Blockchain in Agriculture and Food Supply Chain Market Size & Share 2024 to 2032
Market Size by Type (Public, Private, Consortium), by Application, by Technology, by End User & Forecast.
Report ID: GMI10031
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Published Date: June 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Blockchain in Agriculture and Food Supply Chain Market Size
Blockchain in Agriculture and Food Supply Chain Market was valued at USD 302.8 million in 2023 and is estimated to register a CAGR of over 36.2% between 2024 and 2032. The continuous evolution and integration of technological advancements into blockchain technology in the agriculture and food supply chain segment are expected to fuel market growth.
Blockchain in Agriculture and Food Supply Chain Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
For the government, blockchain provides an immutable ledger that can trace the origin and journey of agricultural products, helping track food safety, verify organic or fair-trade claims, and reduce fraud. For instance, in May 2023, the Karnataka government implemented blockchain-based seed traceability across the state for high transportability. This action ensured seed authenticity, increased transparency in seed distribution, and lowered the number of seed theft incidents.
In the event of any contamination or recall, blockchain can help identify and isolate affected products efficiently, thereby reducing health risks and economic loss. The provision of real-time data on the location and condition of food products through blockchain can help optimize supply chain operations, reducing delays and spoilage. This is particularly beneficial for perishable goods. Automation of transactions and reduction of intermediaries are possible through blockchain, leading to cost savings and improved efficiency in handling and transportation.
In blockchain in the agriculture and food supply chain market, data privacy and security concerns pose significant challenges. As these systems handle sensitive information, ensuring robust security measures is crucial. Organizations must comply with data protection regulations to safeguard the data from unauthorized access or breaches. Additionally, many stakeholders in the agriculture and food supply chain may lack the technical expertise needed to adopt and maintain blockchain systems.
Blockchain in Agriculture and Food Supply Chain Market Trends
There is a rapid evolution in blockchain technology within the agriculture and food supply segment. Various blockchain platforms are providing features such as traceability, transparency, and smart contract functionalities, allowing the stakeholders to streamline supply chain operations. The integration of these platforms with the Internet of Things (IoT) and Artificial Intelligence (AI) is gaining traction as well. Data collection throughout the supply chain is done by the IoT sensors, while AI algorithms analyze this data to optimize processes, thereby increasing efficiency. Blockchain technology, with its decentralized and tamper-proof nature, is seen as a tool to enhance supply chain resilience by providing transparency, reducing risks of fraud & counterfeiting, and enabling rapid response to disruptions.
Industry players are forming consortiums and strategic partnerships to collaborate on blockchain initiatives. These collaborations facilitate data sharing, standardization of protocols, and interoperability across different blockchain platforms. By working together, stakeholders can overcome challenges such as scalability, data silos, and regulatory compliance.
Blockchain in Agriculture and Food Supply Chain Market Analysis
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.
Blockchain in Agriculture and Food Supply Chain Market Share
IBM and Microsoft dominate the blockchain in the agriculture and food supply chain market with over 10% market share. IBM Food Trust is a blockchain-based platform that connects participants across the food supply chain, including farmers, processors, distributors, and retailers. It provides end-to-end visibility and traceability of food products. Companies, such as Walmart, Nestlé, and Dole, use IBM Food Trust to trace the journey of their products from farm to shelf to ensure food safety and quality. Microsoft is used in several countries including Vietnam to track the journey of pork, vegetables, and poultry.
These players maintain dominance by evolving technologies, expanding global footprints, and catering to diverse industry needs. Their established brand reputation, customer trust, and commitment to addressing evolving customer engagement demands solidify their positions, shaping the blockchain landscape in the agriculture and food supply chain.
Blockchain in Agriculture and Food Supply Chain Market Companies
Major players operating in the blockchain in the agriculture and food supply industry are:
Blockchain in Agriculture and Food Supply Chain Industry News
The blockchain in agriculture and food supply chain market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:
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Market, By Type
Market, By Application
Market, By Technology
Market, By End-user
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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GMI archive
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