Demand remains strong for greenhouse-grown fruits and vegetables, a category that has experienced growth in the past few years.
Marketers say consumers as well as retailers see the value of greenhouse-grown produce.
“Consumers increasingly recognize the superior taste and consistent quality of greenhouse-grown produce, while our retail partners value the improved food safety and year-round availability,” said Martin Ruebelt, chief scientific officer and vice president of research and development for San Antonio-based greenhouse grower NatureSweet.
Chris Veillon, vice president of marketing for Leamington, Ontario-based Topline Farms, said he's also seen increased demand from Canadians for produce grown in the country, which is home to a thriving greenhouse industry.
“We have experienced strong demand in Canada for Canadian-grown vegetables since the topic of tariffs became more prominent,” he said. “There is definitely a stronger sense of unity in Canada right now to support Canadian-grown or manufactured products. As a Canadian, I am seeing more and more of this.”
Organic greenhouse-grown produce is also trending upward, said Joanna Jaramillo, marketing manager for the Amado, Ariz.-based Wholesum, a fair trade grower and shipper of organic vegetables. Jaramillo said snacking tomatoes and mini cucumbers continue to see year-over-year growth.
“These crops thrive in controlled environments, which enable us to produce high-flavor, consistent and high-quality organic produce that meets rising consumer expectations,” she said.
Upward trends
Growth in the snacking category contributes to the momentum in greenhouse-grown produce, Veillon said.
“We are seeing a growing interest in the snacking category, [in] which our snacking tomatoes, Crunchers cocktail cucumbers and mini sweet peppers are getting more attention than ever before,” he said.
Ruebelt said consumers are now snacking up to three to five times a day and seek flavorful and healthy options such as greenhouse-grown produce. Jaramillo has also seen greater demand for snacking tomatoes.
“They currently represent the second largest organic subcategory and show the second highest year-over-year growth in both sales and volume,” she said.
Jaramillo said retailers have started to expand organic assortments to meet consumers' craving for new and interesting flavors.
“In the tomato category, for example, there's increasing interest in heirlooms and premium snacking varieties like cherry-on-the-vine and medleys, moving past staples like grape or tomato-on-the-vine options,” she said. “Shoppers are looking for greater variety, and we believe you can't sell what isn't available.”
Premium produce is also on the rise, Jaramillo said.
“Consumers want more than just affordability; they're seeking products that deliver a high-quality, memorable experience,” she said.
Ruebelt said retailers also seek value in those premium offerings.
“This isn't about offering the lowest price; it's about offering exceptional quality and taste at a price consumers feel good about,” he said.
There's also growing demand for greenhouse-grown products in foodservice, Ruebelt said.
“Restaurants are increasingly focused on delivering exceptional quality to their guests, and they're willing to pay a premium for products that consistently deliver on taste and appearance,” he said.
Ruebelt said foodservice operators also seek greenhouse-grown products that reduce labor.
“Foodservice operators are under pressure to reduce labor costs and streamline kitchen operations,” he said. “That's where our products offer a unique advantage. For example, instead of slicing roma tomatoes, many restaurants are now using our ready-to-serve cherry tomatoes, which require less prep time while enhancing the flavor of their dishes.”
Value of sustainability
Sustainability is a big focus and unique value proposition of greenhouse-grown produce for consumers, according to marketers.
“Today's consumers are more informed and value-driven than ever before,” Jaramillo explained. “We're seeing strong loyalty to brands that demonstrate authentic commitments to social and environmental responsibility.”
Veillon said sustainability is a powerful selling point for controlled environment agriculture production, which uses less water and land as well as an integrated pest management program that appeals to environmentally conscious consumers.
“Transparency and traceability also resonate with modern buyers,” he said. “Marketing campaigns can showcase how crops are grown in clean, controlled environments, free from unpredictable weather, ensuring food safety and reliability. Visual storytelling through social media, behind-the-scenes farm tours and QR codes on packaging linking to grower stories or sustainability stats can boost engagement and trust.”
Jaramillo said organic and Fair Trade certifications are important to consumers because they signal transparency, ethics and impact to the consumer.
Ruebelt said NatureSweet being a Certified B Corp and a Fair Trade Certified greenhouse grower drives home the sustainability message to consumers. The company makes its fair trade certification visible on its snacking tomato packaging.
“Research shows that when consumers understand what fair trade stands for, they're more than willing to pay a premium to support it — and we believe it's our responsibility to help them make that connection,” Ruebelt said.
Jaramillo said packaging and in-store messaging can communicate the company's sustainability efforts to consumers.
“It's guaranteed to reach the end consumer and offers a direct way for them to engage with our values,” she said. “We also partner with retailers when possible to
amplify our sustainability messaging. When retailers opt to share on-site communications, it allows us to provide more context about the environmental and social impact of our products and deepen consumer understanding.”
