In this blog post, Michael Straumietis, Founder and CEO of Advanced Nutrients, discusses the global hydroponics market. In addition, he details the expected market growth in the next four to six years.
To understand the projected hydroponics expansion, it is essential to look at the past performance of the hydroponics market. Mike Straumietis notes that the global hydroponics nutrients market in 2018 was valued at $2.67 billion. Between 2020 and 2025, the market is projected to register a compound annual growth rate (CAGR) of 8.8 percent during the forecast period.
Driving Market Expansion
Despite the removal of hydroponics products from the list of organic produce by the U.S. and Europe, highly profitable and soon-to-be-available cost-effective hydroponic innovations will help the hydroponics nutrients market thrive further.
A major market trend to look out for is the share hydroponics holds among different indoor farming systems worldwide. Artemis reports that in 2017, hydroponics farming had 47 percent of the total indoor farming practiced in the U.S. Moreover, around 58 percent of those who participated in the survey testified that hydroponic farms are profitable, especially against other indoor farming types in the U.S.
Moving Forward and Upward
The European Union is helping hydroponic farms expand through a flagship program associated with the European Bank for Reconstruction and Development. With the immense profit farmers reaped, combined with new cost-effective and innovative hydroponic technologies that include photonics and the like, plus the support of governments, the hydroponics market is likely moving upward in the coming years. This expected growth will also help the hydroponic nutrients solution market flourish even more.
Mike Straumietis notes that North America has the biggest share in the global hydroponics nutrients market, with 32.7 percent of the total market value. Europe and the Asia-Pacific region are second and third, respectively. The Asia-Pacific region is currently the fastest-growing market due to countries such as India, China, and Japan driving their agricultural sector through the introduction of new agricultural technologies.
North America is also the market’s largest geographic segment that was analyzed. With hydroponics being an environment-friendly and profitable technology, there is very little doubt that it will continue to be promoted by governments and non-government organizations across the world because of its advantages, especially as it pertains to food security.
Regarding the forecast period between 2022 and 2027, the hydroponics market is expected to register a CAGR of 7.8 percent. Even with several industries taking huge hits because of the COVID-19 pandemic, the demand for hydroponic farming is still rising, notes Mike Straumietis. Even before the pandemic hit, this method of farming had already been making its way into numerous urban areas.
At present, hydroponic farming is going through tremendous growth due in large part to the total control exercised by vertical farms. Vertical farms control everything from seeds to stores, and they also allow consumers to access information on the sources of their food and the way it’s produced.
A Positive Influence
Mike Straumietis adds that strengthening food production and safeguarding distribution systems have become one of the priorities for the future. This has been proven to fortify the long-term need for hydroponic farms.
Many experts believe that the formulation and creation of alternate growing systems such as hydroponics will play a huge role in global food security by providing safe and nutritious food to otherwise food insecure regions. These alternate systems of growing can also have a positive influence on issues surrounding market logistics. Because of all this, the demand for hydroponics is only expected to become stronger in the coming years.
Growers in more than 110 countries rely on Advanced Nutrients to unlock the genetic potential of their plants. Under the guidance of Founder and CEO Mike Straumietis, the Advanced Nutrients research team, which consists of a large and diverse group of highly skilled, well-trained Ph.D. scientists, has developed a broad spectrum of next-generation products that nourish each crop’s cycle from seed to seed to senescence. Advanced Nutrients created the first and only complete growing system that maximizes all the phases of the vegetative and bloom cycles to allow crops to reach their true genetic potential.