The food industry embraces the license to innovate, backed by actionable insights. Here are some of the latest stats and insights from FMI's The State of Technology report on how the food industry is investing in technology.
Start with what problem you’re trying to solve through AI and other emerging technology. You can’t do everything, but it’s important to conduct experiments.” — Food Retail Executive
Common Strategies Emphasized by Leadership
Aligning tech investments with ROI-driven goals.
Prioritizing data quality and cross-industry collaboration.
Focusing on practical applications like sales growth, customer acquisition, and operational efficiency.
How is the Food Industry Investing in Technology?
In 2024, food retailers invested over $10 billion, averaging 1% of total sales in technology.
Food suppliers allocated 1.5% of sales to technology, signaling deep commitment to digital transformation.
What is the AI Adoption Across the Food Industry?
47% of retailers and 93% of suppliers use artificial intelligence (AI).
73% of suppliers apply AI to analyze customer data.
Generative AI is used by 26% of retailers and 57% of suppliers for internal content creation.
How Do AI Tools Empower Grocery Shoppers?
AI usage among consumers surged from 30% to 59% in under two years.
Regular users grew from 5% to 19%.
50% of shoppers use AI for food-related tasks: recipes, nutrition facts, meal planning, and more.
How Are Food Retailers Applying Technology?
Food retailers are using technology for growth in electronic shelf labels, product traceability, and fraud detection tools.
Technologies for fresh food inventory planning and demand forecasting are expanding.
83% of food retailers personalize marketing and shopping experiences using technology.
How are Food Retailers Innovating In-Store and Boosting Ecommerce Strategies?
86% of retailers are testing in-store technology to improve efficiency.
80% are enhancing customer experience through experimentation.
63% are trialing technology to boost ecommerce performance.
What Are Food Industry Digital Communication Trends?
Food industry communication trends include top strategies like social media, email, digital circulars, and mobile apps.
Suppliers lead in retail media networks and social shopping.
63% of food retailers report a positive impact from new digital marketing channels.
How Has Omnichannel Engagement in the Food Industry Become the New Standard?
Omni penetration exceeds 90%, with shoppers buying both in-store and online.
Department-level differences offer opportunities for deeper digital integration.
