Market Trends of Hydroponic Nutrients Industry
Shrinking Agricultural Land Area
- Increasing population trends, urbanization, decreasing water supply, and continuing climate change have contributed to the declining agricultural land. Additionally, the introduction of the Conservation Reserve Program (CRP), the emergence of the biofuel industry, and other economic factors have contributed to significant changes in land-use patterns. Due to such constraints, more production is required from a lesser land area.
- According to Food and Agriculture Organization (FAO), there is a decline in land resources for agriculture. Policymakers are facing the challenge of maintaining sustainability and feeding the rapidly growing world population, which is projected to reach around 9.7 billion by 2050.
- Due to the continuous decline in per capita farmland availability, a possible way out is the practice of increasing productivity. Thus, there is a need to increase yield from the available land, which can be achieved through hydroponics. Hydroponics farming, which involves greater use of technology and automation for land-use optimization, exemplifies solutions for improving future food production. Hydroponics farming aims to significantly increase productivity and reduce environmental footprint within a framework of high-rise urban, indoor, and climate-controlled buildings.
- According to the United States Department of Agriculture (USDA), farmers in the United States voluntarily removed land from crop production because of poor growing conditions or constrained irrigation water supplies. Gradual declines have occurred in cropland, while grazed forestland has decreased more rapidly. Increases in land used for non-agricultural special uses, including national parks and other protected areas, have contributed to the relative increase in non-agricultural land use while agricultural lands have kept decreasing.
- Hence, the shrinkage or the fluctuation in the agricultural land area globally has resulted in the need for technological developments to meet the growing demand, which is anticipated to drive the market for hydroponics farming which in turn is anticipated to drive the growth of hydroponics nutrients market during the forecast period.
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North America Dominates the Market
- The application of hydroponics-grown produce has increased progressively in the region over the last few years. North America holds the largest market share in the hydroponics nutrients market. It is expected to grow during the forecast period, owing to rising disposable income and increased consumer purchasing power.
- In addition, the growing awareness about health and fitness and a focus on sustainable farming methods drive consumers to invest excessively in hydroponics, which is estimated to contribute significantly to market growth. Furthermore, hydroponics ensure a smooth supply, despite weather conditions and monsoon seasons, when supply is usually interrupted for traditional vegetable suppliers. This is also one of the reasons anticipated to contribute to the market's growth.
- In addition, several initiatives taken by the regional players also support the market's growth. For instance, in 2019, Kroger, which owns QFC, teamed up with Infarm, a start-up based in Germany, to install modular vertical farms in two of its Seattle-area grocery stores in Bellevue and Kirkland, Washington. In these mini-farms, which use a hydroponic farming method, nine varieties of lettuce and herbs are grown in nutrient-rich water.
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