Greenhouse produce refers to crops cultivated in protected cropping systems, such as greenhouses or hoop houses. Greenhouses allow for crops to be cultivated year-round regardless of weather conditions, provide protection from pests and diseases, and allow precisely controlled environmental conditions to optimize plant growth. Tomatoes, cucumbers, peppers and leafy greens are some of the most commonly grown greenhouse crops. The global protected cropping systems market is growing in popularity as they help improve food security by facilitating local food production.

The global Greenhouse Produce Market is estimated to be valued at US$ 28 Bn in 2023 and is expected to exhibit a CAGR of 9.9%  over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growing adoption of protected cropping systems such as greenhouses presents a major market opportunity. Protected cropping allows for localized food production and supply chain resilience. It provides a stable yield and supply of crops throughout the year and protects against environmental uncertainties. With climate change leading to extreme weather events, protected cropping can help ensure food security. The ability to precisely control the growing environment also improves product quality and expands the range of crops that can be commercially produced. The market is expected to witness increased investment in protected cropping infrastructure to tap this opportunity.

Porter’s Analysis

Threat of new entrants: Low capital requirement and availability of low-cost raw materials has made the entry of new players easier in the greenhouse produce market. However, established brands have significant brand recognition and distribution networks that make entry difficult.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of a variety of greenhouse produce brands. However, differentiated products and branding exercise provided by key players mitigate buyers' power to some extent.

Bargaining power of suppliers: Large scale greenhouse produce suppliers have significant influence over prices due to their specialized manufacturing capabilities and technologies. Suppliers can form strategic partnerships or integrate to increase their bargaining power.

Threat of new substitutes: Functional substitutes for greenhouse produce include conventionally grown fruits and vegetables. However, greenhouse varieties offer differentiation through organic certification and higher nutritional value.

Competitive rivalry: The greenhouse produce market is highly competitive due to the presence of numerous regional and international brands. Players differentiate through branding, certifications, and innovation.

SWOT Analysis
Strengths: Controlled environment enables year-round production. Greenhouse farming is more resource efficient.
Weaknesses: High initial investment and operating costs. Dependence on weather conditions and natural disasters.
Opportunities: Growing demand for organic and pesticide-free foods provides scope for premium products. Adoption of automation and IoT offers potential for yield optimization.
Threats: Threat from open-field cultivators during glut seasons. Stringent government regulations around greenhouse gas emissions.

Key Takeaways

The global Greenhouse Produce Market Share  is expected to witness high growth over the forecast period supported by increasing health consciousness. The Asia Pacific region currently dominates the market due to the large greenhouse cultivable area and growing fruits and vegetables demand in China and India. Key players like Sotrafa and Berry Global are focusing on capacity expansions to cater to the rising demand.

Regional analysis of Europe comprises the second largest market for greenhouse produce. Countries like Spain, Italy and the Netherlands are the major producers due to favorable climatic conditions. Furthermore, the implementation of modern greenhouse technologies is driving yields across the region.

Key players operating in the greenhouse produce market are Sotrafa, Berry Global, NETAFIM, Certhon, Richel Group SA, Stuppy Greenhouse, Logiqs B.V., Argus Control Systems Ltd., Poly-Tex, Inc., The Glasshouse Company, Luiten Greenhouses BV, Agra Tech, Inc. Major players are focusing on new product launches and partnerships to strengthen their distribution networks in emerging markets.

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