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10.11.2025

Future of F&B: Smart Factories Revolution

Illustration for: Future of F&B: Smart Factories Revolution

Today, food and beverage (F&B) producers are under increasing pressure to achieve more with fewer resources—less water, less energy, and less waste—while maintaining quality, efficiency, and profitability. By 2050, global food demand is expected to rise by 60% to feed nearly 10 billion people, without significantly expanding land use. Rising costs, evolving consumer expectations, and ambitious sustainability goals are prompting producers to rethink current factory operations for a sustainable future.

For years, automation has been a key driver of progress, enhancing efficiency and safety. However, traditional systems have limitations, such as rigid logic, isolated data, and slow adaptability, leading to fragmented improvements that restrict visibility and hinder complex decision-making.

The F&B industry is now at a pivotal moment. Technologies like edge computing, cloud integration, and artificial intelligence enable factories to process information and act in real-time. According to McKinsey, automation will account for 25% of industrial capital spending by 2028. Yet, challenges like limited data quality and integration complexity remain. Overcoming these cost-effectively can transform production and reshape the entire value chain, setting agility and resilience as new competitiveness benchmarks.

A Regional Opportunity

The Middle East exemplifies the urgent need for automation and digitalization, with up to 85% of food imported, local producers face water scarcity, high energy costs, and outdated infrastructure. However, the region’s F&B sector is expected to grow at a 6.5% annual rate from 2025 to 2031, highlighting modernization opportunities.

For regional governments, food security is a national priority, integrated into strategies like Saudi Vision 2030, UAE National Vision 2030, and Qatar National Vision 2030. With just 1% arable land and growing populations, digitalization and automation are crucial for long-term resilience.

Against this backdrop, Tetra Pak selected Dubai as the launchpad for Tetra Pak® Factory OS™, an advanced automation and digital solutions portfolio designed to accelerate the transition to smart factories.

The Next Step: From Automation to Intelligence

Future factories are defined not by the technologies they use but by how these technologies collaborate. Connected ecosystems allow continuous information flow across the factory lifecycle, transforming raw data into actionable insights.

F&B producers require more than just smart technology; they need implementation that considers manufacturing realities. Our next-generation automation and digital portfolio, Tetra Pak® Factory OS™, tailored for food and beverage production, simplifies complexity and connects data throughout the factory lifecycle.

Built on industry standards, open technologies, and embedded cybersecurity, it offers a scalable digitalization roadmap, enabling producers to start small and expand as needed. The hardware and software ecosystem connects equipment, data, and personnel, allowing producers to make smarter, faster, and more consistent decisions daily, reducing costs, improving product quality, and boosting productivity.

Tetra Pak® Factory OS™ unlocks data value, converting fragmented signals into actionable intelligence. As analytics and AI gain traction, the portfolio offers a foundation to realize these technologies’ transformative potential, creating a unified digital backbone ready for meaningful AI application.

With over 1,250 smart factory deployments in more than 100 countries, Tetra Pak has witnessed how digitalization enhances business performance, recognizing the essential role of contextual data for AI tools. Highly automated dairies, for instance, achieve up to 20% higher overall equipment effectiveness (OEE) and 45% less product waste than less automated counterparts, proving smart transformation investments yield measurable value.

Transformation Beyond Technology

Realizing the smart factory vision requires more than new systems. Technology adoption is just the visible part of the iceberg. Underneath lie challenges like skills and culture gaps, misaligned incentives, fragmented investments, and obsolescence risks.

Overcoming these requires strategy, not just software. F&B manufacturers need clear vision, structured roadmaps, and long-term partners who understand both operational realities and digital possibilities.

Tetra Pak is your partner for digitalization’s next chapter. We provide expert knowledge tailored to each setup, connect automation and digital tools with ongoing support, and help teams manage change confidently. We ensure investments remain relevant and future-ready, turning data into meaningful actions that enhance performance.

When these elements align, digital transformation becomes practical, scalable, and impactful.

Sean Sims, vice president – automation and solutions at Tetra Pak.

What’s Ahead

Technology remains central to enabling resilience and innovation in a dynamic world.

Future factories won’t just produce food; they’ll continuously optimize it, detecting anomalies and allocating resources automatically for quick decisions. They will conserve water and energy by design and empower teams with insights, not overwhelm them with data.

This is not a distant concept—the wheels are already in motion. As AI, data, and automation converge, the opportunity for regional manufacturers is immense. Adopting integrated, optimized, and connected smart factories today positions them to lead tomorrow, shaping a more efficient, resilient, and sustainable food future.

Sean Sims is the vice president – automation and solutions at Tetra Pak.