North America Microgreens Market Size, Share & Trends Analysis Report By Type (Broccoli, Cabbage, Cauliflower, Arugula, Peas, Radish, Basil, Carrots, Lettuce and Chicory, Fennel, Sunflower, Others), By Farming Method (Indoor Vertical Farming, Commercial Greenhouse Farming), By Distribution Channel (Retail Store, Online Store, Farmers Market, Hypermarkets/Supermarkets, Restaurants, Others), By End-User (Residential, Commercial), By Growth medium (Peat Moss, Soil, Coconut Coir, Tissue Paper, Other Growth Mediums) and By Country(U.S., Canada) Forecasts, 2023-2031

Market Overview

The North American microgreens market size was valued at USD 585 million in 2021 and is projected to reach USD 1,503 million by 2031, registering a CAGR of 10.1% 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. Microgreens have fully matured cotyledon leaves and typically one pair of small, partially mature true leaves. Microgreens are grown using various farming techniques, including vertical, indoor, and commercial conservatories.

The market for microgreens in North America is studied in the United States and Canada. A shift in consumer preference for foods containing natural constituents is one of the major factors driving market growth. Consumers in the region are increasingly adopting a healthy lifestyle, which has led to an increase in the consumption of microgreens as a flavoring and garnishing agent for regular foods.

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.
• North America dominates the global market.

Market Dynamics

North america microgreens market drivers

Advancements in farming technologies

Technological advances have directly influenced the growth of the microgreens market in agriculture, which is anticipated to continue during the forecast period. Microgreens can be cultivated effectively and extensively using indoor vertical farming. Multiple technologies, such as big data analytics, robotics, the Internet of Things, and artificial intelligence, can be integrated with indoor vertical farming so that microgreens can be intensively monitored, controlled, and supported to grow well without any agronomic constraints. The nutrition film technique (NFT) is one of the techniques used to promote plant growth, and it has been acquiring popularity in the microgreens industry.

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.

North america 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.

The variety of available microgreens is extremely restricted. While many different kinds and species of vegetables exist, microgreens are still in short supply. The market expansion is predicted to be slowed by these issues.

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.

North america microgreens 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 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

North America is anticipated to continue to hold the largest share of the global microgreens market and expand at a CAGR of 10.1% throughout the forecast period. This is largely attributable to the rapid technological advancement and adoption of indoor vertical farming by producers of vegetables and microgreens.

North america dominates the global market

The U.S. microgreens market is expected to grow at a CAGR of 10.2% during the forecast period. Microgreens are in high demand in the United States from chefs as flavor enhancers and colorful garnishes on the plates of hotels and restaurants. As a result, organic vegetable producers are capitalizing on this market. In addition, because microgreens are a new and untapped market, these organic vegetable producers are benefiting from comparatively low levels of market competition. As a result, peas, cabbage, and salad vegetables are cultivated through hydroponic farming, which generates the greatest profit for Californian farmers. Numerous retailers offer "Certified Naturally Grown" microgreens seeds to local restaurants and producers in the United States, which can be grown hydroponically and through vertical farming. According to the USDA, California is the leading broccoli producer in the United States, accounting for 92% of the national total. In 2017, global production was approximately 26 million metric tons. This demonstrates that broccoli will be vital in expanding the microgreens market.

Canadian microgreens market is expected to grow at a CAGR of 9.5% during the forecast period. Rapid urbanization, dietary changes, and an increase in income have led to a rise in the demand for food in Canada, which is expected to increase the supply. Therefore, to produce enough food for the Canadian population, farmers are expected to increase crop production, either by increasing the amount of agricultural land used for crop production or by enhancing productivity on existing agricultural lands through fertilizers, irrigation, and the adoption of new techniques such as precision farming and microgreens farming. Moreover, many farmers are attracted to microgreen farming due to its benefits, which include rapid growth, high-value harvests, and highly nutrient-dense crops, which contribute to the expansion of the market. In addition, an increase in consumer demand for natural and nutrient-dense food has prompted consumers in both urban and rural areas to engage in community farming and urban rooftop garden farming, contributing to the microgreens market expansion.

Segmental Analysis

The North American 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 9.3% 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 10.6% 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 9.8% 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 10.2% during the forecast period.

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.