Growing strong: Rising health consciousness has boosted industry revenue

The Hydroponic Crop Farming industry has performed well over the past five years. Hydroponic farmers grow crops under controlled conditions with reduced water requirements, allowing these operations to better withstand the unfavourable weather conditions that have affected the agriculture sector over the past five years. In particular, fluctuating rainfall over the period has negatively affected crop supplies of outdoor, soil-based farmers, limiting competition in retail markets in some years. This trend has increased demand for hydroponic produce, boosting industry revenue. Industry revenue is expected to grow at an annualised 4.3% over the five years through 2017-18, to reach $690.1 million. This includes an anticipated rise of 2.9% over more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Increased capital investment has helped boost industry yields and overall productivity
  • High profit has attracted new players to the industry, which has boosted employment numbers
  • Higher demand from the retail market will benefit larger players that have economies of scale
  • Industry Report - Industry Locations Chapter

    The industry is concentrated primarily in the eastern seaboard states of New South Wales, Queensland and Victoria, with South Australia also emerging as a major hub over the past five years. The large concentration of hydroponic farms in these three states is attributed to their geographic proximity to urban areas and large population base. New South Wales has the largest number of hydroponic crop farms. The state mostly grows lettuces along with cut flowers, tomatoes and cucumbers. The Sydney basin is a major production hub, which benefits from being closely located to population centres. Queensland has the second-largest share of hydroponic crop farms. The state's major products include lettuce, cut flowers, tomatoes, cucumbers and strawberries. Ind...purchase to read more.

    Additional Insights for the Hydroponic Crop Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hydroponic Crop Farming Industry are

  • Economies of scale
  • Downstream ownership links
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Apparent fruit and vegetable consumption and Demand from supermarkets and grocery stores in the Hydroponic Crop Farming industry impact industry performance..

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    What's in this report

    What is the Hydroponic Crop Farming Industry?

    Industry operators primarily grow crops hydroponically, under protective cover or outdoors. Hydroponics is a method of growing plants without soil, using mineral nutrient solutions in water or another medium.

    Industry Products
  • Lettuce
  • Flowers
  • Tomatoes
  • Cucumbers
  • Strawberries
  • Industry Activities
  • Lettuce growing
  • Flower growing
  • Tomato growing
  • Cucumber growing
  • Strawberry growing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Apparent fruit and vegetable consumption
  • Demand from supermarkets and grocery stores
  • Domestic price of fertiliser
  • Health consciousness
  • Level of annual rainfall

  • Current Performance
  • Supply consistency
  • Consumption
  • Supermarket supply
  • Limitations
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer trends
  • Downstream markets
  • Profitability and structure
  • Table: Hydroponic Crop Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hydroponic Crop Farming 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
  • Agricultural Machinery Manufacturing
  • Livestock and Other Agricultural Supplies Wholesaling
  • Water Supply

  • Products & Services
  • Lettuce
  • Flowers
  • Tomatoes
  • Cucumbers
  • Other
  • Strawberries
  • Chart: Hydroponic Crop Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Price and quality
  • Health consciousness
  • Environmental concerns

  • Major Markets
  • Wholesalers
  • Retailers
  • Fresh markets
  • Food-service providers
  • Food processors
  • Chart: Major Market Segmentation for the Hydroponic Crop Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Utilities, rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Hydroponic Crop Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hydroponic Crop Farming Industry

  • Industry Globalization
    Flavorite Hydroponic Tomatoes Pty Limited,
  • Table: Flavorite Hydroponic Tomatoes Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hydroponic Crop Farming 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 Hydroponic Crop Farming Industry
  • 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
    Imputed Wage
  • The estimated labour input of the farm owner, their partner or family members, based on hours worked and wages outlined in the Federal Pastoral Industry Award.
  • Medium
  • An inert material that hydroponic crops can grow their roots in.
  • Run-To-Waste
  • A hydroponic system where water solution is applied to the medium surface and allowed to run into the environment.
  • What Our Customers Say

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    IBISWorld’s Hydroponic Crop Farming market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 Hydroponic Crop Farming 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

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