The global blockchain in agriculture and food supply chain market is estimated to be valued at USD 60.8 million in 2018 and is projected to reach USD 429.7 million by 2023, at a CAGR of 47.8% during the forecast period. Blockchain technology is revolutionizing the food and agriculture sectors by enhancing the decision-making capabilities of organizations. According to the FAO, every year about one-third of the food produced globally is wasted, which calls for a need to estimate and manage the actual supply and demand of food products so that these products reach the needy.
These issues can be easily and efficiently tackled by effectively using the blockchain network. The blockchain market is expected to grow, owing to the increase in the demand for supply chain transparency along the agriculture and food verticals. According to the 2016 Label Insight Food Revolution Study, about 94% of the respondents in the study expressed the importance of buying from manufacturers who are transparent. This has driven off the market for blockchain in agriculture and food supply chain. Another major driver of the blockchain market is the growing number of food fraud cases.
According to the Grocery Manufacturers Association (GMA) (2014), the estimated food fraud cases cost USD 49.0 billion to the global food industry annually. This has resulted in an increased awareness among consumers, which is further expected to drive the growth of the blockchain in agriculture and food supply chain market. The uncertainty in regulations and standards and the limited availability of technical skillset for implementing the blockchain technology are the key factors restraining the growth of blockchain technology in the agriculture and food supply chain market.
The product traceability, tracking, and visibility segment is projected to dominate the blockchain in agriculture and food supply chain market throughout the forecast period. Based on application, the product traceability, tracking, and visibility segment is projected to dominate the blockchain in agriculture and food supply chain market throughout the forecast period.The growing demand for platforms and solutions to attain complete traceability of food products across the supply chain and the increasing instances of food fraud in many countries are the major factors supporting the need for product traceability, tracking, and visibility application.
However, there has been an increase in investments in blockchain implementation across the food and agriculture industry vertical, along with an increase in the number of pilot studies across the globe.The payment and settlement segment in the blockchain in agriculture and food supply chain market is projected to grow at the highest CAGR from 2018 to 2023.
The uncertainty in regulations and standards is the major factor restraining the growth of the blockchain in agriculture and food supply chain market globally. Apart from this, the challenges faced by all stakeholders to connect digitally is another major factor affecting the growth of the blockchain in agriculture and food supply chain market.