Vertical Farming Market Report. Market is expected to reach USD 39.20 billion by 2033, at a very strong CAGR of 19.3%. North America leads the market with 40% market share. Major Players & Tech Partnerships.

The global vertical farming market size was valued at USD 9.62 billion in 2025 and is anticipated to reach USD 39.20 billion by 2033, growing at a CAGR of 19.3% from 2026 to 2033. The growth of the vertical farming market is attributed to increasing consumer demand for organic food is positively impacting the growth of the vertical farming market, creating favorable business opportunities.

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United States: Key Industry Developments

✅ January 2026: U.S. vertical farming market valued at $1.58 billion, growing at 10.64% CAGR as Midwestern expansions like 80 Acres Farms leverage 30% cheaper industrial leases for leafy greens production

✅ December 2025: Oishii Farm scaled Japanese strawberry vertical operations using LED robotics and bees, achieving premium pricing 3x traditional berries through proprietary flavor genetics.

✅ November 2025: AeroFarms opened 100,000 sq ft Newark facility with AI-optimized aeroponics, yielding 390x more produce per acre than field farming while using 95% less water.

Asia Pacific / Japan: Key Industry Developments

✅ November 2025: Hosei University/UTokyo achieved world's first stable hydroponic LED edamame production, enabling year-round supply independent of seasonal limitations.

✅ October 2025: Japan's vertical farming market hit USD 680 million valuation, driven by land scarcity solutions and pesticide-free urban produce meeting premium consumer demands.

✅ December 2025: Agroz Malaysia launched AI-powered Japanese strawberry vertical farm, targeting Southeast Asia exports with breakthrough taste replication technology.

Vertical Farming Market Recent M&A activities:-

→ In January 2026, Canadian vertical farming company Growcer acquired the assets of U.S. container-farming pioneer Freight Farms after the latter filed for bankruptcy. The transaction which includes Freight Farms' inventory, intellectual property, software, and customer base was valued at approximately $2.6 million and expected to close by the end of July 2025. This acquisition helps Growcer support existing vertical farm operators globally and preserve Freight Farms' installed base.

→ In August 2025, 80 Acres Farms and Soli Organic completed a strategic merger to form a larger indoor farming entity under the 80 Acres Farms banner. While the companies did not publicly disclose the transaction amount, the merged company projected $200 million in first-year revenues and a significantly expanded retail footprint across the United States.

→ In July 2025, Canadian agritech innovator Growcer won a bid to acquire all assets of Freight Farms (the U.S. modular vertical farm builder) for about $2.6 million following Freight Farms' bankruptcy proceedings, securing IP, inventory, and support infrastructure for continued operations and support to growers.

→ In March 2025, 80 Acres Farms expanded its physical footprint in the vertical farming market by acquiring three indoor vertical farms and related intellectual property previously owned by Kalera (Georgia, Texas, Colorado). The financial terms were undisclosed, but the strategic move accelerated 80 Acres' national network and production capabilities.

Vertical Farming Market key Players:-
AeroFarms LLC, Plenty Unlimited Inc, Green Spirit Farms LLC, and Bowery Farming Inc. These companies are driving innovation and expansion in the market

Top 5 Key Players Analysis:-
AeroFarms LLC - A pioneer in aeroponic vertical farming, often cited as holding the largest market share (10 %) in the sector and known for high-yield, energy-efficient indoor farms.

Plenty Unlimited Inc. - Uses advanced AI and robotics for optimized growth and scalable production, making it one of the top innovators in the market.

Bowery Farming Inc. - Known for highly automated controlled-environment farms and significant regional presence with an estimated 25 % share in specific market segments.

Green Spirit Farms LLC - Operates modular vertical farms focused on energy efficiency and scalable commercial growing, with an estimated 20 % share in some reported analyses.

Infarm (added as 5th key player) - A leading global player offering decentralized, modular vertical farms targeting urban locations and partnerships with retailers worldwide.

Vertical Farming Market Top Technological Partnerships (2026 & 2025):-

AI-Driven Insight Alliance
• 80 Acres Farms + Amazon Web Services (AWS) + International Research Centre on Artificial Intelligence (IRCAI) formed an AI partnership to build predictive crop performance models, accelerate research, and cut trial-and-error timing for controlled-environment farming leveraging cloud computing and machine learning for smarter vertical farm operations.

Compact Automated Farm Collaboration
• Just Vertical + NuLeaf Farms joined forces to create plug-and-play automated indoor farms. This blends Just Vertical's space-efficient hydroponic tech with NuLeaf's automation systems making vertical farms easier to operate in schools, shelters, and remote regions.

Tomato Hybrid Innovation Partnership
• Water Ways Technologies (Canada) & BF AGRITECH (Israel) entered a crop breeding and technology development deal focused on a proprietary tomato hybrid optimized for vertical farming environments with global commercialization rights and future expansion of Ontario vertical facilities.

Crysp & Alesca Growth Partnership
• Crysp Farms + Alesca Technologies announced a regional deployment of 500 vertical farms across the Middle East, integrating smart monitoring and automation to improve efficiency and food production scalability.

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Vertical Farming Market Market Drivers :-

Rapid urban population growth is pushing food production into cities. Vertical farms are increasingly placed in urban centers to serve local demand, reducing transport costs and spoilage.

About 50% of vertical farms operate in urban areas, directly catering to nearby consumers.

Adoption of AI, IoT, and automation is a major market catalyst boosting operational efficiency by up to 30% in some systems.

Over 70% of farms now use AI for real-time monitoring and optimization.

Vertical farming drastically reduces resource use up to 90-95% less water compared to traditional farming.

These sustainability gains are key selling points in investor and policy narratives.

Controlled-environment farms ensure crop output regardless of weather or season, supporting food security narratives in reports and strategic briefs.

Regional Insights:-
North America: 40% Global Share
North America leads with 40% market dominance in 2025, driven by U.S. hubs like AeroFarms and Plenty scaling 390x yields through aeroponics.Projections show $2.38B U.S. market by 2026 as industrial retrofits cut costs 30% amid urban food security demands.

Asia Pacific: Fastest Growth, 25% Share
Asia Pacific claims 25% share with highest CAGR through 2035, fueled by Japan/China land scarcity solutions producing year-round edamame/strawberries.
​Government subsidies in Japan/India drive $680M valuation, targeting pesticide-free urban produce exports.
​
Europe:23% Share
Europe holds 23% through Dutch/Spanish tech innovation, with hydroponics capturing 56% technique share using 90% less water.
​Germany/Netherlands lead controlled-environment R&D, supporting EU Green Deal carbon-neutral farming mandates.

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Market Segmentation

By Technique: Hydroponics dominates due to water efficiency and higher yields, while aeroponics gains traction for faster plant growth, and aquaponics supports sustainable, closed-loop farming systems.

By Type: Indoor farming leads the market as it allows year-round production with controlled environments, whereas outdoor vertical farming is adopted where climate conditions are favorable and costs are lower.

By Distribution Channel: Fruits and vegetables hold the largest share driven by urban demand, while flowers, medicinal plants, spices, and others are growing due to premium pricing and niche applications.

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