The hydroponics market - France

Hydroponics refers to the activity of growing plants "above ground" on a base of "neutral" and "inert" substrate (clay balls, rockwool, etc.). Although in the strict sense of the term, hydroponics refers to a particular form of soilless cultivation, it is often assimilated with all soilless farming techniques. Variants of hydroponics, such as aeroponics, aquaponics and bioponics, have been developing in recent years. The main applications for hydroponics are horticulture and the cultivation of certain types of vegetables and fruit. Hydroponics offers many advantages in that it provides solutions to the world's water shortages, as well as to the problems of pollution and land erosion. Since it does not require access to land, it also has interesting applications in urban agriculture, as underlined by the rise of vertical urban farms. What's more, hydroponic systems offer higher yields than traditional farming techniques, not least because the right nutrients are delivered directly to the plants' roots. Hydroponics generally does not require the use of artificial ripening agents and pesticides, which can help create nutritionally superior plant products. Globally, the hydroponics market is fragmented, with many agritech start-ups entering the market, such as AeroFarm (USA) or InFarm (Germany). It is estimated to beworth $12.64 billion in 2023, and is expected to grow at a compound growth rate (CAGR) of 13.7% between 2023 and 2033, reaching a value of $45.66 billion in 2033 [Future Market Insights] . This growth is driven by the world's growing population, which is spearheading demand for agricultural and food products on the market. In France, some fruit and vegetable growers see this as an opportunity: 90% of tomatoes are said to be produced hydroponically in France today[Franceinfo]. In fact, the trade balance for fruit and vegetables and also horticultural products has always been negative between 2016 and 2021, testifying to France's dependence on them. [France Agrimer] As the capital cost of hydroponics is high, the crops produced are often sold at higher prices, and until now have tended to targetniche markets. Many hopes are pinned on hydroponics, and some even see it as a technique that could revolutionize tomorrow's agriculture. However, the high cost of hydroponics, particularly energy, is a real brake on the development of certain players. For example, over the past 2 years, many start-ups creating urban farms have gone into receivership, seeing their investors pull out.[Le Monde]