Report: Agri and Food Blockchain Tech to Hit $430 Million Value by 2023

Oct 05, 2018 at 18:54

A study claims that the utilization of blockchain technology in the fields of agriculture and food supply chain will reach as much as $430 million by 2023 from the current $60.8 million.

Released by ReportLinker, the study pegs the said growth in the sector for the next five years due to the compound annual growth rate of 47.8 percent as the technology helps various organizations in smarter decision making.

“According to the FAO (Food and Agriculture Organization), every year about one-third of the food produced globally is wasted, which calls for a need to estimate and manage the actual supply and demand of food products so that these products reach the needy. These issues can be easily and efficiently tackled by effectively using the blockchain network,” a summary of the study stated.

Likewise, the report mentioned that one of the biggest drivers of growth in the use of blockchain in agriculture and food supply is the demand for transparency on food sourcing especially on traceability, tracking and visibility.

“According to the Grocery Manufacturers Association, the estimated food fraud cases cost $49 billion to the overall food market annually. This has resulted in an increased awareness among consumers, which is further anticipated to drive the increase of the blockchain in agriculture and food supply chain market,” it further read.

The full report can be purchased here.

It can be recalled that among the latest ICO projects that aim to utilize the blockchain technology in providing transparency in sourcing of materials is Sparx Foundation that can be accessed at sparxchain.io.

The project’s VeriSeal technology records all raw ingredients used in production of products through the blockchain in order to protect consumers from mislabeled products and assure that each item contains the same materials indicated in its packaging.