Blockchain in Agriculture Market Size, Share & Growth [2031]

Report Description

The global blockchain in agriculture market size was USD 171.2 Million in 2022 and is likely to reach USD 246.43 Million by 2031, expanding at a CAGR of 4.13% during 2023–2031. The market growth is attributed to the rising enhanced traceability and transparency of products.

Growing awareness about food safety is anticipated to significantly contribute to the growth of the blockchain in the agriculture market. Increasing adoption of blockchain in agriculture saves working time and money.  This is leading to an increasing demand for transparency in the food supply chain which improves seed quality.

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Blockchain technology is revolutionizing the agriculture sector by enhancing the decision-making capacities of organizations. It improves farming practices by efficiently utilizing labor, water, and fertilizers as valuable resources. In agriculture, blockchain introduces a transformative approach to crop production by generating valuable data. Furthermore, blockchain applications in agriculture play a pivotal role in combating fraud within the supply chain, particularly when delivering harvested crops to food processing companies.

The market report finds that the COVID-19 pandemic moderately impacted the blockchain in agriculture market. The pandemic disrupted the operations of many agricultural businesses, making it challenging to implement new technologies. Lockdowns, travel restrictions, and supply chain disruptions delayed blockchain adoption in some regions.

Post-pandemic highlighted the importance of food traceability and transparency in supply chains. Consumers became more concerned about the origin and safety of their food. There was a growing demand for technologies like blockchain that provide real-time tracking and verification of products. This increased interest has driven investments and adoption in the blockchain-based agricultural sector.

Blockchain in Agriculture Market Dynamics

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Major Drivers

Rising concerns about food safety among consumers drive the market. The rising prevalence of foodborne diseases led to a strong demand for transparency in the supply chain of food products. Presently consumers are well-informed and insist on complete transparency regarding the processes involved in producing their food items. To address these pressing issues related to food safety, numerous companies have initiated pilot studies to leverage blockchain technology. This technology helps for monitoring and managing the conditions of food products across the entire supply chain. For Instance,

• According to a press release by the World Health Organization in May 2022, 600 million, almost one in 10 people fell sick after eating contaminated food. Approximately 420000 die annually, causing a loss of 33 million healthy life years.

Existing Restraints

High cost associated with the implementation of blockchain technology in agriculture hampers the market. The expense of uploading data on the blockchain is expensive and potentially limits the widespread adoption of this technology within the agricultural sector. Moreover, large farms generally benefit from lower data collection costs compared to small farms which raises concerns about worsening income gaps. Thus, the high cost of data acquisition within a blockchain framework presents a significant obstacle to the growth of the market.

Emerging Opportunities

Increasing funding and investments in agri-food blockchain create lucrative opportunities for the market. This allows the development of blockchain solutions tailored for the agricultural sector that leads to the growth of complete and advanced systems for tracking and tracing products throughout the supply chain. These solutions offer improved features, scalability, and integration capabilities making them more attractive to potential users. Enhanced transparency appeals to consumers who are increasingly concerned about food safety and authenticity.

Scope of the Blockchain in Agriculture Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Type Segment Analysis

Based on type, the blockchain in agriculture market is divided into private, public, and hybrid/consortium. The public segment holds the major share of the market during the projection period, due to the increasing demand for transparency and trust. In agriculture, all relevant parties from farmers to consumers are allowed to access and verify data recorded on the blockchain. This transparency builds trust in the system. Public blockchains are typically decentralized means they are not controlled by a single entity. This is a crucial feature in industries like agriculture where there are multiple stakeholders with varying interests. It ensures that no single entity has undue control over the system.

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Organization Size Segment Analysis

On the basis of organization size, the global market is segregated into small & medium-sized enterprises and large enterprises. The small & medium-sized enterprises segment is anticipated to register a high CAGR during the forecast period, due to it providing scalability and efficiency in the supply chain.

Blockchain technology is becoming more accessible and cost-effective. SMEs often find it easier to adopt blockchain solutions as they are designed to be scalable and customizable catering to the specific needs and budgets of smaller businesses. For SMEs efficient supply chain management is critical for reducing operational costs and ensuring the timely delivery of products. Blockchain's ability to streamline supply chain processes, reduce paperwork, and minimize errors benefit smaller agricultural businesses with limited resources.

The large enterprises segment is expected to expand at a significant growth rate, due to the availability of large investment capacity and R&D capabilities. Large enterprises have more financial resources and capital available compared to smaller enterprises. This enables them to invest and implement blockchain technology on a larger scale.

They allocate significant budgets towards research, development, and integration of blockchain solutions in their agricultural operations. This allows them to stay at the forefront of technological advancements including blockchain. They develop custom solutions tailored to their specific needs and integrate them seamlessly into their existing operations.

