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Greenhouse Produce Market will grow at highest pace owing to modern urban farming adoption

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Greenhouse produce refers to fruits and vegetables grown inside a greenhouse structure for commercial production purposes. Greenhouses allow growers to regulate and control factors such as temperature, humidity, as well as nutrients and sunlight intensity needed for plant growth. This enables year-round production of wide variety of crops including tomatoes, peppers, cucumbers, lettuce and berries. Maintaining optimal growing conditions in greenhouses results in better yield and quality compared to open field farming. Moreover, greenhouses protect crops from adverse weather events and eliminate risks of crop failure. Rising population has increased demand for safe and reliable local food sources, driving adoption of modern urban vertical farming techniques like greenhouse production.

The Global Greenhouse Produce Market is estimated to be valued at US$ 32.26 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the Global Greenhouse Produce Market Size are Fabory, Fastenal Company, Würth Industrie Service GmbH & Co. KG, REYHER, KELLER & KALMBACH GmbH, AB STEEL, Brunner Manufacturing Co., Inc. KD FASTENERS, INC., ckford Fastener, Inc., AMARDEEP STEEL, Viha Steel & Forging. These players are focusing on developing advanced greenhouse structures with climate controlling technologies to automate production processes.

The demand for greenhouse produce is growing significantly owing to increasing health consciousness among consumers. Greens grown in greenhouses are fresh, hygienic and chemical-residue free compared to open field farms. This is prompting more retailers and food service providers to include greenhouse produce in their offerings.

Adoption of IoT sensors, automation, computer vision and robotics is allowing greenhouse growers to monitor crop growth remotely and take corrective actions. Drones, autonomous vehicles are also aiding inspection, harvesting and delivery operations inside greenhouses. These technological developments are helping growers boost yields and reduce production costs.

Market Trends

Precision farming – Greenhouse growers are increasingly implementing precision farming techniques which involve use of IoT sensors, cloud computing and controlled environment agriculture to closely monitor crop and soil health. This helps maximize yields through data-driven interventions.

Automation and robotics – Adoption of automation equipment like harvesting robots, autonomous guided vehicles for transport are helping reduce reliance on manual labor. This is improving productivity and consistency of operations inside greenhouses.

Market Opportunities

Vertical farming – With urbanization, interest is growing in commercial indoor vertical farming inside existing built infrastructure using greenhouse produce techniques. This opens new business opportunities particularly in densely populated cities.

Advanced energetics – Developing renewable energy solutions like solar panels, geothermal and aeroponics for greenhouse operations can help growers achieve net-zero carbon footprints. This is an area primed for innovation.

Impact of COVID-19 on Greenhouse Produce Market

The COVID-19 pandemic has significantly impacted the growth of the greenhouse produce market globally. The lockdowns imposed across various countries to curb the spread of the virus disrupted the supply chain and logistics of agricultural produce globally. This led to a shortage of fruits and vegetables in the market. However, greenhouse farming emerged as a viable option for continuous food production during the pandemic. With closed indoor environments, greenhouses provided safety from external contamination and helped maintain business continuity. They also ensured consistent supply of perishable produce to supermarkets and retailers.

However, pre-COVID, the greenhouse produce market was growing at a steady pace due to benefits such as higher yield per acre and ability to harvest multiple times in a year compared to open field cultivation. Greenhouses offered protection from various environmental conditions and helped extend the growing season. They improved productivity and profitability for farmers. With growing health and nutrition awareness, demand for fresh and chemical-free fruits and vegetables was increasing.

Post-COVID, the greenhouse produce market is expected to grow at an accelerated rate. As the pandemic highlighted the importance of local and indoor food production, investments in controlled environment agriculture are likely to increase. There will be higher focus on using greenhouses for urban farming to ensure food security. Technological advancements improving automation, yields and productivity will further boost the market. Sustainable indoor farming practices adopting renewable energy and recycling resources will see more adoption. Overall, greenhouses will play a key role in building resilience in the agriculture system against future disruptions.

Asia Pacific currently represents the largest and fastest growing regional market for greenhouse produce. The region accounts for over 35% of the global market share, led by countries like China, India and Japan. This is attributed to increasing consumption of fruits and vegetables in the diet, rising health awareness, growth in organized retail and rapid urbanization. Further, favorable government initiatives and investments are promoting the adoption of greenhouse technologies in countries like India and Thailand. The availability of affordable labor and land make Asia Pacific an attractive destination for greenhouse farmers and exporters.

Europe is currently the second largest regional market for greenhouse produce globally. Countries like Spain, Italy and Netherlands have been early adopters of greenhouse farming and are leading producers and exporters of various fruits and vegetables worldwide. Matured agricultural practices, access to advanced greenhouse technologies and focus on research & development have supported the growth of the European market. Further, the high purchasing power of consumers demanding fresh and quality produce year-round is fueling market expansion. However, Asia Pacific is expected to surpass Europe in terms of size over the forecast period due to higher growth potential offered by developing nations.

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