Hydroponics Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 5.06 Billion |
| Market Size (2029) | USD 7.36 Billion |
| CAGR (2024 - 2029) | 7.80 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Hydroponics Market Analysis
The Hydroponics Market size is estimated at USD 5.06 billion in 2024, and is expected to reach USD 7.36 billion by 2029, growing at a CAGR of 7.80% during the forecast period (2024-2029).
- Hydroponic farming offers benefits beyond environmental protection, including higher crop yields than traditional open-field cultivation. Moreover, the rising health consciousness among consumers has spurred increased demand, driving the adoption of hydroponic production methods. Factors such as the growing global population, limited cultivable land availability, government incentives, and a rising demand for fresh, high-quality food contribute to the trend.
- The adoption of hydroponics has been particularly high in urban areas, where approximately 56% of the world's population resides, as the World Health Organization and the Population Council reported in 2023. The scarcity of land in urban settings has led to the adoption of innovative solutions such as hydroponics, which allow growers to optimize space for cultivating crops efficiently. Hydroponics offers a way to grow high-quality produce year-round, regardless of the season or weather conditions. This has led to a significant increase in the demand for hydroponic produce, particularly in urban areas with higher demand for fresh produce.
- According to the International Research Journal of Modernization in Engineering Technology (IRJETS), adopting hydroponics significantly conserves resources and boosts productivity. Soilless media saves 80% to 85% of irrigation water and 55% to 80% of fertilizer while increasing vegetable productivity by 100% to 150%. Hydroponics can save 85% to 90% of irrigation water in a nutrient solution system, reduce fertilizer use by 68% to 85%, and increase vegetable productivity by 200% to 250%.
- Additionally, hydroponics provides an effective food security solution to attain self-sufficiency in food, as the technology uses space efficiently and can be applied even by landless urban and rural people. For instance, Pure Food Technology, a startup based in the UAE specializing in sustainable agriculture and food technology, has developed an innovative hydroponic prototype. This prototype consumes 95% less water than traditional farming methods and delivers a crop yield 100 times higher. The breakthrough technology is projected to significantly reduce the UAE's USD 7.7 billion expenditure on fresh vegetable imports and contribute to the country's goal of achieving self-sufficiency in nutrient-rich plant-based foods.
- Moreover, hydroponics is an eco-friendly and profitable technology, particularly in North America, Europe, and Asia. Countries in these regions have received support from governments and non-governmental organizations due to hydroponics' positive impact on food security. For instance, Wucheng County in Dezhou, Shandong Province, China, has launched a program that allows a new generation of growers to apply their technical knowledge and skills to advance the regional horticulture industry. As part of this program, they have developed a hydroponic cabbage that matures in 20 days, allowing up to 15 harvests per year.
- Also, the increasing demand for food, driven by the projected population growth by 2050, has fueled the expansion of the hydroponics market. Moreover, as commercial hydroponics ventures achieve greater success and soil-based crop cultivation becomes more challenging, the hydroponics market is anticipated to experience rapid growth during the forecast period.
Hydroponics Market Trends
Higher Consumption of Salads and Exotic Vegetables
The higher consumption of salads and exotic vegetables such as lettuce, microgreens, and other leafy vegetables drives the global hydroponics market. This trend is fueled by the increasing demand for fresh, high-quality produce, particularly among health-conscious consumers. The cost of exotic fruits and vegetables is high due to importation, leading to research institutions and universities focusing on establishing simplified hydroponics systems to accelerate production and meet increasing demand.
The choice of hydroponics system largely depends on the crop type and available land. For instance, aggregated hydroponics systems use a solid medium like sand, gravel, or clay pellets to support plant roots. These systems are commonly used for growing larger plants or those needing more stability, such as tomatoes, cucumbers, and peppers. In contrast, Liquid hydroponics systems do not use a solid medium. Instead, plant roots are suspended in a nutrient-rich water solution, including systems such as nutrient film technique (NFT) and deep water culture (DWC). These liquid systems are efficient for growing leafy greens, herbs, and microgreens, such as lettuce and spinach, because they deliver nutrients directly to the roots and support rapid growth cycles.
