Market Trends of Hydroponics Industry
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.
