Greenhouse Horticulture Market Size, Share, Trends, Value 2030

Greenhouse Horticulture Industry Prospective:

The global greenhouse horticulture market size was worth around USD 31.58 billion in 2022 and is predicted to grow to around USD 54.14 billion by 2030 with a compound annual growth rate (CAGR) of roughly 6.96% between 2023 and 2030.

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Greenhouse Horticulture Market: Overview

Greenhouse horticulture is also known as protected cropping. It is a modern and advanced agricultural process that includes the production of horticulture crops within a sheltered or protected environment. Horticulture crops mainly consist of vegetables, fruits, plantation, aromatic, ornamental, and medicinal plants. The main goal of protected cropping is to prevent crops from being exposed to harmful growth environments including adverse weather, crop diseases, and pests. The idea is to grow crops in modified conditions to ensure higher quantity and quality of crop yield.

Greenhouse horticulture allows the production of crops in glasshouses or greenhouses, screen houses, shade houses, and crop top structures. These facilities typically consist of large elevated structures with a layer of transparent material on the top and allow only specific environmental conditions within the structure. This method created micro-climates that work best to achieve the intended crop yield. Greenhouse horticulture is also associated with off-season crop cultivation, especially for high-value food products in areas with unfavorable climatic conditions. The demand for protected cropping is growing at a steady pace.

Key Insights:

• As per the analysis shared by our research analyst, the global greenhouse horticulture market is estimated to grow annually at a CAGR of around 6.96% over the forecast period (2023-2030)
• In terms of revenue, the global greenhouse horticulture market size was valued at around USD 31.58 billion in 2022 and is projected to reach USD 54.14 billion, by 2030.
• The greenhouse horticulture market is projected to grow at a significant rate due to the growing impact of climate changes on crop yield
• Based on crop type segmentation, fruits & vegetables was predicted to show maximum market share in the year 2022
• Based on material type segmentation, plastic was the leading segment in 2022
• On the basis of region, REGION was the leading revenue generator in 2022

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Greenhouse Horticulture Market: Growth Drivers

Growing impact of climate changes on crop yield to drive market growth

The global greenhouse horticulture market is expected to grow owing to the increasing impact of dramatic changes in the environmental conditions on crop yield. Factors such as extensive consumption of fossil fuel, rampant industrialization, growing consumerism, and surging urbanization have been the main contributing factors to global warming. This has led to a change in climate patterns as more incidents of excessive rain, flood, drought, ice melting, and other harmful environmental events are recorded on a global scale. Such dramatic changes directly impact the agriculture sector not only in terms of quantity of crop yield but also the quality of the food grain. Degrading soil quality and a limited supply of essential nutrients have caused a decline in global crop yield in the last few years. For instance, a recent study by the National Aeronautics and Space Administration (NASA) that climate change is expected to impact maize production rate by 2030 as production value is projected to decline by 24%. As companies and people in the agriculture sector seek ways of ensuring quality produce, the demand for greenhouse horticulture is likely to grow.

Rising consumption of off-season food products to push market revenue further

Greenhouse horticulture has proven to be highly effective in the production of off-season food products. As the food & beverage industry is growing rapidly, the demand for all types of food grains is high throughout the year. Additionally, the cost of off-season food grains is exceptionally high leading to governments using methods to continue food production using modern techniques such as protected cropping.

Greenhouse Horticulture Market: Restraints

High initial investment to construct greenhouses may restrict the market growth

The global greenhouse horticulture market growth is likely to be restricted owing to the high cost of initial investment required to construct a greenhouse. These structures are specially built to the needs of the crops being harvested. Greenhouses are equipped with appropriate covering and temperature control systems to ensure the harvesting of good-quality crops. On average, greenhouses built by professionals with adequate facility installation can cost up to USD 11000. Although the cost of greenhouse horticulture for limited quantities is not as high, the maintenance expense eventually leads to more investments over a period.

