Blockchain in Agriculture and Food Supply Chain Market by Application (Product Traceability, Payment and Settlement, Smart Contracts, and Governance, Risk and Compliance Management), Provider, Organization Size, and Region - Global Forecast to 2025
Northbrook, IL 60062 -- (SBWIRE) -- 05/25/2022 -- The global blockchain in agriculture and food supply chain market size is estimated at USD 133 million in 2020; it is projected to grow at a CAGR of 48.1% to reach USD 948 million by 2025. This growth is driven by the increasing demand among stakeholders to trace and track the raw materials and final products which increases the trust among all stakeholders. The consumers are becoming more aware of provenance and hence players in food industry are now relying more on blockchain technology. Moreover, after COVID-19 pandemic most of the consumers have shifted on online platforms and so have the players. Blockchain technology helps these players to have safe payment transactions online. These factors are projected to boost the market growth during the review period.
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Driver: Rising concerns for food safety among consumers demanding transparency in the supply chain
Consumers to the present markets are aware of and demand full transparency in terms of their food product processes. With a view of fighting this issue of food safety, many companies have come up with pilot studies to use blockchain technology to determine and control the food product conditions throughout the supply chain. Food giants such as Nestle (Switzerland), Tyson Foods (US), Dole Food Company, and McCormick & Company have joined IBM (US) in a blockchain collaboration to explore blockchain applications for food safety.
Restraint: Uncertainty in regulations and standards
Even though blockchain technology's application holds great potential, the lack of regulations is posing a hindrance to its complete adoption. Governments can benefit by understanding that their intervention in the ecosystem can benefit the stakeholders by standardizing and regulating the technology. Still, it will also help the government collect taxes and limit distributed ledgers for criminal activities. Due to uncertain regulations, the blockchain technology market is also adversely impacted, as there is a lack of a common set of standards for carrying out transactions on the blockchain.
Opportunity: Increase in funding and investments in agri-food blockchain
The exponential growth of blockchain technology over the years, around different industry verticals, has fetched a huge amount of funding in the past few years. According to TechCrunch, from January to May 2018, the total capital raised through venture funds in blockchain technology amounted to USD 1.3 billion. This proves that venture capitalists see a promising future of blockchain technology. Similarly, major investments are also being made in the organizations offering blockchain solutions and platforms to the food and agriculture industry.
Challenge: Data mismanagement among growers during precision farming
The data obtained from farms using smart agricultural tools is of high importance as it helps make productive decisions. There is no industry standard for managing the agricultural data due to which this makes the task difficult for the growers. Many growers or farmers are not aware of the effective use of data for decision-making purposes. Therefore, it is important to provide farmers and growers with proper data management tools and techniques to acquire effectively, manage, process, and use data.
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Key players in this market include major players such as IBM (US), TE-FOOD International GmbH (Europe), Microsoft (US), ACR-NET (Ireland), Ambrosus (Switzerland), SAP SE (Germany), OriginTrail (Slovenia), and Provenance (UK). These major players in this market focus on increasing their presence through expansions & investments, mergers & acquisitions, partnerships, joint ventures, and agreements. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
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