PUBLISHER: The Business Research Company | PRODUCT CODE: 1678602
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678602
Vertical farming involves cultivating vegetables in vertically stacked layers, employing hydroponic, aeroponic, or soil-based methods, particularly beneficial in challenging environments with limited arable land.
Vertical farming encompasses various methodologies, primarily hydroponics, aeroponics, and aquaponics. Hydroponics in vertical farming involves cultivating plants sans soil. Flowers, herbs, and vegetables are nurtured in inert growing mediums within vertical farming setups, receiving vital elements such as nutrient-rich solutions, oxygen, and water. Integral components of vertical farming encompass irrigation systems, lighting solutions, sensors, climate control mechanisms, building materials, and other supporting elements. These systems can be structured within shipping containers or building-based infrastructures. Diverse crop types, including leafy greens, pollinated plants, and nutraceutical varieties, thrive within vertical farming environments. This agricultural approach finds applications in both indoor and outdoor farming practices.
The vertical farming market research report is one of a series of new reports from The Business Research Company that provides vertical farming market statistics, including vertical farming industry global market size, regional shares, competitors with a vertical farming market share, detailed vertical farming market segments, market trends and opportunities, and any further data you may need to thrive in the vertical farming industry. This vertical farming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The vertical farming market size has grown exponentially in recent years. It will grow from $7.74 billion in 2024 to $9.6 billion in 2025 at a compound annual growth rate (CAGR) of 24.0%. The growth in the historic period can be attributed to water scarcity concerns, climate and seasonal independence, demand for locally sourced produce, population growth, food safety concerns.
The vertical farming market size is expected to see exponential growth in the next few years. It will grow to $21.12 billion in 2029 at a compound annual growth rate (CAGR) of 21.8%. The growth in the forecast period can be attributed to integration with smart cities, vertical farming in retail spaces, educational and research initiatives, expansion into developing countries, consumer preferences for organic and local produce. Major trends in the forecast period include customized crop varieties, collaborations with foodservice industry, multi-layered and stacked farming systems, automated planting and harvesting systems, aeroponics and hydroponics technologies.
The vertical farming market is experiencing growth propelled by urbanization. Urbanization drives changes in cropland areas, population shifts, and increased per-capita cropland space for rural residents. With an estimated 80% of the global population residing in cities by 2050, and significant urban growth projected in countries such as India, China, and Nigeria, the vertical farming market is poised for expansion due to increased urbanization.
The rising demand for organic food is expected to drive the growth of the vertical farming market in the future. Organic food is cultivated and processed according to global standards that prohibit synthetic pesticides, herbicides, fertilizers, and genetically modified organisms (GMOs). Vertical farming provides a sustainable and efficient solution to meet the needs for organic food by addressing space constraints, minimizing environmental impact, and creating a controlled and optimized environment for crop cultivation. For example, in February 2024, the UK-based Soil Association reported that organic supermarket sales have rebounded, reaching a value of £2 billion, which reflects a 2.7% increase following a dip in 2022. Independent retail is also thriving, with sales rising 10% to £475 million. While the food service sector, which experienced remarkable growth of 156% in 2022, remained stable in 2023. Therefore, the increasing demand for organic food is driving the growth of the vertical farming market.
Major companies in the vertical farming market are focusing on technological advancements, such as vertical farming solutions that operate within modular containers, designed to optimize space and resources for efficient crop production. Vertical farming involves growing crops in stacked layers within controlled environments, utilizing methods like hydroponics to maximize space and promote sustainability. For instance, in October 2024, Growtainers, a U.S.-based company, launched a vertical farm that operates with 30-60% lower capital expenditure than traditional farms, specializing in modular farming solutions and emphasizing efficient and sustainable agricultural practices. This vertical farm features a modular design, energy efficiency through LED lighting, hydroponic systems for soil-less cultivation, automated monitoring, sustainable practices, year-round production capabilities, and scalability to meet increasing demand.
Major players in the vertical farming market are actively investing in technological advancements aimed at bolstering crop yield and overall profitability. As seen in September 2022 with the Innovation Agri-Tech Group's introduction of GrowFrame 360, this advanced aeroponic vertical farming system incorporates real-time data monitoring, drastically reduces water usage, eliminates chemical dependency by utilizing coco peat, and targets global hunger and malnutrition concerns by addressing resource-scarce areas.
In October 2023, Kalera, a U.S.-based company known for its vertical farming solutions that provide fresh, locally grown produce using advanced agricultural technology, acquired Lactuca Holdings for an undisclosed amount. The aim of this acquisition is to enhance production capabilities, strengthen market position, leverage technology, diversify offerings, and achieve operational synergies. Lactuca Holdings, also based in the U.S., focuses on innovative solutions in vertical farming and sustainable food production.
Major companies operating in the vertical farming market include Philips Lighting N.V., Osram AG, Everlight Electronics Co Ltd., Infarms Indoor Forming GmbH, Spread Group GmbH, Bowery Farming Inc., Plenty Unlimited Inc., BrightFarms Inc., Mirai Co Ltd., Intelligent Growth Solutions Ltd., Freight Farms Inc., AeroFarms, General Hydroponics Inc., Agricool Group, CropOne Holdings Inc., CropOne Holdings Inc, AppHarvest Inc., Vertical Future Ltd., Valoya Inc., Kalera Public Limited Company, Agrilution Systems GmbH, American Hydroponics Inc., Square Mile Farms Ltd., Swegreen AB, Green Sense Farms Holdings Inc., Hort Americas LLC, Urban Crop Solutions, Eden Green Technology, Illumitex Inc., Heliospectra AB, Future Crops Vertical Farming B.V., Sky Urban Solutions Holding Pte Ltd.
North America was the largest region in the vertical farming market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the vertical farming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the vertical farming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The vertical farming market includes revenues earned by entities by precision farming, and sustainable agriculture. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Vertical Farming Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on vertical farming market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for vertical farming ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vertical farming market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.