Global Vertical Farming Crops Market Poised for Significant Growth, Projected to Reach $1.3 Billion by 2027
Wilmington — The global vertical farming crops market, valued at 212.4millionin2019,isprojectedtogrowto1.3 billion by 2027, reflecting a compound annual growth rate (CAGR) of 26.2% from 2021 to 2027. According to industry analysts, the market is expected to generate an incremental revenue opportunity of $1.11 billion between 2020 and 2027.
The surge in demand for fresh, locally grown, and pesticide-free crops is a key driver of this growth. As health consciousness rises among consumers, so does the preference for crops cultivated without synthetic pesticides or preservatives. Vertical farming, which offers fresh produce year-round, is increasingly seen as a reliable and consistent source of high-quality crops, particularly for the food service industry. These factors are shaping the global trends in the vertical farming crops market.
The market’s expansion is further fueled by the growing demand for locally sourced, fresh, and pesticide-free plants, the year-round need for crops—especially in the food service sector—and the ease of monitoring and harvesting crops through advanced technologies.
Urbanization and Agricultural Challenges Drive Adoption
With approximately 45% of the global population residing in urban areas—a figure expected to rise to 66% by 2050—pressure on existing agricultural land is intensifying. The shrinking availability of arable land, coupled with the need to meet rising crop demands, has led farmers to rely heavily on pesticides and preservatives. This, in turn, has heightened interest in vertical farming, which offers fresh, locally produced, and easily accessible crops.
Technological advancements, particularly the integration of the Internet of Things (IoT), have revolutionized vertical farming. IoT enables continuous monitoring of crops to ensure optimal nutrition and growth while minimizing human intervention. Additionally, vertical farming allows for year-round crop production, as it is unaffected by external environmental changes. This resilience enables multiple harvests annually, further boosting the market’s appeal.
Pandemic Impact on Market Dynamics
The COVID-19 pandemic had a profound impact on the global economy, leading to a contraction in GDP and altering consumer spending behavior. The vertical farming crops market faced challenges as consumers gravitated toward conventionally grown foods, which are typically more affordable. This shift in purchasing preferences, combined with supply chain disruptions caused by labor shortages and manufacturing restrictions, led to a decline in market growth. Shortages of skilled labor and raw materials further exacerbated the situation, resulting in reduced cultivation output and a temporary slowdown in the vertical farming sector.
Regional Insights: North America Leads, Asia-Pacific Gains Momentum
In 2019, North America emerged as the dominant region in the vertical farming crops market. Factors such as alarming rates of water depletion, drought conditions in several states, and increasing environmental concerns have driven the adoption of vertical farming in the region. Major players like AeroFarms, Plenty, BrightFarms, and Gotham Greens are headquartered in North America, contributing significantly to the market’s growth.
Meanwhile, the Asia-Pacific region is expected to witness the highest CAGR during the forecast period. Governments across Asia are promoting urban farming through subsidies and national policy initiatives. Several countries have established organizations aimed at encouraging urban agriculturalists to grow crops locally, fostering sustainable food production.
Key Market Players
Prominent players in the vertical farming crops market include AeroFarms, PlantLab, Spread Co., Bowery Farming, InFarm, Plenty, Gotham Greens, AgriCool, CropOne, and Green Spirits Farm. These companies are at the forefront of innovation, driving the adoption of vertical farming technologies and practices worldwide.
As the global population continues to urbanize and the demand for sustainable, high-quality produce grows, the vertical farming crops market is poised to play a pivotal role in shaping the future of agriculture.
