Global hydroponics market by crops (tomato, lettuce, cucumber, pepper, marijuana & others)

HYDROPONICS MARKET BY CROPS
(TOMATO, LETTUCE, CUCUMBER, PEPPER, MARIJUANA &
OTHERS):
A Global Insight Through 2015 to 2020 with
Special focus on the U.S. & India Market

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Hydroponics Market By Crops (Tomato, Lettuce, Cucumber, Pepper & Others)
A Global Insight Through 2015 to 2020 with Special focus on the U.S. & India Market
BIS Research is a leading market intelligence and technology research company. BIS Research
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1 EXECUTIVE SUMMARY
The agriculture sector is one of the oldest and the most established sector for any country’s
economy. The idea of taking crops out of soil and growing in a completely soil-less medium is
still surprising for the mass. 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 $XX billion
in 2014 to $XX billion in 2020 at an estimated CAGR of XX % from 2015 to 2020.
FIGURE 1
COMPARING THE HYDROPONIC CROP VALUE BY REGION
($MILLION), 2015-2020
XX XX XX XX XX
Americas 2424.39 2643.45 2888.56 3470.68 4085.44
Europe 9,821.71 10,348.11 10,906.31 12,126.90 13,383.78
Growth 5.33% 5.36% 5.39% 5.47% 5.54%
Asia Pacific 6,171.93 6,609.60 7,081.29 8,138.50 9,235.75
Growth 7.05% 7.09% 7.14% 7.23% 7.32%
Africa 324.34 348.25 373.97 431.42 490.97
Growth 7.36% 7.37% 7.39% 7.41% 7.44%
South America 98.32 107.13 116.80 139.06 162.38
Growth 8.86% 8.96% 9.03% 9.15% 9.31%
Middle East 74.46 78.55 82.93 92.65 102.71
Growth 5.43% 5.50% 5.58% 5.74% 5.90%
XX
XX
XX
XX
XX
XX
XX
XX
XX
($Million)
Source: BIS Research

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The European region led the global hydroponics market in 2014 with an estimated crop value
of $XX billion and will continue with this dominance growing over $XX billion by 2020 at an
estimated CAGR of XX% through 2015 to 2020.
The Americas will be growing at the highest CAGR, attaining a market size worth $XX billion of
global hydroponic crop value by 2020 at an estimated CAGR of XX% from 2015 to 2020.
Developing countries of Middle East and Africa will continue contributing smaller shares to the
global hydroponic crop value through the forecast period.
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.
FIGURE 2
COMPARING THE YIELD QUANTITY: HYDROPONICS VS. OPEN FIELD
FARMING

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2 GLOBAL HYDROPONICS MARKET SNAPSHOT
FIGURE 3
ASIA PACIFIC HYDROPONIC CROP VALUE ($MILLION), 2015-2020
XX
XX
XX
XX
XX
XX
XX
XX
2014 2015 2016 2017 2018 2019 2020
($Million)
Tomato
Pepper
Cucumber
Lettuce
Other
Asia Pacific is the second largest market in the global hydroponics market in terms of crop
value. Despite of being one of the most populous regions, the Asia Pacific’s hydroponic crop
value will only increase from $X.XX billion in 2014 to $X.XX billion in 2020 at an estimated
CAGR of X.XX% through the same period.
Tomatoes will be a prominent crop in the Asia Pacific region; however other crops such as
eggplants and strawberries in Australia will provide a significant contribution to the regions
total crop value. Cucumber will account for a crop value of almost $XX billion by 2020, growing
at a CAGR of XX% through the forecast period.

