February 21, 2024

Vertical Farming Market Propelled By Rising Consumer Preferences For Organic Fruits And Vegetables

Vertical farming offers an innovative way to produce crops by growing them in vertically stacked layers or inclined surfaces with the help of controlled environment agriculture. It optimizes space and resources while allowing year-round harvesting of crops through monitoring climate control, lighting, and irrigation. Vertical farming eliminates the impact of weather uncertainties and reduces transportation costs by producing food close to urban consumption centers.

The global vertical farming market is estimated to be valued at US$ 16.19 Mn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Conventional agriculture relies heavily on agrochemicals and lack of efficient transportation infrastructure leads to post-harvest losses making produce not entirely organic or fresh by the time it reaches consumers. Vertical farms use optimized indoor greenhouse facilities to control the cultivation environment and grow pesticide-free crops in clean conditions. This enables vertical farms to supply organic leafy greens, herbs, and fruits round the year to urban populations benefiting their health. The rising health and environmental consciousness is increasing the demand for pesticide-residue free and fresh food items propelling the vertical farming market growth.

SWOT Analysis
Strength: Vertical farming yields higher crop yields per year compared to traditional farming by growing plants indoors with optimized artificial light and climate control.
Weakness: High initial investment costs for setting up indoor vertical farming infrastructure such as lighting, irrigation, sensors etc. Vulnerable to power outages.
Opportunity: Increasing demand for locally grown food to reduce carbon footprint of long distance transportation of vegetables & fruits. Growing popularity of urban agriculture and rooftop farming.
Threats: Uncertain return on investments due to high operating costs. Vulnerable to crop diseases spreading rapidly in closed indoor environments.

Key Takeaways
The global Vertical Farming market is expected to witness high growth. Vertical farming produces crops in stacked layers, growing plants in vertical shelves, usually without soil and often in a fully controlled environment. This allows much higher yields to be produced in a smaller space.

Regional analysis: Asia Pacific region dominates the global vertical farming market currently. Countries like China, Japan and Singapore are rapidly adopting vertical farming technologies to cater to their growing populations. Within Asia Pacific, China accounts for largest market share currently due to government support and high urbanization rate.

Key players operating in the vertical farming market are BASF SE, Eastman Chemical Company, Shandong Acid Technology Co. Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Limited, LUXI GROUP, Perstorp Holdings ABPOLIOLI SpA, PT Pupuk Kujang, Rashtriya Chemicals and Fertilizers Limited, and Wuhan Ruisunny Chemical Co. Ltd. These key players are focusing on new product launches and strategic partnerships to strengthen their market presence.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it