Mexico Vertical Farming Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Mexico Vertical Farming Market is segmented by Growth mechanism (Aeroponics, Hydroponics, and Aquaponics), Structure (building-based vertical farms and shipping container-based vertical farms), Component( lighting devices, climate control, sensors, and other components) and Crop type (tomato, berries, lettuce & leafy vegetables, pepper, cucumber, microgreens, and other crop types).

Mexico Vertical Farming Industry Overview

Mexico Vertical Farming Market
Study Period: 2018 - 2028
CAGR: 10 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

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Mexico Vertical Farming Market Analysis

The Mexico vertical farming market was valued at USD 260.8 million in 2020 and is projected to register a CAGR of 10.0% during the forecast period.

During the lockdown imposed due to COVID-19, larger corporate farming systems with vertical market integration and high level of control or coordination within the supply chain and subsistence farming systems with a focus on production for self-consumption and little external input use were both relatively less impacted and showed greater adaptive capacity. Loss of commercial mobility and lockdowns did not affect them as much as other participants of the market in Mexico.

The increasing water scarcity and reduction in agricultural land area, focus on the food security and the need for alternative farming technique are major drivers who​ have paved the way for the development of vertical farming in Mexico. The production structure of agriculture in the country has a heterogeneous landscape, which translates into a low productivity growth across the last years. Thus, vertical farming can provide a sustainable long-term solution to ensure food security. The growth of the market is therefore expected to be positive during the forecast period.

Mexico Vertical Farming Industry Segments

The Mexico Vertical Farming Market is segmented by Growth mechanism (Aeroponics, Hydroponics, and Aquaponics), Structure (building-based vertical farms and shipping container-based vertical farms), Component( lighting devices, climate control, sensors, and other components) and Crop type (tomato, berries, lettuce & leafy vegetables, pepper, cucumber, microgreens, and other crop types).

Growth Mechanism
Aeroponics​
Hydroponics​
Aquaponics
Structure
Building-based Vertical​ Farms
Shipping Container-based​ Vertical Farms
Components
Lighting ​
Climate Control​
Sensors​
Other Hydroponic Components​
Crop
Tomato
Berries
Lettuce and Leafy Vegetables​
Pepper
Cucumber
Microgreens
Other Crop Types

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Mexico Vertical Farming Market Trends

This section covers the major market trends shaping the Mexico Vertical Farming Market according to our research experts:

Increasing Water Scarcity and Reduction in agricultural land area

The estimated drylands in Mexico according to United Nations Conference on Trade and Development (UNCTADare approximately 101. 5 million hectares or just over half of the total territory. ​Moreover, Water availability in most of the central and northern regions of the country is scarce. The regions that are classified as water stressed are also the places where the economy has developed more extensively compared to the rest of the country, owing to the proximity to the United States. This has also resulted in the stagnation of agricultural area. Consequently, the population in these areas has also grown at a fast rate, further increasing the water demand. Mexico is considered as a water-scarce country, and it is facing numerous technical and administrative challenges. ​ Thus the country is looking for alternative sustainable solutions to counter the water and arable land issues.

A vertical farm can use 95% less water since it is recycled and since the plants are stacked vertically, every square meter of the floor space of vertical farming produces approximately the same amount of vegetable crops as 50 square meters of conventionally worked farmland. These benefits are crucial for the country to focus on vertical farming and promote it. ​Hence the demand for vertical farms is expected to grow further in the coming years in Mexico.

Arable Land

Increased Focus on Food Security

In Mexico, the diverse food, nutrition, and public health issues are handled separately by different agencies with highly unequal capacities for action and political power. Fragmentation creates confusion and is likely responsible for the weak state of food security governance in Mexico. However, reforms are being implemented by the government. 

Consejo Nacional de Población de México estimates that the average population of Mexico will exceed 145 million people by 2050, up from 121 million in 2015. This will put immense pressure on the agricultural system of the country to provide food for the entire country. 

Hence, the increasing demand for food security requires bold and innovative technologies like vertical farming . Since the focus on this issue is only going to increase with the increasing population in the country, the mexico vertical farming market is projected to witness a gradual growth in the coming years.​

Prevalence of undernourishment

Mexico Vertical Farming Market Competitor Analysis

The Mexican vertical farming market is highly consolidated with the top players occupying a major share in the market. As vertical farming in Mexico is at a nascent stage, stakeholders, including direct customers, are willing to experiment with products that suit best. The major players in Mexican vertical farming market are Signify Holding, Heliospectra AB, and Verde Compact, among others.

Mexico Vertical Farming Market Top Players

  1. Signify Holding (PHILIPS)​

  2. Verde Compacto

  3. Karma Verde Fresh

  4. Heliospectra AB

  5. Inverfarms Mexico

*Disclaimer: Major Players sorted in no particular order

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Mexico Vertical Farming Market Recent Developments

In July 2020, Karma Verde Fresh and Inter-American Institute for Cooperation in Agriculture (IICA) representatives signed a collaboration agreement to work for improving the food security of the country through promoting the use technology in agriculture and other good practices in the southeast region of the country.

In September 2018, Signify Holdings launched a new GreenPower LED toplighting for the cultivation of vegetables, fruits, flowers and other crops in a vertical farm without sunlight. It helped the company to stay competitive in the market.

Mexico Vertical Farming Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition​

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitutes

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Growth Mechanism

      1. 5.1.1 Aeroponics​

      2. 5.1.2 Hydroponics​

      3. 5.1.3 Aquaponics

    2. 5.2 Structure

      1. 5.2.1 Building-based Vertical​ Farms

      2. 5.2.2 Shipping Container-based​ Vertical Farms

    3. 5.3 Components

      1. 5.3.1 Lighting ​

      2. 5.3.2 Climate Control​

      3. 5.3.3 Sensors​

      4. 5.3.4 Other Hydroponic Components​

    4. 5.4 Crop

      1. 5.4.1 Tomato

      2. 5.4.2 Berries

      3. 5.4.3 Lettuce and Leafy Vegetables​

      4. 5.4.4 Pepper

      5. 5.4.5 Cucumber

      6. 5.4.6 Microgreens

      7. 5.4.7 Other Crop Types

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Signify Holding(Philips)

      2. 6.3.2 Heliospectra AB​

      3. 6.3.3 Karma Verde Fresh​

      4. 6.3.4 Verde Compacto​

      5. 6.3.5 Comercializadora Hydro Environment, S.A. De C.V.

      6. 6.3.6 Al Natural

      7. 6.3.7 Oasis Grower Solutions

      8. 6.3.8 Inverfarms Mexico

      9. 6.3.9 Aeroponia Mexicana

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. AN ASSESSMENT OF THE IMPACT OF COVID-19 ON THE MARKET

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Mexico Vertical Farming Market Research FAQs

The Mexico Vertical Farming Market is studied from 2018 - 2028.

The Mexico Vertical Farming Market is growing at a CAGR of 10% over the next 5 years.

Signify Holding (PHILIPS)​, Verde Compacto, Karma Verde Fresh, Heliospectra AB, Inverfarms Mexico are the major companies operating in Mexico Vertical Farming Market.

Mexico Vertical Farming Industry Reports

In-depth industry statistics and market share insights of the Mexico Vertical Farming sector for 2020, 2021, and 2022. The Mexico Vertical Farming research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Mexico Vertical Farming report PDF.

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