With the use of hydroponic systems on the rise in urban agriculture, the global hydroponics market is projected to see 6.5 per cent compound growth by 2025.
A new report by London-based market research firm Future Market Insights found that increased consumer demand for fresh fruit and vegetables, along with the advances in technology which allow agricultural infrastructure to be built in urban and vertical spaces, have contributed to the rise in hydroponics as an accepted agricultural technique. Researchers collated and analysed market data from 2013 to 2016 in order to produce forecasts for the period spanning 2017 to 2025, predicting a compound annual growth rate of around 6.5 per cent.
Vertical farming research conducted earlier this year resulted in similar projections, with the vertical farming market – which relies heavily on hydroponics as a support system – predicted to grow by more than a quarter by 2029. The Future Market Insights report cited the dual factors of the “rapid rise in urbanisation in the developed economies” and “proliferated adoption of the modernistic cultivation methodology” as the primary causes for market growth, predicted to increase the total global market value from $6.93 billion (€6.17 billion) in 2016 to $12.1 billion (€10.76 billion) by 2025.
The European market for hydroponics was projected to make up 40 per cent of the worldwide total by 2025. The most common hydroponically grown foodstuffs were listed as cucumbers, lettuce, peppers, spinach and tomatoes; with lettuce the market leader, comprising a steady market share of around 32.9 per cent.
The report said: “Significant investment opportunities encircling the hydroponics market especially in North America and Europe are considered to intensify the competition, which will prove advantageous for the global hydroponics market. The leading players emphasising…the expansion of their hydroponics business by entering into strategic mergers and productive collaboration is a reason potent enough to trigger the growth of the global hydroponics market.”