IoT in FoodTech: Unlocking Opportunities for Businesses

Natalie S, communications expert
Natalie S, communications expert
Jan 26, 2024
9 minutes
The Internet of Things (IoT) refers to the utilization of interconnected sensors and actuators for managing and observing the surroundings, objects in motion, and human activities within it. Various applications of IoT encompass automated homes, connected vehicles, wearable technology, smart cities, and more. According to GlobalData’s projections, the worldwide IoT market is anticipated to achieve a revenue of $1.1 trillion by 2024.
That's why we decided to share how businesses can benefit from implementing IoT into various foodtech processes. We tried not to pour water and briefly consider all the advantages and difficulties that may arise at the stage of implementation. And we left all the details for personal communication.

What are the types of IoT in FoodTech

There are three key areas in which IoT is applied:

• Smart Agriculture

IoT-enabled devices and sensors can monitor crucial parameters such as soil moisture, temperature, and humidity levels in agricultural settings. This data enables farmers to optimize irrigation, detect diseases early, and achieve better crop yields.

• Cold Chain Management

Maintaining the freshness and quality of perishable goods is vital in the food industry. IoT sensors integrated with refrigeration systems can monitor temperature, humidity, and other variables during transportation and storage, ensuring that products remain within specified conditions.

• Inventory Management

IoT-based inventory management systems provide real-time visibility into stock levels, expiration dates, and storage conditions. Automated data collection and analysis optimize inventory levels, reduce waste, and streamline supply chain operations.

What devices are used

Smart Sensors and Tracking Systems:
Temperature and humidity sensors: Monitor storage conditions and prevent spoilage.
GPS tracking: Track the movement and location of food products throughout the supply chain.
RFID tags: Enable real-time inventory management and reduce waste.
Connected Appliances and Equipment:
Smart ovens and cookers: Ensure precise temperature control and automate cooking processes.
Intelligent refrigeration systems: Optimize energy consumption and monitor perishable inventory.
Automated packaging machines: Enhance speed and accuracy while reducing errors.
Wearable Devices:
Wearable devices equipped with IoT technology, such as smartwatches and fitness trackers, are used for tracking and monitoring personal health and nutrition.
Devices that can collect data on physical activities, calorie intake, sleep patterns, and other health-related metrics.

What are the benefits for businesses?

In short, IoT helps to maintain safety standards, limit food waste, manage unpredictable variations, track and monitor the quality of foodstuffs and conditions. Achieve higher levels of traceability, food safety and accountability all throughout the supply chain. Minimize risk, costs and waste in all stages of the process.
However, we all understand that depending on the size of the company, the benefits as well as the cost of the solution will vary.

Small Businesses:

Enhanced inventory management: Real-time data enables accurate stock tracking, reducing waste and optimizing ordering.
Improved food safety: IoT sensors can monitor storage conditions and alert business owners to potential risks, preventing product spoilage.
Streamlined processes: Automated equipment reduces manual labor, allowing small businesses to focus on core operations and customer satisfaction.

Medium Businesses:

Supply chain optimization: IoT tracking systems provide visibility throughout the supply chain, allowing for efficient logistics management and minimizing delays.
Quality control: Sensors can continuously monitor factors such as temperature and humidity, ensuring that products meet quality standards.
Data-driven decision making: Access to real-time data allows for informed business decisions and process improvements.

Large Businesses:

Increased production efficiency: IoT-enabled automation reduces downtime, optimizes workflows, and boosts productivity.
Predictive maintenance: Sensors can detect potential equipment failures in advance, enabling proactive maintenance and minimizing disruptions.
Enhanced traceability and compliance: IoT tracking systems enable precise tracking of products, ensuring compliance with regulations and facilitating recalls, if necessary.

What Challenges will you encounter?

Here we have decided to mention only the most key ones. Of course, in the process of implementing new solutions, there may be many more. But even at the planning stage, it is important to calculate at least the most basic risks.

Initial investment

The cost of implementing IoT solutions may pose a challenge, especially for small businesses. However, long-term benefits outweigh the upfront costs, and exploring affordable options and partnerships can help mitigate financial barriers.

Data security and privacy

IoT systems generate vast amounts of data, necessitating robust security measures. Employing encryption, secure networks, and adhering to industry standards can protect sensitive information from cyber threats.

Integration complexities

Integrating IoT devices with existing infrastructure and software can be challenging. Engaging with experienced IoT solution providers or technology partners can streamline the integration process and ensure compatibility.

