February 29, 2024
Greenhouse Produce Market

Greenhouse Produce Market Is Projected To Driven By Increasing Climate Change Concerns

Greenhouse produce includes a variety of fruits and vegetables that are grown inside a greenhouse or a framed structure to maintain optimal growing conditions. Advantages of growing produce inside a greenhouse include protection from climate fluctuations, pests, and diseases. This allows year-round production of fruits and vegetables that may not ordinarily grow outside their natural season. Growing conditions can be carefully controlled to maximize crop yield, quality, and size. With changes in climate patterns leading to warmer temperatures and unpredictable weather events, greenhouse cultivation helps buffer volatile outdoor conditions and ensures stable production.

The global Greenhouse Produce Market is estimated to be valued at US$ 28 Billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Growing preference for locally grown and sustainable produce is a key trend shaping the greenhouse produce market. Many consumers are seeking fruits and vegetables that are grown in a responsible manner with minimal environmental footprint. Greenhouse cultivation allows year-round production near major population centers, reducing the need for long-distance transportation of produce. This local availability appeals to consumers concerned about food miles. At the same time, strictly controlled greenhouse conditions enable optimal resource usage with precisely metered irrigation, fertilizers, and pest management. Such sustainable production practices are well-aligned with rising demand for eco-friendly farming techniques.

Porter’s Analysis

Threat of new entrants: Low barriers of entry given the availability of low-cost land and favorable government policies encourage new players to enter the market. However, established players have economies of scale and brand recognition.

Bargaining power of buyers: Large buyers like supermarkets have significant bargaining power due to their sizeable orders. They negotiate on price and demand better services.

Bargaining power of suppliers: Few raw material suppliers and dependence of growers on them results in higher bargaining power of suppliers. Growers have to adhere to supplier terms.

Threat of new substitutes: Alternate production methods like vertical farming pose a threat, though initial investment is high for substitution.

Competitive rivalry: Intense competition exists among established players to cater to demand from supermarkets and enhance market share. Price wars and new product launches are common.

Key Takeaways

The Global Greenhouse Produce Market Demand is expected to witness high growth. The global Greenhouse Produce Market is estimated to be valued at US$ 28 Billion in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030.

Regional analysis comprises Asia Pacific dominates the market owing to favorable climate and low labor costs favoring greenhouse cultivation. Countries like China, India, and Japan are major producers.

Key players operating in the greenhouse produce market are Fabory, Fastenal Company, W├╝rth Industrie Service GmbH & Co. KG, REYHER, KELLER & KALMBACH GmbH, AB STEEL, Brunner Manufacturing Co., Inc. KD FASTENERS, INC., ckford Fastener, Inc., AMARDEEP STEEL, Viha Steel & Forging. Key players focus on expanding production capacity and product portfolio to cater to the growing demand. Partnerships with buyers and suppliers help strengthen their supply chain network.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it