Moreover, increasing consumer awareness about the benefits of eating fresh vegetables will drive market growth. The demand for exotic vegetables in food and retail chains, such as Burger King and KFC, is anticipated to boost sales during the forecast period. This trend is particularly relevant in the aggregated hydroponics system segment, which can efficiently produce various crops, including tomatoes and cucumbers.
Additionally, rapid urbanization has led to a surge in demand for hydroponically grown vegetables and crops from various sectors, such as hotels, restaurants, fast food chains, railway catering, NGOs, and defense. This growing demand encourages farmers to adopt hydroponics systems to cultivate high-quality produce sustainably and efficiently.
North America Dominates the Market
The increased need for fresh vegetables and fruits drives the market demand for hydroponic operations in the region. These hydroponics farms, covering approximately 1 acre, are typically family or small business operations. In urban settings like New York, rooftop hydroponic gardens further contribute to the market growth. The future expansion of the hydroponics market in the region will largely depend on the development of competitive hydroponic production systems when compared to the cost of open-field agriculture systems.
Also, hydroponic production has gained popularity among commercial vegetable producers since it is an efficient method to control inputs and manage facilitates for disease and pests and not a labor-intensive method to manage larger areas of production. As hydroponics eliminates the need for soil fumigants and can increase the yields of popular vegetables, farmers in the region are anticipated to adopt hydroponics as a popular cultivation method. The increasing adoption of hydroponics as a cultivation method is anticipated to drive market growth.
Hydroponics Industry Overview
The hydroponic crop growers market is highly fragmented, with the top five companies, such as Bright Farms Inc., FreshBox Farms, Pegasus Agritech, Village Farms International Inc., and Thanet Earth. In contrast, the rest of the market is shared among numerous players. These include Circle Fresh Farms, Green Sense Farms Holdings Inc., Plenty Unlimited Inc., and DAVA Agriculture Company. All these companies are adopting agreements and product launches as key developmental strategies to improve their market growth.
Hydroponics Market Leaders
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Bright Farms
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Fresh Box Farms
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Thanet Earth
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Pegasus Agritech
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Village Farms
*Disclaimer: Major Players sorted in no particular order
Hydroponics Market News
- March 2024: INSONGREEN announced a significant expansion of its hydroponic and vertical greenhouse production in the Middle East and Africa. This initiative aims to tackle regional water scarcity and food security challenges by utilizing advanced agricultural technologies for sustainable development.
- January 2024: Bright Farms expanded its greenhouse hydroponic farms to three locations: Yorkville, Illinois; Lorena, Texas; and Macon, Georgia. This expansion will increase the company's capacity to supply leafy greens.
- October 2022: GrowGeneration Corp (GRWG) opened a 9,000-square-foot store in Richmond, its first hydroponic store in Virginia. GRWG has plans to expand its store presence in the state to capitalize on the emerging hydroponic market. It also signed two new leases for store launches in Mount Holly, NJ, and Hazelwood, MO, which were expected to open by the end of 2022. With these, GRWG expanded its reach to 17 states.
- July 2022: Bustanica unveiled the world's largest hydroponic farm, which received a USD 40 million investment. This facility marks the debut of Emirates Crop One's vertical farm, a collaboration between Emirates Flight Catering (EKFC) and Crop One. Emirates Flight Catering is one of the largest catering operations globally, serving over 100 airlines. Crop One is a technology-driven indoor vertical farming leader.
