The global Hydroponics Market is estimated to be valued at US$ 467.17 Mn or Million in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Hydroponics refers to the method of growing plants without soil using mineral nutrient solutions in a water solvent. Using hydroponics methods enables plant cultivation at any place or season. It offers advantages such as high yield, pest and disease control, and optimal growing conditions. The rising need for efficient agricultural production methods drives the growth of the hydroponics market.
Market key trends:
One of the major trends in hydroponics market is the increasing adoption of indoor vertical farming technologies. Vertical farms are being built in urban areas using hydroponics which maximize crop yields while using less water and land area. These vertical farms use climate control techniques and artificial lighting to cultivate crops regardless of weather conditions. They also enable year-round harvests with multiple harvests in a single growing season. This trend is expected to significantly boost the demand for hydroponics solutions over the forecast period.
The global hydroponics market is dominated by the Vegetable Crop segment. Approximately 70% to 80% of the total hydroponic food production in the world constitutes of vegetable crops such as tomatoes, leafy greens, cucumbers among others. Vegetables grown via hydroponics such as tomatoes and leafy greens fetch a higher price in the market due to their uniform size, longer shelf-life and ripe produce throughout the year. This factor has led to increased adoption of hydroponics techniques for vegetable crops especially tomatoes and leafy greens, thus making it the dominating segment.
The Global Hydroponics Market Size is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing demand for pesticide-free organic foods. The global hydroponics market size is estimated to reach US$ 467.17 Mn by 2023.
Europe dominates the global hydroponics market currently, accounting for over 35% of the total market share. Countries such as Netherlands, Spain, Germany and France are leading the adoption of hydroponics production systems in Europe. This is attributed to growing consumer demand for organic, pesticide-free foods and favourable government regulations supporting indoor farming in the European Union. Asia Pacific is expected to be the fastest growing regional market during the forecast period due to rising organic food consumption in countries such as China, India and Japan.
Key players operating in the hydroponics market are focusing on expanding their production facilities and operations to cater to the growing demand. For instance, Village Farms International, Inc. recently completed the expansion of its 325,000 square foot greenhouse in West Pennsylvania to increase tomatoes production using hydroponics systems. Greentech Agro LLC is another leading player distributing hydroponic equipment to commercial farmers through its 700 distribution locations across the U.S. and Canada.