Hydroponics Market - Growth, Trends And Forecast (2020 - 2025)
The Global Hydroponics Market is projected to register a CAGR of 6.8% over the forecast period (2020-2025). In 2019, Europe is the largest geographic segment of the market studied and accounted for a share of around 47.3% of the overall market.
Hydroponics is an environment-friendly and profitable technology. It has been promoted by the various governments and non-governmental organizations for its benefits in terms of food security.The need for food supply against the explosive population increase by 2050 has catalyzed the growth of the hydroponics market.Fund flows towards the market for bringing development and technological advancement in this specific sector.
High-cost is the only major drawback in technology. However, a lot of R&D activity is being carried out globally to reduce the cost involved in technology. The major industry drivers include high profits, growing emphasis on food security, and increasing consumption of salad and exotic vegetables.
Key Market Trends
Higher Consumption of Salads and Vegetables
The demand for exotic fruits and vegetables has been constantly growing at a higher rate due to the increased purchasing power of consumers. The cost of these exotic products is high, as most of these products are imported, and thus, several research institutions and universities are focusing on establishing more simplified hydroponics systems, in order to accelerate the production of exotic fruits and vegetables and meet the escalating demand.
Increasing awareness among the consumers of eating fresh vegetables will also fuel the market in future. Demand for Exotic vegetables like red and yellow capsicum, red lettuce in Retail company like Burger king,KFC,Pizza will drive the market.
Europe Dominates The Global Market
Europe is traditionally the largest market, that is implementing advanced techniques in hydroponics smart greenhouse horticulture. The matured European market demand is led by countries, such as the Netherlands, Spain, and France. In Europe, Holland is the largest producer of hydroponic crops and is expected to maintain the lead for the next 10 years. This is because of the vast expansion of hydroponics technology in the Netherlands. Germany is expected to register a higher pace, among the European countries. The major vegetable and fruit crops that are grown using hydroponics in European countries include, cucumber, tomatoes, roses, and peppers among others. As consumers are becoming increasingly aware of the quality difference in greenhouse-grown vegetables, the demand for hydroponics culture is increasing in Europe.
The global hydroponics market is a niche market, with various small and medium-sized companies coining a very minimal share in the world. This has resulted in very stiff competition. The development of regional markets and local players in different parts of the world is the major factor for the fragmented nature of the market. Europe and the Asia Pacific are the two regions showing maximum competitor activities.
In October 2018, Box greens, a miami based company that introduced farms-in-a-box which retrofits cointainers into portable hydroponics farms.In Novemeber 2018, IKEA, a dealer in home accessories ,developed new hydroponic cultivation kit for indoor cultivation of herbs and vegetables
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