Hydroponics Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat from Substitutes
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Aggregate Hydroponic System
- 5.1.1.1 Closed System
- 5.1.1.2 Open System
- 5.1.2 Liquid Hydroponic System
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5.2 Crop Type
- 5.2.1 Tomato
- 5.2.2 Lettuce and Leafy Vegetables
- 5.2.3 Pepper
- 5.2.4 Cucumber
- 5.2.5 Microgreens
- 5.2.6 Other Crop Types
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5.3 Geography
- 5.3.1 North America
- 5.3.1.1 United States
- 5.3.1.2 Canada
- 5.3.1.3 Mexico
- 5.3.1.4 Rest of North America
- 5.3.2 Europe
- 5.3.2.1 Germany
- 5.3.2.2 United Kingdom
- 5.3.2.3 France
- 5.3.2.4 Spain
- 5.3.2.5 Italy
- 5.3.2.6 Netherlands
- 5.3.2.7 Rest of Europe
- 5.3.3 Asia-Pacific
- 5.3.3.1 China
- 5.3.3.2 Japan
- 5.3.3.3 India
- 5.3.3.4 Australia
- 5.3.3.5 Rest of Asia-Pacific
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 United Arab Emirates
- 5.3.5.3 South Africa
- 5.3.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Hydroponic Crop Producers
- 6.3.1.1 Bright Farms
- 6.3.1.2 Village Farms International Inc.
- 6.3.1.3 Pegasus Agritech
- 6.3.1.4 FreshBox Farms
- 6.3.1.5 Thanet Earth
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Hydroponics Industry Segmentation
Hydroponics involves the process of growing plants using mineral nutrient solutions in sand, gravel, or liquid without using soil. In simple words, hydroponic is a technique for growing plants without soil.
The hydroponics market is segmented by type (aggregate hydroponic system (closed system and open system) and liquid hydroponic system), crop type (tomato, lettuce and leafy vegetables, pepper, cucumber, microgreens, and other crop types), and geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The report offers the market sizes and forecast values (USD) for all the above segments.
| Type | Aggregate Hydroponic System | Closed System |
| Open System | ||
| Type | Liquid Hydroponic System | |
| Crop Type | Tomato | |
| Lettuce and Leafy Vegetables | ||
| Pepper | ||
| Cucumber | ||
| Microgreens | ||
| Other Crop Types | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Spain | ||
| Italy | ||
| Netherlands | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| South Africa | ||
| Rest of Middle East and Africa |
Hydroponics Market Research FAQs
How big is the Hydroponics Market?
The Hydroponics Market size is expected to reach USD 5.06 billion in 2024 and grow at a CAGR of 7.80% to reach USD 7.36 billion by 2029.
What is the current Hydroponics Market size?
In 2024, the Hydroponics Market size is expected to reach USD 5.06 billion.
Who are the key players in Hydroponics Market?
Bright Farms, Fresh Box Farms, Thanet Earth, Pegasus Agritech and Village Farms are the major companies operating in the Hydroponics Market.
Which is the fastest growing region in Hydroponics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Hydroponics Market?
In 2024, the North America accounts for the largest market share in Hydroponics Market.
What years does this Hydroponics Market cover, and what was the market size in 2023?
In 2023, the Hydroponics Market size was estimated at USD 4.67 billion. The report covers the Hydroponics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Hydroponics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the latest advancements in Hydroponics Technology?
LED lighting, nutrient delivery systems, & automated climate control are the latest advancements in Hydroponics Technology.
What are the latest advancements in Hydroponics Technology?
LED lighting, nutrient delivery systems, & automated climate control are the latest advancements in Hydroponics Technology.
Hydroponics Industry Report
The global hydroponics market is on a significant upward trajectory, fueled by the shift towards soil-less agriculture in home gardening, professional farming, and commercial applications like supermarkets and restaurants. This growth stems from hydroponic systems' efficiency in conserving resources, achieving higher yields, and offering high-profit margins, attracting a mix of startups and established companies with innovative solutions. Despite challenges like high initial investments and organic certification debates, advancements in technology and the demand for fresh, pesticide-free produce are driving market expansion. Key growth segments include liquid systems and LED grow lights, responding to the rising demand for hydroponically grown fruits and exotic vegetables, indicative of a move towards healthier eating and sustainable agriculture. Statistics for the Hydroponics market share, size, and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hydroponics analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
