Vertical Farming Market to Generate $30.2 Billion Revenue by 2030

The global vertical farming market is expected to reach $30.2 billion by 2030, progressing at a CAGR of 25.2% from 2021 to 2030. This can be ascribed to the shift from traditional farming to technology-based agriculture, the growing penetration of urban farming, and the increasing awareness and demand for organic food from customers.

The rapid growth of urban agriculture is emphasized by the shortage of cultivation land and other resources, and it uses less water and less energy compared to traditional farming. In addition, indoor agriculture is reducing the pollution level by removing lash-and-burn cultivation and integrating crop-animal farming methods of traditional cultivation.

After the pandemic period, consumers are inclined toward organic and fresh food. Consumers are more conscious about their diet and neutrino food, which will drive the demand for nutrition products in the market in the coming years. To meet the market demand, sports nutrition companies are also using the indoor cultivation method to cultivate medicinal plants.

APAC has led the vertical farming market, due to the growing population and the shortage of agricultural land, water, and other resources in the region. Traditional cultivation is unable to meet the local food demand, due to which advanced agriculture methods are taking place of traditional agriculture to fulfill the demands of consumers. Also, indoor agriculture has reduced the dependency of regional countries on imported food and minimized crop wastage. In traditional cultivation, crops are wasted due to climate change. Thus, these factors enable growers to adopt urban agriculture.

In addition, Europe shows a strong inclination to adopt urban cultivation solutions, thus key competitors are specifically focusing on this region to expand their product offerings in the European urban cultivation market.

Inclination of Pharmaceutical Players Toward Vertical Farming

The indoor farming market is gaining traction as many pharmaceutical entities are adopting this type of agriculture to produce a variety of medicinal plants used in biopharmaceutical products. Companies are developing their patented products from raw seeds and further providing proprietary products to healthcare organizations, which helps them in increasing their customer base.

Shipping Containers Becoming Popular Among Growers

Indoor farming is increasing because used shipping containers are available at a reasonable price, which enables growers to reduce the overall indoor agriculture production cost. Shipping containers are required less space with zero percentage of soil and less water. Also, the whole process of indoor cultivation is carried out organically in shipping containers.

Rising Population Accelerating Food Demand

The rising population is also boosting the demand for food that cannot be fulfilled by traditional agriculture. To fulfill the need for surplus food, governments take several steps and encourage major food growers to adopt advanced cultivation methods. For instance, in May 2022, the world’s largest hydroponic farm Bustanica was opened in Dubai, which produces more than 900 tons of leafy greens yearly.

Most of the growers in this market are primarily focused on upgrading their farming methods and techniques of crop production to meet the growing current and future demands of crops. Some of the major players operating in the vertical farming industry are Signify, Osram, Freight Farms, AeroFarms, Sky Greens Pte. Ltd., Spread, Plenty, Valoya, Everlight Electronics, and Heliospectra AB.