The hydroponics market is estimated to be valued at USD 47.38 Billion in 2024, growing at a CAGR of 12.1% over the forecast period (2024-2031). There is an increasing demand for fresh produce across the world owing to rising health consciousness among consumers. Furthermore, compact urban living spaces are prompting more people to opt for alternative farming methods like hydroponics which requires less space compared to traditional agriculture.
Market Dynamics:
The key drivers contributing to the growth of the global hydroponics market includes the growing urban population worldwide and the rising demand for organic foods. Hydroponics allows the year-round production of crops regardless of season and climate and requires just 5% of the water used in traditional agriculture. This makes hydroponics an attractive option for farmers and consumers alike. Additionally, the ability to control all nutrients and optimize crop yields using hydroponics techniques is another important factor driving its adoption globally. While the higher initial costs of equipment and setup poses a challenge, the overall productivity and efficiency benefits are increasing the popularity of hydroponics.
Market Drivers
- Increasing demand for organic and pesticide-free food: One of the major drivers for the hydroponics market is the rising demand for organic and pesticide-free food among consumers. With growing health consciousness, people are increasingly preferring food grown without the use of chemicals. Hydroponics is a sustainable way of farming that does not use soil and significantly reduces the need for pesticides. Plants can be grown in a controlled environment with precise nutrient delivery which leads to higher yields. This organic nature of hydroponically grown foods is attracting more consumers and boosting the demand in the market.
- Advantages of higher crop yields: Another key driver is the higher crop yields that hydroponic farming provides compared to traditional soil-based agriculture. With hydroponics, multiple harvesting cycles are possible in a year even in places with limited land resources. Resources like water and fertilizers can also be used more efficiently. This results in up to 6-10 times greater yields per unit area. The ability to maximize production is appealing to both commercial farmers and suppliers. It allows meeting the rising global food demand in a sustainable way. The higher and more reliable yields make hydroponics an attractive option and contribute to market growth.
Market Restraints
- Higher initial setup and maintenance costs: One major challenge faced by the hydroponics market is the significantly higher initial setup and maintenance costs compared to traditional agriculture. Hydroponic greenhouses require infrastructure for climate control, irrigation systems with precise dosing pumps, lighting equipment and nutrients tanks. The costs of these equipment and systems pose a restraint, especially for small-scale users. Further, continuous monitoring and replacements add to operating expenses over time. This high capital requirement limits affordability and mass adoption of the technology.
- Complexity of the hydroponic system;Another major restraint is the complexity involved in operating a hydroponic system successfully. Multiple interdependent factors like pH levels, nutrient composition, lighting and water temperatures need to be precisely regulated. Even small deviations can severely impact plant growth and yields. This requires technical expertise that is lacking widely. For commercial farmers with no hydroponics experience, the learning curve to understand and maintain such systems acts as a deterrent. The level of sophistication involved hampers broader market expansion.
Market Opportunities
- Utilizing unused urban space: With rapid urbanization, many cities face shortage of land for agriculture. However, underutilized rooftops and other vertical spaces in urban areas offer a major opportunity to boost local food production through hydroponics. Different levels can be effectively utilized to set up multilayer farms. This helps address the growing demand for local produce while optimizing scarce urban land resources. Many cities are promoting urban agriculture policies to support such initiatives. This presents a significant growth avenue for hydroponics suppliers.
- Expanding into new crops: Currently, the hydroponics industry largely focuses on high-value leafy greens, herbs, strawberries, and tomatoes. However, technologies around nutrient film technique and deep water culture are enabling production of more crop varieties. There exists vast scope to commercialize hydroponic farming for fruits, flowers, spices and even fast-growing microgreens. Diversifying into new categories will not only attract more farmers by improving affordability but also open up untapped consumer segments. Suppliers stands to gain by expanding product offerings and customizations as per the needs of different crops. This presents lucrative opportunities for sustained market expansion
Link: https://www.coherentmarketinsights.com/market-insight/hydroponics-market-1001
Key Developments
- In 2023, a Singapore-based company, Hydroponics Company Launches Turnkey Commercial Farming Solution
- In 2023, New hydroponic garden tower launched on Kickstarter. The Nutraponics Garden Tower can host up to 100 plants
- In June 2022, Hydroponic Systems International's HS Evolution Pot, designed to eliminate the need for packaging or plastic bags for the substrate, represents a significant step towards sustainability and eco-friendliness. By reducing waste and promoting a more environmentally conscious approach to cultivation, this innovation not only aligns with global efforts to reduce plastic usage but also enhances the company's reputation as a leader in sustainable agriculture
- In June 2022, InFarm's partnership with IKEA to cultivate high-quality herbs within IKEA stores in Germany marked a strategic move that can significantly bolster the company's market position. By integrating their innovative indoor farming technology into IKEA's restaurants, InFarm gains exposure to a wider audience, showcasing the quality and freshness of their produce directly to consumers. This collaboration not only enhances the dining experience for IKEA customers but also reinforces InFarm's reputation for providing sustainable, locally grown ingredients.
- In January 2022, the acquisition of Luxx Lighting by ScottsMiracle-Gro, enhancing The Hawthorne Gardening Company's lighting portfolio, represents a strategic move that can greatly benefit the company's product offerings and market position. By integrating Luxx Lighting's innovative technologies and products into Hawthorne's portfolio, ScottsMiracle-Gro gains access to cutting-edge lighting solutions that can cater to a wider range of indoor gardening needs. This expansion not only diversified the company's product offerings but also positioned it as a comprehensive provider of high-quality gardening equipment and solutions.
Key Players
Argus Control System, Koninklijke Philips NV , Greentech Agro LLC , Biodynamic LLC, General Hydroponics, Inc., Logiqs B.V., Lumigrow, Inc., Hydrofarm Inc., Hydrodynamics International Inc., Heliospectra AB, Village Farms International, Inc., Platinum Produce Company , Millennium Pacific Greenhouses Ltd, Soave Enterprises LLC., Nutrifresh, Rise hydroponics, Urban Kisaan, Cochin Ela Sustainable Solutions, Brio Hydroponics, and Rise Hydroponics
