North America Commercial Greenhouse Market Size (2023-2030)

The North America Commercial Greenhouse Market was valued at USD 6.06 Billion and is projected to reach a market size of USD 11.13 Billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 7.9%. 

The North American commercial greenhouse market is characterized by steady growth and innovation. It encompasses a wide range of greenhouse types, including traditional glass greenhouses and modern high-tech structures. The market is driven by the increasing demand for locally grown, fresh produce, year-round cultivation, and sustainable farming practices. Notably, tomatoes, herbs, and cucumbers are among the top crops cultivated in commercial greenhouses. Technological advancements in automation, climate control, and energy-efficient systems continue to enhance productivity and sustainability, making the North American commercial greenhouse market a dynamic and vital component of the region's agriculture industry.

Key Market Insights:

Roughly 25.62% of the land in the North American region was designated as agricultural land driving the need for commercial greenhouses in the region.

The most recent U.S. Census of Agriculture Report identifies a total of 8,750 greenhouse vegetable farms, reflecting a remarkable surge of 115% compared to the data from seven years prior.

An intriguing observation is that 90% of greenhouse vegetable farms are less than 0.2 acres in size.

The three most cultivated crops in the greenhouses are tomatoes, herbs, and cucumbers.

North America Commercial Greenhouse Market Drivers:

Growing Demand for Local and Fresh Produce is fueling the demand for Commercial greenhouses in the North America region.

One of the primary drivers of the North American commercial greenhouse market is the increasing consumer demand for locally grown fresh, and high-quality produce. Consumers are becoming more conscious of where their food comes from, and they prioritize products that are produced nearby. Commercial greenhouses provide a solution by allowing year-round cultivation of various crops, reducing the need for long-distance transportation, and offering consumers access to a consistent supply of locally sourced fruits, vegetables, and herbs. This trend aligns with the farm-to-table movement and supports sustainable agriculture practices.

Year-round cultivation and Climate Control a major benefits of greenhouses, attracting growers in North America.

Commercial greenhouses allow for year-round cultivation regardless of external weather conditions. The ability to control temperature, humidity, and light provides a consistent environment that can extend growing seasons and enhance crop yields. The adoption of climate control technologies in commercial greenhouses has been on the rise. For example, the use of energy-efficient LED grow lights has increased significantly in recent years. The LED grow light market is projected to reach $4.9 billion by 2026, indicating the growth in indoor and greenhouse farming practices.

North America Commercial Greenhouse Market Restraints and Challenges:

Energy Costs and Sustainability are challenging for greenhouse operators in the North America region.

One significant challenge is the high energy consumption associated with maintaining controlled environments in commercial greenhouses. Greenhouse operations require heating, cooling, lighting, and ventilation systems, all of which can contribute to substantial energy costs. To address this challenge, growers are increasingly adopting energy-efficient technologies, such as LED lighting and advanced climate control systems. Additionally, there is a growing emphasis on renewable energy sources like solar power to reduce greenhouse gas emissions and operating expenses. Balancing the need for controlled conditions with energy sustainability remains a key challenge for the industry.

A limiting factor in this market is the Labor Shortage and Skilled Workforce.

Another pressing challenge is the availability of skilled labor in the agricultural sector. Many greenhouse operations rely on manual labor for tasks such as planting, harvesting, and crop maintenance. However, the agriculture industry, including commercial greenhouses, has been facing a shortage of skilled workers in North America. Labor shortages can lead to increased labor costs and operational disruptions. In response, greenhouse operators are exploring automation and robotics solutions to mitigate labor challenges. Implementing advanced technologies requires capital investment and specialized training, but it can help address labor-related issues while improving overall efficiency.

North America Commercial Greenhouse Market Opportunities:

The North American commercial greenhouse market presents significant opportunities for growth and innovation. With increasing consumer demand for locally sourced, fresh produce and the desire for year-round availability, commercial greenhouse operators have a chance to expand their operations. Opportunities lie in adopting advanced technologies like automated climate control, precision agriculture, and data analytics to enhance productivity and sustainability. Furthermore, diversifying crop portfolios to include high-value crops and addressing emerging market trends, such as organic and specialty produce, can open new avenues for market expansion. Collaboration with retail chains, restaurants, and food service providers to establish direct supply chains can also create lucrative opportunities, ensuring a steady market for greenhouse-grown products.

NORTH AMAERICA COMMERCIAL GREENHOUSE MARKET REPORT COVERAGE:

North America Commercial Greenhouse Market Segmentation:

North America Commercial Greenhouse Market Segmentation: By Greenhouse Type

• Glass Greenhouse
• Plastic Greenhouse

 Plastic greenhouses hold the largest market share, accounting for over 58% market share. Plastic greenhouses are often more cost-effective to build and maintain compared to their glass counterparts. They provide excellent insulation, which helps in maintaining a stable and controlled environment for year-round cultivation. Plastic greenhouses are known for their energy efficiency. They allow for efficient temperature control and can trap heat effectively, reducing the need for excessive heating during colder months. Plastic greenhouses are also the fastest growing with a CAGR of over 14%. Advances in plastic greenhouse technology have led to the development of specialized films and coatings that offer enhanced properties, such as improved light diffusion, UV protection, and condensation control. These innovations have further increased the popularity of plastic greenhouses. Plastic greenhouses are commonly used in both small-scale and large-scale commercial operations. This wide range of applications has contributed to their dominance in the market.

