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Hydroponics: The Next Generation Farming Approach
Hydroponics involves the process of growing plants using mineral nutrient solutions in sand, gravel, or liquid, without using soil. Due to the increasing success rates associated with the commercial hydroponics industry and the growing difficulty of growing crops on soil, the hydroponics market is expanding exponentially. Many out-of-season fruits and vegetables can be produced year-round under controlled conditions through hydroponics. The main countries actively practicing hydroponics are the United States, Australia, Spain, Holland, Canada, New Zealand, Italy, Mexico and China. The main hydroponic crops are cucumber, lettuce, tomato, peppers, strawberry, leafy greens, herbs, cut flowers, etc. This method is widely adopted due to its integrated pest management approaches.
Hydroponics – Market Dynamics
Hydroponics is considered to be one of the fastest growing soilless agricultural practices globally, in which a tailored, high quality nutrient solution helps a plant grow in a sustainable way. One of the main growth drivers in the hydroponics industry is the documented higher yield compared to traditional farming techniques. Apart from lucrative agriculture, increasing consumption of exotic salad crops and growing need for global food security are the factors expected to drive the market. Lack of awareness about soilless farming system and high initial cost are the factors that may hinder the growth of the market. The increased cultivation of medicinal plants, globally, and a personalized agricultural approach may provide future growth opportunities for the industry.
Will hydroponics revolutionize the method of irrigation?
According to a report by a market information company, the global hydroponics market is expected to register a CAGR of 6.5% during the forecast period 2017-2022, and the market value is expected to reach 30,849, USD 83 million by 2022. The growth of the hydroponics market is mainly driven by the increasing emphasis on the adoption of innovative and efficient technologies to improve yields. Tomato is one of the major crops grown through the hydroponic system, globally. According to a USDA/ERS report, the volume of hydroponic tomato imports from countries such as Canada, Mexico and the Netherlands has increased significantly, and imports now account for a significant share of total tomato imports. of the American fresh market. Lettuce and leafy vegetables, pepper, cucurbits and other vegetables are increasingly grown hydroponically.
According to our analysts, Europe has traditionally been the largest hydroponics market, implementing advanced techniques in smart greenhouse hydroponics horticulture. The mature European market demand for hydroponics is led by countries such as the Netherlands, Spain and France. Asia-Pacific is the second largest hydroponics market which is expected to grow at a steady rate during the forecast period. The North American region, led by the United States and Canada, is expected to grow at an improved pace over the period 2017-2022.
The global hydroponics market is concentrated in major technically advanced regions. Greentech Agro LLC, Argus Control Systems, Logiqs BV, Koninklijke Philips NV, General Hydroponics Inc., Greentech Agro LLC and Lumigrow Inc. are some of the major players active in the industry. R&D related to region and area specific requirements are consistently adopted by industry players. Mergers and acquisitions are also one of the key activities adopted by major players. Lawn and garden giant Scotts Miracle-Gro has spent $136 million on Gavita, a Dutch lighting and growing equipment company. Through its subsidiary, Hawthorne Gardening Co., Scotts Miracle-Gro invested in companies such as Boulder’s AeroGrow, an indoor gardening company, and acquired California-based General Hydroponics Inc. for $130 million. . The company also spent $77.1 million to acquire Botanicare.
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