Artificial intelligence (AI) will become an increasingly important industry in the food and beverage sector over the coming years, a new study has found, reaching a market value of $27.99 billion (€25.56 billion) by 2027.
This represents a CAGR of 43.9% between now and 2027, the AI In Food And Beverages Market report, from The Business Research Company, found.
The AI in food and beverages market is expected to be worth $6.53 billion (€5.96 billion) this year, up from $4.46 billion (€4.07 billion) a year ago.
Empowering Start-Ups
At the core of this growth, the report found, is the role that AI plays in empowering start-ups within the food and beverage sector.
'These start-ups are at the forefront of innovation, introducing new food processing solutions, enhancing food delivery systems, and tackling food waste issues,' it said.
'AI plays a crucial role in supporting these startups by analysing customer demands and desires, providing valuable insights that aid in product development and refinement.'
In addition, artificial intelligence has brought about 'significant improvements' in food waste management, deliveries, and food safety, while machine learning has enabled firms to extract insights into consumer demands and preferences more efficiently.
Separately, a recent report from GlobalData suggested that Generative AI, or GenAI, is likely to become an increasingly important force in retail innovation, facilitating the creation of immersive, personalised experiences, as well as integrating virtual and physical retail spaces in a manner that resonates with modern consumers’ expectations.
Practical Applications
Earlier this year, French retailer Carrefour introduced a new AI-powered chatbot using ChatGPT technology to enhance the shopping experience for its online customers in France.
The Hopla chatbot enables shoppers to select products that align with their budget and food preferences, provides anti-waste solutions, and offers menu ideas.
In a similar move, the Italian hypermarket chain, Il Gigante, which is part of Gruppo Selex, recently adopted artificial intelligence to increase the readership of its flyers.
Through AI technology, Il Gigante analyses the catchment area of each store and integrates this data with loyalty card information. By doing so, the retailer measures the effectiveness of both paper and digital flyers in driving traffic to each outlet, allowing for more targeted marketing strategies.
