Covering all bases: Improved efficiency among major companies has supported profitability

The Under Cover Vegetable Growing industry has flourished over the past five years. Under cover vegetables are grown in controlled environments and depend less on weather conditions and seasonal changes than field-grown vegetables. Controlled growing environments, such as greenhouses, generate greater yields and faster growth than outdoor alternatives. Closed systems provide water efficiencies and energy savings, which have benefited the industry during water shortages over the past five years. Protected growing enables farmers to produce a more constant stream of supply compared with outdoor growing, while using fewer inputs and reducing their environmental footprint, which has supported the industry's performance. Industry revenue is expected to rise at an annualised more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Rising health consciousness has boosted vegetable consumption over the past five years
  • Rising scale and efficiency among several major companies has improved profitability
  • A greater awareness of sustainable vegetable production techniques will likely drive revenue growth
  • Industry Report - Industry Analysis Chapter

    The Under Cover Vegetable Growing industry has performed strongly over the past five years. Industry revenue is expected to rise at an annualised 7.8% over the five years through 2018-19, to $748.0 million. Farmers often prefer under cover vegetable growing to outdoor growing, as the controlled growing environment allows them to better manage climatic conditions. This trend is especially beneficial in Australia, where climatic conditions have historically plagued the agricultural sector. The ability to improve yield productivity and maintain output regardless of weather and seasonal changes has contributed to industry growth. The high water efficiency of under cover vegetable growing compared with field-grown vegetable production has also benefited the industry. The...purchase to read more.

    Additional Insights for the Under Cover Vegetable Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Under Cover Vegetable Growing are:

  • Ability to pass on cost increases
  • Downstream ownership links
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Availability of water and Demand from supermarkets and grocery stores in the Under Cover Vegetable Growing industry impact industry performance..

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    What's in this report

    What is the Under Cover Vegetable Growing Industry?

    Industry operators grow vegetables in greenhouses, cold frames, cloth houses and lath houses.

    Industry Products
  • Tomatoes
  • Cucumbers
  • Capsicums
  • Mushrooms
  • Other produce
  • Industry Activities
  • Capsicum growing under cover
  • Cucumber growing under cover
  • Herb growing under cover
  • Lettuce growing under cover
  • Sprout growing under cover
  • Tomato growing under cover
  • Mushroom growing under cover
  • Other vegetable growing under cover
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Availability of water
  • Demand from supermarkets and grocery stores
  • Apparent fruit and vegetable consumption
  • Domestic price of fertiliser
  • Domestic price of vegetables

  • Current Performance
  • Supply and inputs
  • Downstream retailers
  • Consumption trends
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Technology and consolidation
  • Consumption trends
  • Public perception
  • Table: Under Cover Vegetable Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Under Cover Vegetable Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit and Vegetable Processing
  • Fruit and Vegetable Wholesaling
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Livestock and Other Agricultural Supplies Wholesaling
  • Shearing, Cropping and Agricultural Support Services
  • Water Supply

  • Products & Services
  • Mushrooms
  • Tomatoes
  • Other produce
  • Cucumbers
  • Capsicums
  • Chart: Under Cover Vegetable Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Food processors
  • Retailers
  • Local market
  • Food-service providers
  • Chart: Major Market Segmentation for the Under Cover Vegetable Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Under Cover Vegetable Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Under Cover Vegetable Growing Industry

  • Industry Globalization
    Costa Group Holdings Limited, Sundrop Farms Pty Ltd, Perfection Fresh Australia Pty Ltd, Flavorite Hydroponic Tomatoes Pty Limited,
  • Table: Costa Group Holdings Limited - financial performance
  • Table: Sundrop Farms Pty Ltd - financial performance
  • Table: Perfection Fresh Australia Pty Ltd - financial performance
  • Table: Flavorite Hydroponic Tomatoes Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Under Cover Vegetable Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Under Cover Vegetable Growing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Closed System
  • Closed growing systems retain and recycle water through the growing system. This lowers water usage and lowers risks of water shortages.
  • Food Mile
  • The distance a food item travels from producer to consumer. Food miles are used to approximate the environmental impact of food as it travels along the supply chain.
  • Imputed Wage
  • The estimated cost of labour input of the farm owner, their partner and/or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • Protected Cropping
  • The use of different structures to create optimal growing environments. Structures range from basic shadehouses to technologically advanced greenhouses with automated regulation of growing conditions.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Under Cover Vegetable Growing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
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    This report on Under Cover Vegetable Growing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Under Cover Vegetable Growing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Under Cover Vegetable Growing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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