Transparency Market Research (TMR) states that leading companies in the global hydroponic vegetables market are AMCO Produce Inc., Village Farms International, Inc., Soave Enterprises LLC., and Thanet Earth Ltd. As the competition intensifies, these companies are staying focused on investing in advanced technologies such as adopting computer-controlled drip irrigation systems and shrink wrapping among others.
Lettuce to be in High Demand Among all other Hydroponically Grown Vegetables
According to the research report, the global hydroponic vegetables market is expected to be worth US$12,106.5 mn by the end of 2025 from US$6,934.6 mn in 2016. During the forecast period of 2017 and 2025, the global market is expected to register a CAGR of 7.5%. Out of the various vegetables, the lettuce segment is projected to lead the global market in the coming years as it is poised to expand at a CAGR of 6.6% during the forecast period. From a geographic point of view, the Europe hydroponic vegetables market is slated to acquire a share of 52.3% by the end of 2025 in the global market.
Demand for Locally Grown Vegetables Bolsters Growth
The growing demand for locally grown vegetables has been instrumental to the flourishing hydroponics vegetables market across the globe. Owing to this reason, several farmers are catering to the burgeoning need for local vegetables, which is a far more profitable business. The freshness of hydroponically grown vegetables and the demand for organically and naturally grown food items are expected to propel the global market. The emerging trend of farmer’s markets, increasing number of community-sponsored agriculture initiatives, and growing adoption of direct-to-consumer distribution are expected to work in the favor of the global hydroponic vegetables market. The increasing inclination of retailers to source vegetables that are locally-grown as they are better in taste, do not need additional transportation costs, and longer shelf life is expected to favor market growth.
The growing concerns about food security due to increasing population and rapid urbanization have also become important in propelling the rise of the global hydroponic vegetables market. The growing challenges pertaining to cultivation of grains and vegetables in conventional ways has made farmers take a serious interest in hydroponics. Thus, several countries are investing in developing vertical hydroponic farms that are likely to be cost effective in the coming years. The promise of food safety and reduced exposure to pathogens has also titled attention toward hydroponics.
High Capital Investment to Dissuade Market Growth Over Forecast Period
On the flip side, the global hydroponic vegetables market is being hampered by the high capital investments required for developing these modern farms. This impact is especially severe in developing countries of the world. The exorbitant cost technology, consultations, and maintaining greenhouses is likely to discourage market growth. Additionally, the high energy requirement as compared to traditional farming is likely to restrain the market from achieving its full potential.
This review is based on Transparency Market Research’s report, titled “Hydroponic Vegetables Market (Vegetable – Cucumber, Lettuce, Spinach, Peppers, and Tomatoes; Distribution Channel - Modern Trade (Hypermarket and Supermarket), Grocery Stores, Unorganized Small Stores, Whole Food and Specialty Stores, and Bulk Suppliers and Distributors; Origin - Natural and Organic and Conventional; Farming - Indoor Farming and Outdoor Farming) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017–2025.”
The market has been segmented as below:
Global Hydroponic Vegetables Market – By Vegetable Type
Global Hydroponic Vegetables market – Distribution Channel
- Modern Trade (hypermarket/supermarket)
- Grocery Stores
- Unorganized Small Stores
- Whole Food and Specialty Stores
- Bulk Suppliers and Distributors
Global Hydroponic Vegetables Market – By Origin
- Natural & Organic
Global Hydroponic Vegetables market – Farming Type
- Indoor Farming
- Outdoor Farming
Global Hydroponic vegetables market – By Region
- North America
- Latin America
- Asia Pacific (APAC)
- Middle East & Africa (MEA)
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