HYDROPONICS MARKET BY CROPS (TOMATO, LETTUCE, CUCUMBER, PEPPER & OTHERS): A Global Insight Through 2015 to 2022 with Special focus on the U.S. & India Market

 Published On: Mar, 2015 |    No of Pages: 166 |  Published By: BIS Research | Format: PDF
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The report identifies the key market drivers and challenges after interviewing the key market players, end users and consulting key opinion leaders from both demand and supply side. The report identifies the factors which can propel the market demand for hydroponics. Further, it has been targeted at providing quantitative insights into the hydroponics market based on the key geographies and crop types.

The report delves deeper into the quantitative aspect of the hydroponics market. The overall market figures have been estimated on the basis of key geographies (viz. the Americas, Europe, Asia Pacific, and MEA), and key crop types (viz. Tomato, Cucumber, Pepper, Lettuce and others). The report provides market figures in terms of crop value and the land under hydroponics cultivation, mapped across the key geographies and crop type both.

The research study has modeled the analysis for emerging new market with India as a subject and therefore, has a dedicated segment for opportunity evaluation for Indian hydroponics market. The chapter entails a comprehensive SWOT analysis for hydroponics in India, to provide detailed insights regarding the present industry situation in the country. The result of a thorough market analysis and the perception of hydroponics in the country, both from the supplier and buyer’s point of view has led to the compilation of the Indian Hydroponic Market Opportunity Evaluation.

Key questions answered in the report:
• What are the driving factors for the global Hydroponics market through 2015 to 2020?
• Which factors need to be addressed for wide scale adoption of hydroponics through the forecast years?
• Why should new entrants invest in Hydroponics irrespective of the high upfront cost when compared to conventional farming practices?
• Which crop type will hold dominant share in the global hydroponics market value by 2020?
• Which region will be exhibiting the fastest growth through 2015 to 2020?
• How will the Indian Hydroponics market evolve through 2015 to 2020?

impact and the involvement of governmental and non-governmental organizations. The report has identified three key geographical regions served by the industry including Americas, Europe and Asia Pacific. These regions are further segmented listing the major countries in each region. The report identifies U.S. to be the largest market for the industry accounting for over 33% of the net market revenue (as of 2014) followed by Germany and Canada. The geographical analysis section also mentions the key market players driving the industry in the respective markets.

The report also includes the Competitive Landscape, benchmarking the key market participants on the basis of their involvement in the industry over the past 3 years. The study has also incorporated the detailed profiles of 18 top market players across the value chain of the industry, including component manufacturers, Original Equipment Manufacturers (OEMs), precision irrigation equipments providers and software and data management companies.

Some of the key private players in the industry include AgLeader, Ag Integrated, AgNav, AgSense, AgSync, Ally Precision Industries, Amazone GmbH, Arvus, Bestway Inc., CropMetrics, Dickey-john Corp., Micro Trak Systems, TeeJet technologies, Tru Count and ZedX Inc. among others.

The key public players in the industry include AGCO, AgJunction, John Deere & Company, Lindsay Corp., Monsanto, Syngenta, Toro Company, Trimble Navigation, Valmont, and Yara International among others.

Executive Summary

Hydroponics is the fastest growing soil-less farming practice at a global level, wherein a tailored nutrient solution is used for the crop to attain its full growth with a superior quality in a sustainable manner. The technique introduced several advantages in terms of increased yield, higher returns on investment, and protected environment among others, attracting a larger share of producers as well as investors. The Hydroponics is the fastest growing soil-less farming practice at a global level, wherein a tailored nutrient solution is used for the crop to attain its full growth with a superior quality in a sustainable manner. The technique introduced several advantages in terms of increased yield, higher returns on investment, and protected environment among others, attracting a larger share of producers as well as investors. The global hydroponics crop value is anticipated to grow from $18.8 billion in 2014 to $27.29 billion in 2020 at an estimated CAGR of 6.39 % from 2015 to 2020.

Where greenhouse farming is an established concept at a global level, Greenhouse hydroponic farming is still making home in developing countries of Middle East and Africa and densely populous regions of Asia Pacific. There are certain factors which are driving the demand of hydroponically grown crops such as Copious produce quantity over shorter duration when compared to traditional farming techniques, profitable farming without “associated” environmental degradations of soil, water, etc, and increasing use of medicinal plants (and legalization of medical marijuana) among others. The most attractive feature of using hydroponics instead of conventional farming is without any doubt the increased yield. The following figure will exemplify the significant increase in yields when using hydroponics and soil-based farming.

