The benefit of strictly controlled temperatures and moisture conditions in greenhouses contributes to high-quality crops, creating a growing demand for greenhouse products. As new concerns continue to emerge over unstable climate conditions, greenhouses are coming into the limelight as the answer to protecting crops from pests and unpredictable temperatures.
As with other industries, technology is playing a key role in the economic growth of the greenhouse industry. Technology works to combine heat and power systems, provide strategic shading and cool systems digitally, and is continually being developed and improved to make greenhouses operate more efficiently and with lower costs.
In short, all signs point towards a thriving greenhouse industry for at least the next decade, if not more.
A Snapshot of the Economic Outlook for the Greenhouse Industry
Greenhouse horticulture, also known as protected cropping, is a business where horticultural crops are produced within or under a shelter to manage growing conditions and protect plants from insects, diseases, and inclement weather. Plants may be grown in glasshouses or screened houses, or they may have some other form of shade.
According to GlobeNewswire, the greenhouse horticulture market was estimated at just over $32 billion in 2022. This market is projected to grow to over 65 billion by 2030. The largest market share of the greenhouse industry operates in North America and Europe, where the market is very strong and continually growing.
Let’s take a closer look at the market by breaking it down into plant/flower growing and hydroponic growing.
Plant and Flower Growing
Plant and flower growing has become a lucrative market because demand for plants and flowers is high. Very little capital is required to add this line to an existing horticultural business.
There are demands for plants and flowers from nurseries, florists, and garden stores. Flower and nursery stock wholesaling is also a lucrative opportunity. Many people have more disposable income than they did during the pandemic and are in the market to spruce up their landscaping using plants and flowers.
When it comes to technology, new digital programs have resulted in improvements in irrigation systems and aided in creating crops that are genetically modified and resistant to diseases. Many of today’s businesses and consumers are more focused on quality plants and flowers than in the past. They are interested in extending the vase life of cut flowers and keeping the blossoms of potted plants flowering longer. Hence, the combination of research and technology is bringing these goals to fruition.
The plant and flower industry generates 18.5 billion in revenue. Growth in this industry is expected to slow down, but only slightly.
Want to learn about trends for hydroponic growing and the challenges the greenhouse industry is facing in 2023? Download the full report here.
*Data sourced from IBISWorld
