Greenhouse Horticulture Market Trends

Growth Drivers

• Rising demand for year-round fresh produce: Consumers expect proper access to fresh and high-quality fruits, vegetables, and ornamentals throughout the year. Therefore, greenhouse horticulture enables growers to mitigate the seasonal limitations and supply fresh produce continuously. As per the article published by USDA in April 2025, USDA NIFA-funded researchers are developing best practices for growing culinary herbs in controlled environments such as greenhouses and indoor farms to increase local, year-round production, improve flavor and yield, and reduce reliance on imports, which total more than USD 294 million annually. Based on the government data, their work addresses factors such as light, water, seed density, and disease management, whereas the project aims to boost domestic herb use by 1% to 5%, increasing annual economic returns by USD 1.25 million to USD 6.25 million and supporting local economies, benefiting the overall greenhouse horticulture market growth.
• Urbanization and changing dietary patterns: The aspect of rapid urban population growth is shifting dietary preferences toward fresh, nutritious produce, whereas the proximity of greenhouse facilities to urban centers reduces transportation time and costs. In September 2024, BrightFarms announced that it had inaugurated its new 8-acre greenhouse hub in Yorkville, Illinois, which is the first of three regional hubs launching in 2024, tripling the company’s capacity to supply fresh, locally-grown leafy greens across the eastern and central U.S. The three hubs in Illinois, Texas, and Georgia will collectively increase production to 150 million pounds of leafy greens annually, using advanced greenhouse technology to maintain optimal growing conditions year-round. It is backed by Cox Enterprises, wherein BrightFarms aims to serve over two-thirds of the U.S. population and generate more than USD 300 million in revenue by the end of 2026, providing pesticide-free greens contributing to the greenhouse horticulture market growth.
• Resource efficiency and environmental constraints: Greenhouses improve water and land use efficiency when compared with traditional agriculture. Also, the controlled environments reduce water consumption through precision irrigation, enable integrated pest management, and optimize nutrient delivery, driving business in the greenhouse horticulture market. In February 2023, Realty Income Corporation and Plenty Unlimited together announced that they had formed a strategic alliance to support the development of Plenty’s indoor vertical farms, with up to USD 1 billion allocated for property acquisition and development funding, leased to Plenty under long-term net leases. The first farm is near Richmond, Virginia, will grow strawberries with Driscoll’s and serve the northeast market, whereas the future multi-farm campus is expected to produce over 20 million pounds of produce annually across multiple crops, hence denoting a positive greenhouse horticulture market outlook.

Challenges

• Energy dependence and sustainability constraints: This is the major obstacle for the expansion of the greenhouse horticulture market. The operations in this field are mostly energy-intensive, which rely on electricity and fuel for heating, cooling, lighting, and ventilation.  Also, the dependency on fossil fuels makes it challenging for growers to price fluctuations as well as bureaucratic hurdles associated with carbon emissions. Meanwhile, the aspect of renewable energy solutions, such as solar, geothermal, and biomass, offers long-term sustainability, whereas their adoption necessitates additional capital as well as technical expertise. Moreover, increasing environmental regulations and sustainability standards are encouraging growers to reduce carbon footprints, making energy management a very critical challenge for maintaining regulatory compliance in the worldwide greenhouse horticulture market.
• Labor shortages and skill gaps: The greenhouse horticulture market faces considerable challenges owing to the rising wages and the shortage of skilled work personnel, who are capable of operating the advanced systems. Modern greenhouses rely on automation, climate control software, and data-based decision-making, most of the time, which in turn requires technical expertise that is often scarce, particularly in terms of rural areas. On the other hand, seasonal labor dependency adds complexity, wherein fluctuations in workforce availability impact production schedules in this field. The aspect of training and retaining skilled workers increases operational costs, whereas the labor shortages can limit expansion plans, creating a barrier for smaller growers.