The hydroponics market involves growing plants without soil, instead using mineral nutrient solutions in a water solvent. Hydroponic farming is considered advantageous since it uses 90% less water than traditional agriculture, allows year-round cultivation, and better control over nutrients delivery to plants. With rising concerns over depletion of fertile agricultural land and need to improve crop yields, hydroponics is gaining popularity worldwide.
The Global Hydroponics Market is estimated to be valued at US$ 10 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2022-2032.
Key Takeaways
Key players operating in the hydroponics market are Signify Holdings, Grobo, Urban Crop Solutions, Hydrodynamics International, American Hydroponics, Emerald Harvest, and Triton Foodworks.
The key opportunities in the market include increased funding from governments and investors for sustainable farming practices and use of closed-loop hydroponic greenhouses for commercial crop production. The European region has emerged as one of the leading producers of hydroponic vegetables, fruits, and cut flowers globally.
Market drivers
One of the major drivers for the Hydroponics Market Growth is the growing organic farming practices globally. With concerns over residue of pesticides and chemicals on conventionally grown foods, there is rising demand for organic fruits and vegetables cultivated through hydroponics. The practice uses 95% less water, does not involve soil borne diseases or pests, and provides predictable year-round yields. This is expected to further propel the demand for hydroponic equipment, hydroponic components, and nutrients over the forecast period.
PEST Analysis
Political: Hydroponics farming is impacted by regulations around use of fertilizers, pesticides, and growth of crops. Countries and states have varying policies around these inputs.
Economic: Hydroponic farming has lower land requirement and higher yields which impact overall costs for farmers. However, initial setup costs are higher compared to traditional farming. The economic climate impacts demand for hydroponically grown foods.
Social: Younger consumers are increasingly aware of environmental and health impacts of conventional farming and open to hydroponically grown foods. However, in some regions traditional farming still has social acceptance.
Technological: Advances in lighting, nutrient delivery systems and automation has improved harvest sizes and yields from hydroponic greenhouses. Online tutorials and sensors help monitor crop growth remotely.
Geographical Regions
North America currently represents the largest market for hydroponics globally in terms of value led by countries like United States and copyright. favorable policies, access to advanced technologies and high demand from health conscious consumers have supported hydroponic farming adoption in the region.
The Asia Pacific region is forecasted to be the fastest growing market during the forecast period. Countries like China, Japan and India are increasingly adopting hydroponic technologies to meet the demand of growing population while protecting environment. Mature markets of Europe and North America will see relatively slower growth compared to opportunity in Asia Pacific region.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)