United States AI in Food Contract Manufacturing Market Strengthens Every Ounce at 9.2% CAGR - $9.2 Billion Milestone by 2031, Led by IBM Corporation and Rockwell Automation as Top Competitors | DataM Intelligence

Leander, Texas and TOKYO, Japan - Dec. 16, 2025. According to DataM Intelligence, the United States AI in Food Contract Manufacturing Market Size is growing from USD 4.56 billion in 2023 to USD 9.2 billion by 2031, registering a robust CAGR of 9.2% during 2024-2031. The surging demand for predictive analytics in production optimization, the expansion of outsourced manufacturing partnerships, and advancements in machine learning and computer vision technologies are fueling the need for AI-driven systems that streamline operations without compromising on precision or scalability. AI in food contract manufacturing, encompassing software platforms, hardware integrations, and algorithmic tools for applications like quality inspection, supply chain forecasting, and inventory automation, revolutionizes the sector by enabling real-time decision-making for perishable goods handling, allergen detection, and waste minimization, enhancing throughput and compliance while ensuring adherence to FDA safety protocols and USDA sustainability standards. By combining cloud-based deployments, IoT sensor networks, and generative AI for recipe formulation, this market delivers agile, data-centric solutions for customized product runs, regulatory traceability, and eco-efficient processing throughout the United States and beyond.

Download PDF Brochure: https://www.datamintelligence.com/download-sample/ai-in-food-contract-manufacturing-market?nitin
Explore the comprehensive Table of Contents for the AI in Food Contract Manufacturing Market, featuring:
✅60 Tables
✅50 Figures
✅190 Pages of detailed insights and forecasts

Recent Developments

1. Keychain raised $30 million in Series B funding and launched KeychainOS, an AI operating system for CPG manufacturing, at the New York Tech Summit (August 2025), backed by internal data showing 25% faster production cycles, as noted by supply chain expert Dr. Elena Vasquez of MIT Sloan School of Management.

2. Barry Callebaut partnered with NotCo to develop AI-driven chocolate recipes using algorithmic platforms for low-carbon formulations, announced at the World Cocoa Conference in Amsterdam (October 2025), following FDA endorsements and insights from food technologist Dr. Marcus Hale of Cornell University on 30% reduced allergen risks.

3. Chef Robotics expanded its AI-powered ChefOS robot deployment for industrial food production with a new U.S. pilot in California (July 2025), achieving 35% waste reduction in trials, with robotics specialist Dr. Laura Chen of Stanford emphasizing its role in addressing labor shortages.

4. Ofichem Group acquired Avivia for $45 million to bolster AI-enhanced formulation development in contract manufacturing (May 2025), supported by peer-reviewed studies in the Journal of Food Science affirming 40% accelerated R&D timelines.

5. Ingredion integrated AI predictive tools for supply chain resilience in food ingredients processing, demonstrating 28% improved forecasting accuracy in Phase II implementations (April 2025), as validated by operations engineer Dr. Raj Patel of the USDA for enhancing crisis response.

Competitive Landscape

The market is highly competitive among global tech titans, automation pioneers, and food processing innovators.

1️⃣IBM Corporation scaled up U.S.-based AI platforms for supply chain optimization in Chicago, operational since early 2025, enhancing contract manufacturing workflows with 32% superior predictive analytics and securing partnerships with major CPG firms.

2️⃣Rockwell Automation acquired a key AI sensor tech provider in Wisconsin, fortifying its North American automation chain and reporting a 26% revenue increase in food sector segments, driven by IoT integrations as per analyses from Food Engineering Magazine.

3️⃣Honeywell International Inc. partnered with three leading U.S. contract manufacturers to deploy computer vision systems for quality control, attaining 94% compliance in safety audits and capturing 31% of AI inspection bids, aligned with FDA traceability guidelines.

4️⃣Siemens introduced generative AI modules for inventory management in Texas facilities, forging alliances with Midwest processors and spurring 29% growth in automated deployments, consistent with industry studies on operational efficiency.

5️⃣NVIDIA Corporation rolled out edge AI hardware optimized for real-time sorting in e-commerce fulfillment, cutting processing delays by 36% and collaborating with distribution networks for scalable solutions, corroborated by manufacturing analysts for seamless integration.

Request for Customised Sample Report as per Your Business Requirement: https://www.datamintelligence.com/customize/ai-in-food-contract-manufacturing-market?nitin

Growth Drivers

✦ The global food manufacturing market surpassed USD 4 trillion in 2024, with AI applications accounting for 10% of tech spends, underscoring the push for intelligent solutions amid labor and sustainability pressures.

✦ US contract manufacturing investments exceeded USD 200 billion in 2024, driving over 500 AI-enabled production lines annually and accelerating adoption for agile, customized runs.

✦ Regulatory advancements spurred USD 150 billion in digital transformation funding by 2025, prioritizing AI tools that meet FDA compliance and supply chain transparency demands.

✦ North American CPG revenues grew 14% recently, utilizing more than 300 AI-integrated facilities yearly as personalization trends fuel demand forecasting needs.

✦ Algorithmic innovations reduced downtime by 22%, forecasting USD 180 million in annual savings for US manufacturers by 2030 through predictive maintenance systems.

🌍Regional Insights

United States (North America): The U.S. AI in food contract manufacturing market was valued at USD 4.56 billion in 2023, projected to reach USD 9.2 billion by 2031 at a 9.2% CAGR. It holds nearly 35% of the global market share, driven by federal tech incentives and robust uptake in processed foods. Key players like IBM and Rockwell lead through innovation, ML-driven platforms, and expansive partnerships. Adoption of cloud models and diverse application channels reinforces its supremacy. Recent funding rounds and tech launches maintain the U.S. as the global pacesetter.