Ruebelt said NatureSweet has seen a shift with consumers looking beyond just buying local.
“Today's consumers want to know who is behind their food and how their purchasing decisions impact the lives of the people who grow it,” he said. “It's no longer just about proximity — it's about purpose.”
What could hinder progress
While demand is high for greenhouse-grown produce, the industry is not without its challenges.
Ruebelt said the potential 17% to 21% tariff on fresh tomatoes imported the U.S. from Mexico — if the tomato suspension agreement between the two countries ends —would have a major impact on the industry and established supply chains.
“This policy threatens to disrupt the supply chain, increase costs and ultimately force us to pass those costs on to consumers, making fresh, healthy produce less affordable at a time when accessibility is more important than ever,” he said.
The potential end of the tomato suspension agreement also penalizes innovation that the greenhouse industry has established, Ruebelt said.
“It favors traditional open-field agriculture, where technological progress has been limited, over controlled environment agriculture, an industry where we've invested hundreds of millions of dollars to drive improvements in sustainability, food safety, labor conditions and year-round supply,” he said. “This is a step backward for the industry at a time when consumers and retailers alike are demanding more — more transparency, more consistency and more responsible sourcing.”
Jaramillo said the greenhouse fruit and vegetable industry also faces upward pressure on pricing due to macroeconomic factors and rising input costs.
“Our goal is to maintain accessibility and value for our consumers despite these challenges,” she said.
Another issue is having a skilled workforce to manage advanced systems and technologies as the industry continues to improve labor efficiency and sustainability.
“We need to collectively advocate for careers in agriculture and change perceptions around the skills and opportunities involved in greenhouse operations,” Jaramillo said.
Controlled environment agriculture also faces high operational and capital costs.
“Building and maintaining high-tech greenhouse or vertical farming systems requires significant investment in infrastructure, energy, lighting, climate control and automation,” Veillon said. “Energy consumption, especially for heating and artificial lighting remains a major ongoing and significant expense, making profitability difficult without economies of scale.”
Veillon said Topline Farms is transitioning its supplemental lighting systems from high-pressure sodium lights to LED.
As CEA-grown produce often comes at a premium, Veillon said that price can also limit consumer adoption in price-sensitive markets.
“Retail partnerships are essential but can be challenging to secure due to competition with traditionally grown, lower-cost imports,” he said. “Logistics and distribution, especially for perishable goods, add complexity and cost.”
But it's important for the industry to educate consumers on the value of greenhouse-grown produce to help drive sales, Veillon said.
“The best way to market greenhouse grown fruits and veggie produce is by emphasizing its unique value propositions: freshness, sustainability, safety and consistency,” he said.
Ruebelt said the industry is still poised for growth despite the challenges.
“Consumers are demanding better flavor, consistency and transparency, and CEA is uniquely positioned to deliver on those expectations while helping to build a more resilient and sustainable food system,” Ruebelt said.
Ongoing innovation
The CEA industry invests in research and development to keep up with the demand for greenhouse-grown produce.
“Our R&D team is continually exploring new varieties that appeal to health-conscious and adventurous consumers,” Jaramillo said. “This includes products that offer a standout eating experience and convenient usage.”
Veillon said Topline has started an aggressive R&D program to bring new products in the next year.
“We are actively participating in seed trial missions with our seed partners worldwide and have expanded our internal acreage that will be used exclusively for new varietal trials,” he said.
Topline expanded its acreage of roma tomato production, which will begin fall 2025 to meet the increased demand for roma tomatoes from its retail partners, Veillon said. The company also added 25 acres to one farm earlier this year and broke ground to add 7 acres to another farm to keep up with overall demand for greenhouse-grown produce.
Wholesum also looks to innovation through packaging and packing lines to help streamline operations and automate key processes, said Jaramillo, who pointed to a recyclable tomato-on-the-vine paper tray as one of its recent innovations.
“We're continuing to develop additions to this line and are actively seeking more sustainable packaging options across our portfolio,” she said.
Wholesum has also expanded its distribution into regions that align with supply chain capabilities and customer base.
“Our focus is on sustainable growth, ensuring we can maintain quality and service wherever we expand,” she said.
Ruebelt said NatureSweet's investments in CEA innovation have helped fuel the company's newest innovations, including its Cherubs To Go, mini
cucumbers and more.
“A great example is our colorful medley of seedless mini sweet peppers,” Ruebelt said. “Consumers love them — not only for their delicious flavor, but also because they meet two critical trends: convenience and snackability.”
NatureSweet continues to evaluate new varieties for better flavor, higher yield and easier cultivation.
“We're investing in digital tools and data systems that empower our growers to make smarter decisions faster,” he said.