Europe Microgreens Market Size & Outlook, 2023-2031

Market Overview

The European microgreens market size was valued at USD 465 million in 2021 and is projected to reach USD 1,237 million by 2031, registering a CAGR of 10.5% during the forecast period (2022-2031).

Microgreens are delicate, young vegetable greens ranging from one to three inches. They are harvested 7 to 14 days after germination when both cotyledon leaves fully develop often termed vegetable confetti. Due to their intense aromatic flavor and variation of colors and textures, microgreens are typically used to enhance the color, texture, or flavor of various foods, such as pasta, pizza, omelets, and salads. They contain a variety of antioxidants, vitamins, and minerals. Microgreens are salad vegetables that are harvested shortly after their first leaves appear.

The rising demand for healthy, functional, and nutritional foods and the rising popularity of indoor vertical and greenhouse farming are all expected to drive the microgreens market forward in the next years. Since microgreens need careful tending in a stable climate, they are typically grown in a greenhouse or indoor vertical farm. The demand for microgreens-based oils and components in manufacturing consumer goods like shampoo and skin care products is expected to propel the microgreens market during the projected period.

Highlights

• Broccoli dominates the market by type. 
• Indoor Vertical Farming dominates the market by farming.
• Retail stores dominate the market by distribution channel.
• Commercial segment dominates the market by end-user.

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Market Dynamics

Europe Microgreens Market Drivers

Rising Demand for Indoor Cultivation

Indoor cultivation is the cultivation of food crops in a controlled environment, allowing for year-round production of high-yielding commodities. Increased food demand and decreased agricultural production have prompted farmers to adopt indoor farming. The decrease in agricultural output is primarily attributable to diminishing productive land, unfavorable climatic conditions, and restrictions on using natural resources. In addition, the rise of technological innovations in indoor farming, such as the proliferation of information technology in vertical farming and greenhouses, encourages farmers to implement farming, which will indirectly support the growth of the global microgreens market over the forecast period.

Alterations in Lifestyle and Dietary Practices

Fast food, functional foods, organic fruits and vegetables, and other lifestyle food sources are gaining popularity, as are premium food items and highly nutritious food products.

Consumers are increasingly focusing on adopting agricultural foods with high nutritional value. They are willing to pay a higher price for fresh and organic produce to reduce the risk of cardiovascular diseases, heart-related issues, and cancer. Additionally, many individuals are adopting a vegan lifestyle and seeking the best plant-based sources to meet their nutritional needs. This is anticipated to drive the market growth.

Europe Microgreens Market Restraints

Lack of Skilled Workforce and Restricted Microgreens Crop Selection

One of the latest innovations in indoor farming is vertical farming. Most farmers don't know if this method exists or what kinds of crops can be grown. Sensors, AI, autonomous systems, hydroponic, aquaponic, and aeroponic systems are all used in vertical and greenhouse farming. A highly educated and competent team is required to run these complex systems. Technically literate individuals are also needed for the upkeep of machines and computers.

High Initial Expenditures

Expensive machines, lighting, automatic systems, and temperature-controlling devices are required for indoor vertical farming. Therefore, the initial cost of indoor farming is significantly higher than that of conventional farming. The cost of urban land, which is higher than that of agriculture, is one of the primary contributors to the high investment level. In addition, energy accounts for a greater proportion of vertical farms' operating expenses and greenhouses' operating expenses. Indoor farming requires a substantial initial investment from farmers for devices, equipment, and other necessities.

Europe Market Opportunities

The Rapid Expansion of the Retail Industry and Online Retailers

Awareness of microgreens requires not only advertising but also a vast distribution network. In developing economies, the proliferation of large retail stores, such as supermarkets and hypermarkets, has increased the accessibility of microgreens, as these stores contribute to the rise in sales of functional foods. Supermarkets, hypermarkets, and grocery stores have served as an ideal distribution point for various agricultural food products, including packaged fruits and vegetables. Urbanization expansion is anticipated to stimulate the expansion of the retail sector, which in turn generates demand for microgreens.

Regional Analysis

Europe is a significant revenue contributor and is expected to grow at a CAGR of 10.5% during the forecast period. European microgreens market is studied across Russia, Spain, Italy, France, Germany, the U.K., the Netherlands, and the rest of Europe. The consumption of microgreens in Europe is increasing rapidly due to an increase in consumer awareness of the health advantages of microgreens.

Europe has been acquiring a substantial share of the global microgreens market, which is anticipated to continue throughout the forecast period. This is primarily due to the increasing prominence of microgreens among health-conscious populations and the rapid adoption of indoor vertical farming technology.

The increasing number of restaurants and demand for healthful foods in Europe will likely increase the demand for microgreens in the region.

In addition, the area under protected cultivation in Europe has increased significantly and gained a significant share of the global area under protected cultivation, which is anticipated to drive the growth of the global microgreens market over the forecast period. According to the FAO, Spain has the second-largest area under protected cultivation, with 70,400 hectares, after China and other nations, including France (10 000 hectares), Poland (7,560 ha), and Romania (7,300 ha).

Segmental Analysis

The Europe microgreens market is segmented based on type, farming, distribution channel, and end-user.

By type, the microgreens market is categorized into broccoli, cabbage, cauliflower, arugula, peas, basil, radish, cress, and others.

Broccoli dominated the market and is expected to register a CAGR of 9.7% over the forecast period.

By farming, the microgreens market is categorized into indoor vertical farming, commercial greenhouses, and others.

Indoor vertical farming is expected to dominate the market, registering the highest CAGR of 11% over the forecast period.

By distribution channel, the microgreens market is categorized into retail stores, farmers market, and others.

Retail stores segment dominated the market and is expected to grow at a CAGR of 10.1% during the forecast period.

By end-user, the microgreens market is categorized into residential and commercial.

Commercial segment dominated the market and is expected to grow at a CAGR of 10.5% during the forecast period.

List of key players in Europe Microgreens Market

1. AeroFarms 
2. Gotham Greens
3. The Chef's Garden Inc.
4. Farmbox Greens LLC
5. Living Earth Farm
6. GoodLeaf Farms
7. Bowery Farming
8. Living Earth Farms

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Recent Developments

• October 2021- AeroFarms, a leader in indoor vertical farming, increased its distribution of leafy greens to more than 350 Stop and Shop locations in the Northeast and New England, including New Jersey, New York, Connecticut, Massachusetts, and Rhode Island.
• March 2021- The indoor agriculture company Gotham Greens has opened a 10-acre facility in Northern California, its first greenhouse location on the West Coast, using funds from its most recent Series D capital raise of USD 87 million. This expansion will enhance its annual production of lettuce and herbs to 40 million heads.