For those who are still wondering if they should implement IoT

Do you want to know what you can achieve by introducing IoT into your company, if you work in the field of foodtech?

Enhancing Food Safety

The integration of Internet of Things (IoT) technology in the food industry has significantly reduced the risk of foodborne illnesses. Various types of sensors are utilized to monitor critical production stages, shipping times, and, most importantly, temperature. Real-time temperature tracking sensors enable organizations to closely monitor food safety data points, ensuring efficient management of the cold chain.
With IoT, the supply chain can collaborate to comply with global and local regulations. Automated Hazard Analysis and Critical Control Points (HACCP) checklists are implemented throughout the manufacturing, production, and transportation processes, enabling companies to access meaningful and consistent data to implement effective food safety solutions.

Streamlined Logistics

By employing RFID (Radio Frequency Identification) transmitters and GPS systems, the distribution chain can be effectively monitored throughout storage, shipping, and sales points or stores. This also enables companies to understand customer preferences, respond better to market demands, and reduce excess inventory.
Advanced RFID tracking provides optimal visibility into the food supply chain, automates delivery and shipping processes, and effectively monitors and controls temperature. It also enables shippers to track product locations using GPS. By collecting valuable data, shippers can evaluate performance in various areas, including understanding customer behavior and reducing empty miles in truck fleets.

Enhanced Supply Chain Transparency

Consumers and buyers expect transparency from the companies they purchase from. Employing traceability and transparency across the global supply chain helps food companies succeed by building customer loyalty and trust. While international and domestic regulations can complicate the global food supply chain, IoT technology simplifies product tracking for both companies and consumers.
Transparency also offers additional benefits for companies, including improved inventory management, cost savings, and faster lead times. Businesses can achieve these benefits by identifying and addressing inefficiencies in the supply chain, meeting and exceeding food safety regulations, and providing transparency to customers.

Improved Production and Storage

Sensors play a crucial role in improving quality control, product tracking, monitoring workers’ activities, and enabling real-time analysis in production. Sensors continuously inspect color and impurities during flour production, allowing immediate rectification of any errors. Moreover, sensors measure moisture content, protein levels, and cash content, enabling real-time optimization of the production process.

Reducing Food Waste

According to the United Nations’ Food and Agriculture Organization, approximately one-third of global food production is wasted each year. This not only results in financial losses but also harms the environment by increasing carbon emissions. IoT technology facilitates effortless monitoring of food product conditions and real-time information sharing, reducing food waste.

Addressing Issues in a Timely Manner

Since most maintenance is typically preventive or reactive rather than predictive, employing remote equipment monitoring allows for the anticipation of issues before they occur, saving both time and money.

Examples of FoodTech Companies Leveraging IoT

Let’s remember what plus-minus well-known companies are already using IoT to the fullest extent.
Just Eat: The food delivery platform uses IoT-enabled tracking devices to provide customers with real-time updates on the status and location of their orders, enhancing transparency and customer satisfaction.
Chobani: This yogurt manufacturer employs IoT temperature sensors throughout its supply chain to monitor and maintain optimal storage conditions, ensuring product freshness and safety.
McDonald's: The fast-food giant has implemented IoT-driven technologies, such as smart kitchen equipment and digital menu boards, to optimize operations, improve efficiency, and enhance the customer experience.
Zest Labs: Zest Labs uses IoT sensors to monitor and track the freshness and quality of perishable goods throughout the supply chain, reducing waste and optimizing inventory management.
Blendid: Blendid is an automated smoothie-making robot that uses IoT technology to enable seamless customization and personalization of beverages. It uses data analytics to offer personalized nutrition recommendations to customers.
AgShift: AgShift utilizes computer vision and IoT sensors to automate quality inspection.


IoT technology offers immense potential for the FoodTech industry, benefiting businesses of all sizes. By leveraging smart sensors, connected appliances, and advanced tracking systems, companies can enhance efficiency, optimize processes, improve food safety, and make data-driven decisions. While implementation challenges exist, partnering with experienced IoT solution providers and seeking affordable options can overcome these obstacles.

Embrace the possibilities of IoT in FoodTech, and let the team be your trusted partner in turning your vision into a reality.

Воспользуйтесь возможностями IoT в FoodTech, и пусть команда станет вашим надежным партнером в воплощении ваших идей в реальность.

Воспользуйтесь возможностями IoT в FoodTech, и пусть команда станет вашим надежным партнером в воплощении ваших идей в реальность.