North America Commercial Greenhouse Market Segmentation: By Crops

• Fruits, vegetables & herbs
• Flowers & ornamentals
• Others

The fruits, vegetables, and herbs segment is the largest in the commercial greenhouse market, holding a market share of 56%. Consumers are increasingly conscious of the quality and safety of their food. Greenhouses offer an ideal environment for a wide variety of crops, including tomatoes, peppers, cucumbers, lettuce, strawberries, basil, mint, and more. Greenhouses enable year-round cultivation, overcoming seasonal limitations. Greenhouses provide growers with precise control over environmental factors such as temperature, humidity, and light. Greenhouses are increasingly adopting sustainable and eco-friendly practices, including efficient water use, reduced pesticide reliance, and energy-efficient technologies. This aligns with the growing interest in sustainable agriculture and attracts environmentally conscious consumers.

This segment is also the fastest growing in the North America Commercial Greenhouse market. The trend of supporting local agriculture and reducing food miles has boosted the demand for greenhouse-grown fruits, vegetables, and herbs, as they can be sourced closer to urban areas. Fruits, vegetables, and herbs are recognized for their nutritional value and health benefits. Greenhouse cultivation ensures that these crops are grown with minimal exposure to contaminants and environmental factors that may affect their nutritional content. The commercial greenhouse industry continues to innovate with new crop varieties, growing techniques, and packaging solutions, catering to evolving consumer preferences and market trends.

North America Commercial Greenhouse Market Segmentation: Regional Analysis:

• USA
• Mexico
• Canada

The USA holds the largest share of 67% in this market. This country has a large and diverse population with a significant demand for fresh produce year-round. Consumers value locally sourced, high-quality fruits, vegetables, and herbs, which drives the need for commercial greenhouses. Commercial greenhouses allow growers to adapt to these diverse conditions, enabling year-round cultivation and the ability to serve different regional markets. Growers in the country often adopt advanced automation, climate control systems, and sustainable practices to optimize productivity and resource use.

The USA is the fastest-growing segment as well. Commercial greenhouses in the United States grow a wide range of crops, including tomatoes, cucumbers, lettuce, berries, and herbs. The USA attracts investment and entrepreneurial activity in the agriculture and greenhouse sectors, leading to the establishment of new, innovative greenhouse operations. Due to these factors, the United States holds a leading position in the commercial greenhouse industry, making it the largest segment in terms of market size, production, and innovation.

COVID-19 Impact Analysis on the North America Commercial Greenhouse Market:

The COVID-19 pandemic had a multifaceted impact on the North American commercial greenhouse market. While it initially disrupted supply chains and labor availability, it also accelerated certain industry trends. The increased focus on food security and locally sourced produce during the pandemic drove higher demand for greenhouse-grown products. As consumers sought safer and more reliable food sources, many greenhouse operators experienced increased sales and a growing customer base. Additionally, the pandemic highlighted the importance of automation and remote monitoring in greenhouse operations, leading to greater adoption of technology to ensure operational continuity and reduce labor reliance. However, challenges persisted in terms of labor shortages and rising energy costs, highlighting the need for continued innovation and sustainability efforts in the post-pandemic landscape.

Latest Trends/ Developments:

Greenhouse operators are increasingly investing in advanced technologies such as automated climate control systems, data analytics, and remote monitoring. These technologies enable precise management of environmental conditions, optimizing crop growth and resource use. Additionally, the integration of sensor-based systems allows for real-time data collection and decision-making, improving overall operational efficiency.

To meet changing consumer preferences and market demands, greenhouse companies are diversifying their crop portfolios. Beyond traditional crops like tomatoes and cucumbers, growers are expanding into high-value crops such as berries, herbs, and leafy greens. This diversification helps reduce market risks and capture new market segments, catering to the increasing demand for specialty and organic produce.

Key Players:

1. Gotham Greens
2. BrightFarms
3. NatureSweet
4. Pure Flavor
5. NatureFresh Farms
6. Mastronardi Produce (SUNSET)
7. Houweling's Group
8. Little Leaf Farms
9. Revolution Farms
10. Houwelings' Tomatoes

In Sep 2021, Bluehouse Greenhouse Inc., known for its ambitious project involving a 2.8 million square feet greenhouse and energy agro-park, entered into a strategic partnership with Longvine Growing Co, formerly known as the Houweling's Group. The partnership aims to promote and market greenhouse-grown tomatoes and cucumbers produced in California.