Insulated: Players have avoided volatile weather and water supply to grow revenue

The Hydroponic Crop Farming industry has performed well over the past five years. Hydroponic farmers grow crops in controlled conditions with reduced water requirements, which has allowed these crops to better withstand the unfavourable weather that has affected the agriculture sector over the past five years. In particular, fluctuating rainfall over the period has negatively affected crop supplies of outdoor, soil-based farmers, limiting competition in retail markets in some years. This trend has increased demand for hydroponic produce, boosting industry revenue. Revenue is expected to grow at an annualised 5.8% over the five years through 2018-19, to $432.1 million. This includes an anticipated rise of 4.3% over more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Increased capital investment has helped boost industry yields and overall productivity
  • High profit has attracted new players to the industry, boosting employment numbers
  • Higher demand from the retail market will benefit larger players with economies of scale
  • Industry Report - Starting a New Business Chapter

    The industry exhibits moderate barriers to entry. The most significant barriers are the capital requirements associated with establishing a hydroponic farm and obtaining supply contracts. Setting up a hydroponic farm requires considerable investment. New participants need to purchase or lease land, greenhouses and essential equipment, such as climate monitors, irrigation systems and heating and cooling systems. Hopeful entrants may have difficulty securing financing for these costs.New operators hoping to compete with the large commercial hydroponic growers may also be deterred by the difficulty in obtaining contracts with downstream markets. Far...purchase to read more.

    Additional Insights for the Hydroponic Crop Farming Industry

    IBISWorld has determined the most important Key Success Factors for the Hydroponic Crop Farming are:

  • Economies of scale
  • Downstream ownership links
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Apparent fruit and vegetable consumption and Demand from supermarkets and grocery stores in the Hydroponic Crop Farming industry impact industry performance..

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    What's in this report

    What is the Hydroponic Crop Farming Industry?

    Industry operators primarily grow crops hydroponically, under protective cover or outdoors. Hydroponics is a method of growing plants without soil, using mineral nutrient solutions in water or another medium.

    Industry Products
  • Leaved greens
  • Flowers
  • Tomatoes
  • Herbs
  • Other fruits and vegetables
  • Industry Activities
  • Lettuce growing
  • Flower growing
  • Tomato growing
  • Cucumber growing
  • Strawberry growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Apparent fruit and vegetable consumption
  • Demand from supermarkets and grocery stores
  • Domestic price of vegetables
  • Health consciousness
  • Level of annual rainfall

  • Current Performance
  • Supply consistency
  • Consumption
  • Supermarket supply
  • Limitations
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer trends
  • Downstream markets
  • Profitability and structure
  • Table: Hydroponic Crop Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hydroponic Crop Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit and Vegetable Processing
  • Fruit and Vegetable Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Agricultural Machinery Manufacturing
  • Livestock and Other Agricultural Supplies Wholesaling
  • Water Supply

  • Products & Services
  • Tomatoes
  • Flowers
  • Leaved greens
  • Other fruits and vegetables
  • Herbs
  • Chart: Hydroponic Crop Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Price and quality
  • Health consciousness
  • Environmental concerns

  • Major Markets
  • Wholesalers
  • Retailers
  • Fresh markets
  • Food-service providers
  • Food processors
  • Chart: Major Market Segmentation for the Hydroponic Crop Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Hydroponic Crop Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hydroponic Crop Farming Industry

  • Industry Globalization
    Sundrop Farms Pty Ltd, Flavorite Hydroponic Tomatoes Pty Limited,
  • Table: Sundrop Farms Pty Ltd - financial performance
  • Table: Flavorite Hydroponic Tomatoes Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hydroponic Crop Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hydroponic Crop Farming Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Imputed Wage
  • The estimated labour input of the farm owner, their partner or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • Medium
  • An inert material that hydroponic crops can grow their roots in.
  • Run-To-Waste
  • A hydroponic system where water solution is applied to the medium surface and allowed to run into the environment.
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    Why buy this report?

    The Hydroponic Crop Farming market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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    This report on Hydroponic Crop Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hydroponic Crop Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hydroponic Crop Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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