(Market Growth, Value, Remarks) Expanding Hydroponics Market and Opportunities in The Business World
In hydroponics, plants are grown without the use of soil by employing mineral fertilizer solutions in sand, gravel, or liquid. The hydroponics business is growing exponentially as a result of the rising success rates in the commercial hydroponics sector and the rising difficulty of producing vegetables in soil. Using hydroponics, a variety of out-of-season fruits and vegetables can be grown all year round in regulated circumstances. The United States, Australia, Spain, Holland, Canada, New Zealand, Italy, Mexico, and China are the primary nations that actively use hydroponics. Cucumber, lettuce, tomato, pepper, strawberry, leafy vegetables, herbs, cut flowers, etc. are the main crops grown hydroponically. As a result of its integrated pest management strategies, this strategy is frequently used.
Table of Contents
The Market Dynamics of Hydroponics
A specialized nutrient solution of the highest quality aids in the growth of a plant in a sustainable way in hydroponics, one of the soil-free farming techniques with the fastest global growth. The industry’s verified better output when compared to conventional agricultural methods is one of the main development drivers. The market is anticipated to be driven by reasons such as profit farming, rising exotic salad crop consumption, and rising global food security demands. The factors that could impede market expansion are initial high costs and a lack of understanding of soilless agriculture technology. Globally expanding medicinal plant production and specialized farming techniques may offer the sector chances for future expansion.
The hydroponics market’s dynamics are influenced by a number of factors, including:
- Need: The growing demand for fresh vegetables, particularly in metropolitan areas where access to them might be difficult, is what propels the demand for hydroponics. The need for hydroponics is rising as the world’s population continues to increase and becomes more urbanized, and there is a greater need for fresh, high-quality products.
- Supply: The availability of technology and resources like water and fertilizers has an impact on the supply of hydroponics. Technology advancements have increased hydroponics’ effectiveness and cost-effectiveness, which has helped expand the hydroponics market.
- Price: The cost of production, which includes the cost of inputs like water and nutrients as well as labor and energy expenditures, has an impact on the price of hydroponics. The level of market rivalry and product demand both have an impact on hydroponics pricing.
- Competition: There are many businesses operating at various points along the supply chain in the highly competitive hydroponics sector. The cost and accessibility of hydroponics can be influenced by the degree of market competition.
- Government restrictions: By affecting the cost of production and the availability of resources, government laws, such as environmental rules, can have an impact on the hydroponics market.
Comparison: The Growth of Hydroponics and the World Market in the Last Five Years
| Year | Hydroponics Market Growth | World Market Growth | Remarks | Hydroponics Market Value (in billions) | World Market Value (in billions) |
| 2017-2018 | 3% | 3% | The market for hydroponics expanded slowly but steadily in 2017, propelled by rising fresh product demand and the promise for sustainable agriculture. | 5$ | 100$ |
| 2018-2019 | 5% | 4% | Compared to the previous year, the hydroponics market expanded more slowly but steadily in 2018, spurred on by technological advancements and growing public awareness of the advantages of hydroponics. | 6$ | 110$ |
| 2019-2020 | 7% | 5% | The market for hydroponics expanded significantly in comparison to 2018, propelled by the rising demand for fresh produce, a shortage of arable land, and water shortages. | 7$ | 115$ |
| 2020-2021 | 10% | 6% | Due to the COVID-19 epidemic and the demand for reliable food supply, the hydroponics market grew significantly in comparison to 2019. | 9$ | 120$ |
| 2021-2022 | 12% | 7% | Due to the rising demand for fresh produce, the scarcity of arable land, and the possibility for sustainable agriculture, the hydroponics market grew significantly in comparison to 2020. | 11$ | 125$ |
Compared to the world market, hydroponics has expressed good growth in the last five years, and this trend will continue to grow due to the high demand for organic food.
Will Irrigation Methods Be Transformed By Hydroponics?
A market intelligence company’s analysis projects that the global hydroponics market will grow at a 6.5% CAGR from 2017 to 2022, with market revenue expected to reach USD 30,849.83 million by that year. The market expansion of hydroponics is largely attributable to the growing emphasis on implementing cutting-edge and effective technology to increase yields. One of the main crops grown using the hydroponic technique worldwide is the tomato. A USDA/ERS study claims that imports of hydroponically grown tomatoes from nations like Canada, Mexico, and the Netherlands have dramatically increased in volume and now make up a sizable portion of all fresh market tomato imports into the US. Hydroponically-grown lettuce and other leafy crops, peppers, cucumbers, and other vegetables are becoming more popular.
Our researchers claim that Europe has historically been the biggest market for hydroponics, where cutting-edge methods in hydroponic greenhouse horticulture are used. Leading the demand for hydroponics in the developed European market are the Netherlands, Spain, and France. Asia-Pacific is home to the second-largest hydroponics market, which is anticipated to expand steadily over the next few years. Between 2017 and 2022, the North American region, which is dominated by the United States and Canada, is anticipated to grow more quickly.
Hydroponics Competition Research
There is a lot of competition in the hydroponics business, and these competitors are spread out along the supply chain. There are numerous smaller businesses, including startups and individual growers, but a few big players dominate the market.
- The following factors can impact competition in the hydroponics market:
- Technology: Businesses using cutting-edge methods and technology are probably going to have an advantage over rivals in the market.
- Scale: Larger businesses may be able to sell and create goods for less money thanks to economies of scale, giving them a competitive edge.
- Brand recognition: Businesses with a good reputation for their brands are likely to have an edge over rivals because people are more likely to believe in and buy from well-known companies.
- Pricing: Businesses that can provide competitive pricing may have an advantage over rivals in the market.
- Distribution channels: Businesses that have robust distribution networks are probably at a competitive advantage.
The most technologically sophisticated locations make up the majority of the hydroponics market worldwide. Some of the prominent companies in the market include Greentech Agro LLC, Argus Control Systems, Logiqs BV, Koninklijke Philips NV, General Hydroponics Inc., and Lumigrow Inc. Industry participants continually implement R&D related to region- and area-specific requirements. The main players also use mergers and acquisitions as one of their primary strategies. Gavita is a Dutch grow lighting and hardware company that Scotts Miracle-Gro, a behemoth in the lawn and garden industry, purchased for USD 136 million. Through its subsidiary, Hawthorne Horticulture Co., Scotts Miracle-Gro made investments in businesses including AeroGrow, a company that specializes in indoor gardening in Boulder, and purchased General Hydroponics Inc. of California for USD 130 million. Additionally, the corporation spent USD 77.1 million to purchase Botanicare.
Due to the rising demand for fresh produce, the scarcity of arable land, and the promise of sustainable agriculture, the hydroponics business has seen substantial expansion in recent years. The COVID-19 epidemic has also aided in the market for hydroponics’ rapid expansion. Numerous factors, including supply, price, competition, and governmental laws, have an impact on the hydroponics business. Compared to the entire global market, the hydroponics market has expanded more quickly in recent years. By 2021, the hydroponics business is expected to be worth $11 billion, up from $5 billion in 2017. The market for hydroponics presents expansion prospects for specialized farming methods and the cultivation of medicinal plants.
