Data indicates that the vertical farming market could be about to take off

By Anders Lorenzen

Research indicates that driven by increased demands for fresh vegetables and climate change, the vertical farming market could be about to take off.

Vertical farming is growing crops in vertically and horizontally stacked layers. 

Globally, vertical farming products are expected to reach $ 6.46 billion by 2027, a 25%7 CAGR expansion from 2020 to 2027. This is according to a report produced by Grand View Research, Inc. 

Vertical farming incorporates several alternative farming technologies, such as hydroponics, aquaponics and aeroponics. 

Various trends are contributing to this increasing demand for vertical farming products. These include the increasing demand for fresh organic vegetables, the emergence of innovative agricultural techniques and technologies, urbanised land growth, and soil quality degradation.

The decline of arable land

Data from the World Bank show that the amount of usable arable land decreased between 2013 and 2016 by 0.192 hectares (ha). As a result, farmers have been urged to adopt new farming solutions to produce fresh foods in addition to farming more sustainably. Several farmers have heeded that call and shifted towards indoor vertical farming cultivation methods, stacking the plants on shelving on top of each other and therefore significantly adding to production capacity. 

Based on data from 2019, North America is the market leader with a revenue share of more than 33% – and is predicted to continue to lead across the forecast period. However, the market in the Middle East is expected to pick up speed due to expansions from established and new players in several regions.

During the pandemic, the use of eCommerce to order fresh vegetables caused the demand to intensify.  Much of the demand was for food free from soil and pesticide contamination, significantly contributing to the growing vertical farming market.

An increasing number of knowledgeable people have warned that to protect food security, we must adapt how we farm, with a core focus on less intensive, more regenerative, and organic farming methods. Additionally, on a global level, yields are decreasing due to the impact of climate change.

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