The vertical farming crops market was valued at US$ 239.90 million in 2019 and is projected to reach US$ 1,021.33 million by 2027; it is expected to grow at a CAGR of 20.0% from 2019 to 2027.
Vertical farming is mainly the production of plants grown in vertical layers, stacked horizontal, or other three-dimensional configurations. Most of the commercial vertical farms produce crops indoors, including inside buildings, relying on light-emitting diodes (LEDs) as the sole light source. While some other vertical farms exist inside greenhouses, the variability in light intensity caused due to shading from crops and the structures above makes producing a uniform crop difficult. An increase in demand for new, locally grown, and pesticide-free produce and limited availability of arable land for traditional agriculture have boosted the demand for vertical farming crops across the world.
Based on crop type, the vertical farming crops market has been segmented into tomato, 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 are a suitable choice for indoor farming because they can be grown rapidly and in relatively small spaces. Also, the growing concerns toward food security and nutrition are expected to drive the demand for leafy greens during the forecast period. As consumer trend is developing toward “fresh-from-farm-to-table”, the demand for freshly harvested green vegetables is expected to increase across retail outlets. Compared to traditional outdoor farming, vertical farms have lower land use requirement and less CO2 emissions from transportation. They are up to 90% more water efficient. The increasing investment in research of indoor cultivation of leafy greens is offering lucrative opportunities for the market growth.
Based on region, the vertical farming crops market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America holds the largest share in the market, followed by Europe. Further, the US dominates the vertical farming crops market in North America, followed by Canada and Mexico, respectively. The rising demand for food products and the lack of arable land are driving the market in this region.
Key players operating in the vertical farming crops market include AeroFarms; Agricool; Bowery Farming Inc.; CropOne; Infarm; Plantlab; Plenty Unlimited Inc.; Gotham Greens; MIRAI Co., Ltd.; and BrightFarms.
The size of overall global vertical farming crops market has been derived using both primary and secondary source. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data, as well as to gain more analytical insights into the topic. The participants typically involved in this process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers?along with external consultants, such as valuation experts, research analysts, and key opinion leaders?specializing in the vertical farming crops market.