Hydroponics is a technique which involves growing plants by using nutritious liquids instead of soil. The nutrient solutions used for hydroponics mostly contain the following nutrients: S, Ca, N, Ca, P and Mg. Even if hydroponics is only a particular method of growing crops without soil, the hydroponics market is often assimilated to hydroponic growing materials. 

 

The market can be segmented into two segments:

• Consumables (Garden tools & Accessories, nutrients & additives, growing media, …);
• Non- Consumables (environmental controls, hydroponic systems, lighting…).

 

This report includes hydroponic equipment manufacturers, retail centers and large urban farms.

 

Hydroponics has been receiving a lot of attention from both commercial growers and smaller craft growers. The market growth is driven by significant growth in the cannabis Industry, acceleration of CEA (control environment agriculture) adaptation and growing interest in gardening fueled by the covid-19 pandemic.

 

In late 2016, California legalized the recreational use of cannabis in the state, four years after Colorado and Washington state. In 2021, California is the largest cannabis-consuming state, followed by Colorado and Washington state. In addition, California is the leading market for CBD (cannabidiol) with more than twice the size of the second largest market in the U.S: Florida.

 

Moreover, some hydroponic growers try to scale up or transition from marijuana to other produce like leafy greens, some vegetables and fruits like tomatoes and strawberries. Covid-19 proved to be an additional driver for the home gardening market in a State where nearly half of its workforce worked from home during the pandemic.

 

In a booming California cultivation market, M&A activity is increasing as the major companies are trying to expend their activities in California. Among the most significant mergers, GrowGeneration acquired Grassroots Hydroponics in December 2020.