The Greenhouse Soil Market is estimated to be valued at US$ 6.35 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Greenhouse Soil Market is estimated to be valued at US$ 6.35 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Greenhouse soil is a growing medium used in greenhouses to cultivate vegetables and flowers. It provides essential nutrients, retains water, supplies oxygen to plant roots, and supports plant growth. Greenhouse soils have properties like well-aeration, water retention, and drainage that make them suitable for greenhouse cultivation. They help maximize plant growth and crop yield.
Market key trends:
The rising demand for organic food crops is a major trend driving the greenhouse soil market. There is a growing consumer preference for chemical-free and organic produce owing to health concerns regarding long-term effects of pesticide residues. Additionally, organic crops fetch higher prices in the market compared to conventionally grown crops. This has encouraged greenhouse farmers to opt for organic potting soils to cultivate organic vegetables and fruits. For example, according to the Soil Association, UK, the area under organic production in the country increased by 13% between 2016 and 2017. The increasing organic farmland is expected to propel the demand for organic greenhouse soils over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the greenhouse soil market is moderately low as it requires heavy investment in infrastructure and R&D for product development. Bargaining power of buyers: The bargaining power of buyers is moderate in this market as there are several established players providing a variety of product options to buyers. Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials required for greenhouse soils such as peat moss, Perlite, and vermiculite have few large suppliers globally. Threat of new substitutes: Alternatives like hydroponics pose a threat, however, greenhouse soil still remains the most viable medium for cultivation in greenhouses. Competitive rivalry: Intense competition exists among existing players.
SWOT Analysis
Strength: Variety of product offerings and strong brand image and recognition. Established distribution network.
Weakness: Heavy R&D investment and infrastructure costs. Seasonal demand and price fluctuations of raw materials.
Opportunity: Growing demand for greenhouse-grown crops and vegetables. Increasing organic farming practices.
Threats: Stringent government regulations. Threat from new technologies like hydroponics and aquaponics.
Key Takeaways
The global greenhouse soil market is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing organic farming practices globally. The market size for greenhouse soil was valued at US$ 6.35 Bn in 2023 and is projected to reach US$ 9 Bn by 2030.
Regionally, North America dominates the global greenhouse soil market and is expected to continue its dominance over the forecast period. This is owing to the growing hydroponics industry and controlled environment agriculture in the US and Canada. Europe is the second largest market for greenhouse soils driven by the rising adoption of organic farming practices espoused by stringent regulatory norms in the region.
Key players operating in the greenhouse soil market are Klasmann-Deilmann, ScottsMiracle-Gro., Sun Gro Horticulture, Premier Tech, ASB Greenworld, Florentaise, Lambert Peat Moss, Westland Horticulture, Michigan Peat Company, FoxFarmSoil & Fertilizer Company, Southeast Soils Peat Company Inc., and Espoma Organic. These players are focusing on new product launches and facility expansion to consolidate their position and cater to the growing demand.
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