Vertical Farming Crops Market Size, Demand, Share, Growth, Forecast Till 2031

(MENAFN- Straits Research) Introduction

Vertical farming is a method of urban Agriculture in which plants are grown on an incline. Rather than farming a single crop layer across a vast land area, stacked crops are grown vertically. They are often cultivated inside and are illuminated only by light-emitting diodes (LEDs). However, some crops are cultivated utilizing greenhouse-based vertical farms. Vertical farming's short growth cycles and high nutrient content result from technology that establishes an artificial environment inside a building, in contrast to conventional farming methods. Technology such as climate control, air purification, lighting, and pump and irrigation systems are crucial for plant growth, yield, and quality. Since it does not require the use of soil, vertical farming is gaining favor as a way to increase crop yield without the need for additional land. To cultivate plants, grow systems such as hydroponics, aeroponics, and aquaponics are utilized.

Market Dynamics Rising Demand for Locally Grown, Pesticide-Free Produce Drives the Global Market

Currently, 35% of American goods are imported up to 2,000 miles. Concerns about who handles their food, where it comes from, and how far it travels are shared by consumers. Consumers can evaluate crop quality and freshness using these factors. Customer behavior has changed due to a growing emphasis on food and health security. Food is rarely cultivated in cities, where most customers reside. Vertically farmed, locally grown, and pesticide-free crops are in greater demand. Near retailers or customers, vertical farms are constructed. Fresh produce can be delivered as soon as it is harvested thanks to their short supply chains, which keeps it appealing and edible for longer. Vertical farm crops are in high demand because of their accessibility, freshness, flavor, texture, and nutritional benefits in the region. These elements are driving the market growth for vertical farms.

There are more vertical distribution options for crops grown in addition to the growing consumer demand for low-cost, high-quality local produce. The indoor crop market has expanded due to the "farm-to-table" culinary trend. In response to demand, growers agreed to deliver products within a few hours of harvest and provided chefs with free samples. As an illustration, FarmOne has adopted this strategy and is growing rare/unique crops in smaller quantities exclusively for chefs and high-end restaurants. Among them are the crop varieties Siam Queen basil, Tabasco Green Leaf, edible flowers, and Moringa leaves. Crop cultivators who engage in vertical farming can use this business strategy or model to boost sales and take hold of the market.

Regional Analysis

North America is the most significant revenue contributor and is anticipated to grow at a CAGR of 25.9% during the forecast period. North America is made up of the countries of the United States, Canada, and Mexico. Government initiatives and corporate collaboration have significantly increased investment in the vertical farming industry in North America. The North American vertical farming crops market had the highest revenue in 2019. The market is growing due to the alarming rate of water level depletion, the existence of drought-stricken states, and the rise in environmental concerns. There are about 821 farms in Chicago, including both sizable indoor vertical farms and little community gardens. The largest company in the industry, AeroFarms, has received more than USD 50 million from esteemed investors like Goldman Sachs and Prudential and more than USD 9 million in grants from regional and state governments. The most recent fashion in the region is nanoforms.

Asia-Pacific is anticipated to grow at a CAGR of 27.1% during the forecast period. The region comprises the countries of China, India, Japan, Taiwan, and the rest of the Asia-Pacific. An increase in population and disposable income are expected to fuel the market for vertically farmed crops in this region. Asia-Pacific is the second-largest region in terms of revenue from crops grown vertically. It provides approximately 75% of the vegetables consumed worldwide. The main driving forces behind the growth of indoor agriculture and organic food in the region are the shift in consumer preferences, followed by an increase in pollution, food scandals, and public disapproval. This region is home to some of the largest indoor vertical farms in the world. The local economy is also expected to benefit from the rapid advancements in data usage and lighting technologies, which will allow factories to expand. Several countries in the region heavily rely on imports to meet their expanding food needs.

Key Highlights

• The global vertical farming crops market was valued at USD 429.1 million in 2022. It is expected to reach USD 3,509.04 million by 2031, growing at a CAGR of 25.3% during the forecast period (2023–2031).
• Based on crop type, the global vertical farming crops market is bifurcated into tomatoes, leafy greens, and herbs. The leafy greens segment is the highest contributor to the market and is expected to grow at a CAGR of 26.7% during the forecast period.
• Based on the end-user, the global vertical farming crops market is bifurcated into direct retail and food service. The direct retail segment is the highest contributor to the market and is expected to grow at a CAGR of 26.2% during the forecast period.
• Based on the farming technique, the global vertical farming crops market is bifurcated into hydroponics, aeroponics, and aquaponics. The hydroponics segment is the highest contributor to the market and is expected to grow at a CAGR of 25.40% during the forecast period.
• North America is the most significant revenue contributor and is expected to grow at a CAGR of 25.9% during the forecast period.