Global Hydroponic Farming Market

MARKET SCOPE:

The global hydroponic farming market is projected to grow significantly, registering a CAGR of 7.6% during the forecast period (2024 – 2032).

The hydroponic farming market, categorized by types such as leafy greens, microgreens, and others, and applications including food service, supermarkets/hypermarkets, and others, demonstrates a vast scope. This market, driven by innovative soilless cultivation methods, offers sustainable solutions for producing a variety of crops. The demand spans from the food service industry to supermarkets/hypermarkets and beyond. With an increasing focus on efficient resource utilization and year-round cultivation, the hydroponic farming market presents a dynamic landscape with diverse opportunities for growth and market penetration.

MARKET OVERVIEW:

Driver: Sustainable Agriculture and Resource Efficiency is driving the market growth.

A key driver propelling the Hydroponic Farming Market is the global emphasis on sustainable agriculture and resource efficiency. Hydroponic systems, characterized by soilless cultivation, minimize water usage and land requirements while maximizing crop yields. This resource-efficient approach aligns with the growing awareness of environmental sustainability and the need for food production methods that minimize ecological impact.

Opportunities: Urban Farming and Controlled Environment Agriculture are expected to pave the way for market growth in the upcoming years.

An opportunity lies in the integration of hydroponic farming with urban farming and controlled environment agriculture. As urbanization increases, there is a rising demand for locally sourced, fresh produce. Hydroponic systems, adaptable to urban spaces and enclosed environments, offer a solution for year-round, localized cultivation. This aligns with the trend of consumers seeking access to fresh, high-quality produce while reducing the carbon footprint associated with food transportation.

COVID IMPACT:

The COVID-19 pandemic underscored the importance of resilient and localized food production systems. Hydroponic farming, with its potential for indoor cultivation and reduced dependency on external factors, gained attention. Disruptions in traditional supply chains highlighted the vulnerability of global food systems, leading to increased interest in local and sustainable agriculture. The pandemic acted as a catalyst for exploring alternative farming methods, positioning hydroponics as a viable option for ensuring a consistent and resilient food supply.

SEGMENTATION ANALYSIS:

Demand from application segments is anticipated to grow significantly during the forecast period

The Hydroponic Farming Market, characterized by its innovative soilless cultivation methods, exhibits diverse segmentation based on the types of crops and applications, reflecting the versatility of hydroponic systems. In terms of crop types, the market distinguishes itself into Leafy Greens, encompassing staples like lettuce and spinach, Microgreens, celebrated for their nutritional density, and an inclusive category of other crops, showcasing the adaptability of hydroponic techniques across various plant species.

The application segmentation further highlights the market's influence on different industries. The Food Service sector benefits from a reliable and fresh supply of hydroponically grown produce, enhancing culinary offerings. Supermarkets and Hypermarkets play a pivotal role by offering consumers consistent access to high-quality hydroponic crops. The broader category of other applications signifies the diverse uses of hydroponic farming across various industries, underlining its flexibility.

Additionally, regional segmentation is crucial for understanding the global adoption of hydroponic farming practices. It provides insights into regional preferences, regulatory environments, and market dynamics, allowing for a comprehensive analysis of the market's geographical impact. Overall, the segmentation analysis underscores the broad scope and applicability of hydroponic farming, positioning it as a transformative force in sustainable agriculture and the evolving global food supply chain.

REGIONAL ANALYSIS:

The Europe region is set to witness significant growth during the forecast period.

In the year 2022, Europe experienced a remarkable dominance in the global hydroponics market, showcasing an impressive growth rate of 42.00%. This surge in the hydroponics sector was primarily attributed to the escalating demand for locally-grown, pesticide-free, and fresh produce across the continent. One of the key factors contributing to Europe's leading position was the increasing awareness among consumers regarding the benefits of hydroponic farming. The demand for produce cultivated through hydroponics surged as consumers sought alternatives to traditional farming methods, emphasizing the importance of sustainability, reduced pesticide use, and the desire for fresh, high-quality vegetables and fruits.

The European hydroponics market's robust growth was also fueled by a growing interest in urban farming and controlled environment agriculture. Hydroponic systems, known for their adaptability to various settings, including urban environments and indoor spaces, became instrumental in meeting the demand for locally sourced produce in densely populated areas. Furthermore, the emphasis on food security and resilience in the face of external disruptions, such as supply chain challenges or environmental uncertainties, played a role in driving the adoption of hydroponic farming practices. The consistent and reliable yields offered by hydroponics, irrespective of external factors, positioned it as a preferred choice for sustainable and secure food production in Europe during the notable year of 2022.

COMPETITIVE ANALYSIS

The global Hydroponic Farming market is reasonably competitive with mergers, acquisitions, and Application launches. See some of the major key players in the market.

Evergreen Farm Oy

• Vertical farming involves cultivating crops in vertically stacked layers, typically indoors within controlled environments like warehouses or greenhouses. This contemporary approach to vertical farming employs Controlled-Environment Agriculture (CEA) technology, overseeing factors such as humidity, temperature, irrigation, nutrient delivery, and artificial lighting. Frequently, vertical farming adopts soilless techniques such as hydroponics or aeroponics, utilizing water or mist for nutrient delivery instead of traditional soil. Hydroponic methods may expose plant roots solely to mineral solutions or support them with an inert substrate. Despite variations, the overarching goal of vertical farming is consistent – to produce nutrient-rich, pesticide-free crops throughout the year, achieving significantly higher yields per area compared to conventional agriculture, all while adhering to sustainable practices. Addressing challenges related to energy efficiency, humidity, and space utilization, Evergreen Farm has developed an exceptionally efficient vertical farming system, aiming to redefine the landscape of modern agriculture.

Jones Food Company (JFC)

• In celebration of the launch of inaugural consumer-facing brand, Lēaf, at JFC, the introduction of a new product range has been marked, featuring the UK’s pioneering pesto containing vertically farmed basil. The current assortment encompasses various leafy salads, accompanied by three sauces designed to elevate culinary experiences with fresh, natural flavors: basil pesto, vegan basil pesto, and basil dressing. Lēaf’s flagship fresh salads, boasting ingredients such as baby salad mix, rocket, baby spinach, and basil, are presented in recyclable packaging, delivering a robust yet nuanced flavor profile. The salad boxes, cultivated and dispatched to clients within 24 hours, prioritize sustainability and freshness. The recently unveiled range of homegrown products is characterized by their natural, sustainable cultivation, leveraging renewable energy, eschewing pesticides entirely, and utilizing 95% less water compared to conventional farming methods. Free from artificial preservatives, colorings, or additives, these products maintain their genuine natural quality and flavor.

Kalera

InFarm

AgriCool

LettUs Grow Ltd

Infinite Acres

CropOne

Green Spirit Living Farm

BrightFarms

Freight Farms

AeroFarms

Bowery Farming

Plenty Unlimited Inc

Gotham Greens

Iron Ox

Scope of the Report

By Type

• Leafy Greens
• Microgreens
• Others

By Application

• Food Service
• Supermarkets/ Hypermarkets
• Others

By Region

• North America (the United States & Canada)
• Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
• Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
• Rest of the World (the Middle East & Africa, and Latin America)

Key reason to purchase this report

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Hydroponic Farming Market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Hydroponic Farming submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032.