Europe Greenhouse Horticulture Market

Europe Greenhouse Horticulture Market Size (2024 to 2029)

The greenhouse horticulture market in Europe is expected to record a CAGR of 8.16% from 2024 to 2029 and the European market size is expected to be worth USD 17.16 billion by 2029 from USD 11.59 billion in 2024 due to the unfavorable weather conditions and rising adoption of the greenhouse for the horticulture crop production in the European region.

The greenhouse offers additional features to control parameters like light, temperature, humidity, and emission of carbon dioxide. Producing crops in an organized shelter to deliver customized provisions for growing crops, which was built using transparent materials such as glass, plastic, and other materials such as polyvinyl chloride, polycarbonate, and rigid plastic acrylic.

The growing adoption of the greenhouse for horticulture crop production is driving the growth of the target market in the European region. Increasing investments by companies for research and development to produce innovative products in the field also propels the growth of the European greenhouse horticulture market.

The rising adoption of greenhouse farming techniques is also one of the driving factors in the European greenhouse horticulture market. The rising need to extend the cropping season in order to feed the growing population and protect them from adverse climatic conditions and pests further helps the growth of the greenhouse horticulture market in Europe. Increasing demand for protected crop cultivation across the area is considered to be another major driving factor of the European greenhouse horticulture market in the next few years.

Strict regulations from the government authorities are one of the major restraints affecting the growth of the European Greenhouse Horticulture market. Another major limitation to the expansion of the European market is the availability of alternative products within the vicinity.

MARKET DRIVERS

The rising demand for local and fresh yield, problems with food sustainability and advancements in greenhouse technology are driving the Europe greenhouse horticulture market growth. Moreover, the growing people's interest in healthy and chemical-free vegetables is also boosting the market share. Further, water scarcity influences the regional industry to shift to greenhouse horticulture. In addition, the application of robots and smart irrigation contributes to the sector’s expansion. Likewise, Skytree introduced a leasing program in April 2024 for their Cumulus Direct Air Capture (DAC) CO2 units. These are custom-made for the controlled agricultural environment (CEA) sector. Also, the high energy prices have increased the use of LED grow lights to improve plant growth in various nations in the region. Furthermore, the prevalence of vertical farming in the East Europe region is steadily growing despite considerable challenges. This can be attributed to increasing urbanization, rising consumption of organic produce, and commitment to the environment. Hence, all these factors are accelerating the Europe greenhouse horticulture market growth rate.

MARKET RESTRAINTS

The lack of proactiveness in addressing climate change, along with the delay in infrastructure modernization and operations initiatives, limits the upward trend of the European greenhouse horticulture market value. Apart from this, market volatility remains the main issue throughout the industry. Inflated costs and supply chain interruptions created a tough situation for the cultivators to deliberately plan order completion and coordinate freight transport logistics. For example, fertilizer shortages have continued to rise gradually since 2021, which significantly surged its prices, i.e., around 66 percent, and transportation costs. Such a situation was one of many impacts of the Russia-Ukraine War and both countries are big players in exporting agricultural goods like compounds and fertilizers. The subsequent closure of phosphate export by some key fertilizer markets, such as China, has collectively hampered the supply line. Additionally, the labor and supply chain shortcomings related to other raw materials coupled with scalability issues have further decreased the growth rate of the Europe greenhouse horticulture market. 

Impact of COVID-19 on European Greenhouse Horticulture Market

Due to the coronavirus pandemic, all the end-user verticals and their associated companies are facing problems in terms of production, supply chain, and market disruption. Almost all the Companies have halted their manufacturing units due to the strict lockdown regulations imposed by the government authorities. Recently, the government authorities gave permission to the companies to restart their manufacturing units with strict rules and regulations. All the companies have restarted their manufacturing units in turn started the supply chain of their products and helped them to recover from their financial crisis. In the field of the Europe greenhouse horticulture market, the companies related to the market were expecting that the market will gain some profits in the upcoming two to three years with increasing demand for protected crop cultivation across the area and increase of investments by the organizations for the innovations of the technological advancements. Furthermore, the rising adoption of greenhouse farming techniques will help the regional market to expand further during the envisioned period.

REPORT COVERAGE

This research report on the Europe greenhouse horticulture market has been segmented and sub-segmented into the following categories.

Europe Greenhouse Horticulture Market By Covering Material

• Plastic Greenhouse
• Glass Greenhouse

Among these segments, the glass greenhouse holds the major share of the market.

