Increased focus on individual health has led to an increase in locally grown food. Numerous studies and analyses on the hydroponics markets indicate that the future of the hydroponics market globally is driven by the higher consumption of salads, exotic fruits, and exotic vegetables.
The demand for exotic fruits and vegetables has been constantly growing at a higher rate due to the increased purchasing power of consumers. The cost of these exotic products is high, as most of these products are imported, and thus, several research institutions and universities are focusing on establishing more simplified hydroponics systems to accelerate the production of exotic fruits and vegetables and meet the escalating demand.
The Hydroponics Market size is expected to grow from USD 4.69 billion in 2023 to USD 6.83 billion by 2028, at a CAGR of 7.80 percent during the forecast period (2023-2028) according to the Mordor Intelligence Report. Leafy vegetables and microgreens have traditionally been the most cultivated hydroponic crops. However, the area under hydroponics in crops that are exotic to warmer climates, such as cherry tomatoes, lettuce, microgreens, and a wide variety of other cool-season crops, has been increasing.
Besides the growing demand for exotic fruits and vegetables, it is important to understand that hydroponics farming not only helps in protecting the environment but also helps in getting a higher yield from the crops compared to open field production. Additionally, rising health awareness among consumers created higher demand, thereby resulting in the increasing adoption of hydroponic production techniques.
Increasing pressure on global arable land, increased demand for nutrition, and a shift in the dietary pattern of the global population toward consumption of fresh fruits and vegetables are the factors driving the increase in area under hydroponics. In countries with unfavorable climatic conditions for open land farming, hydroponics provides a sustainable option for the cultivation of fresh produce to supply to markets.
According to Meticulous Research, as of 2020, the Hydroponics market in India stood at 13.90 million USD and witnessing an accelerated growth of 18 percent CAGR. Currently, India is lagging in comparison with its Asian counterparts China and Japan but has ample reasons to cheer as it is expected to witness continued growth. Listed below are the reasons that keep the Hydroponics journey on an upward trajectory.
Indian agriculture is heavily dependent on food grains. With evolving consumption preferences and diversity in choice, the consumption of agri-produce that are not native to Indian climate has risen. Hydroponics enables to production of crops such as berries, saffron, peppers, zucchinis, green leafy vegetables, etc. without having to depend on climatic conditions. Consumers are taking action to support local food systems by growing their own food or sourcing food from local farmers and markets.
With a population of 1.4 billion, India is currently the most populated country in the world. The increase in population in India increases the difficulty of guaranteeing food security for the nation when coupled with climate change. Even though India’s agriculture produces enough food to feed its population, a fourth of the world’s hungry people reside there. The land shortage is a problem because the nation is also undergoing desertification and land degradation. Numerous of these problems that the Indian agriculture sector is presently experiencing can be effectively and permanently resolved by hydroponics.
Hydroponic farming in India is flourishing, and a significant catalyst behind its expansion is the advancing technology that reduces expenses and facilitates the expansion of its operations. This method can be applied in regions where traditional soil-based agriculture or gardening is unfeasible, such as arid desert areas or frigid climates. As per the experts, a hydroponic farmer can yield 3200 kg in one-time crop production like lettuce in a 5000-square-foot area. The total value of the produced yield is Rs 7,70,000. Hence, after deducting the cost of production (Rs 80,000) the total profit in a cycle is Rs 6,90,000. Using their current methods, greens take between 22 and 28 days from seeding to harvest before the cycle can start over again. That means about 12 turns of lettuce a year, whereas traditional farming might yield only three.
Government incentives are also encouraging hydroponic farming at both state and national levels. As the setup costs for hydroponic farms decrease, this method is expected to gain even more popularity. But more is needed to be done.