1 EXECUTIVE SUMMARY 12
2 REPORT DESCRIPTION 16
3 INTRODUCTION TO HYDROPONICS 20
4 GLOBAL HYDROPONICS MARKET SNAPSHOT 23
5 HYDROPONICS INDUSTRY ANALYSIS 29
5.1 PORTER’S FIVE FORCES ANALYSIS 29
5.1.1 THREAT FROM NEW ENTRANTS 29
5.1.2 THREAT FROM SUBSTITUTES 33
5.1.3 BARGAINING POWER OF SUPPLIERS 35
5.1.4 BARGAINING POWER OF BUYERS 37
5.1.5 INTENSITY OF COMPETITIVE RIVALRY 40
6 HYDROPONICS MARKET DYNAMICS 43
6.1 GLOBAL HYDROPONIC MARKET DRIVERS 43
6.1.1 GROWING EMPHASIS ON FOOD SECURITY, ESPECIALLY IN DEVELOPING REGIONS 47
6.1.2 THE FEATURE OF CUSTOMIZED FARMING 49
6.1.3 THE SAFEST WAY TO ENSURE HIGH RETURN ON INVESTMENTS (ROI) 49
6.1.4 INCREASING USE OF MEDICINAL PLANTS (AND LEGALIZATION OF MEDICAL MARIJUANA) 50
6.1.5 HYDROPONICS SYSTEMS ARE LIKE FOOD FACTORIES WITH APPRECIABLE CONSISTENCY IN QUANTITY AND QUALITY 51
6.1.6 BUYER’S PROPENSITY TOWARDS SALAD CROPS AND EXOTIC VEGETABLES 53
6.1.7 PROFITABLE FARMING WITHOUT “ASSOCIATED” ENVIRONMENTAL DEGRADATIONS OF SOIL, WATER, ETC. 54
6.1.7.1 Water conservation 55
6.1.7.2 Pesticide and herbicide reduction 58
6.2 GLOBAL HYDROPONIC MARKET CHALLENGES 59
6.2.1 HIGH START-UP COST WHEN COMPARED WITH TRADITIONAL FARMING 59
6.2.2 SOIL-LESS FARMING TECHNIQUES SURROUNDED BY BELIEFS OF UNCERTAINTIES AND AMBIGUITY 60
6.2.3 REQUIREMENT OF TRAINED AND SKILLED FARMERS UNLIKE IN TRADITIONAL FARMING TECHNIQUE 61
6.2.4 LACK OF INDUSTRY STANDARDS 62
6.2.5 ABSENCE OF PRIVATE AND PUBLIC INVESTMENTS AND FUNDING 63
7 ANALYSIS OF KEY CROPS IN THE GLOBAL HYDROPONICS MARKET 64
7.1 INTRODUCTION 64
7.2 TOMATOES 67
7.3 CUCUMBER 70
7.4 PEPPERS 72
7.5 LETTUCE 74
7.6 OTHER CROPS 77
8 GEOGRAPHICAL ANALYSIS FOR GLOBAL HYDROPONICS MARKET 81
8.1 INTRODUCTION 81
8.2 EUROPE 83
8.3 AMERICAS 87
8.4 APAC 89
8.5 MEA 92
9 INDIAN HYDROPONICS MARKET STATISTICS AND DYNAMICS 95
9.1 INDIAN HYDROPONICS MARKET STATISTICS 95
9.2 INDIAN HYDROPONICS MARKET DRIVERS 97
9.2.1 EVOLVING POPULATION OF MIDDLE CLASS WITH INCREASING DISPOSABLE INCOME 97
9.2.2 EASE OF ACCESS TO TECHNOLOGY 98
9.2.3 LOW COST OF LABOUR 99
9.2.4 INCREASING BUYER’S PROPENSITY TOWARDS SALAD CROPS AND EXOTIC VEGETABLES 99
9.2.5 RICH AND DIVERSE CLIMATIC CONDITIONS 101
9.3 INDIAN HYDROPONIC MARKET CHALLENGES 101
9.3.1 EXTREMELY PRICE SENSITIVE MARKET 101
9.3.2 FARMERS ARE POTENTIAL ENTRANTS, BUT ARE HESITANT TO ENTER BECAUSE OF HIGH START UP COST 102
9.3.3 ENERGY REQUIREMENT IN HYDROPONICS CONFLICTS WITH THE ENERGY AVAILABILITY IN THE COUNTRY (ESPECIALLY IN RURAL AREAS) 102
9.3.4 UNORGANIZED SUPPLY CHAIN AND POOR INFRASTRUCTURAL FACILITIES 103
