The Hydroponic Vegetables Market is estimated to be valued at US$ 11.57 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Hydroponic vegetables are produced using mineral nutrient solutions in water, without using soil. They are commonly grown in greenhouses to control environmental conditions like sunlight, temperature, and moisture. Hydroponic vegetables such as lettuce, tomatoes, cucumbers provide higher yields and fresh produce throughout the year compared to conventional farming. They also use 95% less water and 70% less land area compared to soil-based agriculture.

Market key trends:

One of the key trends driving the growth of the hydroponic vegetables market is the rising consumer preference towards organic foods. Consumers are increasingly opting for organic foods due to rising health concerns regarding chemical residues. Since hydroponically grown vegetables use no pesticides and controlled environmental conditions, they are considered as naturally grown organic foods. Moreover, disadvantages of conventional farming like soil erosion, depletion of groundwater, and use of harmful pesticides and fertilizers are avoided in hydroponic farming. Other factors like limited availability of arable land, water shortages, and demand for fresh produce throughout the year are also propelling the adoption of advanced hydroponic farming techniques globally.

Porter’s Analysis

Threat of new entrants: The capital requirement for establishing hydroponic farming is high which poses barrier for new players. Also established players enjoy economies of scale due to large production facilities.

Bargaining power of buyers: Large retail chains and supermarkets have significant bargaining power over producers due to their consolidated purchasing position. They negotiate lower prices from producers.

Bargaining power of suppliers: Hydroponic farming companies rely on few technology suppliers for automation, lighting and monitoring solutions. This gives them advantage in price negotiation.

Threat of new substitutes: Organic and conventional vegetable production pose some substitutes threat. However, hydroponic farming enables consistent supply of vegetables throughout the year.

Competitive rivalry: Intense competition exists among established players for market share and new contracts. Companies focus on technology innovations to gain competitive advantage.

SWOT Analysis

Strength: Hydroponic farming has higher yields and utilizes less space compared to conventional farming. It allows year-round production with consistency in quality and quantity.

Weakness: High initial investment and operating costs involved in setting up hydroponic farms. Requires technical expertise to operate advanced farming systems.

Opportunity: Growing global demand for pesticide-free vegetables provides growth opportunities. Development of smart hydroponic technologies will further boost production efficiencies.

Threats: Vulnerable to disruption in electricity or water supply. Climate change effects can impact controlled environment farming.

Key Takeaways

The global Hydroponic Vegetables Market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing demand for organic and pesticide-free vegetables. North America dominates the market currently due to growing adoption of indoor vertical farming in the region.

Regional analysis: North America is expected to continue dominating the hydroponic vegetables market during the forecast period. Heightened awareness towards the benefits of organic and toxin-free foods encourage setting up controlled farms using advanced technologies. Meanwhile, Asia Pacific exhibits fastest growth owing to rapid urbanization and rising health consciousness in countries like China and India.

Key players: Key players operating in the hydroponic vegetables market are AMCO Produce Inc., Eden Farms, Hollandia Produce, L.P., Bright Farms Inc, Soave Enterprises LLC., Village Farms International, Inc., Platinum Produce Company, Millennium Pacific Greenhouses Ltd., Emirates Hydroponics Farms, Thanet Earth Ltd. These players focus on innovating farming techniques to increase yields and gain competitive edge.

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https://www.ukwebwire.com/hydroponic-vegetables-market-opportunity-analysis-2023-2030/