“MarketsandMarkets™” 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.
The report “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″ , size is estimated to be USD 133 million in 2020 and is projected to reach USD 948 million by 2025, at a CAGR of 48.1% during the forecast period. One of the major factors driving the blockchain in the agriculture and food supply chain industry is the rise in concerns related to food safety worldwide. Many food manufacturers are now keen on detecting contamination in food products, rising global levels of food fraud, and the rising awareness amongst global producers, manufacturers, and retailers regarding the benefits of the use of blockchain in agriculture.
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.
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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.
The small and medium-sized enterprises sub-segment is estimated to observe the fastest growth in Blockchain in agriculture and food supply chain market by organization size.
The businesses are looking forward to tapping the high untapped potential of the agriculture and food sector market, with technology integration; thus, larger enterprises are heavily investing in improving their existing solutions while new companies are coming up with exclusive solutions according to the need for their national and regional markets. As per NASSCOM's 2019 report, India has more than 450 agri-tech startups, growing at a rate of 25% annually. Despite the lockdown and supply-chains being impacted worldwide, the governments are working overtime to ensure easy availability of vegetables, fruits, dairy, and other essentials, which is expected to drive the use of highly efficient blockchain technologies in the sector in the near future.
The product traceability, tracking and visibility sub-segment is estimated to account for the largest market share by the application segment of blockchain in agriculture and food supply chain market over the forecast period.
Using this technology, processors will identify potential contamination sources during the supply chain and take precautionary steps. Companies have started investing in a blockchain to gain consumer trust, which provides transparency to the consumer to know the food product's complete journey. All the information related to the provenance of the ingredients used, to the shelf, can be viewed by the consumers, which will allow them to gain trust in the product.
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North America is estimated to be the largest market.
With strong support from the giant players and crucial investments in the technology sector, the region is estimated to account for the largest market share in blockchain in agriculture and food supply chains until 2025. The US organizations from logistics, retail and consumer goods, and food verticals widely adopt new technologies to serve customers better and continuously improve business efficiencies. Due to the robust supply chain infrastructure and technology companies, the US market for blockchain in agriculture and food is expected to dominate the overall North American market. Due to the spread of COVID-19, consumers in the North American region began forgoing public venues and preferred eating at home. This resulted in stocking up on groceries and supplies, boosting sales for the month by 29% over the prior year. However, the food stranded upstream is creating food-security risks for vulnerable populations. Thus, in these times, technology is playing a crucial in keeping the participants in the entire supply chain, including producers, manufacturers, and consumers, to stay updated on the condition of their products along the chain.
The blockchain in agriculture and food supply chain market is dominated by few globally established 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 players have adopted various growth strategies such as partnerships, agreements, collaborations, and new product launches to increase their global market presence.
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