MICROGREENS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Microgreens Market Size and Trends

Global microgreens market is estimated to be valued at USD 3.71 Bn in 2024 and is expected to reach USD 7.38 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 10.3% from 2024 to 2031. Microgreens are young vegetables and herbs that are harvested when the first set of true leaves develop.

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Increasing health consciousness among consumers and rising awareness about the nutritional benefits of microgreens can drive the market growth. These are increasing in popularity due to their nutritional concentration and appeal as a gourmet ingredient. Additionally, growth in commercial greenhouse farming and adoption of vertical farming techniques for microgreens production will continue to support market trends.

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Insights By Product Type- Consumer Demand for Nutritious Microgreens Drives Broccoli Sales

In terms of product type, broccoli segment is expected to contribute 21.3% share of the market in 2024, owing to its popularity and high nutritional profile. Broccoli microgreens pack a powerful nutritional punch, with vitamins, minerals, and other beneficial plant compounds concentrated in their small leaves and stems.

Insights By Farming Method- Indoor Farming Powers Year-Round Availability of Microgreens

In terms of farming method, indoor farming segment is expected to contribute 20.4% share of the market in 2024, owing to its ability to produce microgreens sustainably throughout the year. Indoor microgreen farms utilize controlled-environment vertical or hydroponic systems to grow delicate salad greens under optimal conditions without risks from changing weather or pests.

Insights By Distribution Channel: Wide Retail Distribution Boosts Microgreens Category Growth

In terms of distribution channel, retail segment is expected to contribute 32.2% share of the microgreens market in 2024. Retail channels including supermarkets, grocers, and health food stores devote shelf space to microgreens to meet rising consumer demand. Due to their long shelf-life of 7-10 days compared to 3-5 for mature greens, microgreens are well-suited for retail packaging and distribution.

Regional Insights

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Dominating Region: Europe

Europe is expected to dominate the market in 2024 with an estimated share of 39.8%. Europe’s dominance in the microgreens market can be attributed to several factors including a well-established market ecosystem and supply chain that supports microgreens production and distribution.

Fastest-Growing Region: Asia Pacific

Asia Pacific region exhibits the fastest growth, led by countries such as China and India. Governments in the region are promoting controlled agriculture and urban farming to enhance food security. This has encouraged local production of microgreens as well.

Microgreens Market Outlook for Key Countries

Germany leadership in new product innovations for the sustainable food

Germany’s market continues to be dominated by prominent players focusing on new product innovations. Germany is one of the leading markets for organic and sustainable food in Europe, and microgreens have been gaining popularity in recent years. Health-conscious consumers, chefs, and restaurants are increasingly incorporating microgreens into their menus.

The Rise of Indoor Vertical Farming of Microgreens in France

France’s market is supported by indoor vertical farming of microgreens in provinces experiencing harsh winters. Similar to Germany, France benefits from a strong culinary culture that embraces microgreens for their flavor and nutritional benefits. Growing health consciousness among the French population is further expected to boost demand.

Growing Demand for Microgreens in the U.K. Market

The U.K. market is characterized by a growing interest in health and wellness, with consumers seeking nutrient-dense foods. This trend is expected to drive the demand for microgreens. The retail sector in the U.K. is expanding, with supermarkets and online platforms increasingly offering a variety of microgreens, making them more accessible to consumers.

China’s Dominance in the Asia Pacific for Microgreens

China continues to lead in terms of volume, with local giants investing in R&D and automation. China is emerging as a significant player in the Asia Pacific market for microgreens, driven by a rising health-conscious population and increasing demand for organic produce. The country is witnessing rapid advancements in indoor vertical farming technologies, which are being adopted by local growers to enhance production efficiency and meet consumer demand.

Growing Opportunity for Small Farmers in India

India's market is witnessing double digit growth as microgreen farming provides additional income to small farmers. The demand for microgreens in India is on the rise, fueled by health-conscious consumers looking for nutrient-dense foods. As awareness about the benefits of microgreens grows, more people are incorporating them into their diets.

Health Benefits and Functional Foods growing demands in Japan

Japan has a strong focus on health and nutrition, which is propelling the demand for microgreens. The Japanese market is characterized by a growing interest in functional foods, including microgreens, due to their health benefits. Microgreens are increasingly being used in traditional Japanese cuisine, adding both flavor and visual appeal to dishes, which is likely to support market growth.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Global Microgreens Market Players

• Established Players: Leading companies are investing heavily in research and development to drive product innovation. These are developing new microgreen varieties with enhanced nutrient profiles and flavors. Companies are also focusing on improving cultivation techniques for higher yields and quality.
• Mid-Level Players: Medium-sized companies aim to deliver good quality microgreens at competitive prices. These focus on optimizing production processes and reducing overhead costs. This allows them to offer budget-friendly products and appeal to price-conscious consumers.
• Small-Scale Players: New entrants focus on niche market segments left untapped by major brands. These introduce unique microgreen varieties tailored to the demands of specialty consumer groups and local cuisine.
• Tech Adoption: Small players leverage technologies like vertical farming and hydroponics to grow microgreens indoors with minimal land and water usage. This enables year-round production and competitive advantage.

