The Growth of the Hydroponics Market

Food and Beverages | Monday, December 20, 2021

Over the projection period of 2021-2026, the hydroponics market is expected to grow at an annual rate of 8.5 percent.

FREMONT, CA: Type (Aggregate Hydroponic System (Closed System and Open System) and Liquid Hydroponic System), Crop Type (Tomato, Lettuce and Leafy Vegetables, Pepper, Cucumber, and Other Crop Types), and Geography are the segments of the hydroponics market (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). For all of the above segments, the research provides market sizes and forecasts in value (USD).

Market Overview

Over the projection period of 2021-2026, the hydroponics market is expected to grow at an annual rate of 8.5 percent.

Given COVID 19's dominance and isolation, enhancing food production and distribution networks has become a top priority for the future, increasing the demand for hydroponics farms. According to FAO research, the development of alternative growing techniques such as hydroponics is expected to play a key role in global food security by producing safe and nutritious food. Furthermore, this can aid in the management of market logistical concerns. As a result, the demand for hydroponics is expected to increase over the forecast period.

Scope of the report

The process of growing plants in sand, gravel, or liquid without the use of soil is known as hydroponics. The hydroponics market is divided into three categories: aggregate hydroponic systems (closed and open systems) and liquid hydroponic systems; crop type (tomato, lettuce, and leafy vegetables; pepper, cucumber, and other crop kinds); and region (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Key Market Trends

Due to increased consumer purchasing power, demand for exotic fruits and vegetables has been steadily increasing. Since the majority of these exotic items are imported, their cost is expensive, thus various research institutions and universities are concentrating on developing more streamlined hydroponics systems to speed up the production of exotic fruits and vegetables and fulfil the growing demand. Consumer knowledge of the benefits of eating fresh fruit and vegetables may help to drive the market forward in the future. During the projection period, demand for exotic vegetables such as red and yellow capsicum and red lettuce is expected to increase at food and retail chains such as Burger King and KFC.

North America dominates the market

The demand for fresh vegetables and fruits in the region is driving the market for hydroponic operations. Currently, the hydroponics farms in the region are family or small commercial operations that encompass approximately one acre. Rooftop hydroponic gardens in locations such as New York are helping to expand the market. The development of cost-competitive hydroponic production systems with open-field agriculture methods is crucial for the region's hydroponics sector's future growth. Commercial vegetable growers are turning to hydroponic production because it is a cost-effective way to control inputs and manage disease and pests while also being a labor-intensive way to manage greater regions of output.

Competitive Landscape

The global hydroponics input provider market is consolidated, with major layers accounting for 53.6 percent of the market and others accounting for 46.4 percent. Some of the market's top competitors are Koninklijke Philips N.V., Argus Control Systems Ltd., American Hydroponics, and Hydrodynamics International, Inc.

Only 7.1 percent of the hydroponic systems output market is held by the top five companies, which include Bright Farms, Inc., FreshBox Farms, Pegasus Agritech, Village Farms International, Inc., and Thanet Earth, among others. Just a few examples include Circle Fresh Farms, Green Sense Farms Holdings Inc., and Plenty Unlimited Inc.

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