The Global Agrifood Blockchain Market is expected to grow at a high CAGR during the forecasting period (2022-2029).
A blockchain is a digital ledger in which transactions made are recorded chronologically. The blockchain is considered to be the most secure way to share the operations and their details as it’s distributed across each stakeholder across the system. As the transactions are recorded on each stakeholder, it’s nearly impossible to alter or tamper with them. This factor plays a significant role in supply chain management.
As the supply chain is a series of transactions and the visibility across the supply chain would help reduce the various unnecessary cost and wastages across it. The use of blockchain within Agrifood would help to reduce food frauds, will establish the authenticity of the product, and improve customer satisfaction.
Increase in Demand for Agricultural Supply-Chain Transparency and Growth in Concerns Toward Food Wastage are key factors driving the growth of the global agrifood blockchain market.
The agri-food supply chain faces issues concerning the integrity of food items: consumer trust, supply chain transparency, product quality, logistic problems, environmental impact, personal consumer data, fraud, and food safety. Increasing demand for food information from consumers’ side thus reflects the need for transparency and lack of trust.
However, a Lack of Technical skillset in Blockchain Technology and Uncertain Regulations and Standards for Blockchain might hamper the market growth.
For the successful adoption of blockchain technology in the agricultural sector, all parties involved, including farmers, small- and medium- enterprises (SMEs), producers, and processors have to participate actively and engage on the platform or ecosystem using a connected communication network.
While suppliers and distributors possess the essential infrastructure of the technology, small-time farmers and growers in rural areas might lack the technical know-how to utilize the system.
The global Global Agrifood Blockchain market is segmented by stakeholder, provider, and application. The stakeholder segment is further segmented as Growers, Food Manufacturers/Processors, and Retailers.
The providers are classified as Application and Solution Provider, Middleware Provider, and Infrastructure and Protocol Provider.
The critical applications of the Agrifood blockchain are Product Traceability, Tracking, and Visibility, Payment and Settlement, Smart contracts, and Governance, Risk, and Compliance Management. Product Traceability, Tracking, and Visibility is the largest shareholding application of the agrifood blockchain market.
The key innovators are using product traceability to track the origin of the food product along with the complete chain it went through; it helps to establish trust within customers and provides fresh and quality food to the end-user. For instance, Provenance is the key leader in this segment which includes tracking of the source with the help of blockchain and is gaining popularity within developed nations.
The Global Agrifood Blockchain market is segmented into regions like North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America is the leading region of the market owing to the adoption of blockchain into agriculture and the growing blockchain expertise of the area.
However, Asia-Pacific is the fastest-growing region of the market owing to increased government support for blockchain implementation within the Agriculture and supply chain to reduce wastage and food fraud.
As of 2017, there are over 800 companies that are present in the Blockchain market globally. And over USD 1 billion is invested in more than 120 Blockchain start-ups in the past three years. The Agrifood Blockchain market is highly concentrated among major international players such as IBM, Microsoft, Oracle, SAP, etc. where these companies have their brand of blockchain technologies.
Start-ups are increasingly emerging in this growing market and leading their way by focusing on developing consumer-related concerns in the agrifood blockchain market. Thus increasing startups with innovative technologies may intensify the competitive nature in the market.
• SAP SE
• Oracle Corporation
• Product Traceability accounted for the largest share of the market.
• North America accounts for the most significant market value in the Global Agrifood Blockchain market accounting for 40%.
The report covers the factors impacting the market, Porter 5 Forces, Competitive Landscape, Product Benchmarking, and company profiles.
Global Agrifood Blockchain Market is segmented based on the application as into construction, food & beverage, metalworking, oil and gas, paints & coatings, pharmaceuticals, water treatment, and others.
Based on the product type the market is segmented as – metallic compounds, halogen compounds, organic acids, sulfones, phenolic, and others. Based on geography the market is segmented into – North America, South America, Global, Asia Pacific, and the Middle East and Africa.