The main objective of this contribution is to introduce a novel technique for reducing the time taken from the reader to identify the Frequency Coded (FC) chipless RFID tags existed in the reader's interrogation region, system latency. The frequency scanning methodology, number of averaging for clutter removal and hop duration are the three main parameters that significantly affect the overall system latency. Consequently, the Adaptive Frequency Hopping (AFH) methodology is proposed and proofed to be efficient for the chipless RFID systems from the latency and accuracy perspectives. Likewise, the performance of the designed AFH technique is compared with the classical Fixed Frequency Hopping (FFH) methodology with a fine frequency step to validate the accuracy of the proposed technique. A real-world testbed is designed including a Software Defined Radio (SDR) platform by which the proposed adaptive algorithm and classical FFH methodology are implemented. All the measurements are performed in an indoor realized scenario, including the environmental effects. The experiments show that the proposed AFH algorithm significantly reduce the system latency by 58%.