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.
The blockchain technology is rapidly gaining traction in the agriculture industry and multiple research and feasibility studies are currently underway to understand the extent of this technology. Like, experts in China in October 2023 have invented a sensor that can identify water adulteration in honey. This system is small and contains a microwave microstrip line planar resonator sensor tool placed on an insulator substrate to discover pollutants in honey. Whereas in Europe, technology companies are working on artificial intelligence agriculture to stay competitive in the quickly changing AI landscape. Global organizations in the USA are actively engaged in further development and effectively implement on a large scale to mitigate food fraud instances and better manage yield. By making use of cloud-based platforms, cultivators can get live information about soil conditions, crop health, and climate patterns.
The most commonly cited pattern in 2023 was the line of extreme climate conditions like floods, heatwaves, and droughts, which have adversely affected crop cultivation and yields. Another factor supporting the application of blockchain in this industry is food wastage in developed and emerging economies in the name of creating unique dishes and fast food. Moreover, the use of cloud computing to take advantage of data analytics for better decision-making.
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 USD 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.
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.
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 METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
48.1% |
Segments Covered |
By Type, Application, Provider, Organization Size, and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Provenance, OriginTrail, IBM, SAP SE, Ambrosus, ACR-NET, Microsoft, and TE-FOOD International GmbH and Others. |
The private segment is believed to capture a significant share of the blockchain in the agriculture and food supply chain market. This is because big companies are heavily investing in enhancing their current solutions to manage the food chain and agriculture. Moreover, the segment is thriving forward to the public-private business model. The majority of governments are partnering with specialist companies to develop and implement solutions as per their demands and circumstances. For instance, the Indian government, with the National e-Governance Plan in Agriculture (NeGPA) program under the Department of Agriculture & Farmer’s Welfare, is financially supporting the state authorities for digital agricultural projects by integrating the latest technologies like artificial intelligence, machine learning, blockchain and Internet of Things (IoT).
The product traceability segment is anticipated to dominate the category under the blockchain in the agricultural and food supply chain market. The main applications of this sector are tracking and visibility, compliance management, risk, smart contracts, governance, and payment and settlement. This is attributable to the rising demand for solutions and platforms to attain complete traceability of food items throughout the logistics and stop food fraud. Hence, this segment’s market share is expected to elevate upwards in future.
The application segment holds a big share of the blockchain in the agriculture and food supply chain market and is projected to propel at a higher CAGR during the forecast period. The segment has been driven considerably due to the adoption of extremely complicated blockchain supply chain management systems. Whereas the middleware provider segment is expected to rise at an elevated pace during the estimation period. Usually, blockchain middleware software operates by communicating various interlinked cases and elements of this data technology. It is also known to combine several blockchain executions into a separate interface for customer comfort and scale.
The large segment is expected to experience an upward growth trend under this category of the blockchain in the agriculture and food supply chain market. To improve the situation, North America adopted advanced technologies more rapidly than other regions because large enterprises can facilitate customers with a customised approach based on developments that solve the unique requirements of each logistics chain. In addition, big organizations focus on applying efficient data methods to classify and predict coming hazards and utilize this insight to make timely business decisions. All these are likely to fuel the segment’s market expansion.
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. Moreover, the region is a major player in the world market, with the United States and Canada leading.
Europe’s blockchain in the agriculture and food supply chain market is anticipated to drive at a moderate pace in the coming years. The trends for 2024 are expected to largely remain the same as in 2023, like disruption due to the Russia- Ukraine war, declining commodity and input costs, higher stock levels because of oversupply, and adverse climatic situations. Furthermore, as per a survey conducted at the end of 2023, the inventory and lending rate pressures, potential farmer protests, steady enhancement in profitability, and other patterns such as water shortages, transportation issues, El Nino impact, and manpower scarcity in the agricultural industry are likely to shape the regional market in the future.
Asia Pacific is estimated to account for a significant share of the blockchain in the agriculture and food supply chain market in the coming years. China and India are believed to lead the APAC market. India has begun to integrate modern technologies like artificial intelligence, IoT, and blockchain in its agricultural sector. This involves precision farming, livestock monitoring, smart greenhouses, agricultural drones, hopping systems, monitoring climate conditions, and IoT-based Computer imaging. Moreover, the Indian state of Jharkhand became the first in the country to distribute seed through blockchain technology to farmers in August 2022. It was executed in collaboration with a global blockchain technology company called SettleMint.
Latin America is projected to witness a noticeable growth during the forecast period for the blockchain in the agriculture and food supply chain market. Industry layers like Bart Digital, Aliare, GoFlux, Openeen, Traive, Seedz, Terra Megna, Krilltech, etc., are pushing the Brazilian agricultural market forward in 2024. However, the regional farmers face obstacles such as product innovation and effective solutions. It requires greater efforts to hire talented management people and a simple and streamlined approach to increase the adoption of various technologies before, during and after the agricultural operation. Apart from this, in 2024, the country is gearing up to address major macroeconomic challenges and world consumption dynamics, which continue to be at a record level. This is exerting pressure on the item prices in benchmark exchanges.
The Middle East and Africa blockchain in agriculture and food supply chain is poised to grow faster in the coming years. In November 2024, the AgriNext conference will take place in Dubai (UAE), focusing on advancements and revolutions in agricultural technology. This is sponsored by the InternetShine Corp, USA, and orchestrated by InternetShine Technologies alongside Next Business Media. Also, it shows the USA and other major country's interest in the ME region's diversifying strategy apart from oil and gas. And considering the rising food prices and fleet insurance costs this is expected to grow significantly.
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.
By Type
By Application
By Provider
By Organization Size
By Region
Frequently Asked Questions
Blockchain provides an immutable and transparent ledger that records every transaction or event in the supply chain, allowing stakeholders to trace the journey of food products from farm to fork in real-time, thereby enhancing transparency and accountability.
Blockchain facilitates rapid identification and containment of foodborne illnesses by providing accurate and real-time information about the origin, processing, and distribution of contaminated food products, enabling swift recalls and minimizing the impact on public health.
Challenges include the complexity of integrating blockchain with existing IT systems, concerns about data privacy and security, interoperability issues between different blockchain platforms, and the need for industry-wide collaboration and standardization.
IoT sensors collect real-time data on environmental conditions, quality parameters, and product movements, which are then recorded on the blockchain for traceability and analytics. AI algorithms analyze this data to predict supply chain disruptions, optimize logistics, and improve decision-making for stakeholders globally.
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