Market Trends of Mexico Vertical Farming Industry
This section covers the major market trends shaping the Mexico Vertical Farming Market according to our research experts:
Growth in Organic Cultivation Practices
- Mexico's preference for organic farming has grown significantly over the past ten years, and there is no sign of slowing down. Growers of all sizes are improving production on practically every crop grown in Mexico.
- Organic product demand in Mexico has increased in recent years, paralleling a general trend toward healthy eating. Many Mexican consumers consider organic foods healthier than conventionally farmed foods to avoid environmental damage and promote better soil and plants.
- According to Statistics from the Government of Mexico, the total organic land under cultivation in 2021 was 50.4 thousand hectares. Mexican authorities have officially recognized organic farmers who wish to use more intensive commercial production techniques, like vertical farming, and provided them with protection from conventional farmers. Vertical farming reduces the use of synthetic fertilizers, pesticides, and other hazardous chemicals.
- Although the country produces a substantial amount of vegetable crops, it is more attracted to plantation and fruit crops. Vertical farming, in this case, is a good alternative for growers who wish to produce and fulfill the demand for organic vegetables.
- Several attempts have been made in the recent decade by the Mexican government and the commercial sector to promote organic farming. As a result, dozens of outdoor markets and farmers' markets for organic products have sprouted up across Mexico, including Oaxaca, Michoacán, and Chiapas, with over 500 small producers selling their wares.
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Increased Focus on Food Security
- In Mexico, the diverse food, nutrition, and public health issues are handled separately by different agencies with differing political power and capabilities. Fragmentation creates confusion and is likely responsible for Mexico's weak state of food security governance. However, reforms are being implemented by the government.
- The National Population Council of Mexico (NPCM) estimates that the average population of Mexico will exceed 145 million people by 2050. This will put immense pressure on the country's agricultural system to provide food for the entire country and rely on imports. According to International Trade Center (ITC) Trademap statistics, Mexico imported USD 662,081 thousand worth of vegetables in 2019 to fulfill the domestic market demand, which has increased by approx 20% as compared to the previous year, 2018.
- Certain commodities in the country are witnessing decreasing production, including spinach, cucumbers, onions, and peas. The reason is mainly attributed to the need to increase technological involvement to maintain production levels. Hence, the increasing demand for food security requires bold and innovative technologies like vertical farming. Since the focus on this issue will only increase with the country's population, the Mexican vertical farming market is projected to witness gradual growth in the coming years.
