Microgreens Market

The market size of microgreens was estimated at USD 0.9 billion in 2021. Over the forecast period (2023 - 2030), the microgreens market industry is expected to grow from USD 1.02 billion in 2023 to USD 2.48 billion by 2030, with a compound annual growth rate (CAGR) of 13.50%. The increasing demand for premium food products and the rising consumer awareness of the health benefits associated with microgreens are the primary factors driving the growth of the market.

Microgreens Market Trends

• Rise in adoption of indoor farming to boost the market growth

To increase awareness, microgreens require an extensive distribution network and advertising. The availability of microgreens has improved due to the expansion of major retail establishments like supermarkets and hypermarkets in developing economies. These stores play a crucial role in promoting nutritious foods, including microgreens. The retail industry is expected to witness further growth with urbanization, facilitating the distribution of packaged fruits, vegetables, and other agricultural products.

Technological advancements are a significant trend in the microgreens market. Artificial intelligence is being utilized to enhance the quality of production. Smart-sensing ICT platforms, equipped with AI capabilities, are employed to monitor the growth of microgreens. These systems provide alerts in case of any issues and determine the optimal time for harvesting. For example, GOhydro developed a smart-sensing, AI-driven hydroponic platform for domestic use, enhancing the production of hydroponically grown microgreens.

The popularity of microgreens is expected to increase as indoor and vertical farming gain prominence. Vertical farming, where crops are grown in a controlled, stacked environment, offers advantages such as higher crop production, lower labor costs, and sustainable urban growth. Microgreens, due to their small size, are often cultivated using indoor vertical farming techniques. Bayer predicts that by 2022, there will be a significant global presence of indoor farms, further boosting the growth of the microgreens market.

The expansion of the microgreens market is influenced by several factors, including increased consumer spending on premium food products and growing consumer awareness of the health benefits associated with microgreens. Additionally, the presence of restaurants and specialty food stores that offer customers a diverse culinary experience contributes to the market's revenue growth.

Microgreens Market Segment Insights

Microgreens Type Insights

The microgreens market is categorized into various types, such as broccoli, cabbage, cauliflower, arugula, peas, basil, radish, and cress. Among these, the broccoli segment accounted for the largest share of the microgreens market revenue in 2021. Broccoli consumption is linked to numerous health benefits, including anti-inflammatory properties, cancer prevention, improved heart health, and enhanced digestion. As awareness of the health advantages of broccoli spreads and the cultivation of microgreens in rooftop and park gardens becomes more popular, the demand for broccoli microgreens is expected to increase.

Microgreens Farming Insights

The microgreens market is divided into two farming segments: indoor vertical farming and commercial greenhouses. In 2021, indoor vertical farming dominated the market and is projected to grow at a faster rate during the forecast period from 2022 to 2030. Indoor vertical farming is the primary method for producing microgreens and is expected to see high utilization in the coming years. This growth is driven by advancements in indoor vertical farming technology, such as remote operations, the integration of information technology, and the ability to manage operations through mobile applications. These technological advancements, along with features like automatic irrigation and fertilization, have a positive impact on market growth.

Microgreens Distribution Channel Insights

In terms of distribution channels, the microgreens market is segmented into retail stores and farmer's markets. The farmer's market segment was the dominant segment in 2021 and is projected to grow at a faster rate during the forecast period. Farmer's markets have gained popularity among health-conscious individuals as they provide easy access to fresh and nutritious food. Consumers can find organic items, fruits, and vegetables more easily, making farmer's markets an ideal platform for offering microgreens. Additionally, farmer's markets are preferred by microgreens growers due to lower transportation and refrigeration requirements, higher profits, and shorter storage times. The farmer's market also offers consumers a wider variety of food options, including organic and inorganic products, at competitive prices compared to supermarkets and hypermarkets.

Microgreens End User Insights

Based on end users, the commercial sector held the largest market share in 2021. The demand for microgreens is expected to increase in industries such as food services, personal care, cosmetics, and herbal medicine. Market participants are continuously modifying and innovating both existing and non-microgreen products to cater to the needs of the commercial sector.

Microgreens Regional Insights

Geographically, the study covers North America, Europe, Asia-Pacific, and the Rest of the World. The North America market exhibited significant growth in 2021 and is expected to continue growing at a considerable CAGR during the study period. This growth can be attributed to the rising popularity of organic farming and the increasing consumer awareness of healthy food choices. Microgreens have benefited from the trend of adding them to salads and organic foods.

In Europe, the microgreens market holds the second-largest market share, with rapid adoption of indoor vertical farming technology and increasing popularity among health-conscious consumers. Among European countries, Germany has the largest market share, while the UK has the fastest-growing microgreens market.

