Middle East Vertical Farming Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Middle East Vertical Farming Market is Segmented by Growth Mechanism (Aeroponics, Hydroponics, and Aquaponics), Structure (Building-based Vertical Farms and Shipping Container Vertical Farms), Crop Type (Fruits and Vegetables, Herbs and Micro-greens, Flowers and Ornamentals, and Other Crop Types), and Geography (Saudi Arabia, United Arab Emirates, Egypt, and Rest of the Middle East). The report offers market sizing and forecasts in value (USD million) for all the above segments.

Middle East Vertical Farming Market Size

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Middle East Vertical Farming Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 14.20 %
Market Concentration Low

Major Players

Middle East Vertical Farming Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Middle East Vertical Farming Market Analysis

The vertical farming market in the Middle East is projected to register a CAGR of 14.2% over the forecast period.

  • The Middle East region is one of the most prominent regions in the world which are highly suitable for the development of vertical farms due to water scarcity, less arable land, and higher dependency on imports for food requirements. Governments in the Middle East have envisaged themselves with plans to reduce dependency on imports, due to which vertical farming business in the region has been experiencing a high growth rate.
  • Factors like increased food security investments, vertical farming use in production and delivery, and public-private sector collaborations have contributed to the region's growth. The sector has been complementing various supply chain stores and creating numerous opportunities, from research to automation.
  • Factors such as climate change, water shortages, and less arable land make it the best prospective market for vertical farming firms. Oil-rich countries have already seen increased market penetration of vertical farms, which is being encouraged by various government initiatives to achieve food security.
  • Furthermore, investment and advancements in the vertical farming sector using hydroponic, aquaponic, and aeroponic vertical farming are also expected to improve the region's food industries, hotels, restaurants, and cafe enterprises. It will help reduce water consumption and the economic and environmental effects of food imports.

Middle East Vertical Farming Market Trends

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

Emphasis of GCC Countries on Food Security

  • The nations in the Middle East import a significant portion of their food. The six Gulf Cooperation Council Nations (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) are estimated to import around 85% of their food, including more than 90% of cereals, meat (60%), and vegetables (50%).
  • The managing director of the International Monetary Fund (IMF) indicated that 141 million people in the Middle East lack access to enough food at a conference held in Saudi Arabia in 2022.
  • Some wealthy nations are only kept from dropping significantly in the Global Food Security Index by their substantial oil and gas wealth. They have occasionally invested in foreign farmlands and supply chains to ensure their food supply. However, these investments can be contentious with local populations if not managed carefully and do not reduce the prices associated with importing goods.
  • Middle Eastern nations with limited land or resources are increasingly attempting to protect themselves from food shocks and disruptions in the global supply chain affected by fluctuating arable land, politics, and extreme weather.
  • To address the issue of food security, Middle Eastern governments began offering special loans to encourage enterprises to embrace innovative farming methods. For instance, the Abu Dhabi Investment Office spent USD 100 million on four agritech businesses developing research and manufacturing facilities in the emirate by 2020. Dubai also opened a Food Tech Valley in early 2021, with research facilities, an innovation center, a smart food logistics hub, and vertical agricultural areas. As a result of these initiatives, the United Arab Emirates now boasts 1,000 hydroponic farms throughout the Middle East, up from only 50 in 2009.
  • More governments in the region recognize the importance of vertical farming for their year-round sustainability, local fresh produce, and healthy eating policies, which is anticipated to drive the growth of vertical farming.
Middle East Vertical Farming Market: Food Security Index, Score (0-100), MIDDLE EAST, 2022

Hydroponics Dominates the Market

  • Hydroponics is ideal for crop production in arid countries in the region like the United Arab Emirates, Qatar, and Saudi Arabia. It significantly reduces water consumption (70-90%), with less or no use of fertilizers and less agricultural area. The adoption of hydroponics is significant in the United Arab Emirates, with over 200 farms. Subsequently, vertical farms that adopt hydroponics technology are on the rise in different countries in the region, clearly showcasing the growth potential of the segment in the market.
  • Advancements in agricultural technologies with large-scale, smart, and vertical farming hydroponics are expected to boost yields and ensure food security in countries in the region. There are key investments in the area to enhance local production by incorporating farming technologies and supporting local farmers and cooperatives.
  • In 2020, Saudi Arabia invested USD 665 million to facilitate food imports and assist local farmers in improving crop production with hydroponics deployment.
  • Moreover, the region beholds the production of rare and expensive crops in the hydroponics vertical farming system. With light-assisted hydroponics systems, UAE farmers not just effortlessly grow mass-consumed food crops but also rare and exotic plants and foods of high value, which drives the adoption of the technology and boosts the growth of the segment.
  • For instance, Sharjah-based agricultural technology company Veggitech cultivated and harvested the world's most expensive spice, saffron, also known as red gold. After a few years of experiments with smaller quantities of saffron bulbs, the teams at Veggitech cultivated roughly 150,000 crocus Sativa bulbs by growing them in vertical farms in Al Zubair.
Middle East Vertical Farming Market: CAGR (%) by Growth Mechanism, 2022-27

