Today, the global value of Blockchain applied to agriculture and food supply chains is $60.8 million. But it will increase significantly.
ReportLinker estimates, in a new study, that Blockchain’s value in these industries will reach $371 million by 2023 – an annual growth of 47.8%.
According to the industry analysis company, “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 … These issues can be easily and efficiently tackled by effectively using the blockchain network.”
Blockchain is based on Distributed Ledger Technology (DLT) or shared ledger. This makes it possible for several elements in a network (like farmers and merchants) to register and share information with safety, transparency, and speed. The data record is visible to all of the elements in the blockchain, who can approve or reject the information. When it’s approved, the data enters the record as “blocks” organized in a chronological “chain” which cannot be altered.
The need for transparency will be the biggest driver
Behind the huge estimated growth of Blockchain’s value in the agrifood industry is one major reason: an increasing need for transparency in the supply chain.
More and more, consumers want to know where the food products they buy come from – and the conditions in which they’re harvested or processed. Blockchain allows a consumer in a supermarket, for instance, to learn this kind of information about a piece of fruit by reading a barcode with their smartphone.
“Another major driver of the blockchain market is the growing number of food fraud cases,” ReportLinker adds in the report.
Blockchain technology is revolutionizing the food and agriculture sectors by enhancing the decision-making capabilities of organizations.
Obstacles in sight
The application of Blockchain has not proven to be easy.
On one hand, there’s still “uncertainty in regulations and standards.” On the other, the technical skillset for implementing this technology is lacking, according to ReportLinker.
To add to those barriers, many players in the agrifood industry have a difficult time connecting digitally.
North America leading the way
There are no doubts: North America – in particular, the USA and Canada – is the region that will dominate Blockchain, at least until 2023.
This is where the largest investments in the development of new technologies have been made, which increases the odds of Blockchain being widely implemented in North America first.
Besides, it is the home of tech giants – like IBM – and food giants – like Walmart – who have been investing strongly in Blockchain applications in food.