As new use cases for blockchain are discovered, the world realizes the true potential of distributed ledgers. The technology not only helps in reducing costs but also makes business processes faster and more efficient. Off late, the agriculture and food supply chain industry has also woken up to the benefits of blockchain implementation, and if a new report from MarketsandMarkets is to be believed, the market could grow to $429.7 million by 2023.
Everybody Loves Blockchain in the Industry
In the report titled – “Blockchain in Agriculture Market (and Food Supply Chain), Application (Product Traceability, Payment and Settlement, Smart Contracts, and Governance, Risk and Compliance Management), Provider, Organization Size, and Region – Global Forecast to 2023,” -MarketsandMarkets suggests that the agriculture and food supply chain market, which is currently valued at $60.8 in 2018, will grow at a compound annual growth rate (CAGR) of 47.8 percent over the next five years.
The growth in this sector is driven by the demand for transparency in the supply chain and the rising number of food fraud cases, especially in the emerging economies of Asia Pacific. Concerns related to food waste are also helping in increasing demand for distributed ledgers.
The Congressional Research Service claims that food fraud cases had cost the global food industry an estimated $10 to $15 billion per year as of 2014. The World Health Organization has grave numbers too. In Oct. 2017, around one in every 10 of the world’s population becomes ill each year because of eating contaminated food, leading to about 420,000 annual deaths.
Identifying the Growth Areas in the Food Industry
Based on the size of the organization, between 2018 and 2023, small and medium-sized enterprises are expected to grow at the highest CAGR. Government support will also be instrumental in the growth of the sector.
As to the provider, the ‘application and solution’ provider segment is expected to register the highest growth. Other provider segments include ‘middleware’ and ‘infrastructure and protocol’ which will also gain during the forecasted period as more agricultural firms get on the blockchain bandwagon.
Region wise, the Asia Pacific will grow at the maximum CAGR during the forecast period. As one of the largest producers of agricultural produce and food, the Asia Pacific region will be a natural fit for the emergence of distributed ledgers. However, the probability of fraud and contamination will also be higher in this region, and this could help to lay the right foundation for blockchain adoption. Food traceability requirements will be the highest in Asia as a lot of Asian countries export fruits and vegetables to countries in Europe.