A recent intelligence study by Transparency Market Research suggests that the global Hydroponics Market is in developing stage with ample of opportunities, and expects the competitive to intensify in the near future, with the leading vendors concentrating on advanced technologies such as the adoption of shrink wrapping and computer-controlled drip irrigation system. Some of the key companies operating in the global hydroponics market identified by the report are: Thanet Earth Ltd., Soave Enterprises LLC., AMCO Produce Inc., Village Farms International, Inc., Eden Farms, Bright Farms Inc., Hollandia Produce, L.P., Emirates Hydroponics Farms, Millennium Pacific Greenhouses Ltd., and Platinum Produce Company.
As per the estimations provided in the report, the demand in the global hydroponics market will increment at a potent CAGR of 6.5% during the forecast period of 2017 to 2025, reaching a valuation of US$12.1 bn by the end of 2025, significantly up from its evaluated worth of US$6.9 bn in 2016. New product launches, investment on research and development activities, and mergers and partnerships with regional players are some of the key strategies adopted by the prominent companies to strengthen their stronghold over the market.
Lettuce Most Profitable Vegetable Segment
On the basis of vegetable type, the TMR report segments the global hydroponics market into lettuce, cucumber, peppers, spinach, and tomatoes, and rates lettuce segment as most profitable, accounting for 32.9% of the global demand in 2017, and attributes it a CAGR of 6.6% during the above mentioned forecast period. On the other hand, tomato segment is also expected to come up as a substantial segment in the near future.
Based on distribution channel, the TMR report bifurcates the global hydroponics market into modern trade such as supermarket or hypermarket, grocery stores, whole food and specialty stores, unorganized small stores, and bulk suppliers and distributors. Among these, supermarket or hypermarket segment is projected for the strongest growth rate, owing to its growing penetration in developed as well as emerging economies and the ability to manage heavy footfall and offer variety of products.
Europe and North America Collectively Serving Maximum Demand
Geographically, the report gauges the potential of all important regions, including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa, and identifies Europe as the dominant region, accounting for 41% shares of the demand by the end of the forecast period, which is 2025. North America is also expected to remain highly profitable. The extended demand from these two regions is a reflection of growing demand for hydroponic vegetables, for which the awareness is growing among the consumers. Vastly populated region of Asia Pacific is also expected to increment the demand for hydroponics in the near future, primarily gaining traction from the emerging economies of India and China.
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Escalating Population Driving Demand
The global hydroponics market is gaining traction from a number of factors, such as escalating world population, decreasing arable land, higher yields in comparison to traditional soil-based agriculture, growing emphasis on food security, growing popularity of environment friendly profit farming, and higher consumption of salad crops and other exotic vegetables. On the other hand, high cost of hydroponic system set-up and the lack of awareness is hindering the market from attaining its true potential. Nevertheless, the vendors operating in the global hydroponics market are expected to gain new opportunities as a result of increased usage of medicinal plantation and the advent of customized farming.