Vertical Farming Market to Grow at 24.6% CAGR, Fueled by Declining Arable Land & Resource-Efficient Agriculture | AeroFarms LLC, Plenty Unlimited Inc, Green Spirit farms LLC, and Bowery Farming Inc.

Vertical Farming Market is Expected to reach a high CAGR of 24.6% during the forecasting period (2024- 2031). The decreasing arable land and depleting natural resources are motivating the crop growing communities towards effective farming practices that follow the 'law of minimum'.

The new report on the Vertical Farming Market, published by DataM Intelligence provides a detailed analysis of market size, share, trends, and growth opportunities from 2024 to 2031. With comprehensive insights into industry dynamics, competitive landscape, and regional developments, this study helps businesses, investors, and stakeholders navigate the fast-evolving market landscape.

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Vertical farming grows crops in stacked layers using hydroponics, aeroponics, or aquaponics in controlled environments. The market is growing due to urbanization, demand for pesticide-free produce, and resilience to climate change, with LED lighting and automation enhancing productivity.

Major growth drivers of the Vertical Farming Market are:

Growth Drivers:
Vertical farming uses significantly less water and land compared to traditional farming methods, addressing the need for more sustainable agricultural practices, especially in urban areas.

With the increasing demand for food due to a growing global population, vertical farming offers a viable solution to produce more food with limited space.

As more people move to cities, the demand for locally produced food is increasing, and vertical farming can be integrated into urban environments to supply fresh produce directly to consumers.

Innovations in LED lighting, hydroponics, aeroponics, and automation technologies are improving the efficiency and scalability of vertical farms.

Governments are providing incentives and support for sustainable agriculture practices, which benefits vertical farming.

Challenges:

The cost of setting up vertical farms, including purchasing specialized equipment and building infrastructure, can be high, which may deter some potential investors or operators.
Vertical farming can be energy-intensive, particularly for lighting and climate control, leading to higher operational costs if renewable energy sources are not used.

Not all crops are suited for vertical farming. While leafy greens and herbs thrive, it is more challenging to grow staple crops like grains or large vegetables in this setup.

The transition from traditional farming methods to vertical farming faces resistance due to the unfamiliarity and perceived complexity of the new farming techniques.

Scaling vertical farming operations to meet large-scale demand can be difficult due to the complexity of maintaining the systems and ensuring consistency in produce quality.

This trend is fueling investments and expanding applications across industries. Furthermore, advancements in Vertical Farming are reshaping the market landscape.

Latest Industry Update from United States and Japan on Vertical Farming Market:

United States: Recent Industry Developments

✅ In July 2025, Plenty Unlimited opened one of the world's largest vertical farms in Virginia. The facility uses AI and robotics to optimize crop yields. It will supply fresh produce to over 400 supermarkets nationwide.

✅ In June 2025, AeroFarms raised $300 million to expand its vertical farming operations across multiple U.S. cities. The funding accelerates adoption of sustainable indoor agriculture. It supports year-round production with minimal resource use.

✅ In May 2025, Bowery Farming launched a new line of vertically farmed strawberries. The crops are grown pesticide-free in controlled environments. The expansion diversifies its product portfolio beyond leafy greens.

Japan: Recent Industry Developments

✅ In July 2025, Spread Co. Ltd. introduced a fully automated vertical farming facility in Kyoto. The farm produces 20,000 heads of lettuce daily. It demonstrates Japan's progress in agri-tech innovation.

✅ In June 2025, Panasonic expanded its smart agriculture business with vertical farming systems for urban areas. The solution integrates IoT and AI for precision control. It caters to Japan's growing demand for sustainable food production.

✅ In May 2025, Mirai Corporation partnered with Aeon Group to launch vertical farming units in retail stores. The initiative brings farm-to-shelf produce directly to consumers. It strengthens food security and reduces supply chain emissions.

Key Developments

In January 2019, Local grown Salads launched Indoor Vertical farms in Opportunity zones located in Baltimore, Washington DC, and Nashville. Local Grown Salads provide Ready-to-Eat Salads, Ready-To-Use herbs, and vegetables that are Organic, GMO-Free, herbicide & Insecticide free.

Vertical Farming Market Key Companies:

The report profiles leading players shaping the Vertical Farming Market, including:

AeroFarms LLC, Plenty Unlimited Inc, Green Spirit farms LLC, and Bowery Farming Inc.

These companies are adopting strategies such as product launches, mergers & acquisitions, and partnerships to expand their market footprint.

Comprehensive Market Segmentation

The Vertical Farming Market has been segmented to provide a clear understanding of its structure and dynamics. The report categorizes the market by product type, application, end-user industry, and region, offering detailed insights into each segment's growth potential. This segmentation helps stakeholders identify key opportunities, evaluate demand patterns, and develop targeted strategies to strengthen their market position.

By Technique (Hydroponics, Aeroponics, Aquaponics), By Type (Outdoor farming, Indoor Farming), By Distribution Channel (Fruits & Vegetables, Flowers, Medicinal Plants, Spices and others)

Regional Outlook Highlighting Growth

• North America: Expected to dominate the Vertical Farming market due to high technology adoption and strong industry presence.
• Europe: Witnessing steady growth in Vertical Farming market, supported by sustainability initiatives and regulatory support.
• Asia-Pacific: Anticipated to be the fastest-growing region in the Vertical Farming Market, led by rising demand in China, India, and Japan.
• Latin America & Middle East/Africa: Emerging Vertical Farming markets offering untapped opportunities, particularly in Vertical Farming.

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FAQs

✅ How fast is the vertical farming market growing worldwide?
✅ Which crops account for the majority of vertical farming revenue?
✅ What are the biggest barriers and opportunities in vertical farming?

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