Vertical Farming Crops Market to Grow at a CAGR of 20.7%

Vertical Farming Crops Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Crop Type (Tomato, Leafy Greens, Herbs, and Others), End-Use (Food Retail and Food Service), and Farming Technique (Hydroponics, Aeroponics, and Aquaponics)

Publication Month : Jan 2022

  • Report Code : TIPRE00018004
  • Category : Food and Beverages
  • Status : Published
  • No. of Pages : 158
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[Research Report] 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 involves growing crops in vertically-stacked layers in trays consisting of nutrient media. It is a modern agricultural technique that does not use soil or land for growing crops. Moreover, it does not use pesticides, chemical fertilizers, or other synthetic materials usually used in conventional agricultural practices. Vertical farming is being increasingly adopted in urban areas with a shortage of arable land.

Asia Pacific is expected to grow at the fastest CAGR in the global vertical farming crops market over the forecast period. The major factors fueling the market are technological innovations and increasing demand for organic food. The population in the Asia-Pacific is rising dramatically. The increasing population is stimulating food demand, which further offers opportunities for the vertical farming crops market players. Moreover, the rising urbanization and increasing adoption of modern agricultural practices are also propelling the market.

Furthermore, major vertical farming crops market players are focusing actively on innovations. Key companies are investing heavily in R&D and are adopting emerging technologies to boost their production. For instance, a Sydney-based start-up, PodPlants, has developed lightweight and portable vertical gardens and has won the Australian Innovation Challenge for its unique technology. Such technological advancements are projected to boost the regional market growth in the forthcoming period.

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Vertical Farming Crops Market: Strategic Insights

vertical-farming-crops-market
Market Size Value inUS$ 282.80 Million in 2021
Market Size Value byUS$ 1,057.75 Million by 2028
Growth rateCAGR of 20.7% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
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Impact of COVID-19 on Vertical Farming Crops Market

The COVID-19 pandemic has brought unprecedented challenges across various industries, including the global food and beverage industry. Due to lockdowns, travel bans, and shutdown of manufacturing plants, the supply chains were severely disrupted, which led to a decline in sales. Moreover, the manufacturing sector faced a shortfall in product supply because of the shortage of raw materials and labor. However, the vertical farming crops market witnessed positive growth due to the demand for locally-produced, fresh, and organic products. Moreover, the rise in health consciousness among individuals is projected to open profitable growth opportunities for vertically farmed crops over the coming years.

Vertical Farming Crops Market: by Region

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Market Insights

The Rising Popularity of AI-Controlled Vertical Farms

AI-controlled vertical farms enable growers to optimize crop yield by providing data related to the growth patterns of crops, which crops give better yield, climatic conditions required for the crops, and other such factors. Growers can analyze this data and take required actions to improve their yield. Artificial intelligence (AI) can help the industry confront the biggest challenges, such as climatic changes and low availability of resources, from controlling major crop growth to predicting what crops would be delivering better yields. Artificial intelligence is also rising, with over 1,600 start-ups and total investments reaching tens of billions of dollars. The AI-controlled robots monitor the plant growth and continuously adjust the environmental factors to ensure more efficiency and economic output. Thus, artificial intelligence (AI) and the internet of things (IoT) are expected to be the key trends in the vertical farming crops market.

Crop Type Insights

Based on the crop type, the vertical farming crops market has been segmented into tomatoes, leafy greens, herbs, and others. The leafy greens segment accounted for the largest market share in 2019, and the herbs segment is expected to register the highest CAGR in the market during the forecast period. Leafy greens include lettuce, kale, collard greens, spinach, mizuna, beet greens, and microgreens. Leafy greens are suitable for indoor farming because they can be grown rapidly and in relatively small spaces. The rising demand for fresh leafy vegetables from food retail and the food service sector is one of the primary factors driving the segment’s growth. Moreover, the rising trend of “fresh-from-farm-to-table” is also propelling the demand for vertically farmed leafy greens. The surge in research expenditure for indoor cultivation of leafy greens crops is offering lucrative opportunities for market growth.



Vertical Farming Crops Market, by Crop Type – 2020 and 2028

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End-Use Insights

Based on the end-use industry, the vertical farming crops market has been segmented into food service and food retail. The food retail segment accounted for a larger market share in 2020. The food service segment is expected to register a higher CAGR during the forecast period due to increased demand for fresh and high-quality produce from local food distributors, restaurants and cafes, and quick service restaurants. Moreover, growing customer inclination towards consuming fresh salads in restaurants and cafes is driving the demand for vertical farming crops from the food service sector. Some market players are partnering with food service providers to expand the business. For instance, in January 2019, foodservice suppliers Van Gelder and PlantLab, entered into a partnership to produce various fresh vegetables in PlantLab’s fully controlled vertical farming unit. Such partnerships are expected to boost the market over the coming years further.