9.3.5 END PRODUCTS BY TRADITIONAL FARMING AND THAT BY HYDROPONICS ARE TREATED AS EQUAL 103
9.3.6 IGNORANCE AND LACK OF AWARENESS ON THE PART OF PRODUCERS AND END-USERS 104
10 ANALYSING THE INDIAN HYDROPONICS MARKET 105
10.1 SWOT ANALYSIS FOR HYDROPONICS IN INDIA 105
10.1.1 STRENGTHS 106
10.1.2 WEAKNESS 109
10.1.3 OPPORTUNITIES 111
10.1.4 THREATS 112
10.2 INDIAN MARKET OPPORTUNITY EVALUATION 113
10.2.1 COMPETITIVE ACTIVITY 113
10.2.2 LETTUCE 114
10.2.2.1 Defining competitors 114
10.2.2.2 Price Advantages/Financial Muscle 115
10.2.2.3 Market Position/Strategic Plan 115
10.2.3 CHERRY TOMATOES 118
10.2.3.1 Defining competitors 118
10.2.3.2 Price Advantages/Financial Muscle 119
10.2.3.3 Market Position/Strategic Plans 120
10.2.4 BUYER’S REQUIREMENT 121
10.2.4.1 Product Attributes 121
10.2.4.1.1 Freshness/ Shelf Life 121
10.2.4.1.2 Appearance (Shape, Color, etc) 122
10.2.4.1.3 Taste 124
10.2.4.1.4 Price 124
10.2.4.2 Branding/Labeling 125
10.2.4.2.1 Product Quality 125
10.2.4.2.2 Choice 125
10.2.4.3 Packaging 126
10.2.5 PEST ANALYSIS 127
10.2.5.1 Political Forces 128
10.2.5.2 Economic Forces 129
10.2.5.3 Social Forces 130
10.2.5.4 Technological Forces 130
11 HYDROPONICS COMPETITIVE LANDSCAPE 132
11.1 DEFINING COMPETITORS 132
11.2 GLOBAL 132
11.3 INDIAN 138
12 KEY HYDROPONIC PRODUCERS PROFILE 140
12.1 VILLAGE FARMS INTERNATIONAL 140
12.1.1 COMPANY OVERVIEW 140
12.1.2 PRODUCT PORTFOLIO 140
12.1.2.1 Financials 142
12.1.2.2 Key Developments 143
12.1.3 THANET FARMS 144
12.1.3.1 Company Overview 144
12.1.3.2 Product Portfolio 144
12.1.3.3 Key Developments 145
12.1.4 PEGASUS AGRITECH 146
12.1.4.1 Company Overview 146
12.1.4.2 Product Portfolio 146
12.1.4.3 Key Developments 147
12.1.5 JAMES FOSKETT FARMS 148
12.1.5.1 Company Overview 148
12.1.5.2 Product Portfolio 148
12.1.5.3 Key Developments 150
12.2 KEY HYDROPONIC EQUIPMENT MANUFACTURER/SUPPLIER PROFILE 151
12.2.1 TERRA TECH 151
12.2.1.1 Company Overview 151
12.2.1.2 Product Portfolio 151
12.2.1.3 Financials 152
12.2.1.4 Key Developments 153
12.2.2 GROWLIFE 154
12.2.2.1 Company Overview 154
12.2.2.2 Product Portfolio 154
12.2.2.3 Financials 156
12.2.2.4 Key Developments 156
12.2.3 AMERICAN HYDROPONICS 157
12.2.3.1 Company Overview 157
12.2.3.2 Product Portfolio 158
12.2.3.3 Key Developments 158
12.2.4 GENERAL HYDROPONICS 159
12.2.4.1 Company Overview 159
12.2.4.2 Product Portfolio 159
13 HYDROPONICS: THE WAY FORWARD (CONCLUSION ) 162
14 APPENDIX 163
14.1 INDIAN LETTUCE PRODUCERS/SUPPLIERS 163
14.2 INDIAN CHERRY TOMATO PRODUCERS/SUPPLIERS 164

