Global Greenhouse Horticulture Market Anticipated to Generate a Revenue of $64,973.80 Million, Growing at a CAGR of 7.8% from 2022 to 2030Download Sample Reports Overview
The global greenhouse horticulture market is estimated to be valued at $64,973.8 million by 2030, surging from $32,270.7 million in 2021, at a noteworthy CAGR of 7.8%.
Impact Analysis of COVID-19 on the Greenhouse Horticulture Market
The global market for greenhouse horticulture is estimated to experience a low growth amid the COVID-19 pandemic. This low growth is the result of disruptions in supply chain, harvesting activities, and non-availability of migrant labors. In addition to this, disruptions in transportation have declined the growth of the market of greenhouse horticulture. Moreover, government has strictly issued lockdown guidelines that has exempted the farm operations and supply chains. With thousands of deaths and millions of confirmed cases as the coronavirus has spread over the world in recent months, the pandemic has wreaked havoc. People are isolating themselves and shunning public places and gatherings all around the world to avoid contracting or spreading the disease. The COVID-19 outbreak has wreaked havoc on agriculture's whole supply chain, including the commercial greenhouse industry. As a result of the epidemic, the entire world is on lockdown. Many growers have lost store distribution and are decreasing or terminating their operations. The need for shipping and trucking services is increasing dramatically. Therefore, demand for global greenhouse horticulture is also consequently projected to witness a rise.
However, almost all the countries lifted the lockdown and therefore companies started their manufacturing units that has restarted supply chain of the products. According to business news by The Economics Times, in September 2021, farmers were finding it difficult for sourcing products locally but most of the companies shifted to online platforms that is e-commerce. All such factors are predicted to bring new opportunities in the global greenhouse horticulture market.
Global Greenhouse Horticulture Market Analysis
The enormous growth of the global greenhouse horticulture market is mainly attributed to the increasing demand for protected crop cultivation owing to its advantages such as high yield with good quality products, high water productivity, and reduction in pesticide allowing farmers to take advantage of market seasonality. Moreover, farmers can have better control over the climate in which their crops grow by using greenhouse farming. If producers can efficiently manage temperature, irrigation, air humidity, and light, they can get a good yield. Farmers can keep their crops healthy and predict how much they will harvest as they have so much control over their growth. Farmers can cultivate flowers, vegetables, and fruit crops all year due to their ability to control the environment. Crops grown in greenhouses have better genetics, resulting in healthier varieties. Furthermore, according to an article by Rise Hydroponics TM, agri-tech company, in May 2021, protected crop cultivation is one of the best options because protected crop cultivation can produce genetically better & disease free transplant, high crop yield, and no biotic stress to the plants. These types of factors are fueling the market growth.
High operational cost of greenhouse horticulture owing to high maintenance of plants in greenhouse condition along with strict government regulations is one of the key issues that may create a negative impact on the market during the forecast period.
The increasing adoption of sustainable horticulture practices and technological advancements in the sectors are some of the trends that may create huge opportunities for the market in the future. Now-a-days, lighting systems that are enabled with Internet of Things (IoT) are also some of the aspects that are driving the market growth. Moreover, LED-based agri-tech solutions can be remotely adjusted or can collect data by using machine learning (ML) algorithms and therefore having a longer operational life.
Furthermore, monitoring and precision of natural resources and nutrients are critical for greenhouse crop production. This necessitates a thorough understanding of the crop, the meteorological conditions, and the crops' optimal requirements. As a result, a skilled farmer can usually grow these crops successfully. Watering system design and extra lighting are two other elements to consider. Extensive research and development (R&D) activities along with some favorable government policies that are promoting greenhouse horticulture are elements that are expected to drive the market further and such technological advancements may further lead to lucrative market opportunities in the market in the upcoming years.
Global Greenhouse Horticulture Market, Segmentation
The global greenhouse horticulture market is segmented based on crop type, type, and region.
The crop type segment is further classified into fruits & vegetables, nursery crops, flowers & ornamentals, and others. Among these, the fruits & vegetables type sub-segment is anticipated to have the fastest growth as well as dominant market share and surpass $36,678.9 million by 2030, with an increase from $17,562.4 million in 2021.
The market growth can be attributed to increasing demand for off-season fruits and vegetables along with growing trends of fruits & vegetables that have genetically higher quality and less use of chemicals & pesticides. Growing vegetables in greenhouses also enables for the establishment of the best optimum conditions for the crops due to the controlling variables accessible in greenhouses, such as temperature, moisture, light, fertilizer, humidity, and irrigation. The plants receive a steady flow of moisture from both the surroundings and the roots in this controlled environment, which includes changeable temperature settings as well as humidity & moisture regulation and decreasing water stress. These are some of the factors that may create a positive impact on the sub-segment throughout the forecast period.
The type segment is further divided into plastic greenhouse and glass greenhouse. The plastic greenhouse sub-segment is anticipated to have a dominating market share as well as fastest growth in the global market and register a revenue of $50,421.2 million during the analysis timeframe.
The growth of plastic greenhouse sub-segment is attributed to its materials such as copolymer plastic & polycarbonate material and it is considered as one of the best greenhouses covering materials because of better heat insulation, durability, safety, UV protection, affordability, and easy to use. Moreover, plastic greenhouses are convenient, maintain the correct temperature for plant growth, and insulate the plants more efficiently than glass greenhouses. Plastic films are less expensive and more durable than glass films, which are both costly and brittle. Plastic materials are also safe and shatterproof, making them suitable for usage in adverse weather situations. Because plastic material might be UV treated to manipulate specific sun wavelengths to stimulate plant development, it provides efficient light diffusion, UV protection, and radiation protection. These aspects may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The greenhouse horticulture market in the Europe region is projected to witness dominant share. This market generated a revenue of $14,347.6 million in 2021 and is further projected to reach up to $27,568.4 million by 2030.
The demand for greenhouse horticulture is surging in the Europe region specifically because of factors such as increasing prevalence of modern farming technologies along with increasing adoption of sustainable horticulture practices. For instance, Wageningen University across the Netherlands, is actively contributing to the development of sustainable greenhouse horticulture crops. Moreover, improved understanding about sustainable farming and increased government initiatives in various established & rising European countries to encourage sustainability, the adoption rate of horticulture lighting systems is expected to rise throughout the projected period. Horticulturists in the Netherlands, the world's second-largest exporter of agricultural products, are experimenting with multi-colored LEDs to see whether they might boost productivity, improve product quality & flavor, and lower greenhouse energy costs. The Dutch government is also focusing on the installation of a geothermal heat plant, which requires drilling deep into the stratum and installing heat exchangers. Soft loans, for example, are one of the many incentives available. All such factors are anticipated to boost the market in the Europe region.
Key Players in the Global Greenhouse Horticulture Market
Some of the leading global greenhouse horticulture market players are
- Richel Group
- Rough Brothers, Inc.
- Poly-Tex, Inc.
- Luiten Greenhouses
- Van der Hoeven Horticultural Projects BV.