Vertical Farming Market Report 2026

The vertical farming market size has grown exponentially in recent years. It will grow from $9.55 billion in 2025 to $11.63 billion in 2026 at a compound annual growth rate (CAGR) of 21.8%. The growth in the historic period can be attributed to limited availability of arable land, rising urban population density, early adoption of hydroponic systems, demand for pesticide-free produce, growth in indoor farming practices.

The vertical farming market size is expected to see exponential growth in the next few years. It will grow to $24.52 billion in 2030 at a compound annual growth rate (CAGR) of 20.5%. The growth in the forecast period can be attributed to increasing focus on food security, expansion of climate-resilient farming, rising demand for high-yield vertical farms, adoption of resource-efficient cultivation methods, growth in urban commercial farming projects. Major trends in the forecast period include increasing adoption of layer-based crop production, rising use of hydroponic and aeroponic systems, growing focus on soil-free cultivation techniques, expansion of controlled environment farming, rising demand for pollution-free urban cultivation.

The growing demand for organic food is expected to drive the expansion of the vertical farming market in the coming years. Organic food refers to agricultural products grown and processed without synthetic fertilizers, chemical pesticides, genetically modified organisms, or artificial additives, following practices that promote ecological balance and conserve biodiversity. This rising demand is largely fueled by increasing consumer awareness of health and environmental sustainability, as people associate organic products with safer consumption, higher nutritional value, and responsible production methods that minimize ecological impact. Vertical farming meets this demand by enabling the efficient, pesticide-free cultivation of organic produce in controlled environments, ensuring consistent quality, reduced resource usage, and a sustainable year-round supply. For example, in February 2024, the UK-based Soil Association reported that organic supermarket sales rebounded to £2 billion, a 2.7% increase following a dip in 2022, while independent retail sales rose 10% to £475 million. Although food service, which had seen remarkable growth of 156% in 2022, remained stable in 2023. Therefore, the rising demand for organic food is driving growth in 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.

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 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, 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.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on imported lighting systems, irrigation components, sensors, and climate-control equipment have raised operational costs in the vertical farming market, particularly affecting building-based farms and high-tech hydroponic installations in regions dependent on overseas technology such as North America and Europe. These tariffs can slow expansion for small and medium growers while encouraging localized manufacturing of key components. In some cases, tariffs may stimulate domestic innovation and strengthen regional supply chains, offering long-term benefits despite short-term cost pressures.

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.

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.North America was the largest region in the vertical farming market in 2025. 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, South East Asia, 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, Taiwan, 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.

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