July 24, 2024
Hydroponic Vegetables Market

The rapid adoption of hydroponic farming techniques to access affordable vegetables is anticipated to open up the new avenue for Hydroponic Vegetables Market

The Hydroponic Vegetables Market is estimated to be valued at US$ 11.57 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Hydroponic vegetables can be grown year-round and require less water compared to conventional farming. Using this farming technique, crops like tomatoes, lettuce, cucumbers and peppers can be grown vertically inside greenhouses with the help of nutrient-rich water instead of soil. As hydroponic farms produce higher yields with fewer resources, they are becoming increasingly popular among urban farmers.

Market Dynamics:

Hydroponic farming provides two major drivers to the market. First, it offers higher yields of vegetables per acre compared to traditional soil-based agriculture. Hydroponic farms are able to produce 300 to 400% more vegetables in the same area due to various factors like precise nutrient delivery, sheltered growing environment and no pest competition. Second, there is a growing demand for locally grown, organic and chemical-free vegetables. As hydroponically grown vegetables can be produced close to major urban centers with less transportation footprint, they are able to cater to this rising consumer preference for sustainable farming. Moreover, hydroponic farms are able to optimize the use of resources like water, land and fertilizers due to closed-loop recirculation systems. They can reduce water consumption by up to 95% compared to soil-based agriculture. These benefits make hydroponic farming an attractive solution to challenges from rapid urbanization and climate change faced by the agriculture sector.

Segment Analysis

Hydroponic Vegetables Market is dominated by Leafy Greens segment. Leafy greens such as lettuce, kale, spinach, and parsley account for over 60% of all hydroponically grown vegetables in the world. Leafy greens are preferred for hydroponics cultivation as they are easy to grow and have high demand across the world as a superfood. They have short maturity period and higher yield rates compared to other vegetables making leafy greens a profitable segment for commercial hydroponic farmers.

PEST Analysis

Political: Favorable government policies and subsidies for organic farming and use of modern agricultural technologies in many countries is promoting the adoption of hydroponics.

Economic: Growing demand for organic pesticide-free veggies along with rising disposable incomes is boosting investments in hydroponic farms. However, high initial setup costs can be challenging for small players.

Social: Increasing health awareness and popularity of green living trend among consumers is driving the popularity of nutrient-rich hydroponically grown vegetables.

Technological: Advancements in LED lighting, sensors, and fertigation systems have improved yield andmade hydroponics farming more efficient and sustainable. Automation solutions are also gaining traction.

Key Takeaways

The global Hydroponic Vegetables Market size is expected to be valued at US$ 11.57 Bn in 2023 and is anticipated to exhibit a CAGR of 6.9% over the forecast period to reach US$ 16.87 Bn by 2030. North America is anticipated to remain the largest as well as the fastest growing regional market for hydroponics vegetables during the forecast period. The key factors attribute to the market growth include rising demand for organic produce, growing urban agriculture, and scarcity of arable land.

Regional analysis

North America is expected to dominate the global hydroponic vegetables market over the forecast period. This is attributed due to rapidly growing organic food demand, urban agriculture and supportive government initiatives to promote hydroponics. The US hydroponic vegetables market accounted for over 40% of the global market in 2022.

Key players operating in the hydroponic vegetables market includes AMCO Produce Inc., Eden Farms, Hollandia Produce, L.P., Bright Farms Inc, Soave Enterprises LLC., Village Farms International, Inc., Platinum Produce Company, Millennium Pacific Greenhouses Ltd., Emirates Hydroponics Farms, Thanet Earth Ltd. Focus on automated farming and new greenhouse technologies will intensify competition in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it