GREENHOUSE SOIL MARKET ANALYSIS

The global greenhouse soil market was valued at US$ 6,063.8 Million in 2022, and is expected to exhibit a CAGR of 4.65% in terms of revenue over the forecast period (2023-2030), and reach US$ 8,726.0 Million by 2030.

Driver:

Increasing application of greenhouse soil in lawn & landscaping, greenhouse, and indoor gardening

Greenhouse soil consists of organic materials, which include composting bark, wood chips, and shredded leaves. The market growth is driven by benefits associated with greenhouse soil ingredients along with increasing application of greenhouse soil in lawn & landscaping, greenhouse, and indoor gardening. Middle East is witnessing an increasing trend of greenhouse farming owing to extreme weather conditions and scarcity of water. Moreover, next-generation agricultural solutions in the Middle East include hydroponics, which is a technique for growing plants and vegetables using perlite, peat, rockwool, and others without soil.

For instance, on February 17, 2023, NRCS (Natural Resources Conservation Service) announces Next Conservation Program Funding Cycle Ending March 17, 2023. Iowa-based farmers in the U.S., interested in implementing new conservation practices on their farms have until March 17 to apply for the next round of Farm Bill program assistance through USDA’s (U.S. Department of Agriculture) Natural Resources Conservation Service (NRCS), including first-time funding through the Inflation Reduction Act (IRA), Iowa.

Use of organic raw materials such as decaying plant materials and microorganisms in greenhouse soil

The use of organic raw materials such as decaying plant materials and microorganisms in greenhouse soil is expected to drive growth of the market during the forecast period. For instance, the use of peat, bark, hulls, and coconut coir is increasing demand for these materials among farmers, owing to their decomposing properties. Moreover, effective use of lighting in greenhouse for vertical farming is one of the factors, which is expected to drive the greenhouse soil market growth in forecast period. Usage of lighting in greenhouse maintains balance in temperature and fulfills light requirement of the plants. Therefore, use of efficient LEDs and switching inorganic media components such as perlite, sand, and others with organic raw materials is expected to boost growth of the greenhouse soil market. According to Indian Brand Equity Foundation, In March 2022, Budget 2022, focuses on smart and modern agricultural practices. According to the Prime Minister of India, agricultural loans have surged 2.5 times over the past seven years. These loans will help modernise agriculture significantly and enhance natural farming, with a prime focus on Agri-waste management. Furthermore, under the PM Kisan Samman Nidhi scheme, US$ 26.4 billion (Rs. 2,00,000 crore) has been disbursed to 11 crore farmers. Also, the government’s efforts towards promoting the use of organic products have driven expansion in the organic products market to US$ 1.5 billion (Rs. 11,000 crore). The government is also providing financial support to Agri-tech startups and promoting the adoption of AI to revolutionise agricultural and farming trends.

Restraint:

Greenhouse farming requires high upfront and operating expenses

Greenhouse farming requires high upfront and operating expenses. It requires careful precautions to eliminate any pest or diseases in order to make sure that consecutive crop production does not get affected There is lack of awareness of soil among farmers, which requires training.

For instance, on February 21, 2023, Environmental Quality Incentives Program (EQIP), the federal government’s U.S. largest agriculture conservation assistance program for working lands, covering over 200 practices. Producers receive personalized technical assistance at no cost from Technical Service Providers (TSP) and are eligible for financial assistance to implement conservation practices. 

Global Greenhouse Soil Market- Impact of Coronavirus (Covid-19) Pandemic

Soil health  undermined by the improper disposal of animals culled during global pandemic. During the COVID-19 pandemic, mass culling of animals occurred for two reasons. Market disruptions due to decreased consumer demand, global trade restrictions, and workforce illness and absenteeism created market surpluses. Animals were also culled to prevent the transmission and mutation of the virus through animal vectors.

Figure 1. Global Greenhouse Soil Market Share (%), By Region, 2022

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Among region, Europe accounted for the largest revenue share of 40% in the global greenhouse soil market in 2022, and it is expected to hold its dominance over the forecast period. Increasing trend of greenhouse farming, adoption of modern agriculture technology, and growing demand for organic food is increasing demand for different soil solutions including greenhouse soil.

Moreover, Middle East & Africa is expected to witness significant growth over the forecast period (2023 to 2030), and exhibit a CAGR of 5.2%. The weather conditions in Middle East & Africa are not favorable for growth of vegetables, thus, majority of vegetables are grown in greenhouses, thereby, propelling demand for greenhouse soil in the region.

Figure 2. Global Greenhouse Soil Market Share (%), By Application, 2022

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Based on application, greenhouse segment accounted for the largest revenue share of 45% in 2022 in the global greenhouse soil market. The segment is expected to witness significant growth over the forecast period as a result of growing trend for vertical and rooftop farming, coupled with reduced arable land for cultivation.

Recent Development:

On March 8, 2022 - AgTech Leader Netafim, a global leader of precision irrigation solutions and agricultural projects, announced that it has signed a definitive agreement to acquire Dutch turnkey greenhouse projects provider, Gakon.

On December 2022 - Signify world leader in lighting has completed the acquisition of Fluence from ams OSRAM. Fluence will operate with a separate go-to-market as an integrated business unit within Signify's agricultural lighting business in the Digital Solutions Division.

In 2022, Midstream Lighting  is a leading manufacturer of LED Lighting technology & solutions has completed its acquisition of Hyperion Grow Lights. Midstream will retain the Hyperion brand as its horticulture offering; under the leadership of former Hyperion Managing Director Jonathan Barton.

In 2022, New Zealand-based Agri-tech company, Bluelab has acquired automation company Autogrow, as part of a global strategy to expand operations into new territories and increase its range of technology offerings to customers. 

Major Players:

Major players operating in the global greenhouse soil market include Klasmann-Deilmann, ScottsMiracle-Gro., Sun Gro Horticulture, Premier Tech, ASB Greenworld, Florentaise, Lambert Peat Moss, Westland Horticulture, Michigan Peat Company, FoxFarmSoil & Fertilizer Company, Southeast Soils Peat Company Inc., and Espoma Organic.

Market Definition:

Greenhouse is a structure used for growing crops under fully or partially controlled environmental conditions, in order to get maximum output and optimum growth. Greenhouse soil is used for cultivation of crops in greenhouse farming. On the basis of product type, the greenhouse soil market is segregated into potting mix, garden soil, mulch, and top soil. Potting mixes is modified mixtures of soil, organic, and inorganic materials that are used for growing greenhouse plants.

Top soil is the top layer of the soil that is used in greenhouse cultivation, and it can be anywhere between 2 to 12 inches. It is used as a portion of mixture and is combined with other materials such as compost to improve aeration and water holding capacity of the potting soil. Potting mixes are used to start seeds, and are very light with higher water and air holding capacity. Top soil is rich in nutrients and minerals, microorganisms, and organic matter that helps in the growth of plants.