Despite a downturn in the broader NFT sector, one niche is set for rapid expansion. Analysts predict that the market for tokenized foods and beverages will grow annually by 16.5% over the upcoming nine years.
Research Insight from Research and Markets
Ireland's esteemed marketing consultancy, Research and Markets, has unveiled its projections on the NFT food and drink market, leading up to 2032. According to their findings, the NFT adoption in the Food & Beverage segment will see a fourfold increase, or 400%, over the next nine years.
By 2023, the sales figures for these NFTs could surpass $538 million, and by 2032, they could hit an impressive $2.134 billion. Thus, Research and Markets suggest that this particular segment is set to reign supreme in the NFT landscape for the next decade.
However, the journey might face some hurdles, including:
- The inadequate tech infrastructure of smaller producers and retailers.
- Steep costs linked to technological adoption.
- Regulatory hurdles across different global regions.
- A general lack of awareness and understanding of web3's potential benefits amongst manufacturers, retailers, and consumers.
If these challenges were addressed, the segment's growth could potentially outstrip even the current optimistic projections.
NFT Food & Beverage Market's Projected Growth till 2032 Source: Research and Markets
What Drives Research and Markets' Optimistic Outlook?
Over recent years, the food industry and the HoReCa (Hotel, Restaurant, Catering/Cafe) sector have proactively embraced blockchain technology within their operational processes. This shift answers the rising demand from consumers for transparent production of food and drinks. With blockchain, customers can now effortlessly trace the entire supply chain—from where the raw ingredients originate to their final presentation at stores or tables in cafeterias. Moreover, this innovative technology assists both retailers and oversight agencies in confirming the authenticity and quality of food and beverage products.
The introduction of Food & Beverage NFTs is a natural evolution of this trend, creating an additional avenue for vendors to engage with their audiences. Like all non-fungible tokens, these NFTs can be collected, traded, or sold and can even be integrated into video games or social platforms.
An added boost for the market's growth is the ability for suppliers to swiftly communicate with their target audience. NFT owners can partake in discount schemes, get easy access to promotions run by food companies or restaurants (bypassing the need for cumbersome email newsletters or outdated brochures), and more.
NFT Food & Beverage in Action
Earlier, we highlighted Starbucks' recent NFT venture—the Starbucks Odyssey collection. This collection comprised 2,000 NFTs, each showcasing their famous siren on the brand's signature cups. These were sold out in just 18 minutes. Following that, they unveiled the Starbucks First Store collection, with 5,000 NFTs depicting the brand's inaugural outlet.
Last year, Pizza Hut Canada made waves with their "1 Byte Favorites" collection. Fans could select NFTs that depicted slices of their beloved pizzas, whether Hawaien, Canadian, Margherita, or Pepperoni. This initiative was part of a broader promotional strategy aimed at bolstering their products and engaging consumers.
Another illustrative case is from one of the world's top pizza chains, Papa John's International, Inc. They launched the NFT Hot Bags series, a unique blend of their pizza offerings with their new line of custom bags—Papa John's X Cheddar. Not stopping there, Papa John's later allied with the culinary metaverse, OneRare, allowing NFT Hot Bags holders to exchange them for virtual pizzas.
“We are committed to staying ahead of the curve and exploring innovative technologies like NFTs and web 3. This not only positions our brand at the forefront of the industry but also helps us capture the attention and loyalty of the next generation of consumers eager for cutting-edge experiences.,” said Tapan Vaidya, CEO of Papa John's in the UAE