LIST OF TABLES

TABLE 1 THREAT FROM NEW ENTRANTS 30
TABLE 2 THREAT FROM SUBSTITUTES 34
TABLE 3 BARGAINING POWER OF SUPPLIER 36
TABLE 4 BARGAINING POWER OF BUYERS 38
TABLE 5 INTENSITY OF COMPETITIVE RIVALRY 41
TABLE 6 HYDROPONICS VS OPEN FIELD: COMPARING THE YIELDS (METRIC TONS/HECTARE) 45
TABLE 7 COMPARISON OF GROWING MARIJUANA IN SOIL-BASED AND SOIL-LESS MEDIUM 51
TABLE 8 COMPARISON OF OPEN VS GLASSHOUSE FARMING (WATER USE) 55
TABLE 9 VALUE BY HYDROPONIC CROP SEGMENT ($MILLION), 2015-2020 66
TABLE 10 AREA UNDER HYDROPONIC PRODUCTION FOR TOMATO, WORLD MARKETS 2015-2020 (HECTARES) 67
TABLE 11 VALUE OF HYDROPONICALLY PRODUCED TOMATOES BY REGION ($MILLION), 2015-2020 68
TABLE 12 AREA UNDER HYDROPONIC PRODUCTION FOR CUCUMBER, WORLD MARKETS 2015-2020 (HECTARES) 70
TABLE 13 VALUE OF HYDROPONICALLY PRODUCED CUCUMBERS BY REGION ($MILLION), 2015-2020 71
TABLE 14 AREA UNDER HYDROPONIC PRODUCTION FOR PEPPER, WORLD MARKETS 2015-2020 (HECTARES) 72
TABLE 15 VALUE OF HYDROPONICALLY PRODUCED PEPPERS BY REGION ($MILLION), 2015-2020 73
TABLE 16 AREA UNDER HYDROPONIC PRODUCTION FOR LETTUCE/GREENS, WORLD MARKETS 2015-2020 (HECTARES) 75
TABLE 17 VALUE OF HYDROPONICALLY PRODUCED LETTUCE/GREENS, BY REGION ($ MILLION), 2015-2020 76
TABLE 18 AREA UNDER HYDROPONIC PRODUCTION FOR LETTUCE/GREENS, WORLD MARKETS 2015-2020 (HECTARES) 78
TABLE 19 VALUE OF HYDROPONICALLY PRODUCED OTHER CROPS BY REGION (MILLION USD) 79
TABLE 20 LAND AREA UNDER HYDROPONIC FOOD CROP PRODUCTION, BY REGION (HECTARES), WORLD MARKETS 2015-2020 82
TABLE 21 VALUE OF HYDROPONIC FOOD CROP PRODUCTION BY REGION, WORLD MARKETS 2015-2020 ($MILLION) 83
TABLE 22 VALUE OF HYDROPONIC FOOD CROP PRODUCTION IN EUROPE ($MILLION), 2015-2020 86
TABLE 23 VALUE OF HYDROPONIC FOOD CROP PRODUCTION IN THE AMERICAS, 2015-2020 ($MILLION) 89
TABLE 24 VALUE OF HYDROPONIC FOOD CROP PRODUCTION IN APAC ($MILLION), 2015-2020 92
TABLE 25 VALUE OF HYDROPONIC FOOD CROP PRODUCTION IN THE MEA ($MILLION), 2015-2020 94
TABLE 26 VALUE BY HYDROPONICS CROP SEGMENT FRO INDIA ($MILLION), 2015-2020 97
TABLE 27 COMPARING THE YIELD QUANTITIES FOR CONVENTIONAL, GREENHOUSE, AND HYDROPONICS FARMING 107
TABLE 28 COMPARISON OF HYDROPONICALLY AND CONVENTIONALLY GROWN LETTUCE 116
TABLE 29 SHELF LIFE OF LETTUCE GROWN CONVENTIONALLY AND HYDROPONICALLY 122
TABLE 30 PRICE COMPARISON FOR CONVENTIONALLY AND HYDROPONICALLY GROWN LETTUCE 125
TABLE 31 BUYER’S PREFERENCES FOR LETTUCE AND CHERRY TOMATO IN INDIA 126
TABLE 32 GLOBAL HYDROPONIC KEY PLAYERS 133

