Vertical Farming Crops Market Worth to Reach $1,057.75Mn Globally by 2028 – Exclusive Report by The Insight Partners
The global vertical farming crops market size to grow at a CAGR of 20.7% between 2021 and 2028.
Pune, India, Oct. 23, 2023 (GLOBE NEWSWIRE) — According to our latest study on “Vertical Farming Crops Market Size Report, Forecast to 2028 – COVID-19 Impact and Global Analysis – by Crop Type, End-Use, Farming Technique, and Geography,” the vertical farming crops market is expected to grow from $282.80 million in 2021 to $1,057.75 million by 2028; it is estimated to grow at a CAGR of 20.7% from 2021 to 2028. The key factors driving the market growth are the rising adoption of modern and technologically agricultural techniques and the increasing demand for fresh, pesticide-free, organic agricultural produce.
A few players 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. These key players are highly focused on developing high-quality and innovative products to fulfill the changing requirements of customers. Players realized the immense potential of vertical farming crops and were highly involved in merger and acquisition, product innovation, and other such market initiatives.
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Europe accounted for the largest share in the global vertical farming market. The well-established food and beverage industry, rapid adoption of modern agricultural techniques, and the rising demand for organic food products are some of the key factors driving the growth of the region’s vertical forming crops market. For instance, according to CBI, Germany is the largest organic food market and accounted for 29% of the total retail sales of organic products in the European Union in 2018. Moreover, Europeans consider themselves health-conscious and prefer organic and fresh agricultural produce. Additionally, a rising number of start-ups in the region are engaged in vertical farming. For instance, Agricool, a vertical farming company, has designed a new, local and sustainable method of growing food, especially strawberries. The company creates small farms in urban areas using old containers called cooltainers to grow strawberries vertically without pesticides. Thus, the rising number of start-up companies that use innovative vertical farming methods is driving the growth of the region’s vertical farming crops market.
Increasing Demand for Vertical Farming in Highly Populated Urban Regions
Many projects have been initiated in urban areas, especially in metropolitan cities, to support the new ecosystem services in providing the most sustainable and efficient food supply solutions and transporting fresh and clean vegetables. Indoor urban vertical farming (IUVF) is one of the most outstanding achievements in agriculture. It is entirely focused on meeting the food needs of people living in urban areas with the lowest environmental and energy costs. Vertical farming has gained massive importance across various urban areas worldwide due to its beneficial role in the agriculture sector. Vertical farming helps in reducing transportation costs as the farms are located adjacent to the distribution sites. Planned production of crops and their growing conditions can be enhanced by adjusting the temperature, humidity, and lighting conditions. This has increased the popularity of vertical farming across the urban areas and metro cities which is expected to open lucrative growth opportunities in the coming years.
Vertical Farming Crops Market: Segmental Overview
By the crop type, the vertical farming crops market is segmented into tomatoes, leafy greens, herbs, and others. The herbs segment is projected to grow at the fastest CAGR over the forecast period. A few main herbs cultivated using vertical farming techniques include coriander, parsley, basil, marjoram, thyme, rosemary, salvia, lovage, lemongrass, chives, chili, tarragon, ginger, and oregano. Manufacturers are making significant investments to enhance the production of herbs using vertical farming methods. For instance, in January 2021, Vertical Field, an Israel- based vertical farming company, signed a strategic agreement with Emirates Smart Solutions & Technologies (ESST) to establish vertical farming for herbs in the UAE. At present, Vertical Field is actively engaged in cultivating lettuce, basil, parsley, kale, and mint. Such strategic investments are projected to drive the segment’s growth over the forecast period.
By the end-use, the vertical farming crops market is segmented into food retail and food service. The food retail segment accounted for the largest share in the vertical farming crops market in 2020. The majority of the vertical farming companies have a very short supply chain and deliver the produce almost regularly to convenience stores and supermarkets, including Walmart and Whole foods. Retail stores like hypermarkets and supermarkets have high customer traffic. Therefore, companies distribute their products through different retail channels to enhance sales. Moreover, these stores have modern storage facilities which keep the vertical farming crops fresh.
Based on the farming technique, the vertical farming crops market is segmented into hydroponics, aeroponics, and aquaponics. The aeroponics segment is projected to grow at the fastest CAGR over the forecast period. Many companies engaged in vertical farming are adopting the aeroponics system for growing crops. Aeroponics uses 90% lesser water than other vertical farming methods, including hydroponics. Moreover, it has been observed that plants grow quicker in the aeroponics system when compared to hydroponic systems.
Additionally, in aeroponics, the fertilizer usage is reduced by 60%, while the crop yields increase by 45 to 75%. Plants grown in these systems are higher in nutrient content. Due to these benefits, aeroponics is growing in popularity among vertical farmers and growers globally.
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Impact of COVID-19 Pandemic on Vertical Farming Crops Market
The COVID-19 pandemic has affected economies and industries in various countries due to lockdowns, travel bans, and border restrictions. The food & beverage industry has also suffered severe disruption due to the shortage of raw material, labor, and shutdown of production units. During the initial days of the pandemic, various companies had announced possible delays in product deliveries and slump in future sales of their products. In addition, the global travel bans imposed by countries in Europe, Asia, and North America have been affecting business collaborations and partnership opportunities. However, with rising health consciousness among people, the demand for locally produced organic food has grown substantially. It is likely to create lucrative opportunities for the vertical farming crop market in the coming years. There is a growing interest in vertical farming worldwide, with massive facilities already operating in Asia, the Middle East, and Europe. New projects have been announced since the start of the COVID-19 outbreak. While many industries are facing unprecedented challenges because of the pandemic, vertical farming is expected to boom over the forecast period owing to increasing demand for pesticide-free, fresh produce. Additionally, the rising vaccination rates and relaxation of regulations by the governments of different countries are also expected to positively boost the vertical farming crops market growth over the forecast period.
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