Greenhouse Horticulture Market: Opportunities

Increasing support from government to promote greenhouse horticulture could create growth opportunities

The greenhouse horticulture industry players can expect higher growth possibilities owing to the increasing support of regional governments to promote the adoption of greenhouse horticulture. For instance, several banks in India provide financial assistance for setting up greenhouses. The Central Bank of India runs financial help through its Poly House, Green House, and Shade Net House Schemes where loans can be borrowed covering up to 80% of the total cost and not exceeding INR 5 crore. Moreover, governments also run several subsidy schemes to attract more farmers. For instance, as per the National Horticulture Mission (NHM) in India, farmers are provided with a subsidy of 50% on the initial investment of INR 112 lakh with state governments providing additional subsidies.

Rising adoption of modern systems and technological advancements in greenhouse agriculture to create expansion opportunities

The changing needs in the agriculture sector have resulted in several technological advancements related to systems, devices, and technologies used in protected cropping. For instance, in July 2023, Scapify, a Georgia-based company dealing in web design and an e-commerce agency promoting the green industry, launched MasterGardener.ai. It is an artificial intelligence (AI) driven tool that can be used by green industry businesses and garden centers to be used on their websites for answering questions and resolving doubts.

Greenhouse Horticulture Market: Challenges

Limited application to high-value crops may create additional challenges

One of the primary challenges existing in the greenhouse horticulture industry is the application of greenhouse horticulture which is currently limited to only high-value crops. It means that conventional crop cultivators do not invest in greenhouses. Additionally, the unit lacks any scope for natural pollination which is a crucial activity in the agriculture industry. Disease pressure in closed spaces is higher. Operating and maintaining greenhouses requires a certain skill level. Industries operating in the sector will have to navigate through these obstacles for higher growth.

Greenhouse Horticulture Market: Segmentation

The global greenhouse horticulture market is segmented based on crop type, technology, material type, and region.

Based on crop type, the global market divisions are nursery crops, flowers & ornamentals, fruits & vegetables, and others. In 2022, the highest growth was observed in the fruits & vegetables segment since there has been a growing demand for high-value organic vegetables and fruits among end-consumers. Rising health consciousness and growing awareness about the benefits of eating nutritious food have led to higher demand. The segment deals with the production of peppers, tomatoes, berries, and other everyday edible items. As of 2022, the global tomato market was valued at USD 182 billion.

Based on technology, the greenhouse horticulture industry segments are cooling system, heating system, and others.

Based on material type, the global market is divided into plastic and glass. The largest revenue was generated in the plastic segment due to the higher performance level of plastic material. The segment includes the application of polyvinyl chloride (PVC) and polyethylene as they are used to manufacture top coverings or other structures in greenhouses. They offer high light transmission which is important for photosynthesis, a crucial process in crop production. In most cases, plastic that is 3 to 4 mil thick films are ideal for 1 year application.

Greenhouse Horticulture Market: Report Scope

Greenhouse Horticulture Market: Regional Analysis

Europe to witness the highest growth rate during the projected period

The global greenhouse horticulture market will witness the highest growth in Europe driven by the increasing demand for high-quality crops in European countries. Additionally, the continent is witnessing drastic changes in environmental conditions which is directly impacting crop yield and quality. As of 2022, Europe’s temperature has increased by 2.3°C due to climate change and it is currently regarded as the fastest warming continent. This has resulted in higher demand for greenhouse horticulture to meet regional food and vegetable demands. Furthermore, the absence of sufficient cultivable land has promoted a higher demand for smarter and more intensive agricultural practices. Protected cropping allows optimizing the use of available land since crop yields can be maximized in limited spaces.

North America is likely to register higher growth driven by the extensive promotion of greenhouse horticulture in the USA and Canada. These regions witness extremely low temperatures for a significant period in a year making the adoption of protected cropping an ideal solution to meet regional consumption patterns.

Greenhouse Horticulture Market: Competitive Analysis

The global greenhouse horticulture market is led by players like:

• GreenTech Agro
• Ammerlaan Construction
• Priva
• Ridder Group
• Bayer Crop Science
• Hoogendoorn Growth Management
• Harnois Greenhouses
• Van der Hoeven Horticultural Projects
• HortiMaX
• Syngenta
• Vicinity Greenhouse Solutions

The global greenhouse horticulture market is segmented as follows:

By Crop Type

• Nursery Crops
• Flowers & Ornamentals
• Fruits & Vegetables
• Others

By Technology

• Cooling System
• Heating System
• Others

By Material Type

• Plastic
• Glass

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa