Blockchain in Agriculture and Food Supply Chain Market

Global Blockchain in Agriculture and Food Supply Chain Market Size (2024 to 2029)

The global blockchain in agriculture and food supply chain market is calculated to be USD 0.64 billion in 2024 and is determined to reach USD 4.54 billion by the completion of the envisioned period. The market is also estimated to experience reasonable growth to record a whopping CAGR of 48.1% throughout the conjecture period.

CURRENT SCENARIO OF THE GLOBAL BLOCKCHAIN IN AGRICULTURE AND FOOD SUPPLY CHAIN MARKET

Blockchain benefits in agriculture include easy and inexpensive emergency food lot recalls, full product condition history availability, increased customer trust and loyalty, more equitable approved vendor payments, and proper compliance management. Consortia, such as the Global Blockchain Business Council (Switzerland), the World Blockchain Association (Switzerland), and the Blockchain Collaborative Consortium (BCC), are formed to educate the government and all stakeholders on the benefits of blockchain technology. The market is expected to grow through such initiatives due to the increased demand for supply chain transparency.

MARKET DRIVERS

Consumers in today's markets know and demand total transparency in the processes of their food products. To address this food safety issue, many companies have developed pilot studies to use blockchain technology to determine and monitor the conditions of food products throughout the supply chain. Food giants such as Nestlé (Switzerland), Tyson Foods (US), Dole Food Company, and McCormick & Company have teamed up with IBM (US) in a blockchain collaboration to explore blockchain applications for security food. The exponential growth of blockchain technology around different industry verticals has attracted a large amount of funding in recent years. According to TechCrunch, from January to May 2018, the total capital raised through venture capital funds in blockchain technology amounted to $ 1.3 billion. This shows that venture capitalists see a bright future for blockchain technology. Likewise, significant investments are also made in organizations that offer blockchain solutions and platforms for the food and agricultural industry. While the application of blockchain technology has great potential, the lack of regulation is an obstacle to its full adoption.

MARKET RESTRAINTS

Governments can benefit from understanding that their intervention in the ecosystem can benefit stakeholders by standardizing and regulating technology. However, it will also help the government collect taxes and limit the records distributed for criminal activities. Due to uncertain regulations, the market for blockchain in agriculture and the food supply chain is also affected as it lacks a common set of standards for conducting blockchain transactions.

Impact of COVID-19 on the Global Blockchain in Agriculture and Food Supply Chain Market

Amid the spread of the coronavirus pandemic, the many inefficiencies in food supply chains have materialized on a global scale. This has led to the likely opening of opportunities in technology markets in the medium and long term. The blockchain platform provides a repeatable framework for end-to-end digital business executions. According to the World Economic Forum, blockchain technology is a very effective solution to address inefficiencies in supply chains that have emerged from the pandemic. Alliances between companies such as Cargill and Agrocrop have been forged with Rabobank and other logistics organizations and suppliers to power blockchain and accelerate intercontinental trade in commodities. The imposition of locks has made it even more difficult to trace the origin of many food products, resulting in more dangerous foods. According to the Global Food Safety Initiative (GFSI), food retailers around the world also require supplier certifications to ensure food safety for all stakeholders in the value chain. Therefore, the spread of the COVID-19 pandemic has led to the increasing use of blockchain in the food sector for traceability and transparency.

REPORT COVERAGE

REGIONAL ANALYSIS 

North America is considered the most advanced region in terms of infrastructure and technology adoption. The regional presence of blockchain technology solution providers like IBM and Microsoft in North America is the main driver of North American Blockchain in the Agriculture and Food Supply Chain Market. The US federal government has not regularized blockchain technology, so the US states are free to introduce their own rules and regulations. Specifically, retailers in this region have realized the potential of blockchain technology to provide a better customer experience and efficient supply chain systems; therefore, the region began to adopt the technology to develop commercial applications.

Leading Company

IBM had the largest share of the Blockchain in Agriculture and Food Supply Chain Market in terms of sales and revenue in 2020.

KEY PLAYERS IN THE BLOCKCHAIN IN AGRICULTURE AND FOOD SUPPLY CHAIN MARKET

Key players in the Blockchain in Agriculture and Food Supply Chain Market include Provenance, OriginTrail, IBM, SAP SE, Ambrosus, ACR-NET, Microsoft, and TE-FOOD International GmbH.

RECENT HAPPENINGS IN THE BLOCKCHAIN IN AGRICULTURE AND FOOD SUPPLY CHAIN MARKET

• In April 2020, IBM and Nestlé partnered to allow Nestlé to use the IBM Food Trust corporate blockchain to track its Zoégas coffee brand. The Zoégas coffee would be accompanied by a QR code scanned by consumers to trace the coffee beans to their origin. The IBM Food Trust enterprise blockchain will record data on farmers, the harvest time, the transaction certificate for specific shipments, and the roasting period.

• In May 2019, Microsoft launched Azure Blockchain Services, a fully managed service that enables the formation, administration, and governance of the consortium's blockchain network. It is integrated with the Azure Activity Directory and offers tools to add new members, set permissions, and monitor network status and activity.

• In April 2019, Albertsons Companies (USA) shook hands with the IBM Food Trust blockchain network for tracking lettuce from farm to store. Adding Albertsons to the IBM Food Trust network will help bring blockchain-based food traceability to consumers and industry players.

• In March 2019, Bumble Bee Foods (USA) used the recently launched SAP SE blockchain technology to track fish so that customers can have full transparency on food safety and supply.

DETAILED SEGMENTATION OF THE GLOBAL BLOCKCHAIN IN AGRICULTURE AND FOOD SUPPLY CHAIN MARKET INCLUDED IN THIS REPORT

This research report on the global blockchain in agriculture and food supply chain market has been segmented and sub-segmented based on the product, technology, application, and region. 

By Type

• Public 
• Private
• Hybrid

By Application

• Risk and Compliance Management
• Governance
• Smart Contracts
• Payment and Settlement
• Product Traceability

By Provider

• Application Provider,
• \Middleware Provider
•  Infrastructure Provider

By Organization Size

• SMEs
•  Large

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa