Australia Greenhouse Horticulture Market Research Report: Forecast (2026-2032)

Australia Greenhouse Horticulture Market Size: Forecast (2026-2032)

The Australia Greenhouse Horticulture Market size is valued at around USD 883 million in 2025 and is projected to reach USD 1102 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 3.22% during the forecast period, i.e., 2026-32.

Australia Greenhouse Horticulture Market Outlook:

Australia’s Greenhouse Horticulture Market is increasingly shaped by the structure and expansion of downstream industries, particularly the food-processing sector, which is one of the country’s largest manufacturing contributors. For instance, the Australian food industry consistently accounts for around 20% of domestic manufacturing sales and service income in the country. The food processors are shifting toward greenhouse-grown produce for better supply-chain stability and lower risk of weather disruption.

Also, the hospitality industry, including restaurants, hotels, catering, etc., is fueling greenhouse-grown produce demand. For instance, Australia recently launched a USD17.5 million research hub for protected-cropping at La Trobe University to improve yield, quality, and supply-chain resilience. This kind of investment underscores how food-service and premium-produce markets are supporting greenhouse expansion. Because hospitality demands high-quality, fresh, uniform produce, especially herbs, leafy greens, and premium tomatoes, growers are opting for modern structures to meet those needs.

The market is further influenced by the nation’s shift toward climate-resilient farming, responding to increasing heatwaves, water scarcity, and weather unpredictability. According to the Department of Agriculture, Fisheries and Forestry, agriculture uses 9,981 gigalitres of water (2021-22) and covers 55 % of land, which emphasises the pressure on resource-intensive systems. In this context, protected cropping is seen as a way to mitigate climate-related losses. For instance, a national mapping project found 13,932 hectares of protected-cropping systems and 4,473 hectares of actual greenhouses across Australia in 2023. These facts illustrate how structural challenges in climate, land, and water are driving greenhouse adoption.

Moreover, Australia’s strong export performance in horticulture continues to elevate greenhouse demand. As noted, horticulture in 2024 was valued at USD11.9 billion. Greenhouses support export compliance by enabling consistent quality, reduced pesticide exposure, and year-round production. These factors highlight how export and premium domestic markets are major drivers of greenhouse infrastructure investment.

Australia Greenhouse Horticulture Market Recent Developments:

• 2024: Flavorite introduced automated spraying and pollination platforms in its greenhouse tomato operations to reduce labour demands and improve crop productivity. The technology helps maintain consistent pollination and uniform spraying, supporting higher yields and more efficient greenhouse management across its sites.
• 2025: Goodness Grown, a new tomato-focused greenhouse producer, entered a marketing and distribution partnership with Premier Fresh Australia to expand its reach nationwide. The collaboration helps the company supply high-quality greenhouse-grown tomatoes to major retailers across Australia.

Australia Greenhouse Horticulture Market Scope:

Australia Greenhouse Horticulture Market Drivers:

Rising Climatic Pressure Accelerating the Shift to Controlled-Environment Horticulture

Australia’s shift toward resilient horticulture is becoming a major driver for greenhouse adoption as growers face mounting pressure from water scarcity and climate variability. The national protected-cropping roadmap highlights that using shelters and climate-controlled structures can reduce water use by over 40% compared with traditional open-field farming. At the same time, climate assessments show that rising heat stress and increasingly irregular rainfall patterns are shortening reliable outdoor growing periods, pushing growers toward systems that offer stable year-round conditions.

Water constraints further reinforce this transition. According to the Australian Bureau of Statistics, irrigated agriculture in the Murray–Darling Basin used 4.9 million megalitres of water in 2020–21, equivalent to about 62% of Australia’s total irrigation water use. This heavy reliance on irrigation highlights the need for more efficient production systems. Greenhouses, with their controlled irrigation and reduced wastage, offer a practical solution, making climate-resilient production a key driver of market growth.

Australia Greenhouse Horticulture Market Trends:

Indoor Vertical & High-Tech Systems Gaining Traction

Indoor and high-tech greenhouses are gaining traction in Australia as growers look for systems that deliver higher productivity and greater climate resilience. These facilities provide full control over temperature, humidity, CO₂, and lighting, allowing year-round output even during heatwaves or droughts. For reference, vertical and indoor farms in Australia report up to 95% water savings, making them far more efficient than traditional soil-based greenhouses. Additionally, stacked-tray layouts significantly increase yields per square meter, while sealed environments reduce pest pressure and cut pesticide use.

Companies such as Stacked Farm in Queensland, which produces around 400 tons of leafy greens annually, and InvertiGro in Sydney, which offers modular high-tech systems, highlight this shift. Similarly, Sundrop Farms uses solar-powered, climate-controlled greenhouses to maintain consistent production in arid regions. Overall, automation, LED lighting, and controlled-environment systems are shaping Australia’s future high-value greenhouse horticulture segment.