The Asia-Pacific microgreens market is expected to grow at the fastest CAGR from 2023 to 2030. Microgreens are suitable for cultivation in small spaces, making them ideal for countries like China and India where outdoor and indoor space is limited. China has the largest market share in the Asia-Pacific region, while India has the fastest-growing microgreens market.

Microgreens Key Market Players & Competitive Insights

Major players in the microgreens market are allocating significant investments in research and development (R&D) to expand their product lines and drive further growth in the industry. These market participants are implementing various strategic initiatives to increase their market presence, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaborations with other organizations. In the increasingly competitive and expanding market environment, competitors in the microgreens industry must offer cost-effective products to expand and thrive.

Manufacturing locally to reduce operating costs is one of the primary business strategies adopted by manufacturers in the microgreens industry. This approach has yielded significant benefits in recent years. Leading players in the microgreens market, such as AeroFarms, Fresh Origins, Gotham Greens, Madar Farms, and others, are investing in research and development activities to drive market demand.

AeroFarms, a sustainable indoor agriculture company based in Newark, New Jersey, utilizes a patented aeroponic growing system to cultivate food. The company owns and operates four farming facilities in and around Newark, employing aeroponic technology. Aeroponics, unlike hydroponics, uses a closed-loop system to mist the roots of greens with nutrients, water, and oxygen. AeroFarms uses a growing cloth medium made of post-consumer recycled plastic that is free of BPA. The cloth can be fully sanitized and reseeded without contamination after harvest. In 2021, AeroFarms, a leader in indoor vertical farming, expanded its distribution of leafy greens to over 350 Stop & Shop stores in the Northeast and New England regions, including New Jersey, New York, Connecticut, Massachusetts, and Rhode Island.

Additionally, Living Earth Farm, one of the largest farms specializing in organic microgreens and baby greens in Canada, is based in Toronto. The farm focuses on producing microgreens that are more nutritious, flavorful, and fulfilling compared to conventionally produced varieties. In January 2019, Living Earth Farm introduced its first three flagship products, including Micro basil, Micro cilantro, and rainbow micro mix, which were tested in health food stores.

Key Companies in the microgreens market include

• AeroFarms
• Fresh Origins
• Gotham Greens
• Madar Farms
• 2BFresh
• The Chef's Garden Inc.
• Farmbox Greens LLC
• Living Earth Farm, among others

Microgreens Industry Developments

In 2020, GoodLeaf Farms, the largest commercial vertical farming company in Canada, announced its expansion plans. They intended to construct a 74,000-square-foot indoor vertical farm in Calgary's industrial park on 108 Avenue SE. The construction is projected to be finished by the end of 2022.

Also in 2020, Aerofarms and Precision Indoor Plants collaborated on the Lettuce Project. This initiative leverages advanced indoor agricultural science and technology to enhance the shelf life of lettuce. The project aims to provide consumers with more marketable food, reduce waste, and increase profits for farmers.

Microgreens Market Segmentation

The market size of microgreens was estimated at USD 0.9 billion in 2021. Over the forecast period (2023 - 2030), the microgreens market industry is expected to grow from USD 1.02 billion in 2023 to USD 2.48 billion by 2030, with a compound annual growth rate (CAGR) of 13.50%. The increasing demand for premium food products and the rising consumer awareness of the health benefits associated with microgreens are the primary factors driving the growth of the market.

Microgreens Industry Developments

• In 2020, GoodLeaf Farms, the largest commercial vertical farming company in Canada, announced its expansion plans. They intended to construct a 74,000-square-foot indoor vertical farm in Calgary's industrial park on 108 Avenue SE. The construction is projected to be finished by the end of 2022.
• Also in 2020, Aerofarms and Precision Indoor Plants collaborated on the Lettuce Project. This initiative leverages advanced indoor agricultural science and technology to enhance the shelf life of lettuce. The project aims to provide consumers with more marketable food, reduce waste, and increase profits for farmers.

Microgreens Market Segmentation

Microgreens Type Outlook

• Broccoli
• Cabbage
• Cauliflower
• Arugula
• Peas
• Basil
• Radish
• Cress

Microgreens Farming Outlook

• Indoor Vertical Farming
• Commercial Greenhouses

Microgreens Distribution Channel Outlook

• Retail Stores
• Farmers Market

Microgreens End User Outlook

• Residential
• Commercial

Microgreens Regional Outlook

• North America
• US
• Canada

Europe

• Germany
• France
• UK
• Italy
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Australia
• Rest of Asia-Pacific

Rest of the World

• Middle East
• Africa
• Latin America