Greenhouse Produce Market Overview:

According to the findings by the Environmental Protection Agency (EPA), the net greenhouse emissions in 1990 were 5573.3 MMT CO2¬ Eq. and 5,758.9 MMT CO2 Eq. in 2017 from which the emissions allocated to the agriculture sector was 534.9 MMT CO2 Eq. in 1990 and 582.2 MMT CO2 Eq. in 2017.[1] The rise in greenhouse emissions due to agriculture is aiding to the threat called global warming, and so, the greenhouse produce has become imperative. The greenhouse produce is already gaining grounds worldwide, and a gamut of environmental concerns are leading to increasing implementation of the same which is enhancing the size of the greenhouse produce market that was valued to be $5.3 billion as of 2018. Furthermore, the demand for the same is projected to observe a healthy compound annual growth rate of 9.10% during the forecast period of 2019 to 2025.

Owing to the prevalent plantation of fruits and vegetables in the countries of North America such as the US, Mexico, Greenland, and others, the greenhouse produce market is making strides in the region. This is also attributed to the dearth of land in the region which is the main reason the government is also taking initiatives such as greenhouse produce and creating plantation setups in urban regions in order to suffice the demand for fruits and vegetable. Another factor that is attributable to the growing opportunities in North America is the fact that the consumers are driven by quality and variety that is leading to a fairly favorable pricing scenario for the prominent vendors and the blossoming businesses in the greenhouse produce market. North America had the maximum greenhouse produce market share of 40% in 2018.

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Greenhouse Produce Market Outlook:

Greenhouse produce is a plantation in a miniature cold frame where solar radiation passes through walls and is absorbed by the floor. Moreover, greenhouse cultivation also uses carbon dioxide enrichment. Plastics used in greenhouse produce can be polyethylene film, polycarbonate material, or PMMA acrylic glass. Nowadays, vegetables and fruits are produced from greenhouse produce.

Vegetables are considered as a primary requirement for nutrition in the human body. Furthermore, the future foresees an augmented demand for vegetables due to a lot of people converting into vegans. These people will predominantly rely on vegetables for nutritional needs. Moreover, there is a discernible trend of import and export of frozen vegetables which is further flourishing the greenhouse produce market. The vegetable application segment of the greenhouse produce is projected to grow with a notable CAGR of 8.70% through to 2025.

Greenhouse Produce Market Growth Drivers:

·  The Shortage of Land in the Agriculture Industry –

In 2016, the World Bank had assessed the agricultural land to 37.431% of the total land area.[2] The Population Reference Bureau has estimated that around 9.6 billion people are living in the world today, and the figure is going to catapult to 9.9 by 2050.[3] The percentage of agricultural land as documented by the World Bank may not be adequate to suffice the demand emerging from the population outflow. In a world where hunger is a primary concern, the shortage of land in the agriculture industry can prove to be a fatal phenomenon. In order to alleviate this situation, governments and a lot of investors are taking initiatives such as greenhouse produce in which the land in the urban areas can be used for plantation. The boom in the greenhouse market is envisioned to fulfill the sustainable goals by the United Nations (UN) in which eradicating hunger issues has been attributed as one of the most important objectives.

·         The Increasing Disposable Personal Income Instilling Affordability –

Apparently, greenhouse produce is expensive than normal crops. This is especially because of the high investments made by the producers, which shoots up the price of the produce. Even though this may pose as a challenge, the increasing disposable personal income is enabling customers to afford the fruits and vegetables which is significantly supporting the greenhouse produce market. The economic shift is making it possible for people to spend on things that are supposed to be perceived as expensive. The future is poised to witness more industrialization which will aid to economies worldwide, and this will create sustainable market conditions for greenhouse produce.

·         The Advantages Over Normal Cultivation Driving the Market –

Damage and losses of crops or plantations due to bad weather is a rampant situation in the world. However, greenhouse produce provides a separate environment for plantation in which the cultivation isn’t affected by the seasonal circumstances. This leads to a longer growing season, thereby directly having a positive impact on productivity. While insecticides market is leveraging the fact that crop losses are largely attributed to pests and predators, greenhouse produce remains protected from the same. On the other hand, there are some beneficial insects such as ladybugs that aid to the cultivation. Greenhouse produce keeps these inside the plantation environment. These advantages that greenhouse produce has over conventional cultivation is leading to growth opportunities in the greenhouse produce market.

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Greenhouse Produce Market Trends –

·     In June 2018, the US greenhouse produce start-up BrightFarms secured an undisclosed sum of money in a series of D equity financing for further expansion of its sustainable farms. This expansion is due to the demand influx in the US greenhouse produce market.

·      In October 2017, Canopy Growth Corporation entered into a joint venture in order to form a new company in order to develop a 1.3 million sq. ft. of greenhouse produce capacity in British Columbia.  

·      In April 2019, Emerald’s Pure Sunfarms joint venture acquired 1.1 million sq. ft. of land for greenhouse produce. This was done to increase the production in order to fulfill the growing demand in the greenhouse produce market.

Greenhouse Produce Market Challenges –

The major challenge in the greenhouse produce market is that the vendors still struggle to venture into some of the developing and under-developed economies which becomes a constraint for the growth of market size. This is because of the fact that residents of these countries are yet to afford greenhouse produce and are relying on conventional produce. Furthermore, even though the microclimate provided by greenhouse helps in sustainable production; on the other hand, the soil requires more quantity water and fertilizer which again shoots up the budget of farming firms. Considering that it’s important to maintain temperature and humidity for proper farming, many farmers struggle to do so which is posing as a minor challenge in the greenhouse produce market. However, given that the market size is growing rapidly and greenhouse technology is evolving, the future can expect greenhouse produce to be a very profitable business.

Greenhouse Produce Market Key Players Perspective –

The major players striving to capitalize on the demand for greenhouse produce are Greenhouse Produce Company LLC, Devry Greenhouse Ltd, Loch's Greenhouse, GGS Structures Inc., Four Seasons Greenhouse and Nursery, Inc., Mikes Greenhouse Produce, Inc., Mitchells Greenhouse and Produce LLC, and Venlo AP HOLLAND Group.

Greenhouse Produce Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the greenhouse produce market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The greenhouse produce market research report also analyses the application for the cultivation of vegetables, fruits, flowers, herbs, and others.

Greenhouse Produce Market Report: Industry Coverage

This report also documents the market based on irrigation that include soil & culture, transplant production, hydroponics, and others) and the sales of greenhouse produce in various distribution channels such as super markets, farm communities, food processing, and others.

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The greenhouse produce market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:

• North America: The U.S., Canada, Mexico
• South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
• Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
• APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
• Middle East and Africa: Israel, South Africa, Saudi Arabia