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Microgreens Market, Analysis By Type (Broccoli, Cabbage, Cauliflower, Arugula, Peas, Radish, and Others), By Farming Method (Indoor Vertical Farming, Commercial Greenhouses, and Others), By End-user (Retail, Food Services, and Others), and Regional Forecast, 2024-2032
Report Format: PDF | Published Date: Ongoing | Report ID: FBI107818 | Status : UpcomingMicrogreens are tiny and tender parts of mature green leafy vegetables containing high amounts of vitamins and minerals. These are usually harvested 7-14 days after germination when they have fully developed two cotyledon leaves. Microgreens are usually used to enhance the texture, color, or flavor of foods, owing to their intense aromatic flavor. Microgreens are gaining popularity among consumers due to their reported health benefits. Consumers frequently drive new trends in the food industry, which include the increasing demand for fresh and plant-based foods. For instance, according to the Plant-Based Foods Association and the Good Food Institute report, plant-based food dollar sales grew up to 6.6%, accounting for USD 8 billion in 2022. The growing plant-based food demand propels the microgreens market growth.
The rise in adoption of farm mechanization and technological advancements related to high-tech farming methods, such as hydroponics, aquaponics, aeroponics, and others, are anticipated to propel the expansion of the microgreens industry. Therefore, various players are tapping into this market with advanced technologies to surge microgreens demand. For instance, in January 2023, Green Technology Global, a U.S. complex water and wastewater system, announced a joint venture with Teshuva Agricultural Projects Ltd. (Israel) to expand the market presence of TAPKIT Hydroponic kit for organic leafy greens.
Impact of COVID-19 on the Microgreens Market
The COVID-19 pandemic moderately impacted the microgreens market. The market was affected at different value chains stages such as raw material supply, agricultural produce, trade and logistics, and demand-supply volatility. The outbreak also created shortages in the availability of herbs and vegetable seeds for microgreen production. However, the pandemic increased consumer demand for microgreens due to their nutritional properties. The restriction on traveling and transportation led players in the microgreens industry to adopt several business strategies to fulfill consumer demand during the pandemic. For instance, in April 2020, Madar Farms, a vertical farming company, sold its microgreens directly to consumers for the first time after the initial success with the hotel industries and food service chains and the prevailing pandemic situations. The company offers seven microgreens to consumers on online platforms such as Barakat, FreshOnTable, and NarinPort.
Key Insights
The report will cover the following key insights:
- Overview of the microgreens market
- Impact of COVID-19 on the microgreens market
- Drivers of the microgreens market
- Recent investments in the market
- Recent industry developments
Analysis by Type
Based on type, the broccoli segment is expected to hold a major microgreens market share. Broccoli microgreens are known to be rich in vitamins A, B, C, E, and K and are attributed to various health benefits such as cancer prevention, fighting inflammation, improved heart health, and improved digestion. The growing population of health-conscious people and rising awareness regarding health benefits associated with broccoli microgreens are expected to surge the segment's growth.
Analysis by Farming Method
Based on farming method, the indoor vertical farming segment is expected to hold a major market share. Such farming involves growing plants indoors in layers with the help of LED lighting and controlled growing and nutrition systems. Vertical farming allows more consistent crop yield since the weather has fewer adverse effects and uses less space and water than traditional farming. Several players in the market have adopted strategies to increase the vertical farming footprint. For instance, in December 2022, GoodLeaf Farms, a Canadian vertical farming company, raised USD 110.2 million in a funding round led by local frozen potato major McCain Foods. The funding would help the company expand its indoor vertical farms into eastern and western Canada.
Analysis by End-user
Based on end-user, the food serviced segment is expected to hold a significant market share. Microgreens are extensively used in restaurants as garnishing and flavoring agents, mainly due to their flavor and texture. These crops also have longer shelf life than other fresh produce items, making them an ideal choice for restaurant kitchens. Microgreens are grown in containers or trays, and thus can be produced in an urban environment reducing the need for large agricultural areas. Thus, microgreens can be produced close to the point of consumption, which reduces transportation emissions and ensures fresher produce.
Analysis by Region
North America is expected to hold a significant microgreens market share. The U.S. and Canada are the major consumers of microgreens, owing to the rise in wellness-focused diets and growing demand for organic foods. According to the Organic Trade Association Survey 2022, between 2020 and 2021, organic sales exceeded USD 63 billion, with USD 1.4 billion (2%) total growth over the year. Furthermore, there has been a steady increase in greenhouse vegetable production, including microgreens, in Canada, which is anticipated to fuel the microgreens market growth. Prominent players in the market are adopting several business strategies to surge the demand for microgreens. For instance, in October 2022, AeroFarms, a sustainable indoor agriculture company, partnered with Whole Foods Market, a subsidiary of Amazon, an American multinational supermarket chain, to expand its microgreens business. The company provides high nutrient-density microgreens and a powerful way to boost vitamins, minerals, and phytonutrients potently. The partnership helped the company expand its business nationally.
Europe is anticipated to grow at a considerable CAGR over the forecast period, owing to the growing demand for organic foods and consumers' shift toward healthy lifestyles. Microgreens have been gaining immense popularity in the food services segment due to their flavor and taste enhancement properties, propelling market growth in the region.
Key Market Players
Key players include
- Farmbox Greens
- AeroFarms
- Good Leaf Farms
- Living Earth Farms
- Fresh Origins
- Gotham Greens
- Madar Farms
- Chef's Garden Inc.
- 2BFresh
- Bowery Farming
Microgreens Market Segmentation Analysis
By Type | By Farming Method | By End-user | By Geography |
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Key Industry Developments
- In January 2023, Sun Capital Partners, Inc., an American private equity firm specializing in leveraged buyouts, completed the acquisition of Fresh Origins, a market-leading grower and shipper of microgreens and edible flowers for food service and retail customers. The acquisition would help Fresh Origins to expand its position in the growing market of microgreens.
- In May 2022, U.S. Foods Holding Corp., an American food service distributor, announced a strategic agreement with Kalera, one of the world's leading hydroponic indoor vertical farming companies. The partnership would bring food service operators a broad assortment of high-quality produce year-round and make fresh microgreens available to restaurants and other food service operators.
- Global
- 2023
- 2019-2022