Middle East Vertical Farming Industry Overview

The vertical farming market in the Middle East is fragmented. Aerofarms, Intelligent Growth Solutions, Crop One Holdings, Freight Farms, and Madar Farms are some of the major players operating in the market. The players are investing in new products and improvisation of products, partnerships, expansions, and acquisitions for business expansions.

Middle East Vertical Farming Market Leaders

  1. Aero Farms

  2. Madar Farms

  3. Freight Farms

  4. Crop One Holdings Inc.

  5. Intelligent Growth Solutions

*Disclaimer: Major Players sorted in no particular order

Middle East Vertical Farming Market concentration
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Middle East Vertical Farming Market News

  • November 2022: AeroFarms announced its plan to expand further in the Middle East with a partnership with QFZA and Doha Venture Capital (DVC) to build a commercial indoor vertical farm in Qatar Free Zones (QFZ) that offers unparalleled connectivity and access to the region.
  • July 2022: Crop One Holdings and Emirates Flight Catering opened the world's largest vertical farm in Dubai. The 330,000-square-foot facility is located in Dubai, United Arab Emirates, near Al Maktoum International Airport at Dubai World Central. It has the capacity to produce over 2 million pounds of leafy greens annually.
  • February 2022: Silal, Abu Dhabi's leading fresh produce and agri-tech company, and AeroFarms signed a Memorandum of Understanding (MoU) to forge a long-term research and development collaboration involving knowledge and technology transfer of advanced farming systems to local farmers.

Middle East 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 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Growth Mechanism

      1. 5.1.1 Aeroponics

      2. 5.1.2 Hydroponics

      3. 5.1.3 Aquaponics

    2. 5.2 By Structure

      1. 5.2.1 Building-based Vertical Farms

      2. 5.2.2 Shipping Container Vertical Farms

    3. 5.3 By Crop Type

      1. 5.3.1 Fruits and Vegetables

      2. 5.3.2 Herbs and Micro-greens

      3. 5.3.3 Flowers and Ornamentals

      4. 5.3.4 Other Crop Types

    4. 5.4 By Geography

      1. 5.4.1 Saudi Arabia

      2. 5.4.2 United Arab Emirates

      3. 5.4.3 Egypt

      4. 5.4.4 Rest of Middle East

  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 Aero Farms

      2. 6.3.2 Madar Farms

      3. 6.3.3 Freight Farms

      4. 6.3.4 Crop One Holdings Inc.

      5. 6.3.5 Intelligent Growth Solutions

      6. 6.3.6 Signify Holding (PHILIPS)

      7. 6.3.7 Urban Crop Solutions

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Middle East Vertical Farming Industry Segmentation

Vertical farming is an agricultural method through which crops are grown in vertically stacked layers. It is done in a controlled environment using techniques, such as aquaponics, hydroponics, and aeroponics, that do not use soil.

The Middle East vertical farming market is segmented by growth mechanism (aeroponics, hydroponics, and aquaponics), structure (building-based vertical farms and shipping container vertical farms), crop type (fruits and vegetables, herbs and micro-greens, flowers and ornamentals, and other crop types), and geography (Saudi Arabia, United Arab Emirates, Egypt, and Rest of Middle East). The report offers market sizing and forecasts in value (USD million) for all the above segments.

By Growth Mechanism
Aeroponics
Hydroponics
Aquaponics
By Structure
Building-based Vertical Farms
Shipping Container Vertical Farms
By Crop Type
Fruits and Vegetables
Herbs and Micro-greens
Flowers and Ornamentals
Other Crop Types
By Geography
Saudi Arabia
United Arab Emirates
Egypt
Rest of Middle East
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Middle East Vertical Farming Market Research FAQs

The Middle East Vertical Farming Market is projected to register a CAGR of 14.20% during the forecast period (2024-2029)

Aero Farms, Madar Farms, Freight Farms, Crop One Holdings Inc. and Intelligent Growth Solutions are the major companies operating in the Middle East Vertical Farming Market.

The report covers the Middle East Vertical Farming Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle East Vertical Farming Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Middle East Vertical Farming Industry Report

Statistics for the 2024 Middle East Vertical Farming market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East Vertical Farming analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Middle East Vertical Farming Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)