Greenhouse Produce Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Greenhouse Produce Market is segmented By Produce Type (Fruits & Vegetables, Herbs, Flowers, Others) By Production Technology (Hydroponics, Aeroponics, In-ground Soil Culture, Container Culture, Others) By Nature (Organic, Conventional) By Distribution Channel (Supermarkets & Hypermarkets, Specialty stores, Online, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

Global Greenhouse Produce Market reached US$ 7.13 billion in 2022 and is expected to reach US$ 13.04 billion by 2031, growing with a CAGR of 7.84% during the forecast period 2024-2031.

Growing emphasis on environmentally friendly and sustainable practices, including water and energy-efficient technologies, to meet consumer demand for eco-conscious products act as a key trend for greenh Growing interest in vertical farming methods, utilizing vertical space to maximize production and reduce the environmental footprint of greenhouse agriculture.

In December 2023, Ladakh introduced a new technology called “Ladakh Green House” that allows for the year-round cultivation of vegetables in a restricted amount and under controlled conditions. 1,875 environmentally friendly greenhouses have been constructed in the Union Territory of Ladakh at a total cost of Rs 43.78 crore. Even in the chilly winter months, farmers may grow a variety of green leafy vegetables, like cauliflower, cabbage, and tomatoes, with the aid of these greenhouses.

Fruits and vegetables account for over half of the market share due to the growing demand for fresh and locally sourced fruits and vegetables. Similarly, North America dominates the greenhouse produce market, capturing the largest market share. In September 2023, the Ontario Greenhouse Vegetable Growers (OGVG) launched the ‘This is Greenhouse Goodness’ campaign to highlight the industry's successes, inventiveness, and significant concentration of greenhouses in southwest Ontario.

Market Scope

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Market Dynamics

The Escalating Demand for More Intensive Crop Production, Driven by Constraints on Available Land, Water, and Labor Resources

As urbanization and infrastructure development claim arable land, the agricultural sector faces the challenge of limited space for traditional farming. According to the Seventh National Agricultural Census 2021, over the last ten years, Nepal's arable land area has decreased by 300,000 hectares. Greenhouses provide a solution by maximizing vertical space and enabling cultivation in non-arable areas.

With water scarcity becoming a global concern. according to the International Water Management Institute, around 70% of the world's water withdrawals go towards agriculture, which is continuously in competition with residential, commercial, and environmental applications for limited water supplies. Greenhouse technologies allow for precise control over irrigation, reducing water wastage and promoting efficient use.  Greenhouses break free from the constraints of seasonal farming, enabling continuous production throughout the year. This ensures a stable and predictable food supply, meeting the demands of a growing population irrespective of traditional growing seasons.

Advancement in Greenhouse Technology

Advancements in greenhouse technology play a pivotal role in propelling the growth of the greenhouse produce market by enhancing efficiency, sustainability, and productivity. Greenhouses are adopting energy-efficient designs, utilizing materials that maximize insulation and minimize energy consumption. This shift towards sustainability not only reduces operational costs but also aligns with global environmental goals.

In August 2023, ADQ, an Abu Dhabi-based investment and holding company, and Safe Haven Solutions, a Netherlands-based climate-smart agriculture solution provider, began a project to build a high-tech greenhouse at ADQ’s AgTech Park in KEZAD. The automated 10-hectare plant uses cutting-edge agricultural technologies to boost the UAE's supply of sustainably produced food.

High Initial Investment Required for Establishing Greenhouse Facilities

Building a greenhouse involves substantial infrastructure investments, including the construction of climate-controlled structures, foundation work, and installation of specialized systems for irrigation, heating, and ventilation.  Greenhouses often require additional energy sources for heating, cooling, and powering technological systems. Establishing energy-efficient solutions or renewable energy installations involves substantial capital expenditure.

The adoption of advanced greenhouse technologies, such as automated climate control systems, precision farming equipment, and sophisticated sensors, contributes significantly to the upfront costs. This can be a barrier for small and medium-sized farmers. Hence, the high initial investment required for establishing greenhouse facilities acts as a significant restraint on the greenhouse produce market's widespread adoption and growth.

