The Mexico commercial greenhouse market is estimated to grow at a CAGR of 3.66%, reaching US$691.305 million in 2028 from US$537.607 million in 2021.
Mexico has a long warm season span which allows greenhouse farmers to cultivate a broad range of crops all year round. Many tropical fruits and vegetables, which are not generally grown in colder locations, can be grown in Mexico due to their moderate temperature. Further, the market is increasing due to the rising demand for fresh and healthy food products among consumers. Additionally, the usage of cutting-edge technology in commercial greenhouses, such as artificial intelligence (AI) devices, and sensors is further propelling the market's expansion.
The Potential of Commercial Greenhouses
The high-performance benefits provided by commercial greenhouses in comparison to conventional cultivation technique is accelerating their demand in ornamental and horticulture, which is witnessing significant growth in Mexico. For instance, Mexico is the third-largest ornamental grower in the world, with an estimated 23.088 hectares of cultivated land and 10.818 full-time growers who have a specific level of technical proficiency, business interest, and ability as per the Ministry of Agriculture, Labour and Food Quality, Mexico.
Rising Awareness about Modern Farming Methods
With Mexico's extensive coastline and easy access to cool water, greenhouse farmers can employ artificial cooling systems to maintain the proper temperature within their greenhouses. Mexico's warm temperature makes it a popular place for greenhouse tomato production. For instance, the Food and Agriculture Organisation estimated that in 2021, produced 4.1 million tonnes of tomatoes and 4.6 million metric tonnes of oranges. Also, in Mexico, tomatoes are grown year-round in two cycles that last 18 months, for instance, as per USDA, 3.87 million metric tonnes (MMT) of fresh tomatoes will be produced in Mexico in 2023, which is a small rise from GOM's official 2022 output forecast of 3.8 MMT. Such a positive increase in production output is expected to increase the demand for the commercial greenhouse market in Mexico.
Increasing Investment Activities
The need for commercial greenhouses is increasing in Mexico as various technological advancements are happening in the country coupled with increasing investment by major players in the country. For instance, in February 2022, Rising Farms, a Mexico-based high-tech greenhouse company will be expanding its growing acreage from 12 to 62 acres. The expansion is estimated to increase the production of the company by five times. Moreover, the temperature fluctuation in Mexico is extreme and it becomes difficult to cultivate crops all year round, which is demanding a need for a solution that can help the production of crops all year round. Hence, increasing the demand for commercial greenhouses in the country.
Market Players and Strategies
Key Market Developments
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2021 | US$537.607 million |
| Market Size Value in 2028 | US$691.305 million |
| Growth Rate | CAGR of 3.66% from 2021 to 2028 |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Million |
| Segments Covered | Type, Equipment, and Application |
| Companies Covered | RICHEL GROUP SA, Novedades Agrícolas S.A., GrowSpan Leyton Greenhouse, Gakon Netafim, Stolze |
| Customization Scope | Free report customization with purchase |
Market Segmentation: