The market is primarily supported by the introduction of blockchain technology and the demand for NFTs in the food industry for transparency and traceability.
With numerous fast-food companies expressing interest in the asset class, nonfungible token (NFT) adoption is gaining momentum across the food and beverage sector.
By 2032, the size of the worldwide food and beverage NFT industry is predicted to surpass $2 billion, according to a report by Research and Markets. These numbers are clear as major fast-food companies, like Pizza Hut and Papa John’s, are learning new methods to incorporate NFTs into their marketing efforts.
According to the report, the use of blockchain technology and the desire for NFTs for transparency and traceability in the food business are the main market drivers. Other drivers anticipated to propel the market throughout the projected period include special ownership opportunities, the use of NFTs in virtual reality and video games, and promotions and advertising from food businesses and eateries.
Depending on how uncommon and well-known the item it represents is, an NFT’s worth can vary dramatically, with some selling for millions of dollars. Due to consumer demand for transparency and traceability in the food industry, the NFT market is expanding. For customers, retailers, and regulators, tracking and validating food provenance, quality, and safety is essential.
Pizza Hut Canada’s “1 Byte Favorites”—a digital assortment of pizza—joined the NFT craze in March 2021. The NFTs represented slices of pizza from Rarible that had special recipes, including well-known options including Hawaiian, Pepperoni, Canadian, and Margherita. The NFTs were utilized as a marketing strategy to draw in consumers and promote their pan pizzas after they became well-liked and sold out.
With its “Hot Bags” line, the pizza take-out chain Papa John’s joined the NFT sector. To advertise their new product line, Papa John’s X Cheddar, these NFTs displayed handbag designs. The numerals on the NFTs represent the year the company was founded (1984), and they were issued on the Tezos blockchain.
However, the paper notes that technical difficulties, particularly for smaller companies, prevent NFT implementation in the food and beverage industry. Another difficulty is that consumers and industry stakeholders are not fully aware of the advantages of NFT.
