PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530673
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1530673
According to Stratistics MRC, the Global Block Chain In Agriculture & Food Supply Chain Market is accounted for $1.29 billion in 2024 and is expected to reach $5.84 billion by 2030 growing at a CAGR of 49.5% during the forecast period. Blockchain in agriculture and the food supply chain refers to the use of blockchain technology to enhance transparency, traceability, and efficiency. It allows all participants, from farmers to consumers, to securely record transactions and track the journey of food products through the supply chain. This technology ensures data integrity, reduces fraud, and minimizes errors. By providing a tamper-proof record of each step, blockchain helps verify the authenticity and quality of food, improving safety and sustainability.
According to NASSCOM's 2019 report, India has more than 450 agri-tech startups, growing at a rate of 25% annually.
Increasing consumer demand for transparency and traceability
Increasing consumer demand for transparency and traceability provides a reliable, immutable ledger for tracking product origins and journeys. Blockchain technology meets this demand by enabling consumers to verify the authenticity and safety of their food, thereby enhancing trust. This demand encourages producers and retailers to adopt blockchain for competitive differentiation, regulatory compliance, and to build brand loyalty, ultimately driving widespread adoption and integration of blockchain in the industry.
Lack of standardization
Lack of standardization in blockchain for agriculture and food supply chains arises from the diverse range of blockchain platforms and technologies, each with its protocols and interfaces. This inconsistency hinders interoperability, making it challenging for different systems to communicate and share data effectively. Consequently, businesses face difficulties in integrating blockchain solutions seamlessly, leading to inefficiencies and increased costs. This fragmentation ultimately hampers market growth by creating barriers to entry and operational complexities.
Improved crisis management
Improved crisis management enhances the speed and accuracy of product recalls, mitigating the impact of contamination and fraud. Real-time, immutable data tracking allows for swift identification of affected batches, ensuring consumer safety and reducing financial losses. This increased reliability and trust in the supply chain foster consumer confidence and regulatory compliance, driving adoption of blockchain technology among stakeholders seeking to minimize risks and maintain market stability.
Complexity and scalability issues
Blockchain in agriculture and food supply chains faces complexity and scalability issues due to the need for seamless integration with existing systems, handling vast amounts of data, and ensuring compatibility across various platforms. The complexity deters adoption due to high technical expertise requirements and costs, while scalability problems limit the technology's effectiveness in large, global supply chains, eventually hampering market growth by preventing widespread, efficient deployment.
Covid-19 Impact
The covid-19 pandemic accelerated blockchain adoption in agriculture and food supply chains, enhancing transparency and traceability. It highlighted vulnerabilities in traditional supply chains, prompting increased interest in blockchain's ability to ensure food safety, authenticity, and efficiency. Despite initial disruptions, blockchain technologies facilitated remote monitoring, secure transactions, and real-time data sharing, fostering resilience and trust among stakeholders. This shift underscores ongoing digital transformation efforts in the agri-food sector amidst global health crises.
The smart contracts segment is expected to be the largest during the forecast period
The smart contracts segment is estimated to have a lucrative growth. Smart contracts in the agriculture and food supply chain leverage blockchain technology to enhance transparency, traceability, and efficiency. They automate transactions and agreements between parties, ensuring accuracy and reducing costs associated with manual processes. By enabling secure, immutable records of transactions and product provenance, smart contracts help mitigate fraud, improve food safety, and streamline logistics, ultimately fostering trust and sustainability across the agricultural and food supply chain.
The food processors & manufacturers segment is expected to have the highest CAGR during the forecast period
The food processors & manufacturers segment is anticipated to witness the highest CAGR growth during the forecast period. In the agriculture and food supply chain market, blockchain technology enhances transparency and traceability by securely recording transactions across the entire process. Food processors and manufacturers benefit from blockchain's ability to verify product origins, improve food safety protocols, and streamline supply chain operations. This technology ensures that consumers receive accurate information about the products they purchase, fostering trust and potentially reducing food fraud and waste.
Asia Pacific is projected to hold the largest market share during the forecast period due to increasing adoption of technology to enhance transparency and traceability. Blockchain solutions offer benefits such as improved food safety, efficient supply chain management, and better quality control. Governments and enterprises in countries like China, India, and Japan are investing in blockchain to address challenges like counterfeit products and inefficient logistics. This technology is expected to revolutionize the industry by providing reliable data sharing, reducing fraud, and ensuring authenticity across the agricultural and food supply chains in the region.
North America is projected to have the highest CAGR over the forecast period, owing to robust logistics networks, stringent regulatory standards, and a growing emphasis on sustainability. Key trends include increased adoption of technology for tracking and tracing, demand for transparency from consumers, and efforts to reduce food waste. Major players focus on enhancing efficiency through automation and digitalization. The market continues to evolve with innovations in cold chain logistics, packaging solutions, and sustainable farming practices to meet growing demands and regulatory requirements.
Key players in the market
Some of the key players profiled in the Block Chain In Agriculture & Food Supply Chain Market include Walmart, Carrefour, Nestle, Microsoft, SAP SE, Ambrosus, AgriDigital, BlockGrain, OriginTrail, FCE Group AG, Bext360, Modum, Dole and VeChain.
In April 2024, IBM's adoption of blockchain technology within supply chain management heralds a significant departure in the landscape of global supply chains. This strategic move capitalizes on the inherent capabilities of blockchain-decentralization, transparency, security, and immutability-to confront the prevalent challenges in supply chain operations.
In November 2021, Walmart announced a Blockchain partnership with IBM and several other partners to implement blockchain technology for food traceability and supply chain transparency. This initiative aims to improve food safety by enabling faster traceability of food products from farm to shelf, thereby enhancing consumer confidence and reducing food waste.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.