The global hydroponic substrate market is estimated to garner a revenue of USD 1 billion by the end of 2031 by growing at a CAGR of ~11% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of USD 445 million in the year 2021. The primary growth factor for the expansion of hydroponic substrate market is anticipated to be large usage of agricultural land across the world for varied purposes. The World Bank states that the total agricultural land in the world accounts 36.9% of the total land in 2018.
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Recently, there has been increased demand for organic crops to escape the diseases and infections spreading around. As a result, the population is being conscious about what they are eating on daily basis. Thus the rise in farmers is expected to increase the adoption rate of hydroponic substrate in farming for producing high-quality vegetables. According to a report published in 2021, “]estimated that the number of farmers in India totaled to be almost 150 million farmers.
Instead of using soil for cultivation, in hydroponic system, plants are supported by hydroponic substrates, which provide roots a point at which they can attach, help foster better aeration, and retain moisture. However, hydroponic substrates are mainly inert, so plants require a nutrient solution to provide minerals and other essential elements for growth. The nutrients used in hydroponic systems can come from many different sources, including fish excrement, duck manure, purchased chemical fertilizers, or artificial nutrient solutions. Plants are commonly grown hydroponically in a greenhouse or contained environment on inert media, adapted to the controlled-environment agriculture (CEA) process. Hydroponic substrates are of various types namely expanded clay balls, perlite substrate, coconut fiber substrate, rock wool substrate, coir or coco, ceramic substrate, plastic sponge substrate to name a few.
Swelling Population Across the World - The rapidly growing population has increased the demand of organic agricultural and food products. This rise in demand of agricultural ingredients is projected to bring lucrative growth opportunities in hydroponic substrate market in the assessment period. As per World Bank, the global population stood up at 7.84 billion in 2021, an increase from 7 billion in 2011. This number is further anticipated to rise by United Nations to 9.8 billion in 2050 and 11.2 billion in 2100.
Presence of Farms in the World – The prevalence of farms across the world is expected to work as growth factor for the utilization of hydroponic substrates to grow food products in a biological way. The recent estimates suggest that there were approximately 650 million farms worldwide in 2020.
Rise in Demand of Food Products – As per a recent report published in 2018, suggests the global food demand is about to increase by 60% by 2050.
Boom in Agriculture Industry - In 2020, the revenue generation by the United States agriculture, food, and the related industries stood up at USD 1.060 trillion.
High Consumption of Chemicals – The global chemical consumption in 2021 accounted for 4 trillion euros.
The hydroponic substrates market is segmented and analyzed for demand and supply by type into organic and inorganic. Out of these, the inorganic segment is anticipated to garner the highest market share by 2031. The growth of the segment is attributed to high trade of rock wool which is a type of inorganic hydroponic substrate. The Observatory of Economic Complexity stated that in 2020, in 2020, rock wool was the world's 521st most traded product. This was equivalent to the value of USD 4.38 billion.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Regionally, the global hydroponic substrate market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in Asia Pacific is projected to hold the largest market share by the end of 2031. Asia Pacific region has a high employment rate in agriculture industry which is projected to be the primary growth factor for the adoption of hydroponic substrate and growth of the market. Recent study revealed the total employment in agriculture statistics which has gone up from 36% in 2017-18 to 37% in 2018-19 and then to 38% in 2019-20 in India. Additionally, the large agriculture land present in the region is an another growth factor. As per World Bank, the agricultural land in East Asia & Pacific held about 47.7% in 2018. Further, the investments in research and development activities, growth in GDP level coupled with high chemical consumption are anticipated to be other growth factors. In 2021, the domestic chemical sales in Asia Pacific garnered approximately USD 3 trillion.
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The global hydroponic substrate market is further classified on the basis of region as follows:
Our in-depth analysis of the global hydroponic substrate market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The need for organic vegetable by the burgeoning population is the major factor that is expected to drive the growth of the hydroponic substrate market.
The market is anticipated to attain a CAGR of ~11% over the forecast period, i.e., 2022 – 2031.
The shortage of labors coupled with low adoption rate and additional expenses in production process are some of the factors that are expected to hamper the market growth.
The market in Asia Pacific is projected to hold the largest market share by the end of 2031 and provide more business opportunities in the future.
The major players in the market are Comercial Projar, S.A. (Projar Group), ROCKWOOL International A/S, Galuku Group Limited, CANNA, Ceyhinz Link International, Inc., JB Hydroponics B.V., The Wonderful Soils Company, Hydrofarm Holdings Group, Inc., Re-Nuble, Inc., Malaysia Hydroponics, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, and by region.
The organic segment is anticipated to garner the largest market size by the end of 2031 and display significant growth opportunities.
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