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3 HYDROPONICS MARKET DYNAMICS
3.1 GLOBAL HYDROPONIC MARKET DRIVERS
FIGURE 4
UNDERSTANDING HOW HYDROPONICS CAN ENSURE FOOD
SECURITY
Able to be established within a city as opposed to rural locations
Uses fewer resources through controlled and precise energy and water consumption
Scalable from home-sized to commercial level
Safer food and better control
Can grow year-round,less dependenton seasons
Produces higher yields faster
Less labor intensive through automation
The above figure states that hydroponics is beneficial as it is less labor intensive provides with
higher yields all year round and ensures better control through fewer resources (energy &
water).
When approximately one in every seven people in the world is a hungry mouth to feed, it is
rather important to understand that hydroponics and other alternatives to agriculture are
pivotal in the fight against global food crisis. Since the food energy requirements in the
developing world is expected to double by the middle of the next century, agricultural

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production and investment will both need to increase. But figures reveal that official aid and
public spending on agriculture in developing countries have fallen sharply in recent years.
3.1.1 HYDROPONICS SYSTEMS ARE LIKE FOOD
FACTORIES WITH APPRECIABLE CONSISTENCY IN
QUANTITY AND QUALITY
Traditional farming is a daunting task and is rather imperative in countries such as India,
whose economy is largely dependent on agriculture and its output. With the burgeoning global
population, food shortage, and soaring prices there emerged an alarming need of alternative
yet effective techniques of farming. Hydroponics has so far proven to be one of the most
successful cultivation techniques among other soilless farming methodologies. Apart from a
few vegetables such as potatoes, most of the fruits and vegetables are seasonal. Moreover,
many countries import exotic vegetables such as strawberries, rockets from international
producers since the climatic condition do not favor their cultivation.
3.1.2 INCREASING USE OF MEDICINAL PLANTS (AND
LEGALIZATION OF MEDICAL MARIJUANA)
TABLE 1
COMPARISON OF GROWING MARIJUANA IN SOIL-BASED AND SOIL-
LESS MEDIUM
Parameters Soil-based (Conventional) Soil-less (Hydroponics)
Growth Slower growth than hydroponics Plants are faster to grow
Yield
Satisfactory yields, but lesser than
hydroponics
Precise configuration of several
factors such as temperature, etch
increases yield significantly
Level of complexity Easy to grow, not much expertise Slightly complicated, since growers

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Parameters Soil-based (Conventional) Soil-less (Hydroponics)
required must have information about exact
nutrient combinations, growing
conditions, etc.
Disease & Infection
Usually detected when the disease or
any other problem spreads
Shows early signs of diseases which
can be easily corrected
Feature of
customization
Once the seeds are sown, only
external modifications can be catered
to
Hydroponics allow the users to
grow the plant with their desired
preference for shape, size, color,
and nutrients

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4 ANALYSIS OF KEY CROPS IN THE GLOBAL
HYDROPONICS MARKET
4.1 TOMATOES
Tomatoes will continue with its trend of market hegemony, maintaining a XX% market value
share of value throughout the forecast period. The net crop value for hydroponic tomatoes was
approximately $X.XX billion in 2014 which is anticipated to grow over $XX.XX billion by 2020
at an estimated CAGR of X.XX% through the forecast period.
TABLE 2
VALUE OF HYDROPONICALLY PRODUCED TOMATOES BY REGION
($MILLION), 2015-2020
Region 2014 2015 2016 2018 2020 CAGR
Americas XX XX XX XX XX XX%
Europe XX XX XX XX XX XX%
Asia Pacific XX XX XX XX XX XX%
MEA XX XX XX XX XX XX%
Total XX XX XX XX XX XX%
The Americas are poised to grow over $X.XX billion through the forecast period. Hydroponic
tomatoes from this region will grow at a CAGR of XX % over the forecast period. Overall value
will grow from nearly $XX billion in 2014 to $XX billion in 2020, an increase of almost XX% in
value. The U.S. will lead the North American market for hydroponically grown tomatoes,
thanks to a large number of players in the country.

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5 GEOGRAPHICAL ANALYSIS FOR GLOBAL
HYDROPONICS MARKET
5.1 AMERICAS
The hydroponic market for the Americas is the summation of the market figures of North
America and the developing countries of South America. North America is widely being touted
as the game changer in the global hydroponic market, with the presence of market giants such
as the Village Farms International among others.
TABLE 1
VALUE OF HYDROPONIC FOOD CROP PRODUCTION IN THE
AMERICAS, 2015-2020 ($MILLION)
Americas 2014 2015 2016 2018 2020 CAGR
Tomato XX XX XX XX XX XX%
Pepper XX XX XX XX XX XX%
Cucumber XX XX XX XX XX XX%
Lettuce XX XX XX XX XX XX%
Other XX XX XX XX XX XX%
Total XX XX XX XX XX XX%
The Americas with established markets of North America and developing market of South
America will grow at the highest CAGR of X.XX% from 2015 to 2020. The total crop value will
account for $X.XX billion by 2020 growing from $X.X billion in 2014.

