April 24, 2024
Hydroponic Vegetables Market

Hydroponic Vegetables Market is Expected to be Flourished by Increasing Adoption of Precision Agriculture

Hydroponic agriculture or hydroponics is a method of growing plants without soil by using mineral nutrient solutions in a water solvent. Hydroponically grown vegetables provide higher yields compared to conventional agriculture as plants utilize nutrients efficiently in a soilless environment. Hydroponically grown vegetables also require less water and space to grow. With the increasing adoption of precision agriculture and controlled-environment agriculture, hydroponically grown vegetables are gaining more traction globally. Precision agriculture techniques such as nutrient film technique (NFT), ebb and flow techniques are widely used for hydroponic vegetable production.

The global hydroponic vegetables market size is estimated to be valued at US$ 16.73 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The global hydroponic vegetables market is driven by increasing adoption of precision agriculture techniques for hydroponic vegetable production and growing demand for pesticide-free vegetables. As mentioned in the heading, the adoption of precision agriculture is increasing among hydroponic farmers to improve yield and maximize profitability. Technologies such as nutrient film technique (NFT) help to continuously circulate the nutrient solution to plant roots for efficient uptake of nutrients. This results in higher yields even in limited land area. Similarly, ebb and flow technique intermittently irrigates and drains the grow bed to provide oxygen and nutrients to plant roots. Furthermore, the demand for organic and pesticide-free vegetables is rising globally owing to increasing health awareness. Hydroponically grown vegetables require less or no pesticides and fertilizers, thus fulfilling the demand for clean label foods. This growing demand for organic vegetables also acts as a driver for the global market.

Segment Analysis
The global hydroponic vegetables market is segmented on the basis of type and crop type. Based on type, the market is segmented into aggregate hydroponic system and liquid hydroponic system. The aggregate hydroponic system dominates the market as it provides better aeration and drainage for plant roots. The liquid hydroponic system segment is expected to witness higher growth during the forecast period owing to increasing preference for nutrient film technique.

Based on crop type, the market is segmented into lettuce, cucumbers, peppers, tomatoes, herbs, and others. The tomatoes segment dominates the market due to higher demand. Tomatoes can be grown hydroponically all year round using liquid hydroponic systems.

PEST Analysis
Political: Governments across regions are supporting hydroponic farming through subsidies and incentives. For instance, the US government supports hydroponic farming under EPA guidelines to safeguard the environment.
Economic: The rising disposable income and changing lifestyles have increased the demand for fresh and organic vegetables, driving the adoption of hydroponic farming. However, high initial investments associated with hydroponic equipment pose challenges.
Social: Growing health consciousness among consumers and rising demand for locally grown pesticide-free vegetables is fueling the adoption of hydroponic farming techniques. Additionally, limited availability of agricultural land in urban areas is propelling the market.
Technological: Adoption of newly developed hydroponic systems such as nutrient film technique and aeroponics coupled with automation solutions increases yield and reduces energy requirements. However, high R&D costs associated with new technologies restrict market growth.

Key Takeaways
The Global Hydroponic Vegetables Market Size is expected to witness high growth over the forecast period due to limited availability of agricultural land and growing demand for organic foods.

North America dominates the market currently owing to government initiatives to promote local farming and availability of skilled workforce. Countries like the US and Canada are major contributors to the North American regional market.
Europe is the second largest regional market for hydroponic vegetables. Countries such as Italy, Spain and the Netherlands have ideal climatic conditions for hydroponic cultivation and have traditionally practiced hydroponic farming. However, Asia Pacific is expected to be the fastest growing regional market led by countries such as China, Japan and India. The growth can be attributed to increasing foreign direct investments in agro-food sector and rising number of hydroponic farms in the region.

Key players operating in the hydroponic vegetables market are Signify Holdings, Everlight Electronics Co., Argus Control Systems, Hydrodynamics International, Heliospectra, Lumigrow, General Hydroponics, Logiqs, American Hydroponics, and Village Farms. Signify Holdings recently launched Phillips GreenPower LED solutions for indoor vertical farms. General Hydroponics and American Hydroponics provide varied types of hydroponic nutrients and equipment.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it