Greenhouse Soil Market – Insights
Greenhouse is a structure used for growing crops under fully or partially controlled environmental conditions, in order to get maximum output and optimum growth. Greenhouse soil is used for cultivation of crops in greenhouse farming. On the basis of product type, the greenhouse soil market is segregated into potting mix, garden soil, mulch, and top soil. Potting mixes is modified mixtures of soil, organic, and inorganic materials that are used for growing greenhouse plants.
Top soil is the top layer of the soil that is used in greenhouse cultivation, and it can be anywhere between 2 to 12 inches. It is used as a portion of mixture and is combined with other materials such as compost to improve aeration and water holding capacity of the potting soil. Potting mixes are used to start seeds, and are very light with higher water and air holding capacity. Top soil is rich in nutrients and minerals, microorganisms, and organic matter that helps in the growth of plants.
Greenhouse soil consists of organic materials which includes composting bark, wood chips, and shredded leaves. The market growth is driven by benefits associated with greenhouse soil ingredients along with increasing application of greenhouse soil in lawn & landscaping, greenhouse, and indoor gardening. Middle East is witnessing an increasing trend of greenhouse farming owing to extreme weather conditions and scarcity of water. Moreover, next-generation agricultural solutions in the Middle East include hydroponics, which is a technique for growing plants and vegetables using perlite, peat, rockwool, and others without soil.
The use of organic raw materials such as decaying plant materials and microorganisms in greenhouse soil is expected to drive growth of the market during the forecast period. For instance, the use of peat, bark, hulls, and coconut coir is increasing demand for these materials among farmers owing to the decomposing properties.
Moreover, effective use of lighting in greenhouse for vertical farming is one of the factors which is expected to drive the greenhouse soil market growth. Usage of lighting in greenhouse maintains balance in temperature and fulfills light requirement of the plants.
Therefore, use of efficient LEDs and switching inorganic media components such as perlite, sand, and others with organic raw materials is expected to boost growth of the greenhouse soil market.
The global greenhouse soil market was valued at US$ 5,160.5 Mn in 2018, and is expected to exhibit a CAGR of 3.8%, in terms of revenue over the forecast period (2019-2027), and reach US$ 7,180.5 Mn by 2027.
Figure 1. Global Greenhouse Soil Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
Among region, Europe accounted for the largest revenue share of 38.4% in the global greenhouse soil market in 2018, and it is expected to hold its dominance over the forecast period. Increasing trend of greenhouse farming, adoption of modern agriculture technology, and growing demand for organic food is increasing demand for different soil solutions including greenhouse soil.
Moreover, Middle East & Africa is expected to witness significant growth over the forecast period (2019 to 2027), and exhibit a CAGR of 5.2%. The weather conditions in Middle East & Africa are not favorable for growth of vegetables, thus, majority of vegetables are grown in greenhouses, thereby, propelling demand for greenhouse soil in the region.
Increasing number of greenhouse facilities in the Middle East & Africa region is expected to boost growth of the greenhouse soil market during the forecast period. For instance, in 2016, Abu Dhabi-based Shorooq Investments announced the launch of a high-tech, commercial scale greenhouse for UAE-based Pure Harvest Smart Farms. The former company bought 3.3 hectares land in Nahel, UAE.
Figure 2. Global Greenhouse Soil Market Share (%), By Application, 2018
Source: Coherent Market Insights, 2018-19
Based on application, greenhouse segment accounted for the largest revenue share of 45.1% in 2018 in the global greenhouse soil market. The segment is expected to witness significant growth over the forecast period as a result of growing trend for vertical and rooftop farming, coupled with reduced arable land for cultivation.
Major players operating in the global greenhouse soil market include 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.
Key players are focusing on strategies such as mergers & acquisitions, as well as product launches to strengthen their position in the global market. For instance, in August 2015, Westland Horticulture acquired William Sinclair, a U.K.-based horticulture company. The acquisition includes Ellesmere Port manufacturing facility of William Sinclair and brands such as Sinclair’s brands, J. Arthur Bowers, New Horizon, Growing Success, Deadfast, Silverperl, and professional growing media businesses. This acquisition has helped Westland Horticulture to expand its greenhouse soil segment in Europe.
Greenhouse soil is custom blended soil which is used in various applications such as indoor gardening and greenhouses. Various types of greenhouse soils which are available in the market include potting mix, garden soil, top soil, and mulch. Mulch refers to organic and inorganic material which is used as the uppermost layer on the surface of the soil. It is used to prevent soil moisture, regulate soil temperature, improve health & fertility of the soil, enhances appearance of the soil surrounding the plants, and reduce weed growth. Mulch is organic in nature and is used in bare soil around the plants to avoid soil erosion on slopes. Materials used for preparation of organic mulch include peat moss, woodchips, bark chips, leaves, grass clippings, and others.
Based on application, greenhouse soil market is segregated into indoor gardening, greenhouse, and lawn & landscaping. In 2018, the greenhouse segment held dominant position in the global greenhouse soil market and contributed 45.1%, in terms of revenue. The segment growth is driven by higher production through greenhouse cultivation, coupled with reduction in available arable land across the globe.
Among region, in 2018, Europe held dominant position in the global greenhouse soil market and accounted for a revenue share of 38.4%. Increasing trend of greenhouse farming is expected to generate higher demand for greenhouse soil over the forecast period.
Moreover, Latin America accounted for minimal share in the global greenhouse soil market and offers large opportunities for market expansion in coming years. For instance, according to the Mexican Federal Government, in 2015, Mexico had 23,500 hectares of greenhouses. Moreover, greenhouse horticulture is wide spread in Mexico with a wide diversity of crops, and is practiced in three main types of cover structures such as shadow tunnels, plastic tunnels, and plastic-covered greenhouses.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.