The current agricultural system faces a mammoth task – production must increase exponentially by 2050 to feed the growing population estimated to be over 9 billion. That target won't be achieved based on the growth path of agricultural output of the past few decades. The resources used by traditional agriculture are astronomical. For example, by 2050, over 590 million hectares of land will need to be transformed into agricultural land to meet the caloric demand of the population. It's unsustainable and detrimental to the planet.

That's why controlled environment agriculture (CEA) techniques are coming to the fore. With hydroponics gaining popularity, people are experimenting with growing vegetables, herbs, and plants without using soil. While it's an environmentally friendly and organic way to grow food, getting into the market isn't as simple as having a rooftop garden.

The market

The global hydroponics market was valued at $5 billion in 2023. It's projected to grow by 12.4% from 2024 to 2030 due to the increased utilisation of hydroponic systems in the indoor cultivation of vegetables, herbs, and other plants. Consumers are increasingly aware of the adverse effects of chemical pesticides, fertilisers, and artificial ripening techniques.

There has been a noticeable increase in alternative farming techniques in regions like Europe and Asia Pacific, where water resources and arable land are increasingly scarce. Technological progress in climate control and sensing technology will positively impact market expansion. There's a strong focus on technological innovations in the hydroponic farming sector as more people and companies look to maximise its potential.

The UAE hydroponics market was valued at $114.36 million in 2024 and is projected to reach $190.36 million by 2030. Given the region's arid climate and scarcity of arable land, hydroponics offers an effective alternative for sustainable agriculture. The UAE government's focus on food security has intensified the adoption of hydroponic farming.

The necessary steps

• Research: The first step is to research hydroponics and understand the market and industry. Get to know the different types of hydroponic farming and the current trends and technologies. See examples of successful businesses and understand what makes them tick. It's also a way to research potential competitors, the customer base, and the current trends.

• Capital and design: Starting any business requires capital. To procure the required capital, ensure that your business plan is airtight. Here's where the research pays off. Create a detailed design plan to supplement your business model, which includes components like budget, product offerings, pricing structure, and marketing strategies.

• Build: Once you have the necessary capital and the business plan is approved, lock down the necessary space to house your hydroponic system. Depending on how big or small that is, purchasing or renting are options. Once it's finalised, you can construct the system based on the design plan. To start a hydroponic farm, one needs a greenhouse, nutrients, and a microclimate controller.

• Produce to commodity: Understanding which crops to grow is essential to any hydroponic farm. Here's where understanding market demand and the economic value of crops comes into play. It's necessary to sell the produce unless you're building a hydroponic system for self-sustenance. Look into innovative marketing strategies and partnerships with retail and wholesale outlets to reach customers.

Challenges

Though hydroponic farming holds immense potential, companies and entrepreneurs must navigate specific challenges in the sector. These include initial investments in renting/buying a space, materials, equipment, controlled environment technology (LED lights, watering systems, plant tracks, etc), technical expertise requirements, and the labour costs needed for constant monitoring and maintenance. These aren't necessarily cheap.

Apart from these, there are other things to consider. Depending on the type of hydroponic system, there are associated challenges. For example, a stacked rack hydroponic system can have airflow, heat, and humidity-associated risks. In a horizontal set-up, there needs to be more space between each plane to reduce the risks of poor airflow, excessive humidity, and increased vulnerability to diseases and pests.

Promising future

Sustainable farming methods like hydroponics are still in their infancy, with room to grow. That allows entrepreneurs and small companies to innovate and establish businesses that expand the market further. Hydroponic farming represents a disruptive force in the agricultural industry. As more people embrace hydroponics thanks to consumer awareness, it's poised to play a significant role in shaping agriculture's future.

By exploring and capitalising on market opportunities, hydroponic businesses can produce and increase profitability. With the right strategy and a well-rounded approach, a hydroponic farming business can succeed and thrive. At Smart Grow Farms, we're committed to expanding the knowledge base for hydroponics with our expertise and guiding people through the processes to set up world-class hydroponic farms.