Color me green: As consumers increasingly buy locally grown produce, revenue is expected to grow

Over the five years to 2017, revenue for the Hydroponic Crop Farming industry has maintained positive growth. During the five-year period, industry revenue has been supported by rising vegetable prices. In addition, extreme weather conditions damaged many crops for fresh field farmers, so grocery stores and farmers' markets quickly turned to hydroponic farmers to meet their demand. Revenue is projected continue to increase over the five years to 2022, albeit at a slower rate. Poor weather conditions are projected to increase downstream purchasers' reliability on hydroponic farmers and raise vegetable prices causing revenue to rise. Mexican imports will pose a small threat to the domestic industry, as the country increases its hydroponic farming capabilities...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Demand for quality organic produce will keep rising, fostering this industry’s growth
  • This industry has been positively affected by poor weather conditions
  • Consumer demand for healthier foods will support demand for hydroponic crops
  • Industry Report - Industry Key Buyers Chapter

    The Hydroponic Crop Farming industry has a moderate to high level of market share concentration. The four largest companies in the industry, NatureSweet, Houweling’s Tomatoes, Village Farms and Sunset Produce, account for an estimated 65.6% of industry revenue. These players benefit from managing their own distribution networks and marketing agreements, which have enabled them to increase their market share over the five years to 2017. In addition, their revenue figures have attracted the attention of large private equity and hedge fund managers, who have helped them access debt markets to fund expansion. In contrast, the rest of the industry is composed of small farms. Con...purchase to read more.

    Additional Insights for the Hydroponic Crop Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hydroponic Crop Farming Industry are

  • Production of premium produce
  • Ability to attract local support
  • Automation reducing costs, particularly labor
  • IBISWorld analysts also discuss how external factors such as Price of vegetables and Per capita fruit and vegetable consumption in the Hydroponic Crop Farming industry impact industry performance..

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    What's in this report

    What is the Hydroponic Crop Farming Industry?

    Hydroponics is a method of growing plants using mineral nutrient solutions in water, without soil. Operators in this industry generally grow food crops under glass or protective cover.

    Industry Products
  • Tomatoes
  • Lettuce
  • Fresh herbs
  • Cucumbers
  • Peppers
  • Strawberries
  • Other food crops
  • Industry Activities
  • Hydroponic greenhouse tomato farming
  • Hydroponic greenhouse cucumber farming
  • Hydroponic greenhouse bell pepper farming
  • Other hydroponic greenhouse vegetable farming
  • Hydroponic greenhouse fruit production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Price of vegetables
  • Per capita fruit and vegetable consumption
  • Healthy eating index
  • Trade-weighted index

  • Current Performance
  • Consumption trends
  • Healthy demand
  • Operating landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthier habits
  • Opportunities and threats
  • Table: Hydroponic Crop Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hydroponic Crop Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit & Vegetable Wholesaling
  • Supermarkets & Grocery Stores
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Consumers

  • Key Selling Industries
  • Farm, Lawn & Garden Equipment Wholesaling
  • Pesticide Manufacturing
  • Utilities
  • Water Supply & Irrigation Systems

  • Products & Services
  • Tomatoes
  • Other food crops
  • Cucumbers
  • Fresh herbs
  • Lettuce
  • Peppers
  • Strawberries
  • Chart: Hydroponic Crop Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Dietary trends
  • Quality and consumer preferences
  • Price
  • Household incomes
  • Product attributes

  • Major Markets
  • Supermarkets and food service providers
  • Food Processors
  • Fresh food wholesalers
  • Consumers
  • Exports
  • Chart: Major Market Segmentation for the Hydroponic Crop Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchases and utilitiesWagesDepreciation and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Hydroponic Crop Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hydroponic Crop Farming Industry

  • Industry Globalization
    Houweling's Tomatoes, NatureSweet Ltd., Village Farms International Inc.,
  • Table: Houweling's Tomatoes - financial performance
  • Table: NatureSweet Ltd. - financial performance
  • Table: Village Farms International Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hydroponic Crop Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hydroponic Crop Farming Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of Vegetables (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fresh Field Farmers
  • A method of growing plants using soil and fertilizer, typically conducted outdoors.
  • Hydroponic
  • A method of growing plants using mineral nutrient solutions, in water, without soil.
  • Organic
  • Foods that are produced using methods that do not include synthetic pesticides, chemical fertilizers or genetically modified organisms.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hydroponic Crop Farming Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Hydroponic Crop Farming industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hydroponic Crop Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hydroponic Crop Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hydroponic Crop Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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