Global Blockchain in Food and Agriculture Market to Grow at a CAGR of 50.80% during 2020 –2030

Introduction

The global market for blockchain in food and agriculture was valued at USD 1.42 billion, and it is anticipated to reach USD 86.35 billion by 2030 with a CAGR of 50.80%.

A blockchain is a distributed digital ledger that records financial transactions and is kept up-to-date by a network of computers. Because the technology eliminates third parties like governments, banks, and other organizations, individuals can deal safely and privately.

Cryptography links the ever-growing set of records, called blocks. Each transaction is time-stamped, independently validated by peer-to-peer computer networks, and added to a data chain. Once recorded, data is unchangeable.

Despite its popularity in the banking sector, blockchain technology has many other uses. This new technology will benefit healthcare, law, real estate, and banking.

Blockchain could transform agriculture and food in new ways. More critical issues need to be addressed. According to the FAO, one-third of worldwide food production is wasted. In developing countries, 40% of food is lost during processing. Food loss is reduced by allowing real-time control of storage and transit conditions from processing to sale—reducing food waste. Several governments are interested in blockchain to improve agricultural and food production. As governments use blockchain, market leaders have many opportunities.

Market Dynamics

Market Drivers

• Increased demand from small and medium-sized businesses

SME demand drives blockchain adoption in the food and agriculture supply chain market. Larger businesses invest heavily in developing existing solutions, while newer businesses produce unique solutions tailored to their national and regional markets. NASSCOM reported in 2019 that the agritech industry has more than 450 start-ups and is growing by 25% annually. Agridigital, an Australian start-up, uses blockchain technology to help the grain industry. It helps track and manage grains through the value chain. The rise in SME numbers is expected to drive blockchain technology in agriculture and the food supply chain during the forecast period.

• Concerns about food safety have led consumers to seek more supply chain transparency.

Today's consumers demand transparency in food production processes. To ensure that food is safe to eat, businesses are testing blockchain-based applications to determine and manage food storage conditions along the supply chain—the US-dominated blockchain innovation with the most investments and pilot projects. Nestle (Switzerland), Tyson Foods (US), Dole Food Company, and McCormick & Company have collaborated with IBM (US) on a blockchain project to investigate blockchain's food safety applications.

Market Opportunity

• A rise in agri-food blockchain investment

The exponential growth of blockchain technology across industries has led to significant funding in recent years. From January to May 2018, TechCrunch reports that blockchain venture funds raised USD 1.3 billion. It shows that VCs see blockchain's future as bright. Similar investments are being made in companies that offer blockchain-based solutions and platforms to food and agriculture businesses.

Regional Analysis

Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

Due to its cutting-edge infrastructure and technology, North America controls most of the market. The regional presence of IBM and Microsoft in North America fuels blockchain's expansion in the food and agricultural supply chain sectors. The US leads the region in investments and blockchain pilot projects. Because the federal government hasn't regulated blockchain technology, states can create their own rules and regulations. Retailers in this region have learned how blockchain technology can improve consumer experiences and supply chain systems. This region has started using the technology to develop business apps.

Key Highlights

• The global market for blockchain in food and agriculture was valued at USD 1.42 billion, and it is anticipated to reach USD 86.35 billion by 2030 with a CAGR of 50.80%.
• The global market for blockchain in food and agriculture is segmented into six parts based on organization size, type, providers, stakeholders, application and region. Organization size is further divided into large enterprises & small and medium-sized enterprises. Large enterprises hold the largest market share.
• Segmentation based on type divides the market into public, private and hybrid/consortium. The public segment dominates the market.
• Based on providers, the market is divided into application and solution providers, infrastructure providers and middleware providers. The application and solution providers dominate the market.
• According to stakeholders, the market is segmented into growers, retailers and food manufacturers/processors. The growers are more dominating than the other two.
• The application-based market is divided into product traceability, tracking, visibility, smart contracts, governance, risk, compliance management, and payment and settlement. The product traceability, tracking, and visibility segments dominate the market.
• Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa. North America dominates the market.

Competitive Players

Competitive Players

These are some of the key players who dominate the global blockchain in the agriculture and food markets: TE-Food International GmbH, Ambrosus, arc-net, Bext 360, Coin 22, Filament, FoodCoin Ecosystem, Full Profile Pty Ltd, IBM Corporation, Obook Holdings Inc. (OwlTing), AgriChain Pty Ltd., OriginTrail, Project Provenance Ltd., Ripe Technology Inc., Microsoft Corporation, SAP SE.

Recent Developments

Recent Developments

• February 2022, Ambrosus Core, the technical foundation of the Ambrosus Ecosystem, has announced the start of a prominent developer funding programme. It will give $10 million to developers who build decentralized finance (DeFi) applications and other decentralized solutions on the Ambrosus blockchain.
• In February 2022, Neudesic, a leading Microsoft Azure consultancy, was acquired by IBM.
• OriginTrail initiated the debut of Acala in November 2021 by integrating its decentralized knowledge graph into Acala's developer ecosystem.

Segmentation

Segmentation

Based on organization size:

• Large enterprises
• Small and medium-sized enterprises

Based on type:

• Public
• Private
• Hybrid/Consortium

Based on providers:

• Application and solution providers
• Infrastructure providers
• Middleware providers

Based on stakeholders:

• Growers
• Retailers
• Food manufacturers/processors

Based on the application:

• Product traceability, tracking, and visibility
• Smart contract
• Governance, risk, and compliance management
• Payment and settlement

Based on the region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa