Fjord Trends recently predicted that “making a difference will soon become a key point of differentiation” in the ethics economy. In fact, “the potential for ethics as a business metric is already the topic of some industry debate.”
In general, companies do not know enough about the products that they buy and sell to navigate the many complex challenges facing today’s global supply chains (e.g., safe, sustainable, and ethical). Some companies are realizing the business value of traceability for efficiency, cost savings, and achieving product premiums in the market. However, they must first overcome the mistrust associated with validating claims of product identity and traceability. Companies should prepare for every action or inaction to be closely scrutinized. More can be done to equip companies with real-time traceability of products within global food supply chains. Blockchain, a type of distributed ledger technology (DLT), has been increasingly gaining market traction in supply chains—for example, in proofing product provenance and implementing track-and-trace of products through the supply chain. While blockchain alone does not solve traceability, it can be a game-changer.
When implemented effectively, it can connect and enable efficiency, ransparency, and accountability among participating actors. Better and more reliable data can help optimize business decisions and reach higher standards for production, efficiency, and sustainability. The market for blockchain technology is rapidly growing. In 2017, it was valued at around $754 million; by 2022, it is forecasted to be worth over $11.7 billion, growing exponentially at a compound annual growth rate (CAGR) of 73.2%.
In the provenance space, blockchain is expected to grow at a compound annual growth rate (CAGR) of 76.2%.