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According to market research by ReportLinker, blockchain in agriculture and food supply chain market is estimated to rise at a CAGR of 47.80%. The overall blockchain in agriculture and food supply chain market, valued at around $60 million in 2018, is expected to go beyond $400 million by 2023, according to this report. Expectedly, North America will dominate this sector during the forecast period.
Blockchain can be used to track food
The FAO estimates that as much as one-third of the food produced globally is wasted. With 820 million chronically hungry people in the world, such wastage is criminal. To stop this waste, a system to estimate and manage the actual supply and demand for food products is required to ensure that it reaches those in need. A blockchain-based system of tracking is the best solution to bring transparency in the food supply chain.
Blockchain can stop food fraud
A blockchain-based system will also play a vital role in preventing food fraud that costs the food industry almost $40 billion each year. New scandals and cases of food fraud – like the horsemeat scandal of 2013 and the melamine-spiked milk case in China in 2008 – have changed public perception and has necessitated a transparent tracking system by the food industry.
Big Food companies already using blockchain tech
Ten of the biggest companies in the food industry, including Walmart and Nestlé SA, are building a blockchain-based tracking system that will capture real-time data at every stage of a food product’s journey. This group, called the Food Trust, has teamed up with IBM and Tsinghua University’s National Engineering Laboratory for E-commerce Technologies to create this system.
According to a press release from ReportLinker on the market research,
“the product traceability, tracking and visibility segment is projected to dominate the blockchain in agriculture and food supply chain market throughout the forecast period.”
While blockchain may have been introduced to the world as the source code for cryptocurrencies, it is slowly, yet surely, finding use, and is quietly revolutionizing, more and more aspects of human endeavor.