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Industry News | 3 min read
August 2, 2023
August 2, 2023

Greenhouse produce sales increase in North America.

Greenhouses are protective structures with advantages over open-air production. Their ability to maximize crop yield and offer year-round growing conditions have made them increasingly popular with farmers.

The “Commercial Greenhouse Market Report 2022” from Research and Markets indicates that the commercial greenhouse market in North America is experiencing significant growth in greenhouse product sales. The United States leads the way with a compound annual growth rate of 12%, although Canada is also experiencing increased sales.

This regional trend aligns with growth in global markets, as worldwide commercial greenhouse sales are expected to reach $56.4 billion by 2028, with a CAGR of 8.9%, a market that reached $32 billion in 2022.

The three most important factors driving growth are:

1. Increased consumer demand

Growing demand for year-round access to fresh produce is driving the rise in the popularity of glasshouse-grown produce.

In an increasingly busy and fast-paced world, consumers are looking for healthy food and products suitable for their daily diet, and greenhouse produce offers a perfect solution because it guarantees a constant supply of fresh food.

In addition to convenience and availability, greenhouse produce also meets consumer expectations for quality and sustainability because it’s a production system that prioritizes optimizing resources such as water and nutrients.

2. Challenges of climate change

In recent years, climate change has created several challenges for farmers in North America, with long periods of drought and increasingly frequent heat waves that negatively affect open-air food production.

However, greenhouse produce has emerged as a promising solution to overcome these challenges and ensure a steady supply of fresh, healthy food. Greenhouses provide a controlled environment where growers can regulate temperature, humidity and other environmental factors to create optimal conditions for plant growth.

This means crops are protected from extreme temperature fluctuations and adverse weather conditions, ensuring stable quality virtually all year round. Farmers in the region recognize these advantages and are investing in the construction and expansion of greenhouses to meet the growing demand for fresh produce throughout the year.

3. Higher yields

As these are controlled environments, greenhouses allow for optimized growing conditions, which significantly increase productivity.

Greenhouses are estimated to provide more than 15 times the yield of field crops on the same farmland. This increased efficiency is due to farmers’ ability to control climatic variables and grow throughout the year.

Another important aspect is that greenhouses allow more precise and efficient management of pests and diseases since they limit the exposure of crops and reduce the need to use pesticides compared to open-air crops.

Investment in greenhouses, a need for the future

With the increase in demand for greenhouse produce, agricultural production companies must invest in their infrastructure. They need flexible financing solutions adapted to their needs that will allow them to expand their operations.

With Pre-Season financing, Produce pay offers farmers a solution to obtain the resources they need. With our financing tools, they can access funds in advance based on their future harvests and guarantee the success of their greenhouse projects.

Sources: The Packer, Imarc