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

US Vertical Farming Market is Segmented by 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.

United States (US) Vertical Farming Market Size

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United States Vertical Farming Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 3.56 Billion
Market Size (2029) USD 5.95 Billion
CAGR (2024 - 2029) 10.80 %
Market Concentration Low

Major Players

United States Vertical Farming Market Major Players

*Disclaimer: Major Players sorted in no particular order

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United States (US) Vertical Farming Market Analysis

The US Vertical Farming Market size is estimated at USD 3.56 billion in 2024, and is expected to reach USD 5.95 billion by 2029, growing at a CAGR of 10.80% during the forecast period (2024-2029).

Vertical farming is the process of producing crops in layers that are vertically stacked. The crops are produced under a controlled environment, which maximizes plant development, and soilless farming techniques such as hydroponics, aquaponics, and aeroponics are frequently used.

  • The growth of urbanization and the increased awareness of healthy foods in the country gave rise to vertical farming techniques, which produce crops in a controlled environment. Along with this, the rising popularity of organic foods is increasing the market for vertical-produced crops in the United States. Shrinking per-capita agricultural land, the rapid development of precision farming technologies, and high productivity within a small area are expected to drive market growth. While limitations on the types of crops grown and high initial investments can restrain the growth of the market. Currently, the United States has the highest number of vertical farms in North America.
  • Among the crop types, fruits and vegetables accounted for a significant share, followed by herbs and micro-greens in 2021. vertical farming allows producing crops with 70 to 95% less water than required for normal cultivation. Fruits and vegetable crops like tomatoes, lettuce, strawberries, etc., are majorly grown under vertical farms in the United States.

United States (US) Vertical Farming Market Trends

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

Hydroponics Dominates the Market

The United States is one of North America's largest markets for hydroponic systems, given the rising popularity of greenhouse horticulture and agriculture in the country. North America accounts for about 35% of the vertical farming market, and according to Agri Farming, more than 2,300 farms are growing hydroponics crops in the United States. 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. For instance, according to the Organic Trade Association, in 2021, organic food sales in the United States amounted to about 57.5 billion USD, which was 50.07 billion USD in 2019. Increased demand for greenhouse tomatoes and the legalization of medicinal plants, like marijuana, is expected to help further the market register rapid growth in the country. Rooftop hydroponic gardens in urban setups are also helping the market grow further.

United States Vertical Farming Market: Value in USD million, Hydroponics, 2017-2027

Growing demand for organic fruits and vegetables

The desire and demand for organic fruits and vegetables in the United States have emerged as a response to a shift toward synthetic pesticides and fertilizers. For instance, according to the Organic Trade Association, the United States organic food sales accounted for approximately 57.5 billion USD in 2021 from 50.07 billion USD in 2019. Tomato is one of the country's primary crops grown through vertical farming systems. 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. According to the US Department of Agriculture, in 2021, around 1.34 million tons of strawberries were produced in the United States, which increased from 1.14 million tons in 2019. In order to keep up with the market demand, many farmers in the country have started growing strawberries through hydroponics. Additionally, vertical farms produce 5.45 pounds of lettuce per square foot on average. Based on the factors mentioned above, vertical farming is expected to play a critical role in producing fruits and vegetables in the country.

United States Vertical Farming Market: Organic food sales in USD Billion, United States,  2017-2021

United States (US) Vertical Farming Industry Overview

The US vertical farming market is highly fragmented. The key players in the market are Aero farms, Plenty Unlimited Inc., Bowery Farming Inc., Green Spirit Farms, and Altius farms. These compete against each other mainly by investing in research to launch new techniques by adopting strategies such as mergers, acquisitions, and partnerships.

United States (US) Vertical Farming Market Leaders

  1. Aero Farms

  2. Plenty Unlimited, Inc.

  3. Bowery Farming Inc.

  4. Green Spirit Farms

  5. Altius Farms

*Disclaimer: Major Players sorted in no particular order

United States Vertical Farming Market Concentration
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United States (US) Vertical Farming Market News

February 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.

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

April 2021: Aero Farms announced the global largest and most technologically advanced aeroponic indoor vertical farm in Virginia.

United States (US) 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 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

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United States (US) Vertical Farming Industry Segmentation

The crops grown under a controlled environment in vertically stacked layers are called vertical farming. The United States vertical farming market is segmented by 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.

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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United States (US) Vertical Farming Market Research FAQs

The US Vertical Farming Market size is expected to reach USD 3.56 billion in 2024 and grow at a CAGR of 10.80% to reach USD 5.95 billion by 2029.

In 2024, the US Vertical Farming Market size is expected to reach USD 3.56 billion.

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

In 2023, the US Vertical Farming Market size was estimated at USD 3.21 billion. The report covers the US Vertical Farming Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the US Vertical Farming Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key challenges in the US Vertical Farming Market are a) Setting up and operating vertical farms requires significant investments in infrastructure, technology, and skilled labor b) Maintaining optimal environmental conditions within vertical farms can lead to high energy use and associated costs

US Vertical Farming Industry Report

The US vertical farming market, marked by a surge due to limited arable land and rapid urbanization, presents a significant upward trend. This cutting-edge agricultural practice capitalizes on vertical space to circumvent the extensive land requirements characteristic of conventional farming, offering an efficient solution for densely populated urban settings. Meeting the consumer's growing demand for organic and nutritious food, vertical farming provides a consistent supply of top-tier produce throughout all seasons, independent of outdoor weather challenges. The industry incorporates diverse components ranging from hardware, like hydroponic systems and climate control, to software that supports detailed crop management and yield predictions. Shipping containers are emerging as versatile structures due to their portability and low setup requirements, alongside building-based farms that integrate the latest in precision farming technologies. With a focus on fruits, vegetables, and herbs, vertical farming is heralded for its promise to improve biodiversity and secure food sources. Despite initial setup costs posing a challenge, the industry's dedication to environmental sustainability and a preference for local produce is expected to catalyze further expansion, solidifying its role as an integral component of contemporary urban food systems, as detailed in forecasts and analyses by Mordor Intelligenceā„¢. Get a sample of this industry analysis as a free report PDF download.

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