Vertical Farming Produce Market Analysis Report By Crop, By Structure, By Growing Mechanism And Segment Forecasts From 2020 To 2027

Industry Insights

The global vertical farming produce market size was accounted for USD 1.02 billion in 2019. It is also projected to witness a 25.7% CAGR over the forecasted period, 2020 to 2027. The emerging concept of smart agriculture and the need for catering to the surging food demand of the increasing population is estimated to propel the market growth of vertical farming produce.

Various initiatives are being undertaken by the governing bodies such as grants and subsidies for promoting vertical farming. Also, rapid technological advances in the field of agriculture have encouraged several key investors, independent financiers, and venture capitalists to make investments across vertical farming. Moreover, financial aid such as loan assistance at reduced interest rates has significantly contributed to the increasing adoption of vertical farming across several regions.

Several alternative methods of farming are being used to carry out vertical farming under unfavorable conditions. For example, the Middle East has started adopting this method for cultivating crops that cannot grow in natural climatic conditions. This has enabled the cultivators to grow a variety of crops at a much higher yield rate.

The process of vertical farming does not involve harmful pesticides, soil, and synthetic fertilizers. Thus, it is expected to gain wide popularity across the urban areas in the upcoming years. But, a lack of knowledge and information among farmers across underdeveloped regions is anticipated to hinder the market growth to some extent over the forecasted period.

Crop Insights

The segment of tomatoes held a share of around 19.0% across the global market in 2019. This can be associated with the surging demand for tomatoes as compared to other crops like spinach, peppers, lettuce, and cucumbers among the millennial population. Thus, several key players operating in this market are have started producing tomatoes for catering to its rising demand across the urban region.

Leafy vegetables are also gaining higher prominence across the globe. Thus, all of the leafy vegetables such as spinach, lettuce, arugula, kale, mint, and chives together account for around 30.0% share across the global vertical farming produce market. The segment of lettuce is expected to register the fastest growth from 2020 to 2027 owing to its economical and large-scale production capability across the majority of verticals farms.

Growth Mechanism Insights

The segment of hydroponics accounted for the largest share of around 45.0% across the global market in 2019. It is also projected to continue its dominance over the forecasted period, 2020 to 2027. In this method, the mineral solution is used instead of soil for planting purposes. Rising awareness about the harmful effects of artificial ripening agents and pesticides is also anticipated to augment the growth of this segment.

The hydroponics segment is also expected to witness the highest CAGR in the upcoming years. Operational ease and low cost of installation are estimated to contribute majorly towards this growth. The segment of aeroponics is also projected to account for substantial growth in the upcoming years owing to the feature of no requirement of growing medium like plant roots.

Structure Insights

In 2019, the building-based structure segment held the largest share of around 60.0% across the global market. The produce obtained from vertical farms located inside the buildings has a large customer base which is the major driving factor for the growth of this segment. Also, additional features like accommodation of huge volumes of crops and cost minimization are projected to propel the market demand for vertical farming produce.

The shipping container segment is gaining popularity among small-scale farmers and start-ups. This can be associated with the ability to grow crops in any geographic location across the globe. Moreover, external factors such as ease of transport, no requirement of dedicated space, and availability of old and unused shipping containers are expected to propel the market growth for this segment.

Regional Insights

North America held the largest share of around 33.0% across the global market in 2019. It is also expected to continue its dominance over the forecasted period, 2020 to 2027. The rising consumption of fruits and vegetables that are pesticides free is expected to trigger market growth across this region. Moreover, the surging adoption of urban farming across the U.S. and Canada is estimated to further fuel up market growth.

The Asia Pacific accounted for a significant share across the global market in 2019 due to the surging number of such farms across China, Japan, and Singapore. Various initiatives are also being undertaken by governing authorities for the development of vertical farms to overcome challenges like rising population, pollution, and climatic changes.

The Middle East is expected to register 26.6% CAGR over the forecasted period, 2020 to 2027. The increasing presence of vertical farm builders, cultivators, and designers across Saudi Arabia and the UAE is projected to contribute majorly to the market growth across this region.

COVID-19 Impact Analysis

The vertical farming produce market has been positively impacted owing to the ongoing COVID-19 pandemic. Hindrance in the supply chain due to the imposition of lockdown and restrictions over cargo movement has resulted in the wastage of cultivated crops. Thus, key players operating across this market have started leveraging this technology to grow crops and cater to the need of the urban population. Also, less exposure of humans to such crops is anticipated to bode well the market growth in the upcoming years.

Vertical Farming Produce Market Share Insights

The key players operating in the market are Agricool, AeroFarms, Bowery Farming Inc., Gotham Greens, BrightFarms, InFarms, Sky Greens, Plenty Unlimited Inc., YesHealthFarms, and Spread. The majority of these players have a well-established presence across the U.S. due to the availability of large vertical farming facilities.

To gain a cutting edge across the global market, these players are implementing strategies like partnerships, acquisitions, and expansions. For example, SPREAD Co. Ltd. had partnered with J Leaf Corporation in 2019 to widen the sale and production of vertical farming products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For this study, Million Insights has segmented the global vertical farming produce market based on crop, structure, growing mechanism, and region:

• Crop Outlook (Revenue, USD Million, 2016 - 2027)
    • Tomato
    • Lettuce
    • Bell & Chili Peppers
    • Strawberry
    • Cucumber
    • Leafy Greens (excluding lettuce)
    • Herbs
    • Other Crops

• Structure Outlook (Revenue, USD Million, 2016 - 2027)
    • Shipping Container
    • Building-based

• Growing Mechanism Outlook (Revenue, USD Million, 2016 - 2027)
    • Aeroponics
    • Hydroponics
    • Aquaponics

• Regional Outlook (Revenue, USD Million, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
        • Mexico
    • Europe
        • The U.K.
        • Germany
        • France
        • Norway
        • Switzerland
    • The Asia Pacific
        • China
        • Japan
        • Hong Kong
        • Singapore
    • South America
        • Brazil
    • Middle East
        • Saudi Arabia
        • UAE
    • Africa