New data from Juniper Research, London, shows that blockchain will enable $31 billion in food fraud savings globally by 2024 by immutably tracking food across the supply chain. Substantial savings in food fraud will be realized from 2021 and compliance costs will be reduced by 30% by 2024.
The new research, “Blockchain: Key Vertical Opportunities, Trends & Challenges 2019-2030,” revealed that blockchain, used with Internet of Things (IoT) sensors and trackers, will reduce retailers’ costs by streamlining supply chains, thus offering simpler regulatory compliance and efficient food recall process.
Blockchain and IoT
Building on their respective strengths, blockchain and IoT can revolutionize the food industry. While IoT solutions link the physical and digital worlds primarily via location tracking sensors and temperature and humidity monitoring, blockchain provides a platform where this data can be stored and accessed by every player in the process.
Research found that IoT and blockchain will add significant value to players involved in the supply chain, from farmers to retailers and consumers. By replacing lengthy procedures with automated smart contracts, blockchain and IoT bring cost reductions, risk mitigation and transparency to supply chains. This research recommends that blockchain vendors seek IoT partnerships to appeal to stakeholders across the food production market.
Track-and-trace solutions lead the way
Research also found that leading players in the food provenance space are leveraging their robust blockchain and IoT solutions.
“Today, transparency and efficiency in the food supply chain are limited by opaque data, forcing each company to rely on intermediaries and paper-based records,” says Dr Morgane Kimmich, research author. “Blockchain and the IoT provide an immutable, shared platform for all actors in the supply chain to track and trace assets, saving time, resources and reducing fraud.”