US Vertical Farming Market 2024–2033

Reports Description

US Vertical Farming Market was valued at USD 4.8 Billion in 2024 and is expected to reach USD 7.8 Billion by 2033, at a CAGR of 10.3% during the forecast period 2024 – 2033.

Vertical farming is the practice of producing crops in vertically stacked layers or on vertically inclined surfaces, typically in controlled situations such as indoor facilities or metropolitan areas. This novel strategy improves space efficiency, decreases water use, shortens transportation routes, and enables throughout the year agricultural production.

US Vertical Farming Market: Growth Factors

Increasing demand for organic farming

The growing demand for organic farming in the United States has fuelled the expansion of the vertical farming business. As customers become more health-conscious and ecologically conscientious, there is an increasing desire for organic products devoid of synthetic pesticides and fertilisers.

Vertical farming, with its regulated indoor environment, has various benefits that are consistent with the principles of organic farming. For starters, it enables crop growing in a controlled environment without the need for soil, reducing the danger of soil contamination and the presence of hazardous chemicals.

Furthermore, vertical farming operations may be positioned near to metropolitan areas, lowering the carbon footprint of transportation and guaranteeing fresher products to reach customers. Furthermore, vertical farming allows for year-round production, regardless of seasonal changes, assuring a consistent supply of organic products even during the off-seasons.

This reflects customer desire for continuous availability of organic fruits and vegetables throughout the year. Moreover, vertical farming techniques like hydroponics and aeroponics optimise water consumption, which is an important concern in organic farming practices that prioritise sustainability and conservation.

As the organic farming movement gains traction in the United States, the vertical farming sector is poised to grow even more, driven by its capacity to fulfil the rising demand for organic food sustainably and efficiently.

Depletion of groundwater

The rapid depletion of groundwater supplies in the United States is fuelling the growth of the vertical farming industry. With traditional agriculture highly reliant on groundwater for irrigation, the declining availability of this valuable resource as a result of over-extraction and climate change offers substantial difficulties to traditional farming techniques.

Vertical farming, on the other hand, offers a long-term solution that dramatically cuts water demand. Vertical farms can use hydroponic or aeroponic systems to produce crops in vertically stacked layers without soil, using a fraction of the water used in typical agriculture.

This water-efficient strategy not only reduces the load on diminishing groundwater sources but also resolves concerns about water contamination and soil degradation caused by traditional farming practices. As water scarcity worsens, particularly in areas prone to droughts and water stress, the economic feasibility and environmental benefits of vertical farming become more appealing.

As a result, the vertical farming business in the United States is seeing an increase in investment, innovation, and acceptance as stakeholders see its potential to reduce water resource pressures while assuring a sustainable food supply for future generations.

US Vertical Farming Market: Restraints

High investment cost

The initial high cost of adopting vertical farming in the United States creates a substantial barrier to mainstream acceptance and market development.

Vertical farming, which involves growing crops indoors in vertically stacked layers or on vertical surfaces, necessitates significant initial investments in infrastructure, technology, and specialised equipment such as LED lighting, climate control systems, hydroponic or aeroponic systems, and automation technology.

These initial capital costs might be prohibitively expensive for both new entrants and established agricultural firms seeking to switch to vertical farming.

The cost of land in urban areas, where vertical farms are frequently found, is generally greater than rural agriculture, adding to the financial strain. Furthermore, the high running costs involved with vertical farming, such as energy usage for artificial lighting and climate control, labour costs for qualified specialists, and continuous maintenance charges, add to the economic hurdles.

As a result, many potential investors and agricultural stakeholders may be hesitant to engage or expand in the vertical farming business, stifling its growth and development in the United States.

This initial high cost creates a financial barrier that limits vertical farming technology’s scalability and accessibility, impeding its ability to revolutionise the agricultural industry and address pressing issues such as food security, resource conservation, and climate change mitigation.

US Vertical Farming Market: Opportunities

Innovation in technology

Technology innovation has driven the rise of the vertical farming business in the United States, revolutionising crop cultivation and enhancing food production efficiency and sustainability.

Vertical farming has flourished because of advanced technologies like hydroponics, aeroponics, and aquaponics, which eliminate the need for soil, optimise water usage, and provide exact control over environmental parameters like temperature, humidity, and lighting.

Furthermore, automation and robots have been essential in simplifying operations, lowering labour costs, and increasing yields in vertical farming facilities.

The combination of data analytics, IoT (Internet of Things), and AI (Artificial Intelligence) has increased productivity by allowing for real-time monitoring and optimisation of growing conditions, predictive analytics for crop management, and capacity for remote management.

Moreover, advances in LED lighting technology have resulted in energy-efficient lighting systems customized to the unique requirements of many crops, allowing for year-round production independent of external environmental conditions.

