Asia-Pacific’s Increasing Demand for Food Traceability
By: Ken Kodama June 23, 2021
Rising Demand for Product Traceability in Asia
By 2030, Asia’s population is projected to be 250 million people larger and 65% of the world’s middle-class population will reside in Asia-Pacific.
These consumers will increasingly become more interested in the products they are purchasing, and seek more details about their food supply chains to ensure they are buying products that they can trust.
As seen in the West, more and more consumers are tech-savvy these days and want access to highly nutritious, fresh, and safe produce that is delivered conveniently and on demand. Consumers have expressed a willingness to pay a premium for trusted food sources, especially during a global pandemic.
However, the agri-food industry is struggling to keep up with increased consumer demand.
The ongoing global pandemic coupled with rapidly growing populations and urbanization, has led to high levels of waste and an inferior quality of end products due to inefficient supply chains.
Other factors such as climate change and environmental degradation have only added to the struggles of the agri-food industry.
As it stands today, Asia-Pacific is a major component in the current global food chain, accounting for 19% of total global food and agriculture exports, and 31% of total food and agriculture imports.
According to a report published by Allied Market Research, the global food traceability market is expected to grow to $22.27 billion by 2025, from $10.96 billion in 2017, registering a CAGR of 9.3% from 2018 to 2025.
Asia-Pacific is estimated to be one of the largest growth rates with a CAGR of 14.9% from 2018 to 2025, owing to growth in industries such as fresh produce & seeds, fisheries, and meat & livestock along with expansion of leading players in China, India, and other emerging economies.
This has intensified the urgency of enterprises and large organizations in the region to vastly implement upgraded technological solutions such as those utilizing blockchain technology to create a more transparent and cohesive supply chain traceability and provide a more trusted product to their consumers.
As many enterprises in the region still utilize outdated paper-based methods of data management, blockchain technology now offers a faster, simpler, safer, and more economical way of storing data.
Blockchain Delivers a Product-Market Fit
Overall, there has been a significant growth in the blockchain market in the Asia-Pacific region due to two main reasons.
First, there has been steadily increasing government support for blockchain solutions innovation to make regional economies more competitive and geared for the 4th Industrial Revolution.
Second, this support has in turn increased the formation of regional blockchain solutions companies to solve a variety of problems in different economic sectors.
This drive can be seen in countries like Singapore, Hong Kong, and China taking a strong interest in promoting blockchain-based ecosystems to solve complex industrial problems.
While individual countries have differed on their stance towards digital assets, they have expressed favorable views towards helping the private sector develop valuable services to tackle these complex problems, as seen through their forward-looking policies and provision of needed regulatory certainty.
Blockchain provides the ideal product fit for the growing market demand in Asia-Pacific for food products and trusted food sources, as governments are supporting their private sectors to utilize blockchain technology to solve problems such as in the case of the agri-food industry.
EMURGO Trace and its Benefits for Product Traceability
As a global emerging technologies company and a founding entity of the Cardano blockchain protocol based in Singapore, EMURGO’s Trace Solution aims to solve the complex problems of agri-food companies through the benefit of blockchain solutions.
EMURGO Trace gives enterprises a completely new, secure, and efficient digital way to tell their consumers and stakeholders the true story behind their food products while being tailored to their needs.
This unique value proposition generated through a digital blockchain-based solution offers increased end consumer confidence, data recording efficiency, data transparency, and increased sales margins, which is a win-win for all enterprises and their consumers.
The integration of a blockchain traceability solution enables enterprises to solve the problems of increasing consumer demand, lack of quality transparency, and rising business costs.
The Future of Blockchain Expansion in Asian Industries and Organizations
Despite the global pandemic, the Singapore Blockchain Innovation Program (SBIP) was launched in December 2020 with the objective of strengthening the blockchain ecosystem and facilitating the development, commercialization, and adoption of blockchain technology in Singapore with an initial capital of $12 million.
China on the other hand, is also looking to seize the opportunities presented by blockchain. Earlier this month, the government of the Chinese province of Yunnan has set out a plan to support local blockchain development. One example includes providing state subsidies to startups in the space for rent and talent recruitment.
It is clear that Asia has demonstrated a consistent approach towards implementing blockchain across various local industries. It is a frontrunner in the digital revolution, bringing smart cities, decentralized data, and futuristic payment methods to the mainstream public. We are just at the beginning of the blockchain decade, and EMURGO is very excited to see the digital revolution take place in Asia and across the world as our industry continues to develop.
Ken Kodama is CEO of EMURGO – a global emerging technologies company, providing custom-built solutions to solve some of the most complex problems of the most complex organizations, and is a founding entity of the Cardano protocol. EMURGO has offices in Singapore, India, and Indonesia, and a roster of global clients & partners.
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