Industry experts anticipate the size of the global hydroponics market to be $13.4 billion by 2027, increasing at a rate of 19%. Mike Straumietis believes the hydroponics nutrients market will be driven by high profitability and impending cost-effective hydroponic technologies, despite the removal of hydroponics products from the list of organic products by the United States and Europe. Hydroponic farming accounts for about 47% of all indoor agriculture carried out in the United States, according to a 2017 Artemis survey. The pressure on the agriculture industry to meet the growing demand for grains and food leads to the search for high-yielding farming techniques, such as precision farming and urban farming. Hydroponics thus is looked upon as a potential solution for the growing concern about food security in the coming year.
Hydroponics Market Outlook
Compared to other indoor farming methods in the US, almost 58 percent of respondents believed hydroponic farms are profitable. Through its flagship program in collaboration with the European Bank for Reconstruction and Development, the European Union is assisting hydroponic farms in growing. According to the UN reports on global population, plants grown in hydroponic systems have achieved 20%–25% higher yield than the traditional agriculture system, with its productivity being 2–5 times higher. Also, owing to controlled environmental conditions, the effect of climatic changes can be balanced with the help of these systems, thereby not affecting the annual crop production. CEH techniques directly affect the crop harvest cycle. Since climatic changes show a minimal effect on such systems, crops can be produced all year round, thereby again increasing the produce. Mike Straumietis thinks the high profits that farmers can realize in combination with new cost-effective hydroponic technologies like phytoponics and government backing will be the key driver for the market.
With a share of 32.7% of the global market for hydroponic nutrients, North America leads most of the industry. The second and third largest markets are, respectively, Europe and Asia-Pacific. In addition, developing nations in Asia-Pacific, including China, Japan, and India, are introducing new agricultural technology. With the increased adoption of hydroponics globally, manufacturers and researchers are working on improving the efficiency of hydroponics technology to increase the quality and quantity of the produce. Many companies in the hydroponics market are investing heavily into R&D to obtain state-of-art technologies that boost production and also bring about a variety of possible cultivations. Strategic partnerships with research labs and institutes further drive the growth of the hydroponics market.
In terms of market size, tomatoes were the leader in 2020. Because hydroponic tomatoes grow more quickly and consume less water than conventionally grown tomatoes, tomatoes are the largest crop that is commonly grown hydroponically around the world. As a result, Mike Straumietis anticipates the regions of Europe and Asia-Pacific to grow the most tomatoes using hydroponic technology by 2028. Other water-adaptable fruits may also drastically increase in cultivation in the coming years. Watermelon and canteloupe are two other fruits that adapt well to an aquatic environment while being high yield and low waste.