The food and beverage industry involves consumers of all ages. At the same time, it is a sector that emits a high amount of greenhouse gases. According to Krungthai COMPASS, the global food and beverage industry emitted approximately 15.3 billion tons of CO2e, or approximately 26% of total greenhouse gas emissions in 2023, with food loss and food waste ranking among the top contributors.

The Food and Agriculture Organization of the United Nations (FAO) and the UNEP Food Waste Index Report indicate that between 2019 and 2022, the world generated approximately 30% of food waste. In 2021, food loss in ASEAN countries was as high as 15.5% due to a lack of effective management systems. There are also concerns about food shortages due to the increasing global population and the risk of climate change, with Thailand ranked 9th in the world in terms of countries with the most climate risk.

These are catalysts for the drive to leverage AI in the food and beverage industry which has many benefits. For examples, to reduce concerns about food security, to heighten food safety following the strict measures from trading partners, and to offer a solution to labor shortages in the food and beverage production sector.

Levels of AI technology in the food and beverage industry

Beginner AI

• Smart Sorting System - Uses sensors and image recognition systems to sort raw materials by size, color, and quality.

• Temperature Control System - Uses sensors to control temperatures appropriately for different types of product.

• Chatbots for Customer Service - Support customer service through automated message responses.

Intermediate AI

• Quality Control System - Analyzes data from sensors and intelligent image recognition systems to check for contaminants and product quality.

• Predictive Maintenance System - Analyzes data from sensors installed in equipment to predict maintenance.

• Smart Inventory Management System - Analyzes data to predict appropriate inventory needs.

Advanced AI

• Personalized Recommendation System - Analyze large data sets to develop new products or new flavors that are personalized.

• Smart Packaging Design System - Analyze consumer data to design outstanding and sustainable packaging.

• Supply Chain Optimization System - Analyze real-time data throughout the food supply chain to plan efficient production and transportation.

Thai food & beverage companies and AI

According to a survey in 2023, 15.2% of Thai food and beverage companies have already implemented AI in their production lines, with 56.7% plan to use AI in the future. Examples of companies that have already implemented AI in the production lines include Charoen Pokphand Foods Plc (CPF), Ajinomoto Group, Kewpie (Thailand) Co., Ltd., and Thai Beverage Plc. These are all conglomerates with investment capacity. However, with the continuous technological evolution that has reduced the cost of AI and the need to lessen food waste, other food & beverage producers may have to consider the strategy to leverage AI as the means to improve production efficiency as well as to maintain a sustainable competitive advantage.

AI in Food & Beverage Industry