Vertical Farming Global Market Report 2024

The vertical farming market size has grown exponentially in recent years. It will grow from $6.29 billion in 2023 to $7.8 billion in 2024 at a compound annual growth rate (CAGR) of 24.0%. The growth observed in the historical period can be attributed to several key factors. Concerns regarding water scarcity played a significant role, motivating advancements in agricultural practices to address these challenges. Moreover, the focus on achieving climate and seasonal independence in food production contributed to market growth. The rising demand for locally sourced produce, driven by consumer preferences for freshness and sustainability, also played a pivotal role. Population growth, coupled with the increasing emphasis on food safety and quality, further fueled the expansion of this sector.

The vertical farming market size is expected to see exponential growth in the next few years. It will grow to $17.32 billion in 2028 at a compound annual growth rate (CAGR) of 22.1%. The anticipated growth in the forecast period is expected to be driven by several key factors. Integration with smart cities will play a significant role, aligning with broader urban development initiatives. The adoption of vertical farming in retail spaces is expected to contribute to market expansion, offering a sustainable and space-efficient solution. Educational and research initiatives will further drive advancements, fostering innovation and knowledge-sharing within the industry. Expansion into developing countries represents a strategic move to meet growing global demands.

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 vertical farming market is experiencing growth due to the escalating demand for organic food. The global organic food market surged to over $63 billion in 2021, indicating a notable increase in organic food sales. Vertical farming addresses space limitations and environmental concerns while offering a controlled environment for organic crop cultivation, catering to the growing demand for organic produce.

The emergence of next-generation vertical farms stands as a response to evolving technological advancements. Sweetgreen, a Swedish company, introduced the 'NextGen' of in-store vertical farms at Ica Maxi megastore in April 2021. This innovation, leveraging digitally-based in-store services, aims to produce high quantities of crops throughout the year. The company's 'Farming-as-a-Service' unit for leafy greens, now available at the store's premises, marks a significant stride in Scandinavian in-store cultivation.

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 2021, Kalera SA, a Norway-based vertical farming company, acquired &ever GmbH for $147.67 million, consolidating its operations across Europe, Asia, and the Middle East. This acquisition empowers Kalera to leverage &ever's expertise in technology, agriculture, and crop science to streamline operations across all farms using a unified platform, intensifying its global presence in indoor vertical farming.

Major companies operating in the vertical farming market report are 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., Jewish Family Service of Colorado, AppHarvest Inc., Vertical Future Ltd., Valoya Inc., Kalera Public Limited Company, Agrilution Systems GmbH, American Hydroponics Inc., Square Mile Farms Ltd., Swegreen AB, 4D Bios Inc., 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 2023. 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.

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 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 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.