vertical farming crops Market

The vertical farming crops market was valued at US$ 282.80 million in 2021 and is projected to reach US$ 1,057.75 million by 2028. It is expected to grow at a CAGR of 20.7% from 2021 to 2028.

Vertical farming is becoming increasingly popular due to urbanization and the use of advanced agricultural techniques that yield higher returns. Crops are grown in vertically stacked trays or containers filled with a nutrient-rich medium, instead of soil. Techniques such as hydroponics, aquaponics, and aeroponics are commonly used in vertical farming. With the increasing number of health-conscious people, the demand for healthy and organic food is rising in the food service sector. This factor is projected to create profitable growth opportunities for the vertical farming crops market over the coming years.

MARKET SEGMENTATION

On the basis of the end-use industry, the vertical farming crops market has been categorized into food retail and food service.. In 2020, the food retail category held the larger market share, while the food service category is expected to experience the highest compound annual growth rate (CAGR) between 2021 and 2028. This is due to the rapid expansion of the food service sector, which is driven by people's busy lifestyles and demanding work schedules. Additionally, the growth of cafes, eateries, and quick-service restaurants (QSRs) that offer dine-in, takeaway, and home delivery services is further fueling the growth of the food service industry.  

The vertical farming crops market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America based on regions. In 2020, Europe held the largest market share, but the Asia Pacific region is projected to grow at a higher compound annual growth rate (CAGR) during the forecast period. Firstly, Europe has a well-established agriculture industry, and vertical farming is seen as a way to increase productivity and efficiency while using fewer resources. Secondly, the region has a strong focus on sustainability, and vertical farming aligns with this goal by offering a more environmentally friendly alternative to traditional agriculture. Thirdly, Europe has limited arable land available for agriculture due to its high population density, and vertical farming allows for food production in urban areas, closer to the point of consumption. Finally, Europe has significant investments in the vertical farming industry, and several key players in the vertical farming crops market are based in the region, which has contributed to its leadership in the vertical farming crops market. The growth of the Asia Pacific vertical farming crops market can be attributed to various factors, including the increasing urbanization, improving lifestyles, rising per capita income, and government initiatives that promote modern agricultural practices. The region is also witnessing a surge in the popularity of vertical farming, particularly in countries like Japan, India, and China. For instance, Japan has more than 200 small-scale lettuce vertical farming factories that use artificial light, and this number is expected to double by 2025.

MARKET PLAYERS

Major players in the global vertical farming crops market include AeroFarms; Agricool; Bowery Farming Inc.; CropOne; Infarm; Plantlab; Plenty Unlimited Inc.; Gotham Greens; MIRAI Co., Ltd.; and BrightFarms.

The global vertical farming crops market size has been determined using a combination of primary and secondary sources. The research process began with comprehensive secondary research using both internal and external sources to obtain qualitative and quantitative information related to the vertical farming crops market. In addition, several primary interviews were conducted with industry experts, including VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders who specialize in the vertical farming crops market. These interviews were conducted to validate the data and gain additional analytical insights into the subject.