United States Vertical Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States Vertical Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The US vertical farming market is expected to register a CAGR of 10.5% during the forecast period, 2020-2025.

Key Highlights

• Among the crop types, fruits and vegetables accounted for a significant share of 47%, followed by herbs and micro-greens with 35% in 2019.
• Shrinking per-capita agricultural land and the rapid pace of development of precision farming technologies are expected to drive the market growth, while limitation on types of crops grown and high initial investments can restrain the growth of the market.

Key Market TrendsHydroponics Dominates the Market

The United States is one of the largest markets for hydroponic systems in North America, given the rising popularity of greenhouse horticulture and agriculture in the country. The future growth of the hydroponics market in the country mainly depends upon the development of production systems that are competitive in cost with open-field agriculture. Cultivating crops using hydroponics is also seen as a resort during extreme weather conditions. For instance, in the past, grocery stores have turned toward hydroponic farmers to meet their demand during harsh weather conditions. In addition to adverse climatic conditions, the increasing demand for organic produce is expected to boost the segment’s growth. Increased demand for greenhouse tomatoes and the legalization of medicinal plants, like marijuana, is expected to further help the market in registering rapid growth in the country. Rooftop hydroponic gardens in urban setups are also helping the market grow further.

The Fruits and Vegetables Segment - Largest by Crop Type

The fruit and vegetable segment in the US vertical farming market held a share of 47% of the overall market in 2018. Tomato is one of the primary crops that is grown through vertical farming systems in the country. Hydroponic techniques have proven to be commercially successful for propagation, seed germination, and the production of tomato. Producers in the country have recognized this as an opportunity; thereby, increasing the production of fruits and vegetables through vertical farming. In addition to vegetables, the year-round availability of strawberries is being made possible through integrated agricultural production systems. In order to keep up with the market demand, many farmers in the country have started growing strawberries through hydroponics. Based on the aforementioned factors, vertical farming is expected to play a critical role in the production of fruits and vegetables in the country.

Competitive Landscape

The US vertical farming market is highly fragmented, with more than 2,000 farms across the United States in 2019. Small indoor vertical farms are high in number, as compared to large-scale farms, in the country. According to Mordor Intelligence's analysis, around 61% of the indoor vertical farms in the country, currently, are of small scale, whereas large-scale farms account for a share of 39%.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Aero Farms
Freight Farms
Green Sense Farms Holdings Inc.
Green Spirit Farms
Plenty Unlimited Inc.
Bowery Farming Inc.
Altius Farms

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