Australia Greenhouse Horticulture Market Challenges:

Rising Energy Costs and Labor Constraints Limiting Greenhouse Scalability  

This market faces strong pressure from rising operational costs, particularly electricity, which is essential for heating, cooling, and supplemental lighting in controlled-environment systems. Wholesale electricity market data show that in several regions, average quarterly spot prices ranged from USD 53/MWh to USD 82/MWh in 2024, increasing the cost burden on high-tech greenhouses, hindering market growth.

Additionally, the labor constraints further intensify these operational challenges. The National Agricultural Workforce Strategy identifies persistent shortages in skilled horticultural labor, including technicians, hydroponic specialists, and crop-management staff essential for protected-cropping operations. Compounding this issue, Australia’s agriculture sector employs around 250,000 people, yet faces structural demographic pressures; the average farmer is 56 years old, approximately 17 years older than the national average worker. This ageing workforce and limited availability of specialized labor restrict the scalability of greenhouse operations, hinder the adoption of advanced systems, and increase production risks.

Australia Greenhouse Horticulture Market (2026-32) Segmentation Analysis:

The Australia Greenhouse Horticulture Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Product Type

• Vegetables
• Fruits
• Herbs and Spices
• Others (Flowers and Ornamentals)

Vegetable production dominates Australia’s greenhouse horticulture industry due to its higher value and volume compared with other crops. For instance, the Australian Bureau of Statistics reports that in the 2023-24 financial year, vegetables were valued at USD3.8 billion, and total vegetable production reached about 3.8 million tons. Out of this, Potatoes were valued at USD0.71 billion, with output rising by 67,000 tons to 1.5 million tons, while tomatoes, a key greenhouse crop, were valued at USD388.77 million, with production increasing by 116,000 tons to around 438,000 tons. This scale makes vegetables the most reliable crop for growers investing in high-tech greenhouses, where climate control, hydroponics, and fertigation systems help maintain stable yields throughout the year.

Based on Greenhouse Type

• Net Houses
• Polytunnels
• Glasshouses
• Plastic Greenhouses
• High-tech Greenhouses

The plastic-greenhouse segment leads Australia’s greenhouse horticulture industry due to its cost-effectiveness and flexibility. For instance, a review of protected-cropping in Australia notes that globally, around 90% of permanent greenhouse-vegetable area is covered in plastic, underscoring how plastic structures dominate production systems.

In Australia, plastic-film, polycarbonate, and polyethylene greenhouses are increasingly preferred by growers for vegetables and herbs due to lower capital cost and faster build-out times. Glasshouses, while offering premium quality, are often too expensive for large-scale vegetable operations. These attributes mean that plastic-greenhouse systems are consistently chosen for large commercial cropping operations in Australia, making them the dominant structure type in the controlled-environment horticulture sector.

Leading Players of the Australia Greenhouse Horticulture Market:

• Select Harvests Limited

Select Harvests, established in 1982, is one of Australia’s leading horticulture and almond producers, and while primarily focused on nut cultivation, the company contributes to the greenhouse ecosystem through its advanced water-management practices, nursery operations, and precision-agriculture capabilities. Its emphasis on sustainable irrigation and controlled-environment seedlings indirectly strengthens greenhouse adoption across high-value horticulture segments.

• Sundrop Farms

Sundrop Farms, established in 2009, is a pioneering grower known for integrating renewable energy, seawater desalination, and climate-controlled greenhouses to produce premium truss tomatoes. Its solar-thermal greenhouse model demonstrates how sustainable technology can support year-round production with minimal freshwater use. Sundrop’s large-scale facilities in South Australia serve as a flagship example of technologically advanced protected cropping in the national market.

• Flavorite Hydroponic Tomatoes

Flavorite, established in 1993, is a major hydroponic tomato producer operating extensive glasshouse complexes across Victoria. The company specializes in high-yield varieties grown under precision climate control, contributing significant volume to domestic retailers. Its continuous expansion of automated glasshouses and adoption of energy-efficient climate systems strengthen the operational benchmark for commercial greenhouse production in Australia.

Costa Group Holdings Limited, Fernland, Powerplants Australia, Priva, Perfection Fresh, Green Camel, Growtex, Premier Fresh Australia, and others are the key players of the Australia Greenhouse Horticulture  Market.

Australia Greenhouse Horticulture Market (2026-32): Regional Projection:

The south region of Australia is the clear leader in the country’s greenhouse horticulture market because it has the largest greenhouse-growing area and the highest output. South Australia dominates this region, mainly through the Northern Adelaide Plains, which is recognized as one of Australia’s most important high-tech food-growing zones. This area alone produces over USD 234 million worth of crops every year and contains more than 1,000 hectares of greenhouse production, making it the largest undercover cropping region in the Southern Hemisphere.

Supporting this dominance, research shows South Australia has around 580 hectares of greenhouse vegetable-growing area, more than any other state, while New South Wales has about 500 hectares and Victoria around 200 hectares. In 2024, Centuria Capital acquired a major USD21.5 million greenhouse and glasshouse facility in the Adelaide Plains, one of the country’s largest and most advanced protected-cropping hubs.

Gain a Competitive Edge with Our Australia Greenhouse Horticulture Market Report

• Australia Greenhouse Horticulture Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Australia Greenhouse Horticulture Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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