IUNU’s 2023 State of CEA report highlights trends and opportunities
Seattle-based greenhouse tech company IUNU has recently released its 2023 State of CEA report. This year, IUNU partnered with the University of California Division of Agriculture and Natural Resources to conduct the grower survey and compile the report on controlled environment agriculture, according to a news release.
“2023 has proven to be a pivotal year in CEA so far. While the constrained economic climate has led to milder expansion, we are seeing no long-term slowdown for the market. Operations are laser-focused on profitability and operational excellence. This creates a unique opportunity for technology companies and growers to work together to enable scale,” Allison Kopf, IUNU’s chief growth officer, said in the release.
Since 2016, IUNU’s CEA reports have highlighted the challenges and opportunities facing greenhouse operators, according to the release.
Related news: Demand for greenhouse produce fuels sales surge, innovation
This year’s report examines the emerging trends, challenges and benefits of CEA and includes insights from surveyed greenhouse operators in North America with more than 50 million square feet of growing area. Additionally, the report combines data from the survey with analysis and research conducted by IUNU, according to the release.
Tumultuous year for global horticulture sector
This most recent report focuses on three major CEA segments: leafy greens, tomatoes and ornamentals. It highlights topics such as tech opportunities, labor challenges, expansion and related market conditions.
“2023 has been a tumultuous year for the horticulture industry globally,” the report says. “Rising costs, less favorable capital markets and poor operational performance has led to a number of bankruptcies and closures in our industry.”
The report noted the rising cost of energy has caused stressors in the vertical farming and greenhouse markets.
Despite these impacts, IUNU’s report details how over 63% of leafy-greens growers, 40% of ornamentals growers and 25% of tomato growers have plans to expand in the next 12 months.
“2023 is proving to be a better year than 2022 for most operations. The majority of producers are seeing increases in sales this year,” the report said. “For leafy greens producers, 80% expect a better year this year based on current performance. For tomato and ornamental producers, it’s been a stable year, with 57% of tomato producers and 50% of ornamental producers performing better than 2022 so far.”
Access this year’s IUNU report at iunu.com.
