March 1, 2024

Vertical Farming Market is expected to be Flourished by increasing sustainable food production

The vertical farming technique enables year-round crop production in controlled indoor environments with optimum growing conditions such as temperature, humidity, nutrients, and lighting. Crops grown using vertical farming include lettuce, leafy greens, herbs, strawberries, tomatoes, and peppers. Vertical farming provides crops a pesticide-free environment and prevents crop failure due to extreme weather conditions like drought, excess rain, or floods. It also uses about 95% less water and 70% less land as compared to traditional farming.

The global vertical farming market is estimated to be valued at US$ 16.19 Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Traditional farming practices are depleting natural resources and degrading soil quality. Vertical farming provides a sustainable solution by using less land, water, and other inputs to produce crops in a controlled environment. This significantly reduces the environmental impact of agriculture. Vertical farms are built close to urban areas which minimizes transportation costs and enables fresh produce delivery to local markets within hours. The locally grown crops reduce carbon emissions from long-distance transportation.

Segment Analysis
The vertical farming market is dominated by the hydroponics sub-segment which accounts for nearly 70% share. Hydroponics allow year-round production of vegetables and herbs with higher yields than conventional agriculture. It uses 70% less water and uses no pesticides or fertilizers making it more sustainable.

PEST Analysis
Political: The government legislations and initiatives to promote sustainable agriculture will positively influence the market. Subsidies and funding for urban agriculture can boost adoption.
Economic: Rising population is increasing demand for locally grown food. High operating costs of vertical farms is a challenge.
Social: Younger population prefers organic and locally grown food. Urbanization is reducing farmable land raising need for alternative farming.
Technological: Advanced lighting, sensor and irrigation techniques are improving crop yields per square foot. Automation is optimizing resource usage.

Key Takeaways
The global vertical farming market is expected to witness high growth over the forecast period driven by rising population, urbanization and need for sustainable food production. The North American region currently dominates the market owing to early adoption of vertical farming practices and initiatives to promote urban agriculture in the US and Canada.

Regional analysis: North America is the largest and fastest growing market for vertical farming. Favorable government support and initiatives in the US and Canada are driving adoption. Europe is another major region with widespread farms across the Netherlands, Germany and UK.

Key players: Key players operating in the vertical farming market are BASF SE, Eastman Chemical Company, Shandong Acid Technology Co. Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Limited, LUXI GROUP, Perstorp Holdings ABPOLIOLI SpA, PT Pupuk Kujang, Rashtriya Chemicals and Fertilizers Limited, and Wuhan Ruisunny Chemical Co. Ltd.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it