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6 INDIAN HYDROPONICS MARKET STATISTICS AND
DYNAMICS
6.1 INDIAN HYDROPONICS MARKET DRIVERS
6.1.1 EVOLVING POPULATION OF MIDDLE CLASS WITH
INCREASING DISPOSABLE INCOME
For a market that is as price sensitive as India is, the increasing level of disposable income is
playing a major role in adoption of Hydroponics produce. Earlier, the consumers were hesitant
in spending higher sums of money when it came to buying fruits and vegetables. However,
with the growing awareness about hydroponics and its associated advantages, end-users are
willing to pay a higher cost for similar products otherwise grown traditionally.
India has currently a dominant section of middle class, and therefore is a promising end-user
segment for Hydroponics. Moreover, this particular section of the Indian population is
continuously expanding in terms of figures and therefore there is more of a need to fulfil the
demands with alternative agricultural practices. There is a noticeable price difference between
the hydroponically grown produce and the one grown conventionally and it is difficult to make
every individual understand the benefits of opting soil-less agriculture produce. This is the only
reason that the demand for hydroponically grown fruits and vegetables is very less and hence
the higher price.

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FIGURE 5
PRODUCTION SCENARIO FOR EXOTIC VEGETABLES IN INDIA (2014)
XX%
XX%
Imported
Grown in India
Currently more than XX% of the exotic vegetables consumed in India are imported and only
XX% is grown locally. The unfortunate part is that India has all the resources to grow and even
export large quantities of high end produce, but the slow adoption of soilless farming practices
is largely inhibiting the growth of that idea.

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7 ANALYSING THE INDIAN HYDROPONICS MARKET
7.1 SWOT ANALYSIS FOR HYDROPONICS IN INDIA
The seeds of hydroponics in India were planted in 2008, but it’s only recently that this market
segment has started gaining traction in the country. Since the market is at an incipient stage,
it is important to analyze the driving and restraining factors for hydroponics in India. Moreover,
since strong competition is imposed from the conventional practices of farming, this segment
will touch upon the threats that hydroponics industry faces in the country. Also, the market
opportunities, which have the potential to ramp up the demand of hydroponically grown
produce in India, are analyzed.
FIGURE 6
SWOT ANALYSIS FOR HYDROPONICS IN INDIA
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STRENGTHS
OPPORTUNITIES
WEAKNESSES THREATS
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TABLE 2
COMPARING THE YIELD QUANTITIES FOR CONVENTIONAL,
GREENHOUSE, AND HYDROPONICS FARMING
Name of Crop Production(Tons/Ha)
Particulars Open (Conventional)
Greenhouse
(Conventional)
Hydroponics
Tomato XX XX XX
Cherry Tomato XX XX XX
Green Capsicum XX XX XX
Colored capsicum XX XX XX
Green Chilly XX XX XX
Cucumber XX XX XX
Iceberg Lettuce XX XX XX
Coriander XX XX XX
French Bean XX XX XX
Squash XX XX XX
Chinese Cabbage XX XX XX
Spinach XX XX XX
Celery XX XX XX
Parsely XX XX XX
Straw berry XX XX XX

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7.2 INDIAN MARKET OPPORTUNITY EVALUATION
7.2.1 LETTUCE
7.2.1.1 Defining competitors
It is important to understand the exact definition of competitors for lettuce in our study. Every
grower/producer and supplier for lettuce in the Indian market is considered as a competitor
since the end product is ultimately lettuce, irrespective of the method adopted to grow it. The
Indian lettuce market enjoys the presence of more than XX key players including both
producers and suppliers.
FIGURE 7
INDIAN LETTUCE PRODUCERS/SUPPLIERS
XX%
XX%
XX%
Producer
Producer & Supplier
Supplier

