by Greenhouse produce refers to vegetables and fruits that are grown inside a greenhouse structure rather than in open fields. Greenhouse production allows farming of off-season crops throughout the year by protecting plants from excessive heat, cold, rain, and pests. Some common greenhouse produce crops include tomatoes, cucumbers, peppers, leafy greens, strawberries, and herbs. Greenhouse farming uses techniques such as hydroponics, drip irrigation, and climate control systems to optimize growing conditions for crops. Automation plays a significant role in reducing labor costs and maximizing efficiency through functions like temperature and humidity regulation, fertigation dosing, and automated potting machines.
The global greenhouse produce market is estimated to be valued at US$ 28 billion in 2023 and is expected to exhibit a CAGR of 9.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
One of the key drivers for the growth of the greenhouse produce market is the increasing automation in the agriculture sector. Rising labor costs and shortage of farm workers have resulted in greater uptake of automated farming equipment and systems in greenhouse operations. Automation facilitates precision agriculture through functions such as environmental control systems, automated feeding and watering, crop monitoring, harvesting and sorting. This significantly enhances productivity and optimizes resource utilization while reducing dependence on manual labor. Another driver is the preference for locally grown and soilless produce among consumers. Hydroponic and aquaponic greenhouse systems enable year-round production of vegetables and fruits in a controlled soilless environment. This provides consumers access to fresher, nutrition-rich local produce throughout the year and responds to the growing demand for sustainable farming practices.
Segment Analysis
The global Greenhouse Produce Market Share is dominated by the vegetables segment which accounts for more than 35% of the market share. Vegetables such as tomatoes, cucumbers, and peppers are the most widely cultivated greenhouse crops globally. This is because vegetables have high demand and provide reliable returns to the greenhouse farmers. The fruits segment is the second largest and is expected to witness strong growth. Berries, grapes, and citrus fruits are the major fruits cultivated in greenhouses.
PEST Analysis
Political: The greenhouse produce market is positively impacted by various government initiatives and subsidies for promoting protected agriculture. Countries offer incentives for utilizing greenhouses to ensure food security.
Economic: Rising disposable incomes and growing health awareness is driving the demand for off-season and premium quality greenhouse produce. However, high initial setup and operational costs of greenhouses pose economic challenges.
Social: Changing consumer preferences towards nutritious, organic and locally grown foods is benefiting the greenhouse market. However, lack of technical know-how limits the adoption of greenhouse farming in some regions.
Technological: Advancements in greenhouse covering materials, heating, cooling, and ventilation systems have enhanced year-round production of diverse crops. Automation and sensor-based technologies are being increasingly used for optimized cultivation.
Key Takeaways
The global greenhouse produce market is expected to witness high growth at a CAGR of 9.9% during the forecast period of 2023 to 2030. Regional analysis comprises Americas dominates the greenhouse produce market owing to large-scale commercial greenhouses in countries like US and Canada. Europe is the second largest regional market led by the Netherlands being the global leader in greenhouse cultivation. Key players operating in the greenhouse produce market are Sotrafa, Berry Global, NETAFIM, Certhon, Richel Group SA, Stuppy Greenhouse, Logiqs B.V., Argus Control Systems Ltd., Poly-Tex, Inc., The Glasshouse Company, Luiten Greenhouses BV, Agra Tech, Inc. Key players are focusing on new technologies to improve productivity, resource-use efficiency and automation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
