Commercial Greenhouse Market - Growth, Trends, and Forecasts (2023 - 2028)

Commercial Greenhouse Market - Growth, Trends, and Forecasts (2023 - 2028)

The Comercial Greenhouse market is projected to witness a CAGR of 8.1.% over the forecast period, 2022-2027.

The COVID-19 outbreak is negatively impacting the overall supply chain in agriculture, and, in turn, the commercial greenhouse market. Due to this outbreak, the entire world is experiencing lockdown situations. Many growers have lost distribution in stores and are either cutting back on stock or closing their doors completely. The demand for shipping and truck companies is increasing extensively. However, the supply is very less as fewer people leave their homes for errands and purchases. Consumers’ have panic-purchased from grocery stores and retailers, making the businesses constantly make shipments to replenish their shelves. However, the supply-chain disruption have resulted in many growers in the greenhouse industry find themselves struggling to send their stock out.

The rapid population growth with shrinkable land particularly in countries such as China and India will drive the greenhouse market during the forecast period in Asia-Pacific region. One of the major reasons for the growth of greenhouse farming is that the cultivable land is shrinking from year to year. ​ Therefore, the need to maximize the crop yield in the available land to meet the growing food demand is propelling the commercial greenhouse farming market. Furthermore, the onset of urban population dwelling across cities, such as New York, Chicago, and MilwaUnited Kingdomee, has propelled the environment for greenhouse farming .

Owing to a steady increase in the demand for flowers, floriculture has become one of the important commercial trades in agriculture. Hence, commercial floriculture has emerged as a hi-tech activity under controlled climatic conditions inside a greenhouse. Floriculture in developing countries such as India is viewed as a high-growth industry. Commercial floriculture is becoming important from the export angle. As per APEDA (Agricultural & Processed Food Products Export Development Authority), the country exported 16,949.37 MT of floriculture products worth INR 541.61 crores (USD 75.89 million) in 2019-20.

The global population is increasing exponentially, and every day, nearly 200,000 people are getting added. According to the baseline projections in the EU Agriculture Outlook for the period 2018-2030, the total arable land in Europe is anticipated to decline at a much higher rate by 2030, primarily attributed to the increasing level of urbanization in the region, which has affected the efficiency of the utilized agricultural area (UAA). So, there is a dire need to increase crop yields in the coming decades to keep pace with the food demand driven by population growth and rapid urbanization. The world has lost a major portion of its arable land due to erosion or pollution in the past 40 years, with potentially disastrous consequences such as global demand for food. The continual plowing of fields, combined with heavy use of fertilizers, has degraded soils across the world, with erosion occurring at a pace of up to 100 times greater than the rate of soil formation. It takes around 500 years for just 2.5cm of topsoil to be created amid unimpeded ecological changes.

Europe and North America hold significant market shares, while the fastest growth can be observed in the Asia-Pacific region. Europe has been the first to implement advanced techniques in greenhouses, particularly in countries such as Italy, Spain, and the Netherlands, where large areas are under greenhouse cultivation. Europe is the largest player because of urbanization, rapid technological advancements, and the high demand for fruits and vegetables. The rapid population growth, along with shrinkable land, particularly in countries such as China and India, is expected to drive the commercial greenhouse market during the forecast period in the Asia-Pacific region. The demand for high-quality food product is increasing as greenhouse production produce high-quality food product all year round with efficient use of fertilizer, water, chemical, and labor are increasing the growth of the North America Greenhouse Produce Market. Increasing population rapidly leads to rising in food demand. According to United States population division, the global population has increased nearly fourfold in the past 100 years, and it is projected to reach 9.2 billion by 2050. And every day around 7.7 billion people around the world eat and consume 14.5 million tons of food.

The global commercial greenhouse market is highly fragmented, with the presence of numerous large, small, and medium-sized manufacturers. The top 3 players in the market include Richel Group, Rough Brothers Inc., and International Greenhouse Company . Some of the other notable players include Argus Control System Ltd, Certhon and Lumigrow Inc., and Heliospectra AB. Along with innovations and expansions, investments in R&D and developing novel product portfolios are likely to be crucial strategies during the forecast period. Major players like LumiGrow, Nexus Corporation, Certhon, and Greentech Agro are making new strategies to enter the market.

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