by The greenhouse produce market involves the cultivation of fruits, vegetables, and flowers in temperature and environmentally-controlled greenhouses. Greenhouse cultivation allows growers to modify the environment and control conditions like light, water, nutrients, and temperature to maximize yield throughout the year. Key advantages include enhanced productivity, high quality produce, abundant crop harvesting regardless of season, and protection from pests and adverse weather conditions. With rising food demand from a growing population, greenhouse farming has become an important method for ensuring stable food supply.
Global Greenhouse Produce Market is estimated to be valued at US$ 32.26 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the greenhouse produce market are Fabory, Fastenal Company, Würth Industrie Service GmbH & Co. KG, REYHER, KELLER & KALMBACH GmbH, AB STEEL, Brunner Manufacturing Co., Inc. KD FASTENERS, INC., ckford Fastener, Inc., AMARDEEP STEEL, Viha Steel & Forging.
Growing demand for fresh and off-season fruits and vegetables is driving the greenhouse produce market growth. Advancements in greenhouse technology enable year-round harvesting of crops, meeting consumer demand for availability. Further, controlled environment farming allows customized cultivation of specialty crops with specific attributes like size, color, taste that appeal to consumers.
Major greenhouse produce producers are expanding their operations globally to cater to the growing international demand. Favorable agricultural policies in countries like China, Brazil provide opportunities for foreign investments in greenhouse infrastructure development. Further, trade agreements promote cross-border trade of greenhouse crops between regions.
Market Key Trends
Automation using smart farming techniques in greenhouses through IoT sensors, robotics, and artificial intelligence is a key trend in the market. Sensor technologies can monitor soil moisture, nutrient levels and control irrigation systems for optimized water and fertilizer use. Automated robots, conveyor systems, and sorters are replacing manual labor for actions like seeding, transplanting, harvesting and produce sorting. This boosts productivity and quality while reducing production costs. Smart farms optimize growing conditions and allow data-driven decision making for maximizing crop yields.
Porter’s Analysis
Threat of new entrants: Entering the Global Greenhouse Produce Market Size requires significant initial investments to set up greenhouse infrastructure along with establishing supply chains which prevents the threat of new entrants.
Bargaining power of buyers: Individual buyers hold low bargaining power against producers as greenhouse grown produce have limited substitutes however organized retailers and buyers may put pricing pressure on producers.
Bargaining power of suppliers: Large producers have some control over input supplies however multiple suppliers available in the market ensure no single supplier can influence prices.
Threat of new substitutes: Limited threat as greenhouse grown fruits and vegetables have distinct advantages over outdoor grown produces in terms of productivity and availability throughout the year.
Competitive rivalry: High as major producers compete on pricing, quality, and supply consistency to retail chains and individual consumers.
Geographical regions with highest market value
The greenhouse produce market in European region accounts for the largest market share in terms of value, led by Netherlands. Ideal climatic conditions, advanced greenhouse technologies adopted and strong domestic as well as export demand drives the large scale production of fruits and vegetables in greenhouse farms. Israel and Canada also have sizable market size for greenhouse grown produce catering to their domestic consumption as well as exports.
Fastest growing geographical region
Asia Pacific region is expected to witness the highest growth in the greenhouse produce market during the forecast period. Countries like China, Japan and Southeast Asian nations are increasingly adopting greenhouse farming technologies to boost agricultural productivity. Growing population, rise in disposable incomes, and shift towards non-seasonal fruits and vegetable consumption are fueling the demand growth from the Asia Pacific region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
