Provided by BIS Research
In a recent interview with Food Tank, Mr Marc Oshima, chief marketing officer and co-founder of AeroFarms, stated that, ”Access to healthy food is a fundamental right.” This statement reverberates the growing demand for food sufficiency all over the world. Traditional agricultural practices are not sufficient to meet this high demand, even though 80% of arable land is already in use and it uses 70% of the water resources available on earth, hence, the need for sustainable farming leads to an option where technology meets traditional agriculture. And vertical farming comes as a boon for mankind as a combination of the two paradigms.
To meet the present demands of food sufficiency, as well as in the future, vertical farming is being pitched as a viable and pragmatic solution. In the techniques of vertical farming, the components and fixtures are combined with different growth mechanisms. These components are lighting components, hydroponic components, climate controls and sensing devices. Vertical farming has witnessed a boost in recent years, mostly in urban areas, such as Singapore. Inhabitat.com reports that 80 tons of vegetables are grown every year in Singapore, by using LED lights for the efficient and quick growth of products in a vertical farm founded by Panasonic. This could be an example of a method to meet the surging food sufficiency demand in the future.
It is estimated that by 2050, 80% of the world's population will be living in urban areas or cities. And hence, there will be greater demands for food sufficiency in such areas. According to BIS Research, “The global vertical farming market is expected to grow over $6.81 billion by 2022, at a double digit CAGR from 2016 to 2022.” Despite the challenges, such as high initial investment cost and limited market scope, which are inhibiting market growth, the vertical farming sector is advancing in the techniques of production. Although FarmedHere, a commercial-scale hydroponic farm, had to close their 90,000-square-foot Bedford Park urban farm facility due to high operational costs and increasing competitions in the Chicago market, as reported by Chicago tribune.
BIS Research says, “The competitive landscape for the vertical farming market demonstrates an inclination of companies which are interested in adopting strategies such as collaborations, product launches, mergers, and contracts among others.” Overcoming the challenges in the vertical farming sector, the market will witness a growth as the populace is becoming aware of the benefits of this technique in the long term.
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