Industrialised farming has produced a higher supply of cheaper, fresher food, particularly in developed countries. However, it has harmed the environment by putting too much strain on natural resources and causing pollution. A report highlighted that the current food system isn't a good fit for the 21st century. 80% of food is expected to be consumed in cities by 2050. Rich industrialised countries will get by, but the same can't be said for smaller and developing ones.

Controlled Environment Agriculture (CEA) has evolved over the past few decades as an answer to sustainable agricultural solutions. Chief among them are indoor farming techniques like vertical farming and hydroponics. The results are an increased yield and improved resource use due to its minimal reliance on natural elements.

Market dynamics

Across the world, hydroponics has become a significant part of the larger CEA pie. The global hydroponics market will reach $32.10 billion in 2033 from $10.59 billion in 2024. North America and Europe are leading the way thanks to increased innovations, a focus on sustainability, and advanced technology adoption. The Asia Pacific region is catching up, driven by urbanisation and food security concerns. Latin America and Middle East North Africa (MENA) are also seeing gradual expansion.

China is one of the fastest-growing countries for hydroponics. With a population of 1.4 billion people, it makes sense for a country to become self-sufficient in food production. Rural food-producing regions are under pressure since people continue to move to urban areas. It's part of a broader trend in Asia Pacific as countries witness increased rapid urbanisation, population growth, and increased demand for locally-grown produce. The region's vertical farming market will reach $8.53 billion by 2030.

The Middle East's hydroponics market has experienced significant growth over the past few years. The UAE hydroponics market was valued at $114.36 million in 2024 and will reach $190.36 million by 2030. Given the region's arid climate and land scarcity, government and private entities have invested in hydroponic systems and infrastructure.

Developing countries

In the past 40 years, droughts have impacted more of the world's population than any other natural disaster. Their intensity and occurrence have increased, and developing countries bear the brunt of the consequences, including hunger, property damage, and socio-economic instability. Agriculture suffers heavily since it's the primary livelihood for nearly 40% of the world's population.

Another thing to keep in mind is food waste. The point in the value chain where food gets wasted differs between developed and developing countries. Losses and waste occur in the initial stages of the value chain in developing countries. In developed countries, food is wasted later in the chain due to consumer behaviour and in-store discounting practices. Here's more on how sustainable farming can tackle food waste.

One reason why hydroponic farming is an essential alternative to traditional agriculture is food security. Many cities and regions have limited access to grocery markets. People in rural areas might not have reliable transportation to get to far-away markets. They often rely on convenience stores with high-priced, low-quality foods. Many people in developing and poorer countries don't have the financial resources to afford nutritious produce and settle for cheaper, calorie-dense foods.

Hydroponic systems promise resource efficiency and can bridge gaps when extreme weather affects conventional farming. Hydroponic farms can operate year-round and are resilient to diverse climactic conditions. They're a practical solution to mitigate food shortages.

In regions like the UAE, which has long relied on food imports (over 90%) to feed its population, hydroponics offers a way to reduce that burden. The UAE hydroponics market has trended toward more smart farming technologies like the Internet of Things (IoT), sensors, AI, and data analytics. Here's more on technological innovations in hydroponics.

Challenges and the way forward

While hydroponic farming has several benefits, developing countries face significant challenges. One is the fragmented provision system of hydroponics, which limits its widespread adoption. The biggest groups of seed breeders and farm companies for hydroponic farming are in Western countries. It forces others to rely on imports, increasing upfront and operational costs. Another challenge is a reliance on knowledge and expertise from outside sources. Operating a hydroponic farm will be a struggle for small-scale farmers without proper aid.

Despite the hurdles, hydroponic farming in developing countries will continue to grow in the years ahead. Its rise in places like China and the UAE underscores its adaptability and resilience. At Smart Grow Farms, we're optimistic about hydroponic farming being the future of CEA, especially in developing countries.