III. Industry Analysis
The global hydroponics farm industry is valued at $2.1 billion and is forecasted to grow by 20.7% over the next 10 years. A major growth determinant is the rising use of hydroponics for indoor farming. A growing population is increasing demand for food throughout the world. The global population is expected to reach 9.1 billion by the year 2050 and food production is estimated to increase by 25-70% to accommodate this growing population.
The anticipated increase in worldwide population and food production has helped to drive demand for alternative farming methods including hydroponics. Hydroponics farming is a beneficial method for growing plants without soil, thus removing the risk of disease caused by organisms that live in soil. Hydroponics farming also can produce a faster and higher yield than traditional farming because hydroponics farmers are able to control the nutrients more accurately.
The hydroponics market can be segmented by type of system or type of crop. There are two types of systems; aggregate and liquid. Aggregate systems comprise a little over half the market, while liquid systems are slightly less than half; although they are growing in popularity. Crop types are segmented into vegetables, fruits, and flowers. Popular crops to grow using hydroponics include tomatoes, spinach, kale, peppers, cucumbers, herbs, fruit, broccoli, cilantro, and lettuce.