United States Vertical Farming Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

United States Vertical Farming Market Trends and Insights

Rising Demand for Locally-Grown Pesticide-Free Produce

Year-round, pesticide-free food now earns premium shelf prices, and sensory studies from the University of Copenhagen show taste parity with organic field crops, lifting consumer acceptance. Gotham Greens sells premium leafy greens through more than 850 Northeast supermarkets and maintains profitability by pairing local freshness with brand trust. Large grocers deepen supply contracts at 80 Acres Farms, for example, supplies 316 Midwestern stores, shipping 10 million servings annually. Corporate cafeterias echo retail momentum; AeroFarms renewed its Costco fresh-produce program in 2025. 

Urban Focus on Food-Mile Reduction and Freshness

Cities now treat vertical farms as critical food security assets. Gotham Greens’ 210,000-square-foot Monroe, Georgia greenhouse places 90% of U.S. consumers within a one-day truck reach, strengthening cold-chain resilience. AutoStore and OnePointOne’s Arizona site delivers crops in 15 days from seed to shelf using high-density robotics. New York State approved a 385,000-square-foot “GigaFarm” that will output 8 million lb of produce yearly while operating at carbon-negative status.

Water-Efficient Agriculture Amid Drought Policies

California and neighboring states seek water cuts of up to 20% across irrigated acreage. Vertical farms using hydroponic recirculation cut water use by 90-97%, giving them a compliance edge under new mandates^{[1]Source: California Department of Food and Agriculture, “Drought Mandates for Agriculture,” cdfa.ca.gov}. Plenty’s Richmond, Virginia, site achieves comparable strawberry yields while using 97% less land and 90% less water than field farms. USDA’s Rural Energy for America Program allocates clean-energy grants that allow these facilities to offset high electricity intensity with onsite solar arrays^{[2]Source: USDA, “Rural Energy for America Program,” usda.gov}.

Corporate and Campus Sustainability Food Mandates

The growing focus on ESG (Environmental, Social, and Governance) targets among enterprises drives the adoption of long-term produce contracts, as companies seek to ensure sustainable and reliable agricultural supply chains. Local Bounti secured a multi-year contract with a global retailer in December 2024, highlighting the industry's shift toward stable, long-term partnerships. Academic institutions are also investing in agricultural technology advancement, as demonstrated by Penn State University's IoT crop-monitoring consortium receiving USDA funding to develop automated plant imaging systems. These imaging systems aim to enhance crop yield prediction and optimize resource utilization in agricultural operations.

High CAPEX and Energy-Intensive OPEX

A typical multilevel farm costs about USD 1,000 per ft² to build, and electricity accounts for up to 40% of monthly expenses. Bowery Farming and Plenty both filed for bankruptcy after raising more than USD 1.6 billion combined, underlining the risk when cost reductions lag scale-up. Dynamic lighting tied to wholesale power prices can trim bills by up to 18%. Operators such as Gotham Greens remain profitable by choosing low-cost power locations and standardizing designs across 13 facilities.

Economically Viable Crop Range Remains Narrow

Leafy greens generate USD 12.50 in revenue per plant site annually, while cereals produce lower margins under existing tariffs and energy costs. The significant margin difference between these crops influences cultivation decisions in vertical farming operations. Oishii's USD 150 million investment in premium strawberry production demonstrates that crop diversification is viable primarily in high-price market segments, where consumers are willing to pay more for quality and freshness.

Segment Analysis

By Growth Mechanism: Aeroponics Gains Despite Hydroponic Dominance

Hydroponics held 68.0% of the United States vertical farming market revenue in 2024, supported by mature supply chains and proven designs. Aeroponics, though representing a smaller base, will log an 18.4% CAGR to 2030 as 95% water-efficiency targets catch regulators’ attention in drought zones. The IoT nutrient sensors sharpen dosing accuracy across both systems, helping close the cost gap.

Precision imaging now notifies growers of nutrient stress within hours, further reducing waste. Operators, therefore, compete less on growth medium and more on integrated software that orchestrates lighting, fertigation, and harvesting.

Note: Segment shares of all individual segments available upon report purchase

By Structure: Warehouse Conversions Accelerate Growth

Building-based Vertical Farms retained 53.0% of 2024 revenue, but warehouse conversions will climb 19.1% annually as firms favor rapid deployment. The United States vertical farming market share of warehouse projects could exceed 45% by 2030. Conversions lower construction time by 30-40 weeks and cost 20-30% less than bespoke glasshouses. Freight Farms’ failure exposed limits of shipping containers yet did not derail broader warehouse interest, as 80 Acres Farms proves scale viability using repurposed logistics centers.

Modularity is pivotal, including rack-based grow towers being added in 10,000-ft² increments, aligning output with contract demand. Financing also improves because lenders prefer collateralized real estate over specialized steel and glass assets.

By Crop Type: Berry Premium Pricing Drives Diversification

Leafy greens comprised 44.0% of 2024 sales, but berries will post the highest 21.3% CAGR. Strawberries deliver retail prices of USD 4-5 per 8-oz pack, supporting energy costs that would crush commodity lettuce margins. Plenty’s Virginia site churns 4 million lb of strawberries yearly under controlled pollination, confirming commercial-scale economics.

Herbs and microgreens continue to service chefs and high-end grocers, preserving double-digit margins thanks to one-week grow cycles. Flowers remain niche, yet high-margin specialty orchids occupy slack rack space during lettuce crop rotations, optimizing revenue density.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Southern United States maintains a dominance in the CEA market, primarily attributed to competitive electricity rates and strategically positioned distribution networks. Gotham Greens' state-of-the-art Georgia facility enables efficient 24-hour delivery to major Southeastern retailers, significantly minimizing product loss and transportation emissions. Virginia's formal recognition through the CEA Month declaration signals potential expansion of tax incentives for agricultural technology investments, while Hardee Fresh's substantial USD 56 million investment in Georgia underscores growing investor confidence in the region's CEA potential^{[3]Source: USDA, “Urban Agriculture Grants 2025,” usda.gov}.

The Western region demonstrates impressive growth primarily driven by compelling water conservation advantages during persistent drought conditions. California's stringent environmental regulations and comprehensive renewable energy incentives support the widespread development of solar-powered facilities, enabling operators to effectively manage long-term energy costs. Arizona's successful implementation of automation technology validates the effectiveness of reducing labor dependencies in regions experiencing shortages of a skilled agricultural workforce.

The Northeast region strategically capitalizes on its proximity to concentrated, high-income consumer populations that consistently prioritize product freshness and quality. The significant real estate costs and elevated energy expenses create substantial barriers to rapid expansion. New York's innovative carbon-negative GigaFarm project demonstrates the feasibility of large-scale renewable energy integration in urban agriculture, while AeroFarms continues to strengthen its market presence through its strategic distribution partnership with Costco, ensuring consistent product availability to mass-market consumers.