What is in store for the global hydroponics nutrients market in the next couple of years? In this blog post, Mike Straumietis, Founder and CEO of Advanced Nutrients, examines the various factors that will likely contribute to the future performance of the hydroponics market.
The Drivers of Hydroponic Market Growth
In 2018, the value of the hydroponics nutrients market worldwide amounted to around $2.67 billion. Between 2020 and 2025, experts believe the market will register a compound annual growth rate (CAGR) of approximately 8.8 percent during the forecast period.
Even if hydroponics products are taken from the list of organic produce by the U.S. and Europe, there will still be highly profitable and affordable hydroponic innovations to push the hydroponics nutrients market forward.
According to Mike Straumietis of Advanced Nutrients, a market trend to anticipate is the movement of shares hydroponics holds among different indoor farming systems globally. In a survey conducted by Artemis in 2017, hydroponics farming has around 47 percent, almost half of indoor farming in the U.S. In addition, almost 60 percent of those who participated in the survey mentioned that hydroponic farms are profitable, especially when compared with other indoor farming types in the U.S.
The European Union (EU) is a major force behind the expansion of hydroponic farms. The EU’s flagship program is associated with the European Bank for Reconstruction and Development. With hefty profits for farmers, new cost-effective and innovative hydroponic technologies that include photonics and the like, and the support of national governments, this program is likely to drive hydroponics and the hydroponic solutions market forward and upward.
The Top Regions in the Hydroponics Market
North America holds the biggest share of hydroponics nutrients, with 32.7 percent of the global market. Europe and Asia-Pacific are second and third, respectively.
The Asia-Pacific region is the fastest-growing market registering a high CAGR during the forecast period. This is largely due to developing countries such as India, China, and Japan creating agricultural sector revolutions by introducing new agricultural technologies and innovations.
Mike Straumietis also mentions that with the upward rates of success of the commercial hydroponics industry and the increasing hardships of growing crops on soil, it is no wonder that the hydroponics market is expanding at an exponential rate all over the world.
The Growth of the Hydroponic Market in the Next Few Years
Experts predict that between 2022 and 2027, the hydroponics market will register a CAGR of at least 7.8 percent. So even with many industries struggling because of the impact of the COVID-19 pandemic, there is still an increasing demand for hydroponic farming. Mike Straumietis says that even before the pandemic hit, hydroponics had already been expanding across urban areas in many parts of the globe.
Hydroponics is growing rapidly because vertical farms control everything from seeds to stores. These farms also give consumers access to information and details regarding their food sources and how it is produced. This is in connection to strengthening food production and distribution systems which have become the priorities for the future. This will lead to securing the long-term need for hydroponic farms.
Recent research has suggested that the formulation and development of alternate growing systems such as hydroponics is anticipated to play a huge role in food security worldwide by providing safe and nutritious food. It is also worth noting that alternate growing systems can positively impact market logistics issues. Mike Straumietis believes there is no reason to think that the demand for hydroponics will decrease in the next decade.
Nourishes Each Phase
Advanced Nutrients, at the direction of Mike Straumietis, developed the first and only complete growing system that optimizes all phases of the vegetative and bloom cycles, unlocking the true genetic potential of crops. As a result, growers from more than 110 countries now rely on the company’s broad spectrum of next-generation products that nourish each crop’s cycle from seed to seed to senescence.