Research Nester recently published a report titled “US Hydroponics Market: Outlook, Industry Analysis & Opportunity Evaluation – 2018-2027” that delivers detailed overview of the U.S. hydroponics market in terms of market segmentation by crop-type.
Further, for the in-depth analysis, the report encompasses the industry growth drivers, restraints, supply and demand risk, market attractiveness, BPS analysis and Porter’s five force model.
The global demand for food is increasing owing to the rising population. As the traditional farming utilizes soil as medium, it is becoming difficult for the countries across the world to cater to this large demand, with decreasing availability of land to grow crops. Therefore, development of new farming techniques, such as hydroponics and other indoor farming techniques are increasingly gaining importance to prevent food crisis in the coming future. The yield obtained through hydroponics is faster and larger on account of balanced nutrient mix coupled with perfect light exposure provided to the crop. Moreover, most of the hydroponic operations are confined indoors, which allows the growers to create ideal conditions for plant growth, thus leading to larger and more consistent harvest.
As per USDA, overall yield for the lettuce grown via conventional practices is around 0.4 heads per square foot, compared to 25-plus heads per square foot, when grown using hydroponics. Hence, application of hydroponics increases the packing density along with number of growth cycles per year.
In 2018, the US hydroponics market was valued at USD 506.8 Million. The market is further predicted to grow at a robust CAGR of 11.31% over the forecast period (2020-2027).
Hydroponic technique makes the most judicious use of water leading to lesser wastage of water resources. Therefore, adoption of this technique over the coming years is expected to foster the market growth.
Moreover, hydroponics is comparably eco-friendlier as compared to the conventional farming, as the plants grown hydroponically use 10% of the total water quantity consumed by field-grown ones. Moreover, the water in the system is recirculated, as the plant only takes up the required amount of water and the rest returns to the system. Furthermore, food production in the field requires a large amount of water. However, current scenario concerning the depletion of water resources is anticipated to lead to the water crisis in the upcoming years. In such a situation, hydroponics is considered as a sustainable and effective solution for the large-scale food production.
However, high initial capital investment concerning the hydroponics is among one of the vital factors restraining the market growth. The cost of cultivation associated with hydroponics is majorly due to the extensive equipment required for this technique. Additionally, commercial scale cultivation of the crops using hydroponics not only requires specific technical knowledge but also higher supply of energy in tandem with well-controlled and regulated environment. Such factors are also projected to hamper the market growth.
This report also provides the existing competitive scenario of some of the key players of the US hydroponics market which includes company profiling of Bright Agrotech, Cloudponics, Grobo, Iron Ox, SmartBee Controllers, Urban Cultivator, Iron Ox, and Thrive Agritech, Amhydro, and Freight Farms. The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments. On the whole, the report depicts detailed overview of the US hydroponics market that will help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.