The Rising Hydroponics Nutrients Market
In 2018, the estimated value of the global hydroponics nutrients market was pegged at $2.67 billion. It is poised to grow even further because the market is anticipated to register a CAGR (compound annual growth rate) of 8.8 percent between 2020 and 2025. CAGR measures the average annual amount that an investment grows over a specific period, assuming that profits are reinvested during that span. In other words, it averages the total return on an investment over a number of years.
Mike Straumietis notes a study that determined that one of the main driving forces in the rise of the hydroponics nutrient market is the increasing popularity of applying hydroponics in vertical farming. Given that the hydroponics nutrients market is expanding further, it stands to reason that hydroponics will continue to grow.
Global Outlook of the Hydroponics Market
According to Mike Straumietis, one of the factors or trends to look for when gauging the hydroponics market is how much share the method of growing holds among different kinds of indoor farming systems. In the U.S., hydroponics is practiced in nearly half of all indoor farming systems.
Meanwhile, in the European Union, the governments have prioritized hydroponic farming programs with the help of the European Bank for Reconstruction and Development. This, along with the introduction of cost-effective and innovative hydroponic technologies, is expected to propel the hydroponics market further in the European Union.
Aside from the two Western regions, the Asia-Pacific region is not that far behind in adopting hydroponic farming. The area holds the third-largest total market value in hydroponics, according to Mike Straumietis. It is expected to grow faster than the other regions as it registered the highest CAGR from 2022 to 2027. Asian countries like India, China, and Japan are taking charge in the region in the agricultural sector revolution. It also helps that hydroponic farms can be insulated against the weather in both warmer and cooler regions of the world.
Because hydroponics has proven to be an environment-friendly and incredibly profitable venture, there is no doubt that the technology will continue to be promoted by both governments and non-government organizations. It would not even be surprising to see the private sector invest more in this farming method, notes Mike Straumietis.
The Future of the Hydroponics Market
Right now, the impressive growth of the hydroponics market can be attributed to vertical farms having total control over it. Vertical farms are those that control everything from seeds to stores and allow consumers to get information and specifics about the origins and methods of production of their food.
In the long run, hydroponics looks to continue to build on the growth it has experienced in recent years. One of the reasons behind that statement, according to Mike Straumietis, is that strengthening food production and distribution systems is placed atop the priority by both public and private entities.
Based on the studies by the Food and Agriculture Organization, the creation and development of alternative growing systems like hydroponics is anticipated to significantly contribute to solving the problem of global food security. Additionally, problems with market logistics can benefit from alternative growing methods. Given these reasons, it is easy to believe that hydroponics' popularity will not decline over the next few years.
Per Mike Straumietis, rapid urbanization can also play a key role in the further growth of hydroponics. There is an expected increase in demand for crops and vegetables. Coupled with the decreasing acreage that can be used for farming, the hydroponics market is predicted to soar even higher.
Unlocking True Genetic Potential
Mike Straumietis is the CEO and Founder of Advanced Nutrients, a company that has developed the first and only complete growing system that optimizes all phases of the vegetative and bloom cycles of a crop. Growers in more than 110 countries now rely on Advanced Nutrients to unlock the true genetic potential of their plants.