LIST OF FIGURES

FIGURE 1 COMPARING THE HYDROPONIC CROP VALUE BY REGION ($MILLION), 2015-2020 12
FIGURE 2 COMPARING THE YIELD QUANTITY: HYDROPONICS VS. OPEN FIELD FARMING 13
FIGURE 3 AREA UNDER HYDROPONIC PRODUCTION BY CROP SEGMENT (HECTARES), 2014 14
FIGURE 4 VALUE BY HYDROPONIC CROP SEGMENT, WORLD MARKETS ($MILLION), 2015-2020 15
FIGURE 5 YIELD COMPARISON FOR KEY HYDROPONICS CROPS WHEN GROWN IN SOIL AND SOIL-LESS MEDIUMS 21
FIGURE 6 LAND AREA UNDER HYDROPONIC FOOD CROP PRODUCTION, BY REGION FOR 2014 & 2020 23
FIGURE 7 EUROPEAN HYDROPONIC CROP VALUE ($ MILLION), 2015-2020 24
FIGURE 8 THE AMERICAS HYDROPONIC CROP VALUE ($ MILLION), 2015-2020 25
FIGURE 9 ASIA PACIFIC HYDROPONIC CROP VALUE ($MILLION), 2015-2020 27
FIGURE 10 MEA HYDROPONICS CROP VALUE ($MILLION), 2015-2020 28
FIGURE 11 VARIATION IN YIELD (METRIC TONS/HECTARE) OF PEPPERS AMONG GREENHOUSES USING  SOIL/HYDROPONICS/GREENHOUSE 46
FIGURE 12 UNDERSTANDING HOW HYDROPONICS CAN ENSURE FOOD SECURITY 48
FIGURE 13 HOW HYDROPONICS IS HELPING THE ENVIRONMENT 54
FIGURE 14 DEAD ZONES AROUND THE WORLD (OF BOTH KNOWN AND UNKNOWN SIZE) 57
FIGURE 15 PERCENTAGE SPLIT OF AREA UNDER HYDROPONICS FOR KEY CROPS FOR 2014 64
FIGURE 16 COMPARISON OF CROP SEGMENT VALUE AND GROWTH, 2014-2020 ($ MILLION) 65
FIGURE 17 TOTAL INDIAN HYDROPONIC CROP VALUE ($MILLION) VS. Y-O-Y,2015-2020 96
FIGURE 18 PRODUCTION SCENARIO FOR EXOTIC VEGETABLES IN INDIA (2014) 100
FIGURE 19 SWOT ANALYSIS FOR HYDROPONICS IN INDIA 105
FIGURE 20 INDIAN LETTUCE PRODUCERS/SUPPLIERS 114
FIGURE 21 INDIAN CHERRY TOMATO PRODUCERS/ SUPPLIERS 119
FIGURE 22 APPEARANCE OF CONVENTIONALLY GROWN LETTUCE 123
FIGURE 23 APPEARANCE OF HYDROPONICALLY GROWN LETTUCE 123
FIGURE 24 NORTH AMERICA: GREENHOUSE TOMATO PRODUCTION STATISTICS 2014 135
FIGURE 25 GLOBAL HYDROPONIC MARKET- KEY PLAYERS SPLIT 137
FIGURE 26 COMPETITIVE ADVANTAGE OF GREENS FARM TECH PVT. LTD. IN INDIA 139
FIGURE 27 VILLAGE FARMS PRODUCT PORTFOLIO 141
FIGURE 28 VILLAGE FARMS OVERALL FINANCIALS 2011-2014 ($ MILLION) 142
FIGURE 29 FINANCIALS BY GEOGRAPHY, 2011-2014 143
FIGURE 30 THANET EARTH PRODUCT PORTFOLIO 145
FIGURE 31 JAMES FOSKETT FARMS PRODUCT PORTFOLIO 149
FIGURE 32 TERRA TECH PRODUCT PORTFOLIO 152
FIGURE 33 TERRA TECH OVERALL FINANCIALS 2011-2014 ($MILLION) 152
FIGURE 34 GROWLIFE OVERALL FINANCIALS 2011-2014 ($ MILLION) 156
FIGURE 35 AMERICAN HYDROPONICS PRODUCT PORTFOLIO 158
FIGURE 36 GENERAL HYDROPONICS PRODUCT PORTFOLIO 160


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