Hydroponics Market Size
|Market Size (2023)||USD 4.69 Billion|
|Market Size (2028)||USD 6.83 Billion|
|CAGR (2023 - 2028)||7.80 %|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
*Disclaimer: Major Players sorted in no particular order
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Hydroponics Market Analysis
The Hydroponics Market size is expected to grow from USD 4.69 billion in 2023 to USD 6.83 billion by 2028, at a CAGR of 7.80% during the forecast period (2023-2028).
- Hydroponics farming not only helps in protecting the environment, but it also helps in getting a higher yield from the crops compared to open field production. Additionally, rising health awareness among consumers created higher demand, therein resulting in the increasing adoption of hydroponic production techniques.
- Increasing pressure on global arable land, increased demand for nutrition, and a shift in the dietary pattern of the global population toward consumption of fresh fruits and vegetables are the factors driving the increase in area under hydroponics. In countries with unfavorable climatic conditions for open land farming, hydroponics provides a sustainable option for the cultivation of fresh produce to supply to markets.
- To attain self-sufficiency in food, hydroponics provides an effective food security solution, as the technology uses space efficiently and can be applied even by landless urban and rural people. According to USDA/ERS report, the volume of hydroponic tomato imports from countries, such as Canada, Mexico, and the Netherlands, has increased drastically, and they now account for a significant share of all United States-fresh-market tomato imports.
- Leafy vegetables and microgreens have traditionally been the most cultivated hydroponic crops. However, the area under hydroponics in crops that are exotic to warmer climates, such as cherry tomatoes, lettuce, microgreens, and a wide variety of other cool-season crops, has been increasing.
- Hydroponics is an environment-friendly and profitable technology in developed regions such as North America. It has been promoted by various governments and non-governmental organizations for its benefits in terms of food security. The need for food supply against the explosive population increase by 2050 has catalyzed the growth of the hydroponics market. Additionally, with the increasing success rates associated with the commercial hydroponics industry and the increasing difficulty of growing crops on soil, the hydroponics market is expanding exponentially.
Hydroponics Market Trends
This section covers the major market trends shaping the Hydroponics Market according to our research experts:
Higher Consumption of Salads and Exotic Vegetables
The demand for exotic fruits and vegetables has been constantly growing at a higher rate due to the increased purchasing power of consumers. The cost of these exotic products is high, as most of these products are imported, and thus, several research institutions and universities are focusing on establishing more simplified hydroponics systems to accelerate the production of exotic fruits and vegetables and meet the escalating demand.
Additionally, increasing awareness among consumers of eating fresh vegetables may also fuel the market in the future. The demand for exotic vegetables like red and yellow capsicum and red lettuce in food and retail chains, like Burger King and KFC, is anticipated to boost sales during the forecast period.
Further, with the rapid urbanization, the demand for hydroponically grown vegetables and crops has been increasing from several industries such as hotels, restaurants, fast food chains, railway catering, NGOs, and defense, which encourages the farmers to cultivate through hydroponics systems.
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North America Dominates the Market
The demand for fresh vegetables and fruits in the region is driving the market demand for hydroponic operations. At present, the hydroponics farms present in the region are family or small business operations that cover approx. 1 acre. Rooftop hydroponic gardens in urban setups like New York are helping the market grow further. The future growth of the hydroponics market in the region depends greatly on the development of hydroponic production systems that are competitive in cost with systems of open-field agriculture.
Furthermore, Hydroponic production has gained popularity among commercial vegetable producers since it is an efficient method to control inputs and manage facilitates for disease and pests and not a labor-intensive method to manage larger areas of production. As hydroponics eliminates the need for soil fumigants and can increase the yields of popular vegetables, farmers in the region are anticipated to adopt hydroponics as a popular cultivation method. The increasing adoption of hydroponics as a cultivation method is anticipated to drive market growth.
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Hydroponics Industry Overview
The hydroponic crop growers market is highly fragmented, with the top five companies, such as Bright Farms Inc., FreshBox Farms, Pegasus Agritech, Village Farms International, Inc., and Thanet Earth, among others, while the rest of the market is shared among numerous players. Some of these include Circle Fresh Farms, Green Sense Farms Holdings Inc., Plenty Unlimited Inc., etc.
Hydroponics Market Leaders
Fresh Box Farms
*Disclaimer: Major Players sorted in no particular order
Hydroponics Market News
Oct 2022: GrowGeneration Corp (GRWG) has opened a 9,000-square-foot store in Richmond, its first hydroponic store in Virginia. GRWG has plans to expand its store presence in the state to capitalize on the emerging hydroponic market. It also signed two new leases for store launches in Mount Holly, NJ, and Hazelwood, MO, which are expected to open by the end of 2022. With these, GRWG expanded its reach to 17 states.
July 2022: Bustanica has opened the doors to the world's largest hydroponic farm, backed by an investment of USD 40 million. The facility is the first vertical farm for Emirates Crop One, a joint venture between Emirates Flight Catering (EKFC), one of the world's largest catering operations serving more than 100 airlines, and Crop One, a leader in technology-driven indoor vertical farming.
February 2022: Silal, Abu Dhabi's leading fresh produce and agri-tech company, and AeroFarms, have signed a Memorandum of Understanding (MoU) to forge a long-term research and development collaboration involving knowledge and technology transfer of advanced farming systems to local farmers.
Hydroponics Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat from Substitutes
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Aggregate Hydroponic System
126.96.36.199 Closed System
188.8.131.52 Open System
5.1.2 Liquid Hydroponic System
5.2 Crop Type
5.2.2 Lettuce and Leafy Vegetables
5.2.6 Other Crop Types
5.3.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
5.3.4 South America
188.8.131.52 Rest of South America
5.3.5 Middle-East and Africa
184.108.40.206 Saudi Arabia
220.127.116.11 United Arab Emirates
18.104.22.168 South Africa
22.214.171.124 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Hydroponic Crop Producers
126.96.36.199 Bright Farms
188.8.131.52 Village Farms International Inc.
184.108.40.206 Pegasus Agritech
220.127.116.11 FreshBox Farms
18.104.22.168 Thanet Earth
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Hydroponics Market Research FAQs
How big is the Hydroponics Market?
The Hydroponics Market size is expected to reach USD 4.69 billion in 2023 and grow at a CAGR of 7.80% to reach USD 6.83 billion by 2028.
What is the current Hydroponics Market size?
In 2023, the Hydroponics Market size is expected to reach USD 4.69 billion.
Who are the key players in Hydroponics Market?
Bright Farms, Fresh Box Farms, Thanet Earth, Pegasus Agritech and Village Farms are the major companies operating in the Hydroponics Market.
Which is the fastest growing region in Hydroponics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2027).
Which region has the biggest share in Hydroponics Market?
In 2023, the North America accounts for the largest market share in the Hydroponics Market.
Hydroponics Industry Report
Statistics for the 2023 Hydroponics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hydroponics analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.