Industry Analysis & Industry Trends
Over the five years to 2016, revenue for the Hydroponic Crop Farming industry has maintained positive growth, as a growing number of individuals shifted to healthy eating and consuming organic produce, resulting in high demand. 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. As revenue and downstream demand continue to expand in the next five years, the number of enterprises is projected to grow. Many of these new companies will focus exclusively on growing organic fruits and vegetables to help meet demand at fresh markets. Meanwhile, other operators will start farms to provide goods solely on a local basis... purchase to read more
Industry Report - Starting a New Business Chapter
Overall, the Hydroponic Crop Farming industry has moderate barriers to entry. The most significant barriers are the capital investment requirements associated with establishing a hydroponic farm and obtaining the required licenses to sell fresh produce. Setting up a hydroponic farm from the ground up requires considerable investment. New participants need to purchase or lease land, greenhouses and essential equipment, such as climate monitors, irrigation systems and heating and cooling systems. Hopeful entrants may have difficulty securing financing for these costs, given the high level of industry volatility.
New operators hoping to compete with the large commercial hydroponic growers may also be deterred by the difficulty in obtaining contracts with downstream markets. Far.. purchase to read more