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

The US Vertical Farming Market is segmented by Type of Growth Mechanism (Aeroponics, Hydroponics, and Aquaponics), Structure (Building-based and Shipping Container Vertical Farms), and Crop Type (Fruits and Vegetables, Herbs and Micro-greens, Flowers and Ornamentals, and Other Crop Types). The report offers the market size and forecasts in terms of value in USD thousand for all the above segments.

Market Snapshot

United States Vertical Farming Market Size
Study Period: 2017-2027
Base Year: 2021
CAGR: 11.2 %
United States Vertical Farming Market Key players

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Market Overview

The US vertical farming market is expected to register a CAGR of 11.2% during the forecast period, 2022-2027.

The COVID-19 impacted the combined effect of border closure and movement restrictions and increased food losses and export costs, especially for vegetables and perishable goods due to the COVID-19 pandemic. Urban agriculture in developed countries should be fostered with emerging growing practices and edible green infrastructures, such as vertical farming, hydroponics, aeroponic, aquaponic, and rooftop greenhouses, but these are affected due to shortage of supply, supply chain disruption, and termination of contracts to control expenses.

Among the crop types, fruits and vegetables accounted for a significant share of 47%, followed by herbs and micro-greens with 35% in 2019. vertical farming allows producing crops with 70 to 95% less water than required for normal cultivation.

Shrinking per-capita agricultural land and the rapid pace of development of precision farming technologies are expected to drive market growth and high productivity within a small area, while limitations on types of crops grown and high initial investments can restrain the growth of the market. Currently, the US has the highest number of vertical farms in North America.

Scope of the Report

The report presents a wide-range analysis of the market for vertical farming across the United States. The market has been segmented based on the growing mechanism, structure type, and crop type. The estimations and market sizing offer margins for the bulk buyers, and the retailers are buying from vertical farms for further sales. The corporations operate in a B2C format. These do not include raw material supplying companies.

Growth Mechanism
Aeroponics
Hydroponics
Aquaponics
Structure
Building-based Vertical Farms
Shipping Container Vertical Farms
Crop Type
Fruits and Vegetables
Herbs and Micro-greens
Flowers and Ornamentals
Other Crop Types

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Key Market Trends

Hydroponics Dominates the Market

The US is one of the largest markets for hydroponic systems in North America, given the rising popularity of greenhouse horticulture and agriculture in the country. North America accounts for about 35% of the vertical farming market. 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 demands 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.

United States Vertical Farming Market trends

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 tomatoes. 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. Vertical farms produce 5.45 pounds of lettuce per square foot on average. 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.

United States Vertical Farming Market Share

Competitive Landscape

The US vertical farming market is highly fragmented, with more than 2,000 farms across the US in 2019. Small indoor vertical farms are high in number as compared to large-scale farms in the country. The key players in the market are Aero farms, Plenty Unlimited Inc., Bowery Farming Inc., Green Spirit Farms, and Altius farms. These are competing against each other mainly by investing in research to launch new techniques by adopting strategies such as mergers and acquisitions and partnerships.

Recent Developments

On April 29, 2021, Aero Farms announced world’s largest and most technologically advanced aeroponic indoor vertical farm in Virginia.

On February 04, 2022, Aero Farms announced a new tomato research partnership with FFAR and the University of Florida to provide vertical farms with a path to growing high-yielding crops that produce flavored tomatoes in environmental conditions.

On January 25, 2022, Plenty and Walmart announced the long-term investment to bring fresh, peak-flavor produce to shoppers year-round.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    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 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 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 Vertical Farms

    3. 5.3 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

  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 Freight Farms

      3. 6.3.3 Green Sense Farm Holdings Inc.

      4. 6.3.4 Green Spirit Farms

      5. 6.3.5 Plenty Unlimited Inc.

      6. 6.3.6 Bowery Farming Inc.

      7. 6.3.7 Altius Farms

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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

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Frequently Asked Questions

The US Vertical Farming Market market is studied from 2017 - 2027.

The US Vertical Farming Market is growing at a CAGR of 11.2% over the next 5 years.

Aero Farms, Plenty Unlimited, Inc., Bowery Farming Inc., Green Spirit Farms, Altius Farms are the major companies operating in US Vertical Farming Market.

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