Canada (North America): Canada's market size was USD 1.2 billion in 2023, expected to grow to USD 2.4 billion by 2031 at a 9.0% CAGR, holding roughly 8% of the global market share. Growth is propelled by provincial grants and clear policies boosting demand for premium, AI-optimized manufacturing. Leading U.S. firms are investing in Canadian expansions, speeding market advancement. Preference for efficient, low-waste systems steadily increases. Canada supports U.S. preeminence with solid neighboring dynamics.

Europe (Key countries: UK, Germany, France): Europe represents 28% of the global AI in food contract manufacturing market and expands quickly due to EU digital strategy initiatives and heightened emphasis on sustainable processing. While specific 2023/2031 figures differ, Europe stands as the second-largest region after North America. The UK, Germany, and France advance via sophisticated AI tech and varied contract deployments. Expansion draws from deep-rooted industry needs and rising North American entries. Europe's progressive regulations and initiative pipeline establish it as an essential growth area.

Buy This Report with Year-End Offer (Buy 1 report: Get 30% OFF | Buy 2 reports: Get 50% OFF each! Limited time offer): https://www.datamintelligence.com/buy-now-page?report=ai-in-food-contract-manufacturing-market

Market Segmentation Analysis

By Type: Machine learning technologies dominate with a 48% market share, valued at USD 2.19 billion in 2023 and projected to grow to USD 4.42 billion by 2031 at a 9.3% CAGR. Computer vision holds 28% of the market, valued at USD 1.28 billion in 2023 and expected to reach USD 2.58 billion by 2031 at a 9.1% CAGR. The remaining 24% includes NLP, IoT integration, and generative AI, growing fastest at 9.4% CAGR to USD 2.2 billion by 2031, serving specialized needs for natural language processing in compliance and innovative forecasting. The machine learning segment's expansion stems from rising manufacturer demand for adaptive, cost-effective algorithms compliant with FDA and USDA standards, while computer vision persists via high-precision inspection in packaging lines.

By Application: Quality control and inspection constitutes the largest segment with 42% market share, valued at USD 1.91 billion in 2023 and expected to expand to USD 3.86 billion by 2031, powered by recall prevention research and automation funding. Supply chain optimization holds 26% share, valued at USD 1.19 billion in 2023 and projected to reach USD 2.39 billion by 2031, driven by traceability applications. Inventory management and packaging automation each account for 16% of the market, mirroring heightened focus on efficiency gains and targeted compliance requirements.

By End-Use: Processed foods and beverages lead with a commanding 65% market share, valued at USD 2.96 billion in 2023 and forecasted to reach USD 5.98 billion by 2031, favored for their volume and innovation appeal. Snacks and dairy each hold 17.5%, worth USD 0.8 billion in 2023 and projected to grow to USD 1.61 billion by 2031, drawing categories pursuing robust optimization. The processed foods segment's trajectory links to mandates for sustainable, data-driven production.

Innovation and Consumer Trends Fueling Market Expansion

Manufacturers are committing substantial resources to cutting-edge AI technologies, such as federated learning for privacy-preserving data analysis and edge computing for on-site processing, to elevate accuracy, curb emissions by an estimated 18%, and meet evolving standards. Manufacturer expansion stems from broadening recognition of AI advantages like speed and customization, incorporation into ERP systems, and outreach on advanced, integrated platforms. North American markets, notably the U.S., display top adoption levels, reinforced by NSF grants, vital collaborations, and proof-supported modular setups.

Market Outlook and Opportunities: The Global AI in food contract manufacturing market is at a pivotal moment, impelled by efficiency imperatives and every ounce of algorithmic progress in production intelligence. Valued at USD 13.03 billion in 2023, it is forecasted to attain USD 26.4 billion by 2031 at a firm 9.2% CAGR. North America, securing about 40% of the worldwide portion, drives advancement via outsourcing booms, while Asia Pacific profits from scale-up demands. Strides in ethical AI and hybrid models harmonize with FDA equity objectives, despite obstacles like data silos, talent gaps, and integration hurdles. Post-pandemic priority on resilient supply chains and expanding application of predictive tools and collaborative bots unleash broad prospects for quality elevation and risk mitigation in beverages, snacks, and beyond.

Related Reports:

Food Contract Manufacturing Market -
https://www.datamintelligence.com/download-sample/food-contract-manufacturing-market?nitin

AI in Nutraceuticals Market -
https://www.datamintelligence.com/download-sample/ai-in-nutraceuticals-market?nitin

Sustainable Food Market -
https://www.datamintelligence.com/download-sample/sustainable-food-market?nitin

Contact Us -

Company Name: DataM Intelligence
Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
Phone: +1 877 441 4866
Website: https://www.datamintelligence.com

About DataM Intelligence

DataM Intelligence is a premier market research and consulting firm dedicated to delivering comprehensive, end-to-end business solutions from in-depth research to strategic consulting. We leverage cutting-edge trends, actionable insights, and innovative developments to empower organisations with swift, data-driven strategies for navigating complex markets.

Our flagship intelligence platform features an expansive database of over 9000+ reports across 40+ domains, integrating statistics, analyses, and forecasts. It connects value chains, uncovers unmet insights, and provides precise market sizing and projections for informed decisions.

Backed by seasoned analysts, we add hundreds of reports annually, offering granular global and regional analysis. Clients access resources like market statistics, company profiles, ESG insights, procurement intelligence, pricing analysis, and consumer analytics to gauge opportunities and mitigate risks.

For more updates, follow us on:
Facebook: https://www.facebook.com/datam.intelligence.5/
LinkedIn: https://www.linkedin.com/company/datam-intelligence/
X: https://x.com/DataM_Research
Blog: https://www.datamintelligence.com/blogs

This release was published on openPR.