Greenhouse Horticulture Market by Crop Type (Fruits & Vegetables, Nursery Crops, Flowers & Ornamentals, and Others), Type (Plastic Greenhouse and Glass Greenhouse), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022–2030

Global Greenhouse Horticulture Market Analysis

The global greenhouse horticulture market is predicted to garner a revenue of $64,973.80 million in the 2022–2030 timeframe, growing from $32,270.70 million in 2021, at a healthy CAGR of 7.8%. 

Market Synopsis

According to Worldometers.info, the global human population is projected to reach 9.73 million by 2050. The increasing human population will fuel the demand for vegetables, fruits, and other agricultural products. Furthermore, changing climatic conditions such as global warming may affect crop yield because crops speed through their development, producing less grain in the process. Growing awareness about climate change and the importance of greenhouse technology in enhancing crop yield are the main factors driving the demand for the greenhouse horticulture market. Moreover, one of the important factors influencing the market is significant growth in the agriculture business, which is accompanied by an increase in the use of sustainable horticulture methods. Furthermore, the market is being driven by the development of Internet of Things (IoT)-enabled lighting solutions. With photoperiodic and supplementary illumination, horticulture lighting solutions induce photosynthesis in plants. Aside from that, LED-based solutions may be controlled remotely, collect data using machine learning (ML) techniques, and have a longer operating life.

A skilled workforce is required to handle the daily operations of greenhouse horticulture. Furthermore, installing the greenhouse structure is costly, it requires continuous monitoring, maintenance, and care, thereby hindering the greenhouse horticulture market growth over the forecast period.

According to the regional analysis, the Europe greenhouse horticulture market is anticipated to grow during the review period and generate revenue of $27,568.4 million in 2030, with CAGR of 7.3%. The demand for greenhouse horticulture in Europe is driven by high demand for sustainable and economically viable crop production technologies to meet the food demand of the growing population. This factor is the main factor for driving the demand for the greenhouse horticulture market.

Greenhouse Horticulture Overview

Greenhouse horticulture is the practice of growing plants in a transparent structure that provides the plant with a customized growth environment. Greenhouses have the potential to alter environmental elements such as humidity, temperature, light, and CO2 emissions while also protecting crops from pests. Glass, strong polycarbonate, acrylic plastic, and polyvinyl chloride are some of the materials used. The greenhouse's inside is exposed to sunlight and kept at a slightly warmer temperature than the outside, shielding the crops from the elements. Peppers, tomatoes, cucumbers, lettuce, herbs, and strawberries are some of the crops grown in greenhouses.

Moreover, soil was once used as the basis for all plants in greenhouse horticulture due to its simplicity of availability and reduced initial infrastructure expenses. In commercial greenhouses, glass or polyethylene roofing, as well as glass and plastic sidewalls, are typical covering materials. It's a promising new application that combines a range of techniques, including heat, cooling, air, communications technologies, irrigation, LED grown lighting, and control systems. Heating and cooling systems are the most significant pieces of equipment in the commercial greenhouse industry.

COVID-19 Impact on Greenhouse Horticulture Market

The spread of novel coronavirus had a devastating effect on several sectors, both directly and through necessary measures to avoid contracting the virus. Several countries imposed complete lockdowns, social distancing norms, and travel bans to contain the spread of the virus. Moreover, people are isolating themselves from public gatherings and marketplaces to prevent contracting the virus. The impact is also being felt by the greenhouse horticulture sector. The necessary measures imposed to prevent the spread of the virus had disrupted the agriculture supply chain. The implementation of social distancing norms had disrupted the availability of a skilled workforce, which led to disruption in daily activities and delayed crop harvesting. Due to complete lockdown, availability and movement of supply trucks were affected. Furthermore, the restricted movement of supply trucks disrupted the movement of agriculture products to markets and consumers, both within and across borders. The supply was extremely low because fewer people left their homes for errands and shopping. Consumers panicked-purchased from supermarkets and retailers, requiring companies to send products to replenish their shelves on a regular basis. Many greenhouse producers had trouble transporting their stock out as a result of the supply-chain disruption. Furthermore, governments around the world declared a lockdown and mandatory social separation in try to stop the pandemic from spreading, resulting in imports and exports being restricted and delayed. Commercial greenhouse providers are at a disadvantage since their supply chain is not designed to fulfil the needs of their customers.

Government initiatives and support to address food crisis and ensure food security are helping society to recover from the chaotic situation. For instance, as stated on October 21, 2021, by the World Bank, that offers financial products and technical assistance to various countries, the World Bank Group is actively working with the government of various countries and international partners to monitor the domestic food and agricultural supply chain along with tracking the loss of employment in the agricultural sector which is affecting people’s ability to buy essential food items. In this regard, The International Development Association, member of the World Bank Group, provided $5.3 million in new commitments to ensure food security between April and September 2020. 

