Market Overview

The domestic operational market size for lettuces grown in plant factories fully using artificial lights for FY2021 has reached 22,300 million yen, 159.8% of the size of tFY2020, based on the shipment values at producers of plant factory vegetables. The market size is projected to be 28,100 million yen in FY2022, 126.0% of the previous fiscal year.

Because 90% of those plants grown at domestic plant factories using artificial lights are occupied by lettuces, this press release has calculated the market size of lettuces that dominate overwhelming items grown.

Amid the coronavirus crisis, consumer consciousness of food sanity and food safety has remained high. Vegetables produced at plant factories are highly valued by consumers, because they are sold in packs, making them a clean image, and because they have smaller amount of bacteria than vegetables grown outdoor.

In addition, in the situation where international unrest is observed, the efforts on food security is increasing, including risk analysis and assessment, such as understanding of agricultural production and food trading statuses, securing or improving of stable supply during normal times, and responding to any unexpected matters. In such circumstances, vegetables grown at plant factories are attracting attention as a potential solution to the issues mentioned above, because of thorough quality and hygiene management that can stably produce and supply the plants throughout the year.

When viewed by whether for business use or commercial use, the ratio of business use has remained growing. Demand for those vegetables grown at plant factories is increasing, as some vegetables cut in pieces for ready-to-eat meals that include fresh spring rolls, salads and sides for main dishes at restaurant chains, salads and sandwiches sold at convenience stores, etc. While procurement of vegetables grown outdoors is becoming more difficult year by year due to volatile price fluctuation caused by climate changes and abnormal weathers, business users value factory-grown vegetables produced in sealed, weather-proof environment because of stable availability, price and quality.

Noteworthy Topics

New Items to Grow: Planning for Leaf Vegetables, Strawberries, Spinaches, etc.

Plant factories fully using artificial lights enjoy stable demand throughout the year. Lettuce production is the mainstream, due to lower amount of light (radiation) needed and easier to grow than fruit vegetables. Meanwhile, production of other high-value added, promising plants has been groped for, such as strawberries and spinaches.

Strawberries have weakness in heat, so that the shipment volume significantly differs by season. Yet, the demand for strawberries is strong all year round to be used for cakes and confectionery. In the hot summer season, the demand for strawberries tends to be met by importing from overseas. Conventionally, growing strawberries under full artificial lights used to have faced high hurdles such as a profitability issue. In recent years, however, improvement in LED technologies together with the progress in studies on fruit vegetable cultivations has increased the number of businesses entering strawberry production.

Large-scale spinach production projects have manifested. Increase of businesses entering spinach production at plant factories is expected to expand the use of frozen spinaches let alone those for freshly eaten ones.

Future Outlook

Development in product varieties is expected in addition to lettuces, such as kale, spinach, herbs, and strawberries.

At plant factory operators, business projects, such as new construction of a large-scale plant factory with a capacity of more than a ton per day, have become apparent. The market is projected to expand furthermore. The operational market size for lettuces grown in plant factories fully using artificial lights is expected to reach 45,000 million yen by FY2026, based on the shipment values at producers of plant factory vegetables.  

Research Outline