Under control: The high quality and reliable supply of industry produce has boosted revenue

The Under Cover Vegetable Growing industry has flourished over the past five years. Under cover vegetables are cultivated in controlled environments and are therefore less dependent 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 also 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 bolstered the industry's performance...read more.

Industry Statistics & Market Size
Revenue
$614m
Annual Growth 13-18
2.9%
Forecast Growth 18-23
Profit
Employment
2,384
Businesses
866

Industry Threats & Opportunities

  • As under cover vegetables attract high prices, they are sensitive to changes in consumer sentiment
  • Rising scale and efficiency among several major companies has improved profitability
  • A greater awareness of sustainable vegetable production techniques should drive revenue growth
  • Industry Report - Starting a New Business Chapter

    The industry exhibits moderate barriers to entry. A large initial capital outlay to establish growing operations is the primary barrier to entry. Growers need to invest heavily in expensive greenhouse technology and growing systems to attain the economies of scale necessary to become profitable. Access to adequate water supplies can provide another potential problem for prospective industry players. Generally, vegetable production requires substantial quantities of irrigation water. However, growers cultivating vegetables under cover generally have more efficient water use compared with outdoor growers since they are able to produce higher yields using less water.The high level of internal and external competition in the industry could also act as a deterrent for new entrants. The...purchase to read more.

    Additional Insights for the Under Cover Vegetable Growing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Under Cover Vegetable Growing Industry 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
  • Retailers
  • Local market
  • Food processors
  • 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
  • Profit
  • Purchases
  • Wages
  • Utilities
  • Depreciation
  • Rent
  • Other
  • 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, Perfection Fresh Australia Pty Ltd, Flavorite Hydroponic Tomatoes Pty Limited, Sundrop Farms Pty Ltd,
  • Table: Costa Group Holdings Limited - financial performance
  • Table: Perfection Fresh Australia Pty Ltd - financial performance
  • Table: Flavorite Hydroponic Tomatoes Pty Limited - financial performance
  • Table: Sundrop Farms Pty Ltd - 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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.
  • Greenhouse
  • Greenhouses are technologically advanced growing structures generally covered in glass or polycarbonate panels that control various aspects of the growing environment.
  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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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