Stakeholder Segment Analysis

Based on stakeholder, the blockchain in agriculture market is divided into food manufacturers/processors, growers, and retailers. The food manufacturers/processors segment is expected to generate a major revenue share of the market, as it provides supply chain transparency and quality assurance.

Food manufacturers and processors play a crucial role in the agricultural supply chain. They are responsible for processing raw agricultural products into final consumer goods. Implementing blockchain allows these entities to maintain a transparent and accountable record of the entire production process, from the source of raw materials to the final product. Blockchain technology ensures that the products meet the necessary quality standards and comply with regulatory requirements.

The retailer segment is projected to register a considerable CAGR during the forecast period, due to increasing consumer demand for transparency and efficient recall management. Consumers are increasingly interested in knowing the origin and production methods of the products they purchase including agricultural products. Retailers play a pivotal role in meeting this demand for transparency. They provide verifiable and transparent information about the products sold by implementing blockchain which increases trust in their customers.

Blockchain enables retailers to quickly and accurately identify affected batches. This ensures that only the affected products are removed from the shelves by ensuring consumer safety.

Provider Segment Analysis

On the basis of provider, the blockchain in agriculture market is segmented into infrastructure & protocol, application & solution, and middleware. The infrastructure & protocol segment is anticipated to register a robust growth rate during the forecast period, as it enables diverse applications and provides security.

Infrastructure and protocols form the foundational layer of the blockchain network. They provide the essential technical outline that enables the functioning of the blockchain. This infrastructure allows a wide range of applications within the agricultural sector. These include traceability of agricultural products, supply chain optimization, quality assurance, and compliance with industry standards. It is responsible for developing secure and scalable blockchain solutions. This is essential in agriculture where sensitive data such as production records, quality certifications, and transaction details need to be securely stored and accessed.

The Middleware segment is expected to hold a significant share of the market, owing to facilitating the adoption of blockchain technology in the agriculture sector and enhancing its functionality. Middleware providers specialize in creating software solutions that connect different systems and applications. They develop software that connects blockchain technology with existing agricultural management systems, databases, and other software tools. This ensures that blockchain solutions integrate seamlessly into existing workflows by making adoption more possible for agricultural businesses.

Middleware solutions add specific functionalities and features to the blockchain implementation. For example, they enable advanced data analytics, and integration with Internet of Things (IoT) devices for real-time data tracking. In agriculture, this provides valuable insights into crop performance, supply chain efficiency, and resource utilization.

Application Segment Analysis

Based on application, the global market is segregated into governance, risk & compliance management; payment & settlement; smart contract; and product traceability, tracking & visibility. The product traceability, tracking, & visibility segment is anticipated to drive the market during the assessment period, due to the growing compliance with industry standards.

Many agricultural products are subject to strict regulatory standards and certifications such as organic, fair trade, and non-GMO. Product traceability, tracking, and visibility ensure that products meet these standards by providing an auditable record of their journey through the supply chain. This helps agricultural businesses validate compliance and gain consumer trust.

The payment & settlement segment is anticipated to gain a significant revenue share of the blockchain in agriculture market, as it provides secure transactions and faster settlement time. Blockchain technology provides a transparent platform for conducting financial transactions. Payment & settlement allow for seamless and secure payments between various stakeholders in the supply chain such as farmers, distributors, processors, and retailers.

Blockchain transactions are typically faster compared to traditional banking systems which involve multiple intermediaries and approval steps. This rapid settlement time is crucial in agriculture where timely payments are important for maintaining smooth operations, especially during harvest seasons.

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Regional Outlook

In terms of region, the global blockchain in agriculture market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to the presence of a robust technological ecosystem and growing investment in innovation.

North America, particularly the US, has a highly developed and advanced technological ecosystem. It is home to leading technology companies, research institutions, and startups. This ecosystem fosters innovation and R&D in emerging technologies akin to blockchain.

The region assigns substantial resources towards research and innovation which extends to blockchain technology. The region has a strong culture of entrepreneurship and capital investment which supports the development of new technologies in various industries including agriculture.

The market in Asia Pacific is projected to grow rapidly during the forecast period, owing to the diverse agricultural industries, growing agriculture sector, and increasing investment made by stakeholders. Emerging economies such as China, India, and Indonesia have vast agricultural landscapes and play a significant role in global food production. The adoption of modern technologies including blockchain is crucial for optimizing operations and ensuring food security.

The region is experiencing a surge in technological innovation and investment across various industries. This includes agriculture, where stakeholders are recognizing the potential benefits of adopting technologies like blockchain. Investments in research, development, and implementation of blockchain solutions are driving the adoption of this technology in the agricultural sector.

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