Under Cover Vegetable Growing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC A0122Revenue
$943.3m
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,206
Businesses
1,188
Wages
$XXX.Xm
Under Cover Vegetable Growing in Australia industry analysis
The enhanced yield, consistent supply and expedited growth offered by indoor options like greenhouses have steered a fundamental transition among farmers from outdoor to under cover cultivation. Growing interest in under cover operations is contributing to a 2.7% rise expected in industry revenue over the five years through 2023-24, to an estimated $943.3 million.
Trends and Insights
- Industry farmers have performed well in the past few years, thanks to the controlled environments they use for cultivation. Greenhouses yield more produce, provide a consistent supply and speed up growth, slowly popularising under cover farming over outdoor farming.
- Truss or vine-ripened tomatoes, favoured for their taste and constant supply, are highly sought after by Australia's supermarkets. With the expansion of large-scale greenhouses, tomatoes' contribution to revenue has expanded over the past few years.
- Under cover vegetable growers strategically locate close to populous areas to reduce transportation costs, uphold supply chain effectiveness and maintain product quality. Indoor farming’s resilient nature allows growers the flexibility to operate in diverse regions, reflecting the country's population distribution.
- The industry is highly concentrated, with major players like Costa, Sundrop Farms, Perfection Fresh Australia and Flavorite dominating the market. Their increased production capacity and long-term supply contracts with supermarkets have amplified this concentration over time.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.7 % over the past five years, to reach an estimated $943.3m in 2024.
Trends and Insights
Rising supermarket dependency and home-cooking trends favour larger growers
- Supermarket chains play a pivotal role in vegetable sales, benefiting larger industry growers with the capacity for high-volume and consistent supply. A shift towards a work-from-home lifestyle and increasing living costs, which have led consumers to prioritise home-cooked meals over dining out, has been favourable to retailers, amplifying demand for the industry.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The major supermarkets’ continued dominance will favour large industry growers
- The major supermarkets have a dominant grip on most grocery supply chains, favouring large growers capable of fulfilling significant supply contracts. For example, large supermarkets' preference for bulk orders naturally leans towards larger suppliers, ensuring steady supply and financial stability.
Biggest companies in the Under Cover Vegetable Growing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Costa | 462.0 | |
Sundrop Farms | 184.3 | |
Flavorite Hydroponic Tomatoes | 116.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Tomatoes, Cucumbers and Leafy greens. Tomatoes is the largest segment of the Under Cover Vegetable Growing in Australia.
Trends and Insights
Mushroom has lost ground to tomatoes and herbs despite their ongoing popularity
- Most mushrooms are grown under cover in specially designed sheds. Despite being technically regarded as fungi, mushrooms are included in the industry due to their similar nutritional profile to vegetables, including attributes like niacin, potassium and pantothenic acid.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Grape Growing in Australia
- Citrus Fruit, Nut and Other Fruit Growing in Australia
- Outdoor Vegetable Growing in Australia
- Apple, Pear and Stone Fruit Growing in Australia
Complementors
- There are no industries to display.
International industries
- Vegetable Farming in the US
- Hydroponic Crop Farming in the US
- Potato Farming in the US
- Vegetable Farming in Canada
- Vegetable Growing in New Zealand
Table of Contents
About this industry
Industry definition
Industry operators grow vegetables in greenhouses, cold frames, cloth houses and lath houses.
What's included in this industry?
MushroomsCucumbersTomatoesLeafy greensCapsicumsSproutsHerbsCompanies
CostaSundrop FarmsFlavorite Hydroponic TomatoesPurchase this report to view all 4 major companies in this industry.
Related Terms
CLOSED SYSTEMPROTECTED CROPPINGFOOD MILEIMPUTED WAGEIndustry Code
ANZSIC 0122 - Under Cover Vegetable Growing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Industry farmers have performed well in the past few years, thanks to the controlled environments they use for cultivation. Greenhouses yield more produce, provide a consiste...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Truss or vine-ripened tomatoes, favoured for their taste and constant supply, are highly sought after by Australia's supermarkets. With the expansion of large-scale greenhous...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Under cover vegetable growers strategically locate close to populous areas to reduce transportation costs, uphold supply chain effectiveness and maintain product quality. Ind...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is highly concentrated, with major players like Costa, Sundrop Farms, Perfection Fresh Australia and Flavorite dominating the market. Their increased production ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Private equity investment interest in the Under Cover Vegetable Growing industry is high. Almost all major companies have received funding, partnered with or been acquired by...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Costa's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Sundrop Farms's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Flavorite Hydroponic Tomatoes's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Costa, and factors influencing its performance in the industry
- Description and key data for Sundrop Farms, and factors influencing its performance in the industry
- Description and key data for Flavorite Hydroponic Tomatoes, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Growers are investing in technology to automate their growing activities. Investments in automation, renewable energy and water management systems have boosted capital intens...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Under cover vegetables, acclaimed for their quality, usually fetch higher prices, but increasing production costs have pressurised profit margins. Industry profitability has ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Under Cover Vegetable Growing industry in Australia in 2024?
The market size of the Under Cover Vegetable Growing industry in Australia is $943.3m in 2024.
How many businesses are there in the Under Cover Vegetable Growing in Australia industry in 2024?
There are 1,188 businesses in the Under Cover Vegetable Growing industry in Australia, which has grown at a CAGR of 3.1 % between 2019 and 2024.
Has the Under Cover Vegetable Growing industry in Australia grown or declined over the past 5 years?
The market size of the Under Cover Vegetable Growing industry in Australia has been growing at a CAGR of 2.7 % between 2019 and 2024.
What is the forecast growth of the Under Cover Vegetable Growing industry in Australia over the next 5 years?
Over the next five years, the Under Cover Vegetable Growing industry in Australia is expected to grow.
What are the biggest companies in the Under Cover Vegetable Growing market in Australia?
The biggest companies operating in the Under Cover Vegetable Growing market in Australia are Costa, Sundrop Farms and Flavorite Hydroponic Tomatoes
What does the Under Cover Vegetable Growing in Australia include?
Mushrooms and Cucumbers are part of the Under Cover Vegetable Growing industry.
Which companies have the highest market share in the Under Cover Vegetable Growing in Australia?
The company holding the most market share in Australia is Costa.
How competitive is the Under Cover Vegetable Growing industry in Australia?
The level of competition is high and steady in the Under Cover Vegetable Growing industry in Australia.
