Global Microgreens Market to Thrive at a CAGR of 11% by 2030

Introduction

Microgreens are young plants that are harvested for consumption. They have a short crop cycle. Depending on the species and microgreens, they can be harvested in 7 to 14 days. Microgreens are primarily grown in indoor vertical and greenhouse farming methods because they require care and a controlled environment. Microgreen production is expected to increase as the public accepts protected culture and the government provides financial and technical assistance to farmers to install protected cultivation plants.

Market Dynamics

Rise in Demand for Indoor Cultivation to Drive the Global Microgreens Market

Indoor cultivation is the process of growing food crops in a controlled environment to be harvested at any time of year with high productivity. Farmers have turned to indoor Farming due to rising food demand and declining agricultural food production. Agriculture production is declining due to dwindling fertile land, unfavorable climatic conditions, and restrictions on natural resource use. With such factors, conventional farming production is insufficient to meet the growing population's demand. According to the UN, the current global population of 7.6 billion people is expected to increase to 9.8 billion by 2050 and 11.2 billion by 2100. (UN, 2017).

Greenhouses and indoor vertical farming are the most widely used Farming practices for producing microgreens, owing to benefits such as increased farmland productivity, weather control, more efficient use of productive resources, and reduced pest, weed, and crop disease risk. Furthermore, the rise in technological innovations in indoor farming, such as the rise of information technology in vertical Farming and greenhouses, encourages farmers to adopt agriculture, indirectly supporting the global microgreens market during the forecast period.

Rapid Increase in the Retail and Online Stores to Provide Lucrative Opportunities for the Global Market

Microgreens require a wide-area distribution network as well as advertising to raise awareness. Microgreens are now more widely available thanks to an increase in large retail stores, such as supermarkets and hypermarkets, in developing economies. These shops aid in the promotion of functional foods. Supermarkets, hypermarkets, and grocery stores have helped improve the distribution of agricultural food products like packaged fruits and vegetables. The retail sector is expected to grow with urbanization, increasing demand for microgreens. Furthermore, microgreens growers have websites where they sell microgreens. During the forecast period, the microgreens market will be supported by online farmers' markets and online stores.

Regional Insights

North America has held the highest share in the global microgreens market and is expected to sustain its claim during the forecast period. The North American microgreens market is studied across the US, Canada, and Mexico. It is estimated to reach an expected value of USD 960 million by 2030 at a CAGR of 10.2%. This is due to indoor vertical farming technology's rapid advancement and widespread adoption by vegetable and microgreen growers. Chefs in the United States are in high demand for microgreens as flavor enhancers and as colorful garnishes on hotel and restaurant plates, so organic vegetable growers are pursuing this market.

Europe has gained a considerable share in the global microgreens market and is expected to sustain its claim during the forecast period. It is estimated to reach an expected value of USD 715 million by 2030 at a CAGR of 9.7%. Europe microgreens market is studied across Russia, Spain, Italy, France, Germany, the UK, the Netherlands, and the rest of Europe. This is because of the growing popularity of microgreens among health-conscious consumers and the rapid adoption of indoor vertical farming technology.

The fastest-growing market for microgreens is Asia-Pacific, where demand for functional and healthy foods is skyrocketing. This is due to increased health-conscious consumers, increased spending on functional foods, and increased demand for organic vegetables. It is estimated to reach an expected value of USD 620 million by 2030 at a CAGR of 14.1%.

Key Highlights

• The global microgreens market was worth USD 1,445 million in 2021. It is estimated to reach an expected value of USD 3,695 million by 2030 at a CAGR of 11% during the forecast period (2022-2030).

• Based on type, the market is categorized into broccoli, cabbage, cauliflower, arugula, peas, radish, basil, carrots, and others. The broccoli type segment dominated the market. It is estimated to reach an expected value of USD 560 million by 2030 at a CAGR of 10%.
• Based on the farming method, the market is segregated into indoor vertical farming, commercial greenhouse farming, and others. Indoor vertical farming is the most widely adopted method and is estimated to reach an expected value of USD 1,510 million by 2030 at a CAGR of 11.2%. This can be attributed to the growing technological advancement in indoor vertical Farming, like remote operations, and the rise of information technology, which allows for the management of things through mobile apps, automatic irrigation, and fertilization.
• Based on the distribution channel, the global microgreens market is segmented into retail stores, online stores, and farmers’ markets. The farmers’ market is estimated to reach an expected value of USD 745 million by 2030 at a CAGR of 9.8%.

• By end-user, the market is divided into residential and commercial. The commercial sector dominates the market and is estimated to reach an expected value of USD 1,715 million by 2030 at a CAGR of 10.4%.
• Region-wise, the global microgreens market is segmented across North America, Europe, Asia-Pacific, and LAMEA. North America and Europe are the two largest regions in the market.

Competitive Players

1. AeroFarms
2. Fresh Origins
3. Gotham Greens
4. Madar Farms
5. 2BFresh
6. The Chefs Garden Inc
7. Farmbox Greens LLC
8. Living Earth Farm
9. Good Leaf Farms
10. Metro Microgreens

Recent Developments

Recent Developments

• March 2021 - AeroFarms, a certified B Corporation and leader in vertical Farming, entered into an agreement and plan of merger (the "Merger Agreement") with the Spring Valley acquisition AeroFarms will begin trading on Nasdaq under the new ticker symbol "ARFM" after the transaction is completed. David Rosenberg, Co-Founder and Chief Executive Officer of AeroFarms, will lead the combined company.
• March 2021 - Gotham Greens goes west to unlock the next growth chapter: 'The indoor environment is relatively unexplored but offers fantastic opportunities. Using funding from its recent 87m Series D capital raise, indoor agriculture company Gotham Greens has expanded operations to Northern California – its first West Coast greenhouse location – opening a 10-acre facility, which will bring its total annual production to 40 million heads of lettuce and herbs.

Segmentation

1. By Type
   1. Broccoli
   2. Cabbage
   3. Cauliflower
   4. Arugula
   5. Peas
   6. Radish
   7. Basil
   8. Carrots
   9. Lettuce and Chicory
   10. Fennel
   11. Sunflower
   12. Others
2. By Farming Method
   1. Indoor Vertical Farming
   2. Commercial Greenhouse Farming
3. By Distribution Channel
   1. Retail Store
   2. Online Store
   3. Farmers Market
   4. Hypermarkets/Supermarkets
   5. Restaurants
   6. Others
4. By End-User
   1. Residential
   2. Commercial
5. By Growth medium
   1. Peat Moss
   2. Soil
   3. Coconut Coir
   4. Tissue Paper
   5. Other Growth Mediums