Report Overview

Limited arable land and increasing demand for high-quality and safe produce are expected to boost the growth of Vietnam Hydroponics Market during the forecast period between 2023 and 2029.

Vietnam Hydroponics Market - Industry Trends & Forecast Report, 2029

Vietnam hydroponics market size was estimated to be worth USD 50.19 million in 2022. During the forecast period between 2023 and 2029, the Vietnam hydroponics market size is projected to grow at a CAGR of 10.37%, reaching a value of USD 90.73 million by 2029. Major growth factors for the Vietnam hydroponics market include rising demand for crop yield and agriculture production owing to increasing population along with expanding demand for organic crops as a result of increasing awareness of the negative impact of chemical fertilizers on human health and the environment.

Vietnam Hydroponics Market – Overview

Hydroponics is a subset of hydroculture. In hydroponics, plants are grown without soil using water-based mineral fertilizer solutions. These plants are typically agricultural or medicinal. Hydroponics aids in increasing agricultural productivity in places with barren soil. In the same amount of land, they generate three to 10 times as much food as traditional agriculture. Additionally, the plants grow in half the time. Herbicides and pesticides are not required since the crops grown in this way are healthier and less vulnerable to pests and illnesses.

Vietnam Hydroponics Market

Growth Drivers

Increasing Demand for High Quality and Safe Produce

The farmers don't require any pesticides or herbicides for the plants since hydroponic farming doesn't attract weeds and pests as conventional farming does. This helps the market expand, especially if food crops are being grown. Since pesticides and herbicides are not used, the hydroponic produce that gardeners harvest is free of any hazardous compounds that may be harmful. As a result, there is a growing consumer demand for organic products in Vietnam, which is driving up demand for hydroponics in the country.

Restraints

High Initial Setup Costs

Hydroponic farming, in contrast to traditional soil-based farming, requires expensive equipment (particularly during the initial setup). Whatever type of system the grower chooses to construct, they will need containers, excellent lighting, a precise timer, and premium fertilizers. On a broad scale, it also produces a low return on investment. That is mostly due to high start-up costs and fluctuating profits. To encourage farmers to pursue hydroponic farming economically, a good, viable plan has yet to be developed.

Impact of COVID-19 on Vietnam Hydroponics Market

The Vietnam hydroponics market growth was hindered during the initial COVID-19 pandemic outbreak. This is mainly due to the restrictions on the supply chain and cross-border trade which directly affected the supply of input materials for the hydroponics system. However, the market is anticipated to gain new growth opportunities in the post-COVID-19 period. Vietnam focused on overcoming the disruptions in the global supply chain and boosting the local production of crops and vegetables through hydroponics systems to meet the rising domestic demand for agricultural produce.

Vietnam Hydroponics Market

Segmental Coverage

Vietnam Hydroponics Market – By Type

Based on type, the Vietnam hydroponics market is split into aggregate systems and liquid systems segments. The liquid systems segment holds a larger share in the Vietnam hydroponics market by type and is projected to register a higher growth rate during the forecast period as well. The growth of the segment is mainly attributed to its increasing popularity among growers. The cultivation procedure is simpler in non-aggregate (liquid) systems since no solid medium is required and the roots are simply dipped into the nutrient solution.

Vietnam Hydroponics Market – By Equipment

Based on equipment, the Vietnam hydroponics market is segmented into HVAC, LED, grow lights, control systems, irrigation systems, and others. The HVAC segment accounts for the highest market share. The HVAC system may be the most crucial component of a hydroponic farming operation. The use of LED lighting generates a lot of heat to get the correct spectrum of light for plant growth. To provide the right spectrum of light for development, LED lights are used, however, they generate a lot of heat. To remove the heat and guarantee appropriate ventilation to avoid cold spots, HVAC equipment is also used in the same settings.

Vietnam Hydroponics Market – By Input

Based on input, the Vietnam hydroponics market is segmented into nutrient and growth media. The nutrient input segment holds a larger share in the Vietnam hydroponics market and is also projected to witness the highest growth rate during the forecast period. Before beginning any agricultural activity, producers may examine the type and quantity of nutrients that a particular crop requires, and the hydroponics system provides the nutrients to the crop at different stages to promote healthy growth.

Vietnam Hydroponics Market – By Farming Method

Based on farming method, the Vietnam hydroponics market is bifurcated into indoor and outdoor segments. The indoor hydroponics segment accounts for a larger market share. Indoor farming method eliminates the need for soil and offers optimal use of the limited available land. Furthermore, hydroponic growers have complete control over the environment, much like in greenhouses. According to their needs, they can change the temperature, the brightness of the light, and the humidity levels, which provide a suitable environment for growing exotic crops.

Vietnam Hydroponics Market – By Crop Type

Based on crop type, the Vietnam hydroponics market is segmented into lettuce, sweet potato, tomato, cucumber, melon, and others. The tomatoes segment dominates the Vietnam hydroponics market by crop type. Tomatoes have a higher growth rate through hydroponics methods and require less water compared to traditional agriculture. Tomatoes can be raised hydroponically in a controlled environment with a lower risk of plant disease, quicker plant development, and a larger crop yield. Cucumber is also gaining significant traction in the market owing to its rising demand in the country and high dependence on exports for domestic consumption.

Competitive Landscape

Major players operating in the Vietnam hydroponics market include GreenFarm Vietnam, CityFarm Vietnam, VietGAP Hydroponic Vegetable, Duong Minh hydroponics, Fresh Studio Innovations Vietnam, Urban Farm Vietnam, Agripolis Vietnam, Nông Sản Sạch Sản Việt, Vertical Farm Vietnam, and Greenhouse Vietnam.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2022 – Hachi, an agritech startup based in Vietnam, introduced a smart hydroponic system for urban homes and farms.

Scope of the Report

By Type

• Aggregate Systems

• Liquid Systems

By Equipment

• HVAC

• LED Grow Light

• Control Systems

• Irrigation Systems

• Others

By Input

• Nutrient

• Growth Media

By Farming Method

• Indoor

• Outdoor

By Crop Type

• Lettuce

• Sweet Potato

• Tomato

• Cucumber

• Melon

• Others