In 2018, the hydroponics nutrients market worldwide was valued at around $2.67 billion. Between 2020 and 2025, the market is expected to register a compound annual growth rate (CAGR) of 8.8 percent during the forecast period. This means that even with the removal of hydroponics products from the list of organic produce by the U.S. and Europe, there are still highly profitable and soon-to-be-available cost-effective hydroponic innovations that will drive the hydroponics nutrients market globally, notes Mike Straumietis, Founder and CEO of Advanced Nutrients.
The Various Factors Driving Growth
A major market trend is how much share hydroponics holds among indoor farming systems globally. According to a 2017 survey by Artemis, hydroponics farming has 47 percent of the total indoor farming practiced in the United States. That is almost half of all indoor farming. Furthermore, nearly 60 percent of those who participated in the survey testified that hydroponic farms are profitable, especially against other indoor farming types in the country.
On the other side of the Atlantic, Mike Straumietis says that the European Union (EU) is aiding the expansion of hydroponic farms via its flagship program. This program is associated with the European Bank for Reconstruction and Development. This means that 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, would be likely to push the hydroponics market forward, as well as upward.
This push, in turn, drives the hydroponic nutrients solution market.
It is also worth noting that North America holds the biggest share in the global hydroponics nutrients market, with 32.7 percent of the total market value. North America is followed by Europe and the Asia-Pacific region, the second and third largest markets, respectively. In fact, the Asia-Pacific region is the fastest-growing market registering a tremendous CAGR during the forecast period, with countries such as India, China, and Japan creating agricultural sector revolutions by introducing these new agricultural technologies and innovations.
With the upward rates of success of the commercial hydroponics industry and the increasing hardships of growing crops in soil, it is no wonder that the hydroponics market is expanding at an exponential rate, Advanced Nutrients’ Mike Straumietis adds.
Bracing for Expansion
A peak at the forecast period between 2022 and 2027 reveals the hydroponics market may very well register a CAGR of an estimated 7.8 percent. At present, hydroponic farming is witnessing a tremendous growth rate because of the total control by vertical farms. These farms control everything from seeds to stores, allowing consumers access to information and details regarding the sources of their food and the way they are produced.
Fortifying food production and distribution systems has become one of the priorities for the future. Doing so has been proven to increase the long-term need for hydroponic farms.
The Future Looks Bright
Industry experts expect the formulation and development of alternate growing systems such as hydroponics to play a huge role in food security worldwide by providing safe and nutritious food. In addition to this, alternate systems for growing can also have a positive impact on issues surrounding market logistics. As a result, there is no reason to think that the demand for hydroponics will decrease in the coming years. On the contrary, as Mike Straumietis notes, the future looks bright for all areas of the global hydroponic industry.
Mike Straumietis, the Advanced Nutrients founder and CEO, is no stranger to industry challenges and demands. Growers in more than 110 countries rely on Advanced Nutrients to unlock the genetic potential of their plants. Straumietis has also invested time, effort, and funds in developing the technology to provide life-giving essentials to hundreds of thousands of people across the globe. Moreover, under his leadership, the Advanced Nutrients research team, consisting of a large and diverse group of highly skilled and well-trained Ph.D. scientists, has created and developed a broad spectrum of next-generation products that nourish each crop’s cycle from seed to senescence.