Blockchain in Agriculture and Food Supply Chain Market Analysis

Blockchain in Agriculture and Food Supply Chain Market Analysis

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Based on technology, the market is categorized into automated record keeping, food supply chain tracing, smart contracts, payment processing modules, and food provenance tracking modules. Automated record keeping is expected to register a CAGR of approximately 38%. Automated record-keeping enables secured storage of transactional data in a decentralized and tamper-proof ledger, thereby improving data accuracy, transparency, and efficiency throughout the supply chain. Recording of every step of a product's journey from production to consumption, including origin, processing, storage, and distribution is done via food supply chain tracking. This enhances food safety, quality assurance, and regulatory compliance.
 

In the agriculture and food supply chain market, smart contracts enable automated processes, such as payment releases, quality certifications, and shipment verifications based on predefined criteria, which reduces transaction costs, eliminates intermediaries, and enhances trust among the participants. Food provenance tracking modules leverage blockchain technology by recording key information such as farm practices, certifications, quality tests, and distribution channels on the blockchain to track the origin and authenticity of food products throughout the supply chain. These modules enable consumers and stakeholders to verify the provenance and quality of food products.
 

Based on type, the blockchain in agriculture and food supply chain market is divided into public, private, and consortium. The solutions segment accounted for over 65% of the market share in 2023 and is poised for growth due to the rising demand for comprehensive & specialized customer communications management (CCM) solutions. Public blockchains operate on a permissionless basis, with no access control by any central authority. They are suitable for applications such as food product traceability and verification of organic certifications. 
 

A private blockchain is a permissioned network where access and participation are restricted to approved entities and managed by a centralized authority or consortium of organizations, providing more control over governance, privacy, and scalability. They offer faster transaction processing, reduced costs, and tailored governance models in applications such as inventory management and secure data sharing among trusted partners.
 

In North America, the blockchain in agriculture and food supply chain market is experiencing growth, with a share of over 31% in 2023, due to high-profile food safety incidents and consumer demand for transparency. Consumers in North America are increasingly getting concerned about the origin and the safety of the food they consume. Stringent regulatory requirements in the region, such as the FDA regulations, organic certification standards, and sustainability reporting, are driving the adoption of blockchain. For instance, the UN Food and Agriculture Organization (FAO) reports that supply chains cause 40% of food wastage in North America.
 

Blockchain adoption is fueled by the UK's significant emphasis on sustainability and lowering the carbon footprint in agriculture. Blockchain technology can be used to monitor the sustainability of farming methods and guarantee that environmental regulations are followed.
 

Numerous food safety crises in China have damaged consumer confidence. Blockchain technology offers an unchangeable, transparent record that can follow agricultural products from the field to the table, guaranteeing their safety and authenticity. India's inadequate supply chain management has resulted in large post-harvest losses. Blockchain technology has the potential to improve storage and logistics, lowering losses and boosting the supply of fresh products.?
 

Blockchain technology has the potential to improve food supply chain traceability by enabling customers to follow products from farm to fork. Blockchain can guarantee compliance with environmental standards and offer a transparent record of product origins in Brazil, where worries over the sustainability of agricultural methods have been highlighted by issues like illicit logging and deforestation. Similarly, blockchain assists in identifying the source of imported food goods in the UAE, where there is an increasing emphasis on food security, ensuring their quality and safety.?