Hydroponic farming is gaining more popularity as a sustainable agricultural method to grow vegetables without soil. Hydroponic farming uses mineral nutrient solutions in an water solvent instead of soil. It is considered more productive than traditional agriculture as plants can absorb nutrients easily. Vegetables grown via hydroponics are free from pesticides and deliver higher yields with less land and water. Hydroponically grown vegetables also offer extended shelf life and are free from infections.
The global hydroponic vegetables market is estimated to be valued at US$ 9.47 Billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the hydroponic vegetables market is the increasing popularity of vertical farming. Vertical farming grows crops in vertical layers stacked on top of each other with the use of indoor farming technologies like hydroponics and artificial lights. It provides year-round harvest and maximizes crop yields per square foot. Vertical farming requires 90% less water compared to traditional agriculture. With increasing land constraints and rising demand for organic produce, vertical farming is gaining traction globally. Rapid urbanization and growing emphasis on locally grown foods are driving the adoption of commercial indoor vertical farms especially in cities. Various startups are entering the vertical farming space with innovative indoor farming technologies. This is expected to boost the demand for hydroponically grown vegetables in the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the hydroponic vegetables market is moderate. Hydroponics requires specialized knowledge and equipment. Farmers need capital to set up hydroponic farms.
Bargaining power of buyers: The bargaining power of buyers in the hydroponic vegetables market is high. Buyers can easily switch between suppliers as quality and taste is maintained through hydroponics.
Bargaining power of suppliers: The bargaining power of suppliers in the hydroponic vegetables market is low. There are many suppliers for inputs such as nutrients and seeds.
Threat of new substitutes: The threat of substitutes in the hydroponic vegetables market is low. Hydroponically grown vegetables are fresher than conventional vegetables and do not use soil.
Competitive rivalry: The competitive rivalry in the hydroponic vegetables market is high due to many small and large players.
Key Takeaways
The Global Hydroponic Vegetables Market Size is expected to witness high growth. The market is driven by increasing urban population, shortage of agricultural land, and rising demand for organic produce.
Regional analysis: North America dominates the global hydroponic vegetables market currently due to growing demand for organic produce and food security concerns. Europe follows North America in terms of adoption of hydroponics. The Asia Pacific region is expected to witness the fastest growth over the forecast period with China, India, and Japan emerging as lucrative markets. Increased food demand from growing population is expected to boost hydroponic farming in the Asia Pacific region.
Key players: Key players operating in the hydroponic vegetables market are Signify Holdings, Heliospectra AB, The Scotts Company LLC, Argus Control Systems, LumiGrow, Hydrodynamics International, American Hydroponics, Emerald Harvest, and Village Farms International. Village Farms International is a leading producer of hydroponic tomatoes in North America. LumiGrow and Heliospectra AB are among the top lighting solution providers for indoor farming.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
