert in AI software and robotics for the food service sector, announced a unique pilot partnership with the West Regional Branch of REWE Markt. The autonomous cooking robot CA-1 launched in various REWE supermarkets across Germany, alongside the cloud-enabled Circus Software Suite. The pilot is set to commence in the autumn and is promoted as the first global integration of self-sufficient food production within grocery retail. (Source: Retail Tech Innovation Hub)

Top Companies in the AI in Food Manufacturing Market 

  • IBM is a major supplier of AI solutions for the food production sector, with uses that include enhancing food safety and sustainability as well as creating new products. The firm is especially recognized for its blockchain-driven food traceability system, IBM Food Trust, which employs AI to improve supply chain visibility.
  • Siemens excels in utilizing AI in food and beverage production via its Digital Enterprise suite and Siemens Xcelerator platform. The company's advantage is its incorporation of AI into industrial automation and software systems, tackling essential issues such as efficiency, quality, adaptability, and sustainability. 
  • ABB Ltd. is a key contributor in applying AI to food production, especially via its automation and robotics technologies. ABB provides an array of fast delta and collaborative robots (cobots) for activities such as picking, packing, and palletizing. 
  • FANUC is a leading supplier of robots and collaborative robots (cobots) tailored for the food and drink sector. FANUC's SCARA and delta robots, integrated with AI vision software such as iRPickTool, are capable of efficiently sorting and packing food products like cookies, chocolates, and protein at high speeds. 

Other Key Players in the Market

Segment Covered in the Report

By Application

  • Quality Control & Inspection 
    • Defect detection 
    • Contaminant identification 
  • Process Optimization 
    • Recipe and ingredient optimization 
    • Production scheduling 
  • Predictive Maintenance 
    • Equipment monitoring 
    • Downtime prediction 
  • Supply Chain & Inventory Management 
    • Demand forecasting 
    • Stock optimization

By Technology

  • Machine Learning & Predictive Analytics
  • Computer Vision & Imaging Systems
  • Robotics & Automation
  • IoT & Sensor-based AI
  • Natural Language Processing (NLP) & Decision Support Systems

By Component

  • Software Platforms 
  • AI modeling and analytics software 
  • Visualization dashboards 
  • Hardware & Sensors 
  • Vision systems and cameras 
  • Robotics and automated machinery 
  • Services 
  • Integration and deployment 
  • Maintenance and support

By Food Type

  • Bakery & Confectionery 
  • Beverages & Dairy 
  • Processed & Packaged Foods 
  • Meat, Poultry & Seafood 
  • Fruits & Vegetables

By End-Use

  • Food & Beverage Manufacturers 
  • Contract Food Manufacturers / Co-packers 
  • Retail & Distribution Chains 
  • Research & Development Labs

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The global AI in food manufacturing market was valued at USD 7.40 billion in 2024 and is projected to reach USD 90.84 billion by 2034, growing at a CAGR of 28.5%. This surge is fueled by digitalization, automation, and AI-driven quality assurance across food production lines.

North America leads with a 45% share due to mature digital infrastructure and early AI adoption, while Asia Pacific is the fastest-growing region, driven by industrial digitization and government-backed AI initiatives.

Technologies such as machine learning, IoT sensors, and robotics are transforming food manufacturing by enabling real-time quality monitoring, predictive maintenance, and process automation, improving both efficiency and safety.

AI is primarily used in quality control & inspection (40% share) and process optimization, where it helps detect contamination, improve yield, minimize waste, and maintain consistent product standards.

The software platforms segment leads with a 42% share in 2024, acting as the backbone for integrating analytics, predictive modeling, and visualization tools that enhance decision-making across manufacturing processes.

Top players include IBM, Siemens, ABB, FANUC, Bosch Rexroth, and NVIDIA, leveraging AI for automation, predictive analytics, and blockchain-based traceability solutions in large-scale food production.

Startups such as Afresh and Circus SE are pioneering AI-powered supply chain optimization and autonomous food preparation, addressing inefficiencies and reshaping traditional manufacturing models.

The future is defined by hyper-automation, generative AI in R&D, and autonomous production systems, positioning AI as a core enabler of personalized nutrition, operational excellence, and global food sustainability by 2034.