PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423445
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1423445
Global Blockchain in Agriculture Market reached US$ 158.12 million in 2022 and is expected to reach US$ 254.10 million by 2030, growing with a CAGR of 6.2% during the forecast period 2023-2030.
The global blockchain in the agriculture market has witnessed significant growth and transformations over the years, as blockchain technology has increased in production as can provide information about plants, seed quality, and crop growth. Also, it can even provide information about the supply chain, from seed to consumer. Hence, such factors can help in driving the global blockchain in agriculture.
Furthermore, blockchain can help in verifying the authenticity and provenance of high-value crops, such as organic or fair-trade products. This builds consumer trust and prevents fraudulent claims. The tracking and traceability technology can help in the easy identification of food safety, it can lead to an increase in the adoption of blockchain in agriculture.
Additionally, many manufacturing companies are using this blockchain technology to provide consumers with high-quality products and transparent information. For instance, * In April 2020, IBM and Nestle had a partnership that enables nestle to use the IBM food trust enterprise blockchain to trace its Zoegas coffee brand. This coffee would come in a QR code scanner to help the consumers trace coffee beans for their origin. The IBM food trust enterprise blockchain will record the data about the farmers, time of harvest, transaction certificate for specific shipments as well as roasting period.
Increase in Demand for Smart Agriculture Practices
As consumers are interested in knowing where their food comes from and how it's produced is increasing, the demand for blockchain in agriculture is raising, as it provides information about each stage of a product's journey can be recorded, from planting to harvesting, processing, packaging, and distribution. This enables quick and accurate traceability in case of contamination or quality issues, which is essential for ensuring food safety and meeting regulatory requirements.
Furthermore, many key players are focusing to produce innovative technologies in order to provide customers with precise information. For instance, in July 2020, J. M. Smucker Company brand through its 100% Colombian Coffee packaged product, 850® Coffee collaborating with Farmer Connect, now Customers can now track their coffee's origin using IBM's blockchain technology on a platform created to improve traceability, efficiency, and fairness in the coffee supply chain.
The Rise in Demand for Supply Chain Transparency
The demand for transparency in the supply chain is increasing as consumers are more conscious about the origin, production methods, and ethical considerations of the products they purchase, which increases the demand for blockchain in agriculture as it provides more transparent and accurate information about the quality of the product and also helps in easy identification of food contaminants and helps in increasing the food safety. Hence, such factors lead to an increase in the adoption of blockchain technology.
Furthermore, many country governments are taking initiatives to increase the availability of blockchain to consumers. For instance, in June 2023, the Minister for Information Technology and Digital Services of Tamil Nadu inaugurated the State Training Centre for e-Governance and launched Nambikkai Inaiyam (NI). This blockchain will be used by qualifying parties to build transparent, efficient and secure citizen-centric and inter-organizational workflows. Enterprise-grade G2G and G2C products and services will be implemented using this infrastructure. The NI platform will also function as a Blockchain As A Service (BAAS) provider to Government departments and Public sector organizations, agencies and companies. Such initiatives can help in increasing the adoption rate.
Lack of awareness among the Consumers
The lack of awareness among consumers, and stakeholders can lead to resistance to adopting new technologies This could delay the transformation of the industry and the realization of the potential benefits that blockchain. This could lead to decrease funding for research and development of blockchain technologies. Hence, it could lead to declination in market growth.
Furthermore, due to less awareness about blockchain technologies, many manufacturers are not even aware of government schemes. For instance, in December 2021, the Ministry of Electronics & Information Technology Government of India launched a National Scheme on Blockchain. National Blockchain Framework would be used for the development and large-scale hosting of Blockchain applications in different areas such as agriculture supply chain, electronic health records, education certificate chain, drug supply chain, etc. This infrastructure will be used for providing Blockchain-as-a-Service.
The global blockchain in the agriculture market is segmented based on type, stakeholders, providers, organization size, distribution channel, application and region.
Raising in Demand for Effective Blockchain Management
Product traceability, visibility, and tracking segment hold the largest share in the global blockchain in agriculture, as the blockchain can provide traceable tamper-proof information about the product in every step of the supply chain, it also helps in reducing food safety issues as it can helps in quick identification of problems. This also provides all stakeholders with up-to-date visibility into the status and location of products, improving coordination and decision-making.
Furthermore, many manufacturing companies are producing innovative products in order to attract a larger consumer basis. For instance, J.M Smucker uses the IBM blockchain to trace coffee beans of the 1850 Brand. Smucker will use a blockchain to trace Colombian coffee beans while letting consumers make donations to coffee farmers in Colombia. Such products can help increase adoption of blockchain.
Increase in Research and development and Presence of vast agricultural land
North America has been a dominant force in the global blockchain in the agriculture market and its significance has only grown in the post-2020 era. The demand for blockchain technology is raising in this region as consumers in this region are demanding efficient information regarding the origin, food processing, and distribution, which leads to an increase in the adoption rate for blockchain in this region.
Furthermore, the market in this region is majorly driving as the key players' companies are producing a wide variety of products and increasing research and development of blockchain technologies in this region due to the larger consumer base is helping in increasing the global blockchain in the agriculture market.
Additionally, the presence of vast agricultural land can help increase in the adoption of blockchain in agriculture as it can provide exact information about the plants, seed quality, crop growth, and information on the tracking of seeds from farms to consumers. For instance, according to the US Department of Agriculture report of 20221, the United States has approximately 911 million acres of agricultural land.
The major global players in the market include IBM Corporation, TE-FOOD International GmbH, Arc-Net, iTrust, SAP SA, Origintrail, Ripe Technology, Inc, Grain Chain, Inc, Bitfury Group Limited and Amazon Web Services.
The pandemic had brought a positive impact on the global blockchain in the agriculture market. During the pandemic, people become more conscious about food safety, and processing, which has raised the demand for precision tracking and traceability of products. But due to government lockdown restrictions, the distribution chain has been disrupted.
The ongoing conflict between Russia and Ukraine has brought a disruption in countries' economies many manufacturing companies are had been shut down due to less employment ratio, exports and imports rate, which had shown a negative impact on the adoption rate and distribution channel.
The global blockchain in agriculture market report would provide approximately 85 tables, 89 figures and 186 Pages.
Governance,risk and compliance management
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