South Africa Microgreens Market

Market Overview

The South Africa microgreens market size was valued at USD 6 million in 2021 and is projected to reach USD 22 million by 2031, registering a CAGR of 13.1% 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.

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.

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.

Market Dynamics

South Africa 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.

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. 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.

South Africa Microgreens Market Restraints

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.

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.

South Africa 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

South Africa is a significant revenue contributor and is expected to grow at a CAGR of 13.1% during the forecast period.

The recognition that lifestyle-related disorders are the leading cause of health problems has increased consumer health consciousness. The demand for microgreens is fueled by increased consumer awareness of the health benefits of microgreen food products, such as protection against chronic diseases and the promotion of optimal health, longevity, and quality of life. The aging of the population, the rise in life expectancy, and the prevalence of chronic diseases have altered the dietary habits of consumers.

Numerous producers are attracted to microgreen farming due to its benefits, which include rapid growth, high-value crops, and highly nutrient-dense crops, which drive market expansion. 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 South Africa 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 12.3% 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 13.7% 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 12.8% 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 13.2% during the forecast period.