China continues its transition towards more sustainable agriculture. And its 2023 – 2030 National Plan for the Development of Modern Protected Agriculture calls for the establishment of 300 large-scale vegetable seedling propagation projects. This opportunity calls for a closer look at the trends, challenges and opportunities for Dutch businesses. Collaboration is likely to be most effective where Dutch technologies can demonstrate clear economic and environmental benefits taking Chinese production conditions into account.
China’s vegetable seedling industry is driven by a growing demand for modern horticulture. These companies produce the young plants which are used for the vegetable production. In line with incumbent government policies, the seedling industry has entered a new stage of high-quality development. Under the National Plan for the Development of Modern Protected Agriculture (2023–2030), the industry is upgrading from traditional, labor-intensive production towards large-scale, technology-driven systems through automation, smart greenhouses and precision climate control.
Why the seedling industry is important
Between 2012 and 2023, the number of large-scale vegetable seedling nurseries increased 54% from 1,454 to 2,245. In 2023, China had a total of 13,337 vegetable seedling nurseries, producing 82.5 billion seedlings annually. The development of large-scale nurseries demonstrates the pace at which the sector is expanding. Over the same period, their seedling production rose from 12.7 billion to 48.6 billion seedlings, nearly quadrupling and reflecting significant growth in industry scale and efficiency.
This development is supported by government policy. China’s National Plan for the Development of Modern Protected Agriculture (2023–2030) calls for the establishment of 300 large-scale vegetable seedling propagation projects, each with an annual production capacity of 50 million seedlings, across major vegetable-producing regions, including Shandong and Henan provinces, as well as 10 key provinces for vegetable production. The initiative aims to improve seedling quality and production efficiency, reduce costs for smallholders and expand nursery capacity in major vegetable-producing provinces.
A Dutch company booth at the Beijing Seed Industry Conference in September 2026
Trends and challenges
The regional distribution of vegetable seedling production is closely linked to major vegetable production zones and greenhouse farming areas. Solar greenhouses and plastic greenhouses remained the primary facilities for vegetable seedling production. Solar greenhouses accounted for the largest share, while insulated and glass greenhouses occupied comparatively smaller areas.
Demand for equipment is growing
China’s vegetable seedling industry is showing strong demand for modern nursery equipment across the production chain, with planting, climate-control and propagation equipment recording particularly high adoption rates in greenhouses. Demand is also increasing for seed treatment and testing equipment, reflecting growing investment in seedling quality and production efficiency.
Domestic equipment still has limitations in reliability, efficiency, precision and flexibility across different crops. At the same time, many nurseries continue to operate basic greenhouses with limited control of temperature, humidity, light and CO₂. Among large-scale nurseries in 2023, adoption was lower for mobile sprinkler irrigation at 57%, supplemental lighting at 45%, agricultural water treatment at 36%, seed disinfection machines at 23%, and seed and substrate testing equipment at 10% each.
Seeders had a higher adoption rate of 85%, followed by evaporative cooling pad and fan systems at 73%, transport equipment at 67%, seed germination cabinets at 65% and heating equipment at 63%.
Going forward, further development of automated equipment, environmental-control systems and intelligent material handling is needed to improve productivity and production consistency.
Labor remains a constraint
Despite significant development over the past ten years, seedling production continues to require skilled workers. Key activities, including sowing, grafting, transplanting and material handling, remain heavily dependent on manual labor. A shrinking and ageing rural workforce is placing increasing pressure on labor availability.
Standardization and digitalization are still developing
Seedling production practices and quality standards vary considerably across regions, while digital management remains at an early stage. Greater standardization of production processes, environmental control and quality assessment, combined with improved digital management, will be important to support scalability and further industry development.
Opportunities for business in the Netherlands
The greenhouse analysis indicates that the share of large insulated single-span greenhouses and glass greenhouses, which offer superior climate control and production management, remains relatively limited in China. Equipment adoption in China’s nursery sector remains relatively limited, particularly for seed disinfection, testing and specialized equipment. Challenges also remain in automation, including grafting, gap-filling, material handling and production management. This creates opportunities for the Netherlands, with its expertise in modern greenhouse design, engineering and operation, particularly in large-scale commercial nursery projects.
Sustainability, standards and professional training
Developing seedling quality standards, standardized nursery production systems and professional capacity building are potential areas for cooperation.
The Netherlands has extensive experience in quality assurance and standardization throughout the horticultural supply chain, from seedling production to post-harvest handling. Knowledge exchange, technical training and professional education could support cooperation.
The e-commerce channel places strong emphasis on consistent and reliable quality, as product appearance, freshness and consumer experience directly influence purchasing decisions and reviews. Consumers may also be willing to pay a premium for high-quality and differentiated products, creating potential scope for cooperation with Dutch suppliers.
The Netherlands has considerable expertise in energy-efficient greenhouse technologies, renewable-energy integration, and water and nutrient recycling, all of which contribute to more sustainable agricultural production.
As China continues its transition towards more sustainable agriculture, there is potential for cooperation in energy-efficient greenhouse technologies, renewable-energy integration, circular horticulture and resource-efficient production systems.
Local considerations to take into account
The rapid modernization of China’s vegetable seedling industry creates market opportunities for Dutch companies, but several considerations are important for market engagement.
First, while Chinese manufacturers are rapidly improving their capabilities in greenhouse equipment, nursery machinery and digital technologies, Dutch companies are likely to remain most competitive in specialized, high-value technologies, integrated solutions and knowledge-intensive services.
Second, local partnerships and after-sales service are increasingly important. Successful market entry increasingly depends on cooperation with local partners providing market access, technical support, installation and after-sales service. Building long-term relationships with leading nursery enterprises, research institutes and regional governments can also facilitate technology adoption.
Third, cost competitiveness remains a key purchasing criteria. Although demand for advanced technologies is increasing, investment decisions continue to be strongly influenced by price and return on investment. Demonstrating clear economic benefits, operational efficiency and productivity improvements will be critical for market acceptance.
Finding common ground
Knowledge exchange creates long-term value. Beyond equipment sales, cooperation in professional training, demonstration projects, joint research and the development of nursery standards offers opportunities to strengthen long-term partnerships and support the sustainable development of China’s vegetable seedling industry.
As China continues its transition towards more sustainable agriculture, cooperation can also focus on energy-efficient greenhouse technologies, renewable-energy integration, circular horticulture and resource-efficient production systems. Collaboration is likely to be most effective where Dutch technologies can demonstrate clear economic and environmental benefits taking Chinese production conditions into account.
For more information please contact pek-lvvn@minbuza.nl