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TABLE 3
COMPARISON OF HYDROPONICALLY AND CONVENTIONALLY GROWN
LETTUCE
Basis Conventional Lettuce Hydroponic Lettuce
Growth The soil lettuce grew XX inches
The hydroponics lettuce only
grows XX inches.
Yield
9000 lb
Conventional growing yields only
three heads annually.
21000 lb
Using Hydroponics for growing
lettuce, yields about 64 heads of
lettuce per square foot annually
Growth Duration
It takes a head of lettuce from
seedling to harvest around two
months in soil.
It takes a head of lettuce from
seedling to harvest in around a
month in hydroponics.
Cost The soil system cost $XX. The hydroponics system cost $XX.
Maintenance
The soil system simply needs to
be watered as needed.
The hydroponics system required
a lot of maintenance. The pH of
the nutrient solution had to be
checked every 3 days and
changed every 9-14 days. The
nutrient solution level, the air
pump and drip ring also had to be
checked and adjusted.
Space utilization
There is no provision that crops
can be stacked over each other
unlike in hydroponics
Hydroponics saves an incredible
amount of space.
Water Utilization
Production of Lettuce through
conventional means use 125
liters of water per kilogram
Hydroponic lettuce use circulating
nutrient reservoir. It saves around
XX% of the water used in soil
gardening

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Basis Conventional Lettuce Hydroponic Lettuce
It uses 30 liters (large scale) and
19 liters (small scale) of water per
kilogram.
Weeding Regular weeding is required. No soil, no weeds.
Pests & Diseases
Soil borne diseases and pests
plague conventional lettuce
gardening.
Eliminating soil also eliminates a
lot of the different soil borne
diseases and pests.
Land Requirement
It can only be done on fertile
land.
It can be built on non-arable lands
and close to major city markets. It
can work in a variety of
environments: urban, suburban,
countryside, desert etc.

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7.2.2 BUYER’S REQUIREMENT
TABLE 4
PRICE COMPARISON FOR CONVENTIONALLY AND HYDROPONICALLY
GROWN LETTUCE
Particulars Hydroponics Lettuce Conventional Lettuce
Average Price of Lettuce $XX-$XX $XX-$XX
Average Price of Cherry
Tomato
$XX-$XX $XX-$XX
7.2.2.1 Branding/Labeling
The presence of a brand name or label associated with the product has significant impact on
the consumer attraction towards that product. Especially in the context of fresh food
marketing, branding is an important source of information in consumer decision making.
Branding and labeling a product offers the following benefits which are often demanded or
rather required by the users.
7 . 2 . 2 . 1 . 1 P r o d u c t Q u a l i t y
Consumers will often pay more for a product that they associate with high quality and
dependability. This is only possible when an establish brand joins hand with local producers
and suppliers
7 . 2 . 2 . 1 . 2 C h o i c e
Consumers value the freedom of choosing from among the many offerings in a given product
category, and branding makes this possible by identifying each offering. Especially for a
country like India where it’s very easy to buy fresh fruits and vegetables, brand names add
value to the products making it easier for the consumer to choose a known product.

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8 KEY HYDROPONIC PRODUCERS PROFILE
8.1 VILLAGE FARMS INTERNATIONAL
8.1.1 PRODUCT PORTFOLIO
FIGURE 8
VILLAGE FARMS PRODUCT PORTFOLIO
Product Portfolio
Tomato Cucumber Ball Pepper
Trademarks of Tomatoes Registered
Juicy Beefsteak
Delectable TOV
True Rebel Mix
Lip Smackn’ Grapes
Mini Sensations
Baby Beefs
Savory Roma
Sinfully Sweet
Lip-Smackn’ Grapes

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Heavenly Villagio Marzano
Trademarks of Bell Peppers Registered
Sweet Bells
Trademarks of Cucumbers Registered
Luscious Seedless Long English
Scrumptious Mini
8.1.1.1 Financials
FIGURE 9
VILLAGE FARMS OVERALL FINANCIALS 2011-2013 ($ MILLION)
Source: Village Farms Website, BIS Research

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Global hydroponics market by crops (tomato, lettuce, cucumber, pepper, marijuana & others)

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