High Demand for Locally Grown and Healthy Crops to Drive the Market Growth

The population growth along with increase in the demand for fresh and healthy food from the hotel sector is anticipated to drive the greenhouse horticulture market growth. For instance, India is agricultural country that produces about 326 million tons of horticultural products annually which is major driving factor to fuel greenhouse horticulture market demand. Increase in government support to boost the healthy agricultural productivity and the popularity of greenhouse horticulture sector is expected to drive the market growth. In addition, as stated on September 27, 2021, in the Outlook India, the popular news magazine, the support provided by Indian government to the farmers and horticulturists for growing safe food products is driving the greenhouse horticulture market demand. In addition, in India, the construction of new greenhouses is subsidized. For instance, the State Bank of India (SBI), offers financial assistance in the form of loans for the greenhouse or polyhouse farming business. Also, they are offering short term loan for growing different crops and flowers such as banana and pineapple in open and greenhouses. Also, various benefits associated with greenhouse, such as less irrigation requirement as greenhouses effectively trap moisture, reduced duration of cropping, and increased productivity as greenhouses protect the crops from pests and provide suitable environment in terms of temperature & humidity for their growth are major growth drivers. Also, with greenhouse horticulture, one can grow off-season crops as greenhouses are not dependent on external weather conditions.

To know more about global greenhouse horticulture market trends, get in touch with our analysts here.

Lack of Awareness among Farmers and High Operating Expenses to Restrain Market Growth

Greenhouse horticulture requires regular periodic inspection. Also, precautions must be taken to eliminate any pests or diseases so that consecutive crop yield is not affected. In addition, high cost of greenhouse based on its material along with installation cost is anticipated to hamper the greenhouse horticulture market share during the forecast period. Moreover, monitoring and precision of natural resources and nutrients are critical for greenhouse crop production. This necessitates a thorough understanding of the crop, the meteorological conditions and the crops' optimal requirements. As a result, a skilled farmer can usually grow these crops successfully. Watering system design and extra lighting are two other elements to consider. All of these come at a high price and necessitate skills, which are difficult to come by for traditional farmers, especially in underdeveloped countries, which is estimated to hamper the greenhouse horticulture market growth during the forecast period.  

A Shift towards Innovative and Advanced Technologies to Generate Huge Opportunities

Advanced technologies such as automated irrigation systems, climate control software, and pH sensors for pest management & diseases prevention are being adopted globally. Also, the use of wireless sensors facilitates real-time temperature monitoring that helps in maintaining optimum temperature required for the growth of crops. Self-sufficient water systems with the use of rainwater harvesting techniques and automatic irrigation system that facilitates internal condensation and recirculation of water to generate huge growth opportunities. Optimized lighting levels in greenhouses with the use of different lighting spectrums that induce the plant growth is one of the widely adopted technology. The strategic shading commonly seen in commercial greenhouses which includes strategically placed flame retardant screens to reduce the energy consumption is estimated to drive huge growth opportunities in the market.

Furthermore, farmers can have better control over the climate in which their crops grow by using greenhouse farming. If producers can efficiently manage temperature, irrigation, air humidity, and light, they can get a good yield. Because they have so much control over their growth, farmers can keep their crops healthy and anticipate how much they will harvest. Because of their ability to control the environment, farmers can cultivate flowers, vegetables, and fruit crops all year. Crops grown in a greenhouse have better genetics, resulting in the production of healthier varieties. Furthermore, compared to an open field, it requires less water. Farmers also have access to all available herbicides and are not dependent on bee pollination. All such aspects will drive the global greenhouse horticulture market.

To know more about global greenhouse horticulture market opportunities, get in touch with our analysts here.

Global Greenhouse Horticulture Market, by Crop Type

Based on crop type, the market has been divided into fruits & vegetables, nursery crops, flowers & ornamentals, and others. Among these, the fruits & vegetables sub-segment accounted for highest market share in 2021 and it is estimated to show the fastest growth during the forecast period.

Global Greenhouse Horticulture Market Share, by Crop Type, 2021

Source: Research Dive Analysis

In 2021, the global fruits & vegetables greenhouse horticulture market had a dominant market share and is expected to generate a revenue of $36,678.90 million by 2030, growing from $17,562.40 million in 2021. Greenhouse horticulture is widely used for growing fruits & vegetables because greenhouse protects the crops from high blowing wind and rodents by maintaining suitable temperature for the plant growth. Greenhouse horticulture maintains the stability by maintaining the ambient temperature and protecting the crops from extreme cold. Also, the farmers and gardeners can grow off season crops that helps them in growing crops that have high demand and market value. This is because greenhouse controls the temperature, moisture, light, and humidity required for growing the off-season fruits & vegetables.

