Thailand Indoor Farming Market - Forecasts from 2024 to 2029

Thailand Indoor Farming Market - Forecasts from 2024 to 2029

The Thailand indoor farming market is projected to grow at a CAGR of 7.89% over the forecast period, from US$34.399 million in 2024, and is expected to reach US$50.285 million by 2029.

Indoor farming is a technique in which the activity is done inside a closed or indoor location. There are various types of indoor farming, like hydroponics, vertical farms, container farms, aeroponics, and greenhouses. This method of farming efficiently uses space or land while reducing the wastage of water. These farming techniques offer a higher rate of production without the use of pesticides.

One of the major drivers for the increase in the demand for indoor farming in the nation can be explained by the increasing consumption of fruits and vegetables, among other foods. With the growing population, the demand for fruits and vegetables in the nation also increases. Thailand’s total population was estimated at 71.601 million in 2021, which grew to 71.697 million in 2022, and finally reached 71.801 million in 2023. With the growing population, the demand for fruits and vegetables will expand, and the market demand for indoor farming will grow.

Thailand’s indoor farming market is estimated to grow at a moderate rate, fueled by changing consumption and the growing agriculture market of the nation. This will encourage more companies to focus on product development and further pave the way for future market expansion.

THAILAND INDOOR FARMING MARKET DRIVERS:

The growth in the nation’s agriculture sector is expected to bolster the demand for the Thailand indoor farming market expansion.

Expanding the nation’s agriculture sector is expected to propel the market demand for indoor farming. With its increasing market, indoor farming offers producers an enhanced capability of production, along with increasing efficiency and reducing the wastage of water and land. Products grown in an indoor farm are organic and include higher-quality products compared to regular farming.

The nation's agriculture sector has grown significantly in recent years. The International Trade Administration of the US stated that the nation's agriculture exports increased from US$42.59 billion in 2021 to about US$47.33 billion in 2022. Similarly, the Government Public Relations Department of Thailand stated in a press release that the nation's agro-processed products also increased about 2% in 2023, accounting for about US$15.074 billion.

Thailand Indoor Farming Market Segment Analysis
The fruits and vegetables segment is predicted to contribute significantly to market growth.

Thailand's indoor farming is anticipated to grow moderately in the projected period. The major reason boosting the market growth is the rising demand for fresh and sustainably produced food among the country's people. Additionally, in the coming years, as the country's population increases, the demand for food is further expected to propel the market for indoor farming in the projected period. For instance, according to the World Bank, in 2021, the population of Thailand was 7,16,01,103, which grew to 7,18,01,279 in 2023. With the rising population, the demand for food is expected to rise.

Indoor farming involves using a controlled environment agriculture method that helps eliminate the effect of external factors such as temperature and rain and provides output all year round. Additionally, indoor farming helps increase the per-square-foot output compared to traditional agriculture. According to the Embassy of India, vegetables and vegetable products are the sixth most imported product in Thailand provided by India.

Furthermore, companies see huge potential in the Thailand market by investing in facilities in the country. For instance, in April 2023, Singrow, a Singapore-based company, announced a partnership with franchise brands in Thailand and Malaysia, TreeGrow Sdn Bhd, and PREINO Co, Ltd. Furthering the development of Singrow strawberries, the company plans, with the help of research and development plans, to produce more novel crops that can withstand environmental challenges, when present in the company’s-controlled environment. Hence, with more and more companies entering Thailand, the market for indoor farming is anticipated to grow.

According to the International Trade Administration (ITA), the agricultural imports in the country increased rapidly. In 2021, the country's agricultural imports were US$20.70 billion, which increased to US$22.30 billion in 2022. In 2023, this figure increased to US$24.30 billion. Hence, the increased agricultural import is expected to encourage more domestic production and is anticipated to positively impact the indoor farming market in the projected period.

Thailand Indoor Farming Key Market Players:

Taikisha (Thailand) Co., Ltd. - Taikisha (Thailand) Co. offers a wide range of services, including plumbing and fire protection services. The company also operates its Vega-Factory, an indoor farming showroom in Thailand.
Square m2 - The company offers various containers specially designed for various purposes. In the indoor farming market, the company offers ready-to-grow containers equipped with solar energy and various software to monitor the produce.
Thai Advance Agri Tech - The Thai Advance Agri Tech offers various solutions for vertical hydroponics farming techniques. Their products include Star Stack, iStack, and other accessories like pumps.

Market Segmentation:

Thailand Indoor Farming Market is segmented and analyzed as below:

By Growing System

Hydroponics
Aeroponics
Aquaponics
Soil-based
Hybrid

By Component

Hardware
Software
Services

By Facility Type

Glass or Poly Greenhouse
Indoor Farm
Container Farm
Indoor DWC System

By Crop Type

Fruits and Vegetables
Herbs and Microgreens
Flowers and Ornamentals
Others