Markets and Economics of Vertical Farming
The Basics: What is Vertical Farming? | Markets and Economics | Food Waste
The market for vertical farming has been growing in recent years, driven by increasing demand for fresh, locally grown produce, as well as concerns about food security, sustainability, and the environmental impact of traditional agriculture.
Vertical farming refers to the practice of growing crops in vertically stacked layers, using technologies such as hydroponics, aeroponics, and aquaponics, which allow for the efficient use of space, water, and energy. Vertical farms can be located in urban areas, close to consumers, reducing transportation costs and emissions.
According to a report by Mordor Intelligence, the global vertical farming market was valued at USD 3.5 billion in 2020 and is expected to reach USD 14.7 billion by 2026, growing at a CAGR of 28.8% during the forecast period (2021-2026). The Asia-Pacific region is expected to witness the highest growth rate, due to the increasing adoption of vertical farming technologies in countries such as Japan, China, and Singapore.
The market for vertical farming is being driven by factors such as increasing urbanization, the need for year-round crop production, growing consumer demand for locally grown, pesticide-free produce, and advances in technology that make vertical farming more efficient and cost-effective.
However, there are also challenges to the growth of the vertical farming market, such as the high capital and operating costs of setting up and running vertical farms, as well as the need for specialized skills and knowledge to operate them. Nonetheless, the increasing awareness of the benefits of vertical farming and the growing demand for sustainable agriculture are expected to drive continued growth in the market.