The global blockchain in agriculture and food supply chain market 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. Innovation combined with advanced technologies, such as blockchain and Artificial Intelligence (AI), offers revolutionary solutions to agriculture in the present markets. With the aid of blockchain technology, all the agricultural stakeholders will provide tamper-proof, accurate data about the farms, inventory, credit scores, and food tracking. Thus, the use and investments being made into such technological platforms are highly rising.
The product traceability, tracking, and visibility subsegment by application to dominate the market during the forecast period
Blockchain plays a key role in storing and providing accurate information at every step in the food supply chain. This facilitates increased trust among consumers to buy products from verified farmers and promotes responsible consumption. This technology provides reliable information regarding the origin of the food items right from the source to the store to the consumers, driving its use in the global markets especially in the time of pandemic outbreaks.
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The large enterprises subsegment by type to account for the largest market share in the blockchain in agriculture and food supply chain market
Walmart, Nestle, Kroger, and Carrefour are some of the key giant food retailers that have successfully implemented blockchain technology in their operations since 2018-2019. These are globally operating conglomerates and have invested heavily in understanding their client demands, securing the safety and quality of their food products, and ensuring the traceability of their end product offering to the consumers. Thus, these companies were able to capture larger customer bases and the same model is being implemented by other smaller businesses to implement the same. Thus, the market for this technology is highly in demand.
The application and solution provider subsegment by provider to account for the fastest growth in the blockchain in agriculture and food supply chain market
According to the business model and respective markets, the services for the highly customized application of blockchain technologies are trending globally. Further application and service blockchain technologies that are being highly useful currently in the market can be given as:
AgriChain – A blockchain company focusing on enabling peer-to-peer agricultural transactions and processing while cutting out the middlemen.
AgriLedger – A UK social enterprise project supporting farmers in tracing food origins, getting easier access to financing, and storing transaction data.
Demeter – A central hub to rent and farm micro fields anywhere in the world – with no middlemen, complexity, or the overhead of a big organization.
These are strongly driving the demands.
North America is estimated to be the largest market.
With the presence of key food retailers and suppliers in the US and key technology and service providing companies, the region is experiencing faster growth. According to a US-based Food Marketing Institute (FMI) report, public demand for transparency is growing. The report found that 75% of consumers are more likely to buy brands that provide in-depth information beyond physical labels. According to the blog published by “Food Executive Industry”, changing consumer eating habit is also affecting transparency needs in the US. In 2020, more shoppers (64%) followed a diet or health-related eating program than in 2018 (49%). These factors are driving the strong rise of smart and advanced technology use in the food supply chains in the region.