Chemical Research Report Greenhouse Produce Market | Page 2

glass greenhouses are constructed with high-tech production facilities for vegetables or flowers.
The glass greenhouses are equipped with screening installations, cooling and lighting, heating,
and may be automatically controlled by a computer. Greenhouses protect the crops from various
diseases, especially those which are soil born and tumble onto plants in the rain. Major
advantage of greenhouse produce is season extension. Protected crops are less likely to get
damaged by wind, rain, and hail so the percentage of marketable products is higher.
Market Dynamics
Major driver for greenhouse produce market growth is increasing demand for more intensive
production of crops due to limited land, water, and labor. Regional governments are taking
initiatives to develop new greenhouse production units. For instance, according to the Russian
Federation Ministry of Agriculture, in 2016, 160 ha area of modern greenhouses were built in
Russia.
Greenhouse production is more expensive than producing the same crop in the open field.
Important factors determining costs of greenhouse production are depreciation of the structure
and equipment, energy, labor, and variable costs such as plant material and fertilizer. According
to the article published in an International Journal of Environmental Sciences, in 2013,
comparison of the selling price of an open field and greenhouse cultivated tomatoes concluded
that the selling price of greenhouse grown tomatoes was US$ 0.22 more than the open field
grown tomatoes. Such factors are major challenges for growth of the market over the forecast
period.
Market Outlook
According to global greenhouse produce market analysis, North America held the dominant
position in the market in 2017, owing to high presence of vegetables and fruits manufacturers in
the region, which are estimated to maintain dominance in market throughout the forecast
period.
Increasing disposable income is expected to propel demand of greenhouse produce in the Asia,
Latin American and Eastern Europe. Shandong is a leader in protected cultivation in China.
Shandong has the largest surface area of greenhouses in China. The protected area totaled over
973,000 ha (including 300,000ha solar greenhouses and the rest of different sized tunnels) in
2015.