South America Hydroponics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the South America hydroponics market was valued at USD 159.40 million in 2025 and is projected to grow from USD 176.0 million in 2026 to USD 302.80 million by 2031, at a CAGR of 11.46% during the forecast period from 2026 to 2031.

This report is Segmented by System Type (Aggregate Systems, Liquid Systems, and Drip Systems), by Farming Type (Commercial Greenhouses, Vertical Farms, Indoor Farms, and Container Farms), by Crop Type (Leafy Vegetables, Herbs, Tomatoes, Cucumbers, Strawberries, and More), and by Geography (Brazil, Argentina, Chile, and More). The Market Forecasts are Provided in Terms of Value (USD).

South America Hydroponics Market Trends and Insights

Rising Demand for Pesticide-Free Fresh Produce

Growing consumer preference for pesticide-free fresh vegetables is accelerating hydroponic adoption across South America, particularly among retailers and food service operators seeking consistent, traceable produce. Hydroponic cultivation minimizes exposure to soil-borne pests while enabling year-round production in controlled environments. According to the Brazilian Health Regulatory Agency (ANVISA) Pesticide Residue Analysis Program (PARA), 20.6% of the 3,084 food samples analyzed showed non-compliance with pesticide regulations, highlighting consumer and retailer focus on food safety and residue-free produce. This trend is driving demand for hydroponically grown leafy vegetables and herbs across the region. Source: Brazilian Health Regulatory Agency (ANVISA), Pesticide Residue Analysis Program (PARA), 2025.

Water Scarcity and Efficient Water Use Requirements

Water scarcity is strengthening the business case for hydroponic farming across South America as growers seek production systems that maximize water efficiency. Hydroponic cultivation recirculates nutrient solutions, significantly reducing water losses compared to conventional soil-based agriculture while ensuring consistent crop growth under controlled conditions. According to the Food and Agriculture Organization of the United Nations (FAO) AQUASTAT Water Data Snapshot 2025, pressure on freshwater resources continues to increase, with updated 2024 AQUASTAT data showing high or very high water stress in countries where water withdrawals regularly exceed renewable freshwater supplies. This trend is driving investment in water-efficient hydroponic production systems across the region.

Limited Controlled Environment Agronomy Expertise

Limited technical expertise in controlled-environment agriculture continues to constrain hydroponic adoption across South America. Hydroponic production requires specialized skills in nutrient management, pH regulation, water quality, climate control, and disease prevention, which differ substantially from conventional farming practices. According to the National Institute of Agricultural Technology (INTA), Argentina (2025), the organization conducted a dedicated Operator Training Course for the Antarctic Hydroponic Production Module (MAPHI) to train personnel in hydroponic system operation, nutrient solution preparation, and equipment management. The need for such specialized training reflects a shortage of skilled operators, which increases implementation risks and slows commercial hydroponic expansion across the region.

Other drivers and restraints analyzed in the detailed report include:

1. Urban Agriculture and Short Supply Chain Expansion
2. Commercial Greenhouse Adoption in Brazil and Chile
3. Currency Volatility and Imported Equipment Dependence

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Aggregate systems accounted for the largest 48.2% of the South America Hydroponics Market Share in 2025. These systems remain the preferred production method because they provide stable root support and are compatible with established greenhouse operations across the region. Growing media such as rockwool, coconut coir, and perlite allow producers to cultivate vegetables and fruits under controlled conditions while reducing production risks. Their flexibility enables gradual expansion without major infrastructure changes, making aggregate systems suitable for commercial growers seeking dependable crop performance, efficient nutrient management, and consistent year-round production.

Drip systems are projected to register the fastest CAGR of 15.1% during 2026-2031. These systems deliver nutrient solutions directly to the root zone through controlled drip emitters, minimizing water and fertilizer losses while improving crop productivity. Their compatibility with automated fertigation systems, precise nutrient management, and adaptability to high-value crops such as tomatoes, cucumbers, peppers, strawberries, and herbs are driving adoption among commercial growers. Increasing investments in greenhouse infrastructure, water-efficient cultivation technologies, and precision agriculture are expected to support the continued expansion of drip systems across South America.

Complete Report Scope:

• By System Type
  • Aggregate Systems
  • Liquid Systems
  • Drip Systems
• By Farming Type
  • Commercial Greenhouses
  • Vertical Farms
  • Indoor Farms
  • Container Farms
• By Crop Type
  • Leafy Vegetables
  • Herbs
  • Tomatoes
  • Cucumbers
  • Strawberries
  • Other Crop Types
• By Geography
  • Brazil
  • Argentina
  • Chile
  • Rest of South America

List of Companies Covered in this Report:

1. Grupo HidroGood
2. H2H Hidroponia
3. Hidroponia FIL
4. Ramos Hidroponicos
5. Mundo Hidroponia
6. Universal Growing
7. Vequa Hidroponia
8. HidroBio S.A.
9. AmHydro, LLC
10. Urban Crop Solutions N.V.
11. Certhon Build B.V. (DENSO Corporation)
12. Priva Holding B.V.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support