Farming Technique Insights

Based on the farming technique, the vertical farming crops market has been segmented into hydroponics, aeroponics, and aquaponics. The hydroponics segment accounted for the largest market share in 2020, and the aeroponics segment is expected to register the highest CAGR in the market during the forecast period. In hydroponics, plant roots are submerged in trays containing nutrient solutions. Over the past few years, urban farming using vertical hydroponic systems has gained much attention. These hydroponic farms can optimize plant growth using the latest technology, providing fresh produce while minimizing water usage, land space, transport costs, and pesticides usage. Hydroponics usually generate high-quality crops, and by employing emerging technologies such as artificial intelligence (AI) and internet of things (IoT) technology, the growers get better crop yields.

 

A few key players in the global vertical farming market are AeroFarms, Agricool, BOWERY FARMING INC., CropOne, Infarm, Plantlab, Plenty Unlimited Inc., Gotham Greens, MIRAI Co. Ltd., and BrightFarms. These companies are investing huge amounts in emerging technologies to boost their crop yield and produce high-quality crops at affordable prices.



Report Spotlights

  • Progressive industry trends in the vertical farming crops market to help players develop effective long-term strategies
  • Business growth strategies adopted by developed and developing markets
  • Quantitative analysis of the vertical farming crops market from 2019 to 2028
  • Estimation of global demand for vertical farming crops
  • PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry
  • Recent developments to understand the competitive market scenario
  • Market trends and outlook as well as factors driving and restraining the growth of the vertical farming crops market
  • Assistance in the decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
  • The size of the vertical farming crops market size at various nodes
  • Detailed overview and segmentation of the market, as well as the vertical farming crops industry dynamics
  • Size of the vertical farming crops market in various regions with promising growth opportunities.

Based on the crop type, the vertical farming crops market is segmented into tomatoes, leafy greens, herbs, and others. Based on the end-use industry, the market is segmented into food retail and food service. Based on the farming technique, the market is segmented into hydroponics, aeroponics, and aquaponics.

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Crop Type , End Use , and Farming Technique

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States

Frequently Asked Questions


What is the scope of the global vertical farming crops market?

Vertical farming crops are crops grown in vertically stacked containers or trays containing nutrient media. Crops such as tomatoes, leafy greens, herbs, berries, bell peppers, cucumber, among others are majorly grown using vertical farming techniques. Hydroponics, aeroponics, and aquaponics are some of the prominent vertical farming methods. Food retail and food service sectors are the key end-users of vertical farming crops.

Based on farming technique, which segment held the largest market share in 2020?

Based on farming technique, the hydroponics segment held the largest market share in 2020. Hydroponics involves submerging the plant roots in trays containing nutrient solutions. In hydroponics, 90% less water is utilized compared to traditional agriculture methods. The rising popularity of hydroponics over conventional agricultural practices owing to its benefits is primarily driving the segment’s growth.

Can you list some of the major players operating in the global vertical farming crops market?

The major players operating in the global vertical farming crops market are AeroFarms, Agricool, Bowery Farming Inc., CropOne, Infarm, Plantlab, Plenty Unlimited Inc., Gotham Greens, MIRAI Co., Ltd., and BrightFarms, among others.

Which region held the largest share of the global vertical farming crops market?

In 2020, Europe held the largest share in the global vertical farming crops market. The rising adoption of technologically advanced farming techniques coupled with the increasing demand for pesticide-free, hygienically produced agricultural products are they key factors driving the market growth.

Based on crop type, which segment is projected to grow at the fastest CAGR over the forecast period?

Based on crop type, the herbs segment is projected to grow at the fastest CAGR over the forecast period owing to the growing demand for high-quality and fresh herbs such as mint, coriander, parsley, basil, rosemary, among others from food retail as well as food service sector.

Based on end-user, which segment is projected to grow at the fastest CAGR over the forecast period?

Based on end-user, the food service segment is projected to grow at the fastest CAGR from 2021 to 2028 owing to the rapidly expanding global food service sector coupled with rising demand for convenience, ready-to-consume, and healthy food products.

The List of Companies - Vertical Farming Crops Market

  1. AeroFarms
  2. Agricool
  3. Bowery Farming Inc.
  4. CropOne
  5. Infarm
  6. Plantlab
  7. Plenty Unlimited Inc.
  8. Gotham Greens
  9. MIRAI Co., Ltd.
  10. BrightFarms

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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