Emerging Startups in the Global Microgreens Market

Innovative Technologies: Companies are developing smart indoor farming systems using IoT, computer vision, and autonomous robotics. This allows constant monitoring and optimization of growth conditions for high yields. Such technologies could revolutionize the industry. Envirevo Agritech utilizes hydroponic systems and advanced climate control to optimize growing conditions.

Sustainable Solutions: Startups offer biodegradable grow pods and grow bags made from compostable materials. Others focus on urban micro-farming and rooftop gardens in cities utilizing rainfall harvesting. This enhances sustainability and reduces the industry's environmental impact.

Market Contribution: Some startups fill gaps in distribution through online microgreen kits and doorstep delivery services. Others partner with schools and offices for campus farming and educational initiatives. 

Microgreens Industry News

• In May 2023, AeroFarms, a Certified B Corporation and a leader in indoor vertical farming, announced a significant nationwide expansion in partnership with Amazon Fresh. This collaboration aims to enhance the high-tech grocery shopping experience for consumers. This move follows its successful entry into Whole Foods Market in 2022, where AeroFarms became the first indoor grower of leafy greens featured in Whole Foods Market's Global Planogram, setting a new standard in the industry.
• In February 2023, Good Leaf Farm, an indoor agriculture company, partnered with Unfold, a prominent seed and digital solutions provider, to launch premium lines of vertically farmed spinach and various leafy greens as part of Unfold's Innovation Partner Program
• In August 2022, AeroFarms expanded its retail footprint by making its products available in 160 Fresh Market stores spanning 22 states, allowing customers to enjoy AeroFarms' delicious microgreens and baby watercress.

Key Takeaways from Analyst

• Microgreens have become increasingly popular due to their high nutritional value and health benefits. As consumers become more health conscious, the demand for microgreens will continue rising. Some of the main microgreen varieties like broccoli, arugula, and pea shoots are finding wider acceptance among consumers.
• On the production side, microgreens do not require extensive land or resources to cultivate. This makes microgreens an attractive cash crop for small farmers across regions. With simplified production process and large demand from food chains and households, many new players are entering microgreens farming. North America currently dominates microgreen production due to growing health trends. However, Asia Pacific is expected to witness growth in the coming years given its massive population seeking fresh produce.

Market Report Scope

Market Dynamics

Market Driver - Organic and sustainable farming

Microgreens have been gaining popularity as more consumers focus on buying organic and sustainable agricultural products. The awareness around the environmental and health benefits of organic food has been steadily rising over the past decade. This is a major factor driving the microgreens industry. For example, according to the USDA’s National Organic Program Data in 2021, organic food sales grew from US$ 1 billion in 1990 to over US$ 50 billion in 2019.

Market Challenge - Limited distribution networks

One of the key challenges currently being faced by the global microgreens market is limited distribution networks. Microgreens cultivation requires very fresh produce to be delivered in the shortest possible time after harvesting to retain maximum nutritional value and freshness. According to the World Bank in 2021, global trade experienced a historic decline of around 9.6% in 2020 as lockdowns and transport restrictions impacted the movement of goods across borders.

Market Opportunity - Expansion of vertical and hydroponic farming

One of the major opportunities for the global microgreens market lies in the expansion of vertical and hydroponic farming systems. With the available land and resources coming under increasing pressure, vertical and indoor farming offers a viable solution to mass produce microgreens in controlled environments close to major consumption centers. The controlled indoor environment also reduces risks from pests and disease. As per the data from Food & Agriculture Organization FAO, indoor vertical farming increased by 15% globally from 2020 to 2022.

Market Segmentation

•  Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Broccoli
  • Radish
  • Pea Shoots
  • Basil
  • Cabbage
  • Arugula
  • Others
•  Farming Method Insights (Revenue, USD Bn, 2019 - 2031)
• • Indoor Farming
  • Conventional Farming (Soil-Based)
  • Vertical Farming
  • Others
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Retail
  • Direct Sales (Farmers' Markets)
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • AeroFarms
  • Fresh Origins
  • Gotham Greens
  • Good Leaf Farms
  • Living Earth Farms
  • Farmbox Greens
  • Chef’s Garden
  • Bowery Farming
  • Teshuva Agricultural Projects Ltd.
  • Madar Farms
  • Metro Microgreens