Segment Analysis

The global greenhouse produce market is segmented based on produce type, production technology, nature, distribution channel and region.

Rising Demand for Sustainable and Locally Sourced Fruits and Vegetables

Greenhouse cultivation offers a controlled environment, mitigating the impact of external weather conditions and providing optimal conditions for plant growth. This controlled setting allows for extended growing seasons, increased yields, and improved quality of produce. The demand for fresh, locally sourced, and pesticide-free fruits and vegetables has driven the popularity of greenhouse cultivation. Greenhouses also enable year-round production, reducing dependence on seasonal variations.

In September 2021, Bayer announced the launch of organically grown seeds to its lineup of vegetable seeds sold under the new "Vegetables by Bayer" label. The launch will concentrate on producing three important crops for the greenhouse market using certified organic methods: cucumber, sweet pepper, and tomato.

Geographical Penetration

North America’s Adoption of Advanced Agricultural Infrastructure

The region's advanced agricultural infrastructure, including modern greenhouse facilities, has significantly contributed to increased production efficiency and output. Favorable government policies and financial support for greenhouse farming initiatives further stimulate market growth. The demand for locally sourced, fresh, and high-quality fruits and vegetables in North America has driven the expansion of greenhouse cultivation. Consumers increasingly value sustainable and organic produce, aligning with the environmentally conscious practices often associated with greenhouse farming.

In May 2022, Pure Flavor launched the first melons cultivated in a greenhouse in North America. The first personal-sized, sustainably grown melons from greenhouses that use just the right amount of light, nutrition, and water to deliver the same sweet tastefully tropical flavor, regardless of the season.

COVID-19 Impact Analysis

COVID-19 significantly impacted the greenhouse produce market. Lockdowns and disruptions in supply chains led to logistical challenges, affecting both production and distribution. Increased demand for fresh, locally sourced produce and a focus on food security prompted shifts in consumer preferences, favoring greenhouse-grown options. Additionally, workforce shortages and fluctuating input costs posed challenges for greenhouse farmers. The long-term effects on the market may include accelerated adoption of technology and sustainable practices in greenhouse farming.

Russia-Ukraine War Impact Analysis

The conflict disrupted transportation routes, affecting the supply chain for greenhouse produce. With reduced supply, prices for greenhouse produce surged globally, affecting consumers and businesses alike. The conflict created uncertainty, discouraging investments in greenhouse farming and technology in the affected regions. Greenhouses heavily rely on energy, and the war influenced energy prices, impacting production costs for greenhouse farmers.

Key Developments

• In January 2024, Mastronardi Produce announced the launch of Summer Dream greenhouse raspberries, under the SUNSET brand. Summer Dream reliably yields berries that are luscious and plump. Compared to a typically tart raspberry, the high Brix variety has a higher sweetness.
• In October 2021, Nature Fresh Farms, an independent greenhouse that produces growers in North America, introduced its new brand identity that embraces the recent growth and innovation of the company. The company introduces retailers to the depths of greenhouse-grown produce and the advantages of providing customers with high-quality, delicious produce all year long as it launches its new look and feel. The company is enthralling retailers with its premium food, which is planted, cultivated, and harvested with sustainability in mind. The company's freshly branded campaign represents a new chapter in its history.
• In August 2023, The United States Agency for International Development (USAID) announced a grant worth nearly MNT 7 billion ($2 million) to the United Nations Food and Agriculture Organization (UNFAO). Money from USAID will help UNFAO expand and enhance domestic greenhouse operations in Mongolia as well as associated businesses like food distribution and storage, enabling the country to produce more vegetables on its own.

Competitive Landscape

The major global players in the market include Red Sun Farms, Nature Fresh Farms, Windset Farms, SIMPLYFRESH PVT. LTD, Mucci Int'l Mrktg Inc., Bushel Boy Farms, Michael's Greenhouses, The Green House Growers, Great Lakes Greenhouses INC., DeVry Greenhouses Ltd

Why Purchase the Report?

• To visualize the global greenhouse produce market segmentation based on produce type, production technology, nature, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of greenhouse produce market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global greenhouse produce market report would provide approximately 70 tables, 65 figures and 186 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies