PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410257
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410257
The China commercial greenhouse market is estimated to grow at a CAGR of 8.53% to reach US$7160.714 million by 2028 from US$4037.712 million in 2021.
Increasing demand for fruits and vegetables in the country with rising population and increasing purchasing power among the people are expected to increase the demand for commercial greenhouses in the country. As commercial greenhouses give more plantation output in less area, these advantages in techniques, agricultural technologies, and knowledge are expected to improve the output and increase the popularity of commercial greenhouses in the projected period. Moreover, commercial greenhouse farming can help in creating the best environments for the crops and ensure the healthy growth of these crops.
According to the China Customs data the durian imports in the first six months of 2023, reached a volume of 7.87,000 metric tons and a value of US$3.83 billion, which is a 57.1% year-on-year increase in volume and 64.9% year-on-year increase in terms of value. In 2022, China's durian imports were only 8,25,000 metric tons, and in value, it was US$4.04 billion which, the country almost surpassed in six months only. Hence, as there is an increase in population the demand for fruits and vegetables is expected to rise, which is increasing pressure on commercial greenhouse farming as it can produce more agricultural output in less space.
The decreasing area for cultivating food products is expected to provide a boost to market growth. According to the World Bank, the percentage (%) of agricultural land in China in 2021 was 55.5%. Moreover, with the increasing population in the country, the demand for food products is expected to grow in the coming years. For instance, according to the World Bank, the population in 2018 in China was 1.40 billion which increased to 1.41 billion in 2021. With the increasing population, coupled with the rising standard of living in the population, the market for commercial greenhouses is expected to grow in the coming years.
According to the United States Economic Research Service, by the United States Department of Agriculture, China imported agricultural products worth US$025 billion in 2021, the highest exporter was Brazil which imported products worth US$45 billion.
According to the U.S. Census Bureau Trade Data, the United States exported agricultural products worth US$13,583 million in 2019, which increased to almost double in 2020, and reached US$26,399 million in 2020, and in 2021 the exports by value increased by 25% and reached US$32,977 million. As the demand for food and agricultural products rises in China, the country is expected to come up with new and innovative solutions that could enhance agricultural production and imports. Hence, the use of commercial greenhouses is expected to increase significantly in the country as there is increasing demand for agricultural products and commercial greenhouses can suffice that demand with less cultivable land, and in a temperature-controlled environment.
China is endowed with rich agricultural resources which makes it one of the major agricultural producing countries. Crops such as tomatoes, potatoes, cabbage, and radish among others are produced on a larger scale in the country, and with the booming population, the food demand has witnessed a significant surge owing to which the overall production capacity has also increased. For instance, according to the World Processing Tomato Council, in 2022, China produced 6.2 million tonnes of tomato which represented a significant increase of 16.7% over 2021's production figure of 4.8 million tonnes. Also, as per the same source, production is expected to reach 8 million tonnes in 2023. Tomato is one of the major produced crops in commercial greenhouses and China's booming production coupled with technological advancements has provided a positive outlook to commercial greenhouse usage for such crop production.
Moreover, China's geography makes it prone to colder temperatures, especially in the Northern region and since vegetable crops such as tomatoes are grown in China's Northwest region (Xinjiang), the demand for high-tech commercial greenhouses to improve the overall production capacity is anticipated to increase. Furthermore, the well-established presence of major market players namely Beijing Kingpeng International Hi-Tech Corporation which shares an extensive portfolio of commercial greenhouses inclusive of leaf vegetable greenhouses, fruit greenhouses, and tomato & cucumber greenhouses is further paving the way for future market growth.