These technological advancements not only increase vertical farming’s scalability and profitability, but also address pressing issues such as land scarcity, climate change, and food security, establishing vertical farming as a long-term solution for addressing the growing demand for fresh produce in urban areas while reducing environmental impact.

US Vertical Farming Market: Segmentation Analysis

US Vertical Farming market is segmented by structure, growth mechanism, crop type and region.  Based on structure, the market is classified into shipping container and building-based. Shipping containers dominated the market in 2023 with a market share of 60.5% and is expected to keep its dominance during the forecast period 2024-2033.

The use of shipping containers in the US vertical farming market has transformed the agricultural landscape by providing a scalable, efficient, and long-term answer to urban food production concerns. These reused containers, which are frequently outfitted with modern hydroponic or aeroponic systems, provide a controlled environment for year-round production of a range of crops independent of exterior circumstances.

Furthermore, shipping containers enable localised food production, lowering transportation costs and carbon emissions associated with importing products from far-away farms. Their mobility enables fast deployment and adaptation to changing market demands, providing flexibility to both farmers and businesses.

Furthermore, shipping containers enable localised food production, lowering transportation costs and carbon emissions associated with importing products from far-away farms. Their mobility enables fast deployment and adaptation to changing market demands, providing flexibility to both farmers and businesses.

The vertical farming sector in the United States has grown significantly thanks to the use of shipping containers, solving food security problems, boosting sustainability, and transforming agriculture’s future.

Based on growth mechanism, the market is classified into hydroponics, aeroponics and aquaponics. Hydroponics dominated the market in 2023 with a market share of 50.8% and is expected to keep its dominance during the forecast period 2024-2033.

Hydroponics plays a pivotal role in propelling the US vertical farming market forward due to its efficiency, sustainability, and adaptability. Hydroponic systems provide substantial benefits in vertical farming, which involves growing crops in stacked layers inside.

Hydroponics, a method of growing plants without soil but utilizing nutrient-rich water solutions, allows vertical farms to maximize space utilization and yields. This technology conserves water, a valuable resource, by allowing for precise irrigation management and reducing waste.

Furthermore, hydroponic systems allow for year-round growing that is unaffected by seasonal fluctuations or geographical limits, resulting in a continuous and stable food supply. Furthermore, hydroponic vertical farms may be located closer to metropolitan areas, lowering transportation distances and carbon emissions connected with food delivery.

As customers prioritise locally produced and sustainable goods, hydroponic vertical farming emerges as a crucial option, boosting development in the US industry by addressing land constraints, climate change, and food security concerns.

Based on crop type, the market is classified into fruits vegetables, & herbs, flowers & ornamentals and others. Fruits Vegetables, & Herbs dominated the market in 2023 with a market share of 48.1% and are expected to keep their dominance during the forecast period 2024-2033.

Fruits, vegetables, and herbs are critical to the growth of the US vertical farming sector for a variety of reasons. The growing need for them in cities, along with a scarcity of arable land, has necessitated the development of novel farming methods including vertical agriculture.

These crops are ideal for vertical farming systems, which use stacked layers or vertically inclined surfaces to produce plants under regulated indoor conditions. Furthermore, customers’ growing demand for locally produced, fresh fruit year-round adds to the attractiveness of vertical farming since it allows for constant and predictable harvests regardless of season or environment.

Furthermore, vertical farming’s capacity to minimise water consumption, reduce pesticide application, and optimise resource efficiency connects with rising concerns about sustainability and food.

Report Scope

US Vertical Farming Market: Recent Developments

• In February 2022, Aero Farms announced a new tomato research partnership with FFAR and the University of Florida to provide vertical agriculture with a path to growing high-yielding crops that produce flavoured tomatoes in atmospheric conditions.

• In January 2022, Plenty and Walmart announced their long-term commitment to bring fresh, peak-flavour produce to shoppers throughout the year.

• In April 2021, Aero Farms announced the global largest and most highly sophisticated aeroponic indoor vertical farm in Virginia.

List of the prominent players in the US Vertical Farming Market:

• AeroFarms
• Plenty Unlimited Inc.
• Bowery Farming
• BrightFarms
• Gotham Greens
• Vertical Harvest
• Lufa Farms
• One
• Freight Farms
• 80 Acres Farms
• Square Roots
• Urban Produce
• Crop One Holdings
• Jones Food Company
• Green Sense Farms
• Edenworks
• Local Roots Farms
• Infinite Harvest
• Urban Crop Solutions
• Pure Green Farms
• Others

These key players are adopting various growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The US Vertical Farming Market is segmented as follows:

By Structure

• Shipping Container
• Building Based

By Growing Mechanism

• Hydroponics
• Aeroponics
• Aquaponics

By Crop Type

• Fruits Vegetables, & Herbs
• Flowers & Ornamentals
• Others