Furthermore, greenhouses are a great tool for growing vegetables. It helps in growing vegetables all year around without being concerned about the changing weather, temperature, or other conditions. Producing vegetables in greenhouses protects the crops from harsh conditions such as cold, wind, pests, drought, blistering heat, and critters trying to eat them. Growing vegetables in greenhouses also allows in creating the most suitable condition for the crops owing to the controlling factors available in greenhouses, such as moisture, light, temperature, fertilization, humidity, and irrigation. This controlled environment with adjustable temperature settings and regulation of humidity & moisture helps in providing the plant a constant supply of moisture both from the environment and the roots which reduce water stress. When there is no water stress, plants only focus on flowering or fruiting, which helps in healthy growth of crops. Growing crops in a greenhouse also enables growers to choose the soils that are beneficial for healthy crop growth. Diseases and pests are also reduced by having the right soil for growing crops. All these factors are estimated to drive the demand for greenhouse horticulture market during the forecast period   

Global Greenhouse Horticulture Market, by Type

Based on type, the market has been divided into plastic greenhouse and glass greenhouse. Among these, the plastic greenhouse sub-segment accounted for the highest revenue share in 2021and it is estimated to show the fastest growth during the forecast period.  

Global Greenhouse Horticulture Market Share, by Type, 2021 and 2030

Source: Research Dive Analysis

The plastic greenhouse horticulture sub-segment is anticipated to dominate the market during the forecast period and generate a revenue of $50,421.20 million by 2030, growing from $24,191.30 million in 2021, with a CAGR of 8.2%. The plastic greenhouses are handy, maintain the ideal temperature required for the plant growth, and insulate the plants much more effectively. Plastic films are cheaper as well as they are more durable compared to glass films which are costly and brittle. Also, plastic material can be used in extreme weather conditions as they are safe and shatterproof. Plastic material provides efficient light diffusion, UV protection, and protection from radiation because plastic material can be UV treated that can manipulate specific sun wavelengths to promote the plant growth. Greenhouse plastic is produced in a way that makes it more durable than ordinary plastic. This unique plastic can survive tearing and is resistant to harsh weather. The rise in the demand for plastic greenhouse horticulture by consumers has generated significant demand for organic greenhouse horticulture.

Global Greenhouse Horticulture Market, Regional Insights:

The greenhouse horticulture market was inspected across North America, Europe, Asia-Pacific, and LAMEA.

Global Greenhouse Horticulture Market Size & Forecast, By Region, 2021-2030 (USD Million)

 Source: Research Dive Analysis

The Market for Greenhouse Horticulture in North America to be the Fastest Growing

The greenhouse horticulture market in the North America region is projected to witness dominant share. This market generated a revenue of $9,039.00 million in 2021 and is further projected to reach up to $19,050.30 million by 2030.  North America is one of the promising markets for greenhouse agriculture majorly owing to high demand for local, pesticide free products, and increase in demand for controlled environment agriculture (CEA) crops. Unfavorable weather conditions such as extreme cold temperatures in most of the North American countries such as Canada and some parts of the U.S. is estimated to drive the demand for greenhouse horticulture. This is because greenhouse horticulture facilitates healthy growth of crops which is independent of weather conditions as greenhouse maintains necessary moisture, temperature, and light conditions.

During the forecasted period, the North America region is likely to increase at the fastest rate. Traditional approaches were previously employed by North American growers to establish a controlled environment within greenhouses. Insulated greenhouses & hot water piping systems to raise greenhouse temperatures, and traditional lighting technologies such as high-pressure sodium (HPS) & metal-halide (MH) lamps were among the approaches used. Commercial greenhouse farmers in North America gradually began to move to automated technologies in the previous decade to permit year-round plant growth. In order to facilitate the delivery of fresh vegetables to grocery stores, commercial greenhouse technologies are becoming increasingly popular in urban settings. All these aspects are anticipated to drive the greenhouse horticulture demand in the North America region during the forecast period.   

Competitive Scenario in the Global Greenhouse Horticulture Market

Product launches and mergers & acquisitions are common strategies followed by major market players. 

Source: Research Dive Analysis

Some of the leading greenhouse horticulture market players are

• Richel Group
• Rough Brothers, Inc.
• Certhon
• Poly-Tex, Inc.
• Europrogress
• Luiten Greenhouses
• Sotrafa
• Netafim
• Dalsem
• Van der Hoeven Horticultural Projects BV.