Hydroponic farming is a soilless technique adopted for growing plants and vegetables using mineral nutrient solutions in water or growth media like gravel, sand, or expanded clay chips. Hydroponic farming provides produce that is fresher and healthier as it allows tight control over nutrients and pH levels. Hydroponic vegetables can be grown in any climate or season in an environmentally friendly manner using 95% less water than conventional agriculture methods.

The global Hydroponic Vegetables Market is estimated to be valued at US$ 8.5 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The opportunity for sustainable production using hydroponic farming techniques is driving the growth of the hydroponic vegetables market. Traditional agriculture methods deplete soil fertility and groundwater levels at an alarming rate. Hydroponic farming can be done using just 5-10% of the water required for traditional agriculture for the same crop yield. With growing concerns about depleting natural resources and climate change, hydroponic greenhouse farming near urban areas provides a viable solution to meet rising vegetable demand through localized production using minimally invasive techniques. The closed-loop hydroponic systems also allow year-round production of pesticide-free vegetables, thereby increasing supply consistency and reducing dependence on seasonal imports.

Porter's Analysis
Threat of new entrants: Low capital requirements and easy access to raw materials means threat of new entrants is high in the hydroponic vegetables market.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like traditionally grown vegetables. However, health benefits of hydroponically grown vegetables gives producers an edge.

Bargaining power of suppliers: Suppliers of essential raw materials like nutrients and lighting equipment have moderate-to-high bargaining power due to specialized nature of supplies.

Threat of new substitutes: Threat of substitutes is moderate as traditionally grown vegetables are easy to find.

Competitive rivalry: Intense due to many players and low product differentiation.

SWOT Analysis
Strengths: Higher yields than traditional farming. No pesticides required. Uses less water and space.
Weaknesses: High initial investment cost. Issues with scale and complexity of operations.
Opportunities: Growing consumer preference for clean label and nutritious foods. Expanding to new geographies.
Threats: Vulnerable to disruptions in supply of raw materials. Susceptible to diseases due to controlled environment.

Key Takeaways
The Global Hydroponic Vegetables Market Size is expected to witness high growth over the forecast period of 2024 to 2031.

North America currently dominates the market owing to favorable climatic conditions and growing adoption of hydroponic farming practices. The region is expected to maintain its leading position over the next few years as well.

Key players operating in the hydroponic vegetables market are Signify Holdings, Everlight Electronics Co., Argus Control Systems, Prosperous Agriculture, Heliospectra, Logiqs, Lumigrow, and General Hydroponics.

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