A report published by Research and Markets projected the Global Food and Beverage non-fungible token (NFT) market to reach as high as $2.1 billion by 2032. North America emerged as the leading market for this blockchain vertical in terms of revenue share recorded last year. The growth of this sector was aided by the increasing popularity of blockchain technology.
According to data gathered by Research and Markets, use cases for NFTs emerged in the food and beverage space after calls for transparency and traceability in the food industry. Those calls amplified during the COVID-19 pandemic, which increased interest in online marketplaces and digital assets. Apart from the potential application for traceability and safety, NFTs could also be used for food and beverage branding and marketing.
The report stated that the Asia Pacific region was expected to see a significant compound annual growth rate (CAGR) for the food and beverage market, presenting the opportunity for increased applications of web3 solutions like NFTs. This was further presented as an opportunity for investors and businesses to monetize the growing interest in blockchain and F&B.
However, Research and Markets’ report also highlighted the obstacles that NFTs would face in the food and beverages industry. The limiting factors included limited market adoption, regulatory hurdles, lack of standardization, and the costs and technical expertise associated with NFTs. The report stated that the high costs and potential complexity of blockchain tech could deter small businesses in the industry from adopting NFTs.
Addressing the barriers to mass NFT adoption in the food and beverages industry, Research and Markets stated:
The use of NFTs in the Food & Beverage industry is still a relatively new concept, and there may be limited awareness or understanding of their potential benefits among consumers and industry stakeholders.
While small-scale businesses hesitated to adopt NFTs, leading fast food chains, including Pizza Hut and Papa John’s International Inc., embraced the technology by rolling out marketing campaigns involving NFTs and web3 merchandise.