The greenhouse produce market involves the production of crops and plants using greenhouses or protected cultivation techniques. Greenhouses help cultivate crops in a protected environment, shielding them from external weather conditions. They aid in regulating temperature, light, irrigation, and other parameters essential for optimal plant growth.
Greenhouse Produce Companies cultivation allows year-round production of crops and off-season supply even in extreme weather. Crops commonly grown in greenhouses include tomatoes, cucumbers, peppers, lettuce, berries, grapes, and more. Greenhouses offer numerous advantages like higher yields, superior quality, disease resistance, and resource efficiency compared to open-field agriculture.
The Global Greenhouse Produce Market is estimated to be valued at US$65 billion in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024.
Key Takeaways
Key players operating in the greenhouse produce market are Richel Group, Argus Control Systems, Certhon, Logiqs, Lumigrow, and Rough Brothers. Key players are focusing on introducing advanced automation, sensing, and IoT-based solutions to drive efficiency and productivity.
The growing demand for sustainable, locally grown fresh fruits and vegetables is boosting the greenhouse produce market. Consumers are increasingly preferring greenhouse produce for its superior nutritional value, taste, safety, and environmental footprint compared to imported and seasonal supplies. Population growth coupled with rising health awareness is propelling the year-round consumption of greenhouse crops.
Many Greenhouse Produce Market Size producers are undertaking global expansion through partnerships, acquisitions, and new facility development to meet the evolving needs of international markets. Greenhouse operators are building facilities across different geographies to diversify presence, hedge risks, tap new opportunities, ensure business continuity, and achieve scale. Several new greenhouses are coming up across Asia Pacific, Latin America, Middle East and Africa to cater to the ballooning regional demand.
Market Key Trends
Automation is one of the key trends gaining momentum in the greenhouse produce market. Technologies like robotics, artificial intelligence, computer vision, sensors, and IoT are enabling automated processes for tasks like seeding, pruning, harvesting, sorting, and packaging. Automation helps improve operational efficiency, optimize resource use, increase productivity and yields, ensure food safety and quality, and address labor shortages. For instance, AI and computer vision enable automatic disease, pest detection and taking corrective measures. Automated guidance systems help precise moving of trays and crops within the greenhouse. Sensors monitor climate, soil conditions, and automate irrigation, climate control reducing wastage and energy consumption. These trends are transforming agriculture by bringing more precision, oversight and optimization of greenhouse operations.
Porter’s Analysis
Threat of new entrants: low requirements for capital and technology to enter the market however established distribution channels act as barrier.
Bargaining power of buyers: large retail chains have significant influence on price however buyers prefer quality certified produce.
Bargaining power of suppliers: suppliers fragmented due to independent greenhouse operations however long term contracts with buyers reduces power.
Threat of new substitutes: substitutes include field grown produce and imports however demand for greenhouse grown produce increasing.
Competitive rivalry: fragmented market structure as small players dominate however consolidation trend likely with scale and automation.
Geographical Regions
North America currently holds around 35% share of global greenhouse produce market value led by US. Mild winters and availability of large cultivable lands drive demand. Europe is another major region with around 30% share where Netherlands and Spain are among top producers. Controlled environment production methods have enabled year-round supplies to meet consumer needs.
The greenhouse produce market in Asia Pacific region is poised to grow at fastest pace during forecast period driven by China. Supportive government policies to enhance food security through commercial greenhouse farming is a key factor. Domestic demand is rising alongside exports of greenhouse tomatoes, cucumbers and peppers to Japan and South Korea from China.
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