cit_97817_2022-harvest-report_r4-digital_prod

2022 SPECIALTY CROP AUTOMATION REPORT

3.1.3 MARKET ASSESSMENT

Market share of CEA produce when compared to the total U.S. fresh produce market is estimated to be less than 2 percent today. Based on current product portfolios and sales 8 of CEA growers, the majority of CEA players are focused on fresh vegetables, fresh- cut herbs and some non-citrus fruits. Therefore, the remainder of this chapter focuses on market dynamics in the fresh vegetables and fresh-cut herbs market. As per USDA data, the total market size for fresh vegetables and fresh-cut herbs in the U.S. is estimated to be approximately $11 billion in 2021 with majority supplied by traditional outdoor growers. Currently,

CEA represents around 6 percent to 7 percent of the total fresh vegetables and fresh-cut herbs market. Based on projections from S2G ventures 9 , CEA produce is expected to grow at double digit rates and contribute approximately 10 percent to 12 percent of fresh vegetables and fresh cut herbs in the U.S. market by 2025. Despite being a niche segment of the overall fresh vegetable and fresh herbs market, CEA holds large shares of the U.S. fresh vegetable market for specific crops, such as tomatoes, cucumbers and fresh-cut herbs, primarily driven by traditional greenhouses (see Figure 2).

CEA HAS A MAJOR PRESENCE IN THE FRESH TOMATO, CUCUMBER AND HERBS MARKET, DRIVEN BY TRADITIONAL GREENHOUSES

CEA Penetration Of Fresh Crops Revenue, 2022 [USD Million; %]

Tomato

Cucumber

Fresh Herbs

Peppers

Lettuce

CEA

CEA 2%

CEA 38%

$966

$158

$210

$459

$2,767

97%

62%

69%

67%

98%

Open Field

CEA Market Splits

Traditional greenhouse CEA Start-ups (Greenhouse and vertical farms)

>95%

~70%

>95%

~50%

<5%

~30%

<5%

~50%

Source: USDA, Nielsen, Roland Berger Figure 2: CEA penetration of fresh crops revenue

8 Scandata of latest 52 weeks US-XAOC, 2021 | Nielsen 2021 9 Growing beyond the hype: Controlled environment agriculture | S2G ventures, 2020

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