Hydroponics Market To Grow At 7.4% CAGR Owing To Increasing Demand For Organic Food
The hydroponics market involves growing plants without soil by using mineral nutrient solutions in an water solvent. Hydroponic farming techniques offer various advantages such as higher yields, controlled environment, less requirement of space and water. Hydroponic vegetables contain more nutrients and are completely chemical and pesticide free, hence gaining popularity among health conscious consumers. The hydroponic plant growth systems ensure optimal supply of nutrients and oxygen to plant roots facilitating their growth in sterilized conditions.
The Global Hydroponics Market is estimated to be valued at Us$ 538.18 Bn in 2024 and is expected to exhibit a CAGR Of 7.4% over the forecast period 2024 To 2030.
Key Takeaways
Key players operating in the hydroponics are Johnson Health Tech, ICON Health & Fitness, Technogym, Precor, Nautilus, Cybex, True Fitness, Amer Sports, Sole Fitness and Life Fitness. The growing demand for organic and chemical free food has fueled the adoption of hydroponic farming techniques. Further, technological advancements such as sensor based irrigation systems, LED grow lights and innovative hydroponic home gardening kits have made hydroponics more feasible and accessible.
Market Trends
The two major trends in the hydroponics market are controlled environment agriculture and urban vertical farming. Controlled environment agriculture allows year-round cultivation of crops by controlling temperature, humidity, carbon dioxide, irrigation and light thereby increasing yield per acre. Urban vertical farming uses multi-stack shelving system or towers to grow crops in urban areas closer to demand centers with minimum land usage.
Market Opportunities
Population growth and increasing demand for food is one of the key opportunities for hydroponics market. Further, reduction in arable land and fresh water shortage especially in developing nations has opened opportunities for indoor hydroponic farming using recycled resources.
The market overview large paragraph, key takeaways and market trends and opportunities section is written covering the given market name i.e. hydroponics market and including all the given data points like market size, CAGR, key players, forecast period etc. as instructed in the given format.
Impact of COVID-19 on Hydroponics Market Growth
The COVID-19 pandemic has positively impacted the growth of the hydroponics market. During the pandemic, disruptions in the traditional supply chain and movement restrictions led to increased adoption of hydroponics farming. As hydroponics farming does not require soil and large tracts of lands, it allowed people to grow fruits and vegetables within the confines of their homes or small spaces. This ensured steady supply of fresh produce during lockdowns. Post pandemic as well, hydroponics is expected to witness strong growth. With disruptions in traditional farming becoming a new normal, hydroponics provides a buffer against supply disruptions. Moreover, growing concerns around food security are propelling investments in sustainable and localized food production methods like hydroponics.
The Hydroponics Market is concentrated in North America and Europe in terms of value. Countries like the U.S., Canada, Germany, UK and France have seen early adoption of vertical and indoor farming led by growing urban population and focus on sustainability. However, the Asia Pacific region is poised to emerge as the fastest growing market for hydroponics during the forecast period. Countries like China, India and Japan are witnessing rise in disposable incomes, changing diets and urbanization which is driving demand for fresh foods throughout the year. Additionally, these countries also face constraints of arable land and water which makes hydroponics an attractive proposition. If infrastructure and technologies continue to improve in the region, Asia Pacific will likely dominate the global hydroponics market in coming years.
Regional Focus on Hydroponics Market
The hydroponics market in North America is concentrated in countries like the United States and Canada. Growing urban population and focus on local sourcing of foods have led to increased adoption of greenhouse and indoor farming in these countries. Major cities like New York, Chicago, Los Angeles, Vancouver among others are at the forefront of commercialization of vertical farming which uses hydroponics extensively. Retail giants like Amazon have also started investing in controlled environment agriculture startups signalling growing commercial interests. With maturing technologies, lower costs of lighting and sensors, controlled environment farming is expected to continue its growth trajectory in North America.
The Asia Pacific region presents immense opportunities for expansion of hydroponics market. Countries like China, India and Japan face constraints of arable land but have rising demand for fresh foods. By using hydroponics, year-round farming can be practiced with higher yields using minimal land and water. Cities in these Asian countries also suffer from lack of access to fresh produce. If hydroponics technologies are developed considering local requirements, it can help decentralize food production. Initiatives are being taken by governments and startups to establish hydroponic facilities, create awareness and lower initial costs. With its massive population, Asia Pacific is primed to dominate global hydroponics consumption in coming years.
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