Horticultural Greenhouse Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Horticultural Greenhouse Market is segmented By Covering Material (Plastic Greenhouse, Glass Greenhouse), By Produce Type (Fruits & Vegetables, Flowers), By Application (Commercial, Research & Development), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Horticultural Greenhouse Market Overview

The Global Horticultural Greenhouse Market is estimated to reach a CAGR of 17.2% during the forecast period (2024-2031).

The greenhouse is an inflated structure designed with a transparent covering material to provide a controlled farming practice environment. Farming in these protected structures provides several advantages: increased production, minimum need for crop protection, high water usability, and low weather conditions on plants. Greenhouse farming evolved as the lucrative sector of agriculture owing to its potential benefits over conventional open-field agriculture.

Horticultural Greenhouse Market Summary

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Horticultural Greenhouse Market Dynamics

Greenhouses are helping the farming communities to cater to the growing demand for organic farm produce from consumers. Also, greenhouses allow out-of-season farming of seasonal fruits and flowers. These are used for various farm applications, including horticulture, nurseries, seed growers, commercial vegetable, and medical cannabis production. Horticulture is one of the key use areas of greenhouses involved in growing fruits, vegetables, and flowers. Both plastic and glass-covered greenhouses are used for this purpose. High-tech greenhouses are equipped with artificial lighting, heating, cooling, and other installations that provide convenient plants' growing conditions.

Higher yield than traditional methods is the major driving factor for the horticulture greenhouse market. Food and Agriculture Organization (FAO) estimated the world will need to grow 50% more food by 2050 to feed an anticipated population of 9 billion people. Nearly one-third of the world’s adequate or high-quality food-producing land has been degraded due to soil erosion resulting from continual ploughing of fields and over cultivation. The rising demand for food, particularly organic, coupled with a rising population, forces the farming communities to achieve better yields from the minimum use of agricultural inputs. Greenhouse evolved as the preferred choice of solution for these communities to cater to the surging food requirement.

The rapidly growing interest in hydroponic farming technology will support the greenhouse market's growth across the market. In hydroponics, the plants are grown in a nutrient solution rather than soil and are practiced in controlled greenhouse environments. Hydroponics evolved as the fastest growing agricultural sector owing to its high productivity at minimum water consumption. The global hydroponics market is estimated to witness a robust CAGR of 17% till 2030

The development of agricultural plastic recycling technology and infrastructure is another major factor driving the market's growth. The governments and agricultural ministries in several countries offer financial assistance and subsidies on a greenhouse to meet the growing demand for fruits and vegetables.

Higher costs of greenhouses is the major restraint for the horticulture greenhouse market. The fixed costs include greenhouse materials and setting up costs, power supply installing costs, precession farming methods like irrigation systems, sensors etc., while reoccurring costs include electricity charges and higher labour charges over regular farming practices. Also, the complications mean skilled labour is required in order to make this work, which is more expensive to get than a regular farmer. Plastic recycling is another challenge involved in greenhouse.

Covid-19 Impact Analysis

While the global trade came to halt during the lockdowns imposed to control the spread of novel coronavirus, the food industry has been impacted by severe freight challenges. Most of the food categories witnessed decline in sales volume due to lack of demand and supply chain disruptions. The declined in the food industry, particularly in food service and HoReCas. This weakened business in food industry had a negative impact on the horticultural greenhouse market. The growers faced problems in distributions chains due to the lockdowns. High demand for the distribution companies increased the transportation costs. Also, the investments required by the greenhouses couldn’t be met, which halted the new setups and maintaining of existing setups. the panic-purchases by several consumers raised the demand for the products which helped to some extent but couldn’t cover for the losses. However, the awareness about the perks of greenhouses has increased in the lockdown among the farming communities and this would massively boost the market post the lockdowns.

Horticultural Greenhouse Market Segmentation

Plastic is the largest segment by covering material in the global horticultural greenhouse market. The low cost of plastic made it an ideal choice of material in transforming agricultural practices. From irrigation to protected structures, plastics play a vital role in greenhouse manufacturing. Plastic greenhouse offer several potential benefits over their glass counterparts. The technological advancements in plastic, such as reinforced plastic development, also support this category's growth. The environmental concerns associated with plastic waste from agricultural usage have been limiting the market growth. However, the development of plastic waste recycling technology will suppress this restraint soon.

By product type, fruits and vegetables is the largest segment owing to the suitable conditions like temperature, humidity, moisture, light, irrigation. Greenhouses eliminate the season requirement by providing suitable conditions all around the year. Tomatoes, peppers, strawberries, lettuce & other greens, beans & peas, & cucumbers are some of the crops that take advantage of the greenhouses since they can thrive indoors and need specific conditions and there is demand all over the year for these crops.

Horticultural Greenhouse Market Geographical Share

By geography, the European region evolved as the largest market for horticulture greenhouse with a share of nearly 42% in terms of total establishments in 2018. Vegetables are the largest produced crop in the European region, and plastic covering accounts for nearly 90% of the overall greenhouse installations. The large-scale establishment of greenhouses in countries such as Spain, Italy, and the Netherlands is responsible for the market's growth in this region. The Netherlands is the largest and most advanced market for greenhouse farming, with an estimated 90,000 hectares of area under plastic and glass greenhouses. The greenhouse-grown vegetables and flowers in the country are exported to several global locations. The cloudy weather conditions in the country are driving farmers towards glass-framed greenhouses over plastic-covered structures.

Horticultural Greenhouse Market Key Players

The global horticultural greenhouse market is highly competitive in terms of technology additions. Focus is laid towards high-tech greenhouse horticulture equipped with sensors, imaging devices, and energy solutions. Several leading providers in the market are integrating digital technologies into their portfolio to attain customer interest. The market is consolidated, with the top 10 companies accounting for over 60% of global revenue. RICHEL Group, Netafim, Berger, and Van Der Hoeven are dominating the global horticultural greenhouse market.

RICHEL Group:

Richel Group, is one of the leading companies for the design, production and implementation of horticultural greenhouses. Based in Eygalières, France, Richel Group works in 80 countries around the world and employs about 250 people.

Product Portfolio of RICHEL Group:

• Plastic Greenhouses
• Venlo Greenhouses
• Greenhouse Equipment and Environment
• Specialities and Services

Key Developments:

• In Feb 2021, a high-tech rose greenhouse, Rosefield completed in Armenia by the specialists of Richel Group, at an altitide of 2000 metres aove sea level. There are 18 varieties of different shades, 14 of which are single-headed roses, the other ones are 4 spray roses. Currently the first half of the planned 5 ha high-tech greenhouse is operating. The second phase will be constructed this year.
• Grow Group Azerbaijan reached the 50 kg tomatoes per sq. meter milestone in 2020 in the large volume Richel 12.80 greenhouse, with almost 10m height.
• Somer Sondaj, together with Richel Group plans to build a new greenhouse in Eskisehir, Turkey. The first 3-hectares will be ready in 2021 and the team is thinking about expanding to 5 hectares. For the structure, the 12.80 span from Richel Group with 6m high are being used.

Other key players in the market include Hoogendoorn, Harnois Greenhouses, Certhon, Priva, Rough Brothers, Ceres greenhouse.