Europe Greenhouse Horticulture Market By Product

• Ornamentals
• Edibles

Among these, the edibles segment registered the protruding portion in the worldwide market.

Europe Greenhouse Horticulture Market By Application

• Greenhouse Films
• Grow Bags
• Windbreak And Shelter Nets
• Horticulture Twines
• Other Applications

Europe Greenhouse Horticulture Market By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

Germany's greenhouse horticulture market is expected to grow at a steady rate during the forecast period. Greenhouse farming holds a major share of its agricultural sector. Also, the facilities in the country usually use plastic or glass structures to handle their diverse weather to provide for year-round production. Moreover, the combination of both modern and traditional technologies and methods is used in this industry. The selection of a greenhouse structure like Quonset or Venlo is based on components such as budget, available space, and food type. Venlo is the most prevalent greenhouse type. In addition, lettuce, bell peppers, tomatoes, and cucumbers are extremely popular, whereas cilantro, parsley, and basil are grown in smaller greenhouse units.

France is leading the Europe greenhouse horticulture market and is believed to attain an upward growth trend in the coming years. Their industry is mainly transformed because of the application of hydroponics, energy-efficient systems and automatic weather control. Further, with the rising demand for farm-fresh food or organic crops irrespective of seasonal constraints French greenhouse farming value is boosting. Additionally, this sector is also a significant driver for sustainable food cultivation, promotion of local agriculture, and job creation. Moreover, the widely employed greenhouse materials are polyethylene, glass, and polycarbonate. It has more than 26000 hectares of greenhouse production.

Spain's greenhouse horticulture market is poised to expand further in the future. It is a major tomato cultivator. The bulk of production is still carried out by traditional practices, but the industry’s progressive approach towards modern and cutting-edge methods shows a potential growth opportunity and acclimatization. Also, it can yield over 3.5 million tons of tomatoes annually with more than 45000 hectares specially dedicated for this only. However, due to intense competition from Morocco and coupled with high interest rates, several cultivators, as of now, are emphasizing growing a low-cost item. And, of these, around 15600 are greenhouses, tunnels, or protected facilities.

The United Kingdom is believed to witness a noticeable surge in its market share in the future. The government is actively engaged in bringing down the food inflation rate and its economic instability. This may lead to increased investment in greenhouse horticulture and other sustainable practices. Similarly, the UK government added in March 2024 the horticulture sector as a qualification for the third phase of the Industrial Energy Transformation Fund which was initially introduced in 2020. Furthermore, after favor from the National Farmers Union (NFU), the latest grant of 500 million pounds initiative now consists of Controlled Environment Horticulture (CEH) as a beneficial industry

Italy holds a high position in the horticulture sector and is anticipated to propel at a higher CAGR during the forecast period. Currently, it is dominating the cultivation of aromatic seeds and vegetables. For this particular purpose, they yielded close to 39000 hectares of land. This continues to grow year-on-year basis. From 2012 to 2024 this has been more than 5 per cent growth. In addition, seed production continues from north to south with high dominance of Emilia-Romagna, Puglia at the second and Marche at the third and seven other areas in the country.

KEY MARKET PLAYERS

Some of the key players of Europe greenhouse horticulture market are Richel Group, Hoogendoorn Growth Management B V, Certhon Inc, Dalsem Horticulture Projects B V, HortiMaX B V, Harnois Greenhouses, Priva B V, Ceres Greenhouse Solutions, Certhon, Van Der Hoeven, Oritech solutions, Netafim Ltd, Ridder Holding Harderwijk B V, Rough Brothers Inc, Top Greenhouses Ltd.

RECENT DEVELOPMENTS IN THE EUROPE GREENHOUSE HORTICULTURE MARKET

• In April 2024, BASF, for greenhouse twines purpose, launched the industrial compostable biopolymer. It extended its range of products for sustainable food cultivation. Also, the grade Ecovio T 2206, a certified compostable biopolymer as per EN13432, can now be applied to producing black twines utilised to grow yearly vegetables and fruits in commercial greenhouses.
• In April 2024, Biobest Group rebranded itself to BioFirst Group. It disclosed its new organizational logo and structure at the opening of its latest state-of-the-art predatory mite manufacturing facility in Westerlo (Belgium).
• In November 2023, Solynta in collaboration with Agris, its partner, announced that they are currently working on the course to launch the Hydrid Truce Potato Seeds in 6 different nations in Central Europe. It will be grown from the rising potato saplings from true seeds in a controlled environment. Moreover, it makes sure that logistics is easy because of its lightweight. With its existing infrastructure, Agris will assist in the distribution.