Mexico Vertical Farming Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 318.11 Million |
| Market Size (2029) | USD 512.31 Million |
| CAGR (2024 - 2029) | 10.00 % |
| Market Concentration | High |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Mexico Vertical Farming Market Analysis
The Mexico Vertical Farming Market size is estimated at USD 318.11 million in 2024, and is expected to reach USD 512.31 million by 2029, growing at a CAGR of 10% during the forecast period (2024-2029).
- Mexico's vertical farming market is in its early stages but is evolving swiftly. The country's diverse agricultural landscape has resulted in stagnant productivity growth in recent years. Vertical farming emerges as a sustainable solution to boost agricultural productivity. Urban centres, especially Mexico City, grappling with population density and food supply challenges, are at the forefront of adopting these techniques. Additionally, the increasing water scarcity and reduction in agricultural land area, focus on food security, and the need for alternative farming techniques are major drivers that have paved the way for the development of vertical farming in Mexico. Major crops produced in the country under vertical farms are lettuce, leafy vegetables, microgreens, tomatoes, cucumber, etc.
- In Mexico, most indoor farms predominantly cultivate leafy vegetables and microgreens. However, as research and development expand into diverse produce varieties, this trend is poised for swift transformation. Companies are at the forefront of vertical farming, imparting systems and knowledge to the next generation of agronomists. For instance, in 2021, Karma Verde Fresh partnered with the Inter-American Institute for Cooperation in Agriculture and launched a Vertical Agriculture Tech and Trainer Certification Program in Mexico City. As part of this initiative, the company set up vertical farming systems in universities throughout Mexico from 2021 to 2023. In parallel, the Mexican government is actively embracing new technologies and updating university curricula.
- Moreover, controlled environment agriculture (CEA) fosters crop growth while minimizing pesticide use, leading to healthier produce. This approach aligns with the growing vigilance of consumers regarding food safety and environmental issues. Furthermore, technology providers' market expansions are bolstering this growth. In 2022, in collaboration with local growers, 30MHz a company specializing in products and services for vertical farming startups introduced cost-effective solutions in Mexico. Having established a presence in Mexico for a while, 30MHz continues to deliver budget-friendly technological solutions, empowering growers to enhance their cultivation practices. Thus, the drive for enhanced productivity, combined with technological innovations and a surging demand for vertically farmed produce, propels the market's expansion during the forecast period.
Mexico Vertical Farming Market Trends
Hydroponics segment Dominate the Market
- Mexico's hydroponics market is on the rise, spurred by the urgent need for innovative agricultural solutions to tackle challenges like food security, urbanisation, and environmental sustainability. World Bank data highlights that Mexico's urbanization rate climbed from 80.4% in 2019 to 81.5% in 2023. This swift urbanization has led to a consistent decline in the country's arable land. Specifically, the World Bank reports an 11.5% reduction in arable land over the decade leading up to 2021. Given these challenges, hydroponics emerges as a promising solution, optimizing resource use and boosting crop yields. As urban populations swell and the appetite for fresh, locally sourced produce grows, Mexico's market for hydroponic systems continues to expand.
- In Mexico, urban centres such as Mexico City and Guadalajara are increasingly adopting hydroponic systems, evident in both commercial setups and community gardens. The companies are actively promoting sustainable agricultural practices, including hydroponics, as a key component of its strategy to bolster food security. In 2023, Ays Proje, a greenhouse-focused subsidiary of the Aytekin Group, made its debut in the Mexican market, branding itself as Ayt Mexico. The company has signed a deal for its inaugural project in Mexico, a 2-hectare hydroponic greenhouse set to be constructed this year in Guzman, Jalisco.
- Furthermore, researchers highlight that companies engaged in hydroponic production in Mexico utilize indigenous components that elevate substrate crops, enhancing aeration and curbing humidity. This approach safeguards the crops from diseases, preventing potential spread to the entire plantation. For instance, research by plantation advisors and growers at Centro Universitario Ceickor (Mexico) reveals that Hydroponic Systems company employs Spacer, a professional drainage system, boosting production and quality by 3 to 5%.
Berries Lead as the Fastest Growing Crop Type
- Berries rank among Mexico's top agricultural commodities, with a diverse array of species cultivated, including cranberries, strawberries, raspberries, and blackberries. Their premium quality and sought-after traits have elevated them to the status of one of Mexico's key export commodities. Furthermore, as global demand for fresh berries surges, Mexico's role as a primary supplier bolsters its trade ties, especially with the United States, which consumes a significant share of these exports. For example, according to the ITC trade map, Mexico stands as the world's leading strawberry exporter, boasting an impressive export value of USD 749,155 thousand. This robust export valuation is supporting the production of quality production thereby driving the market's growth.
- Despite the high export value of berries, the industry grapples with significant barriers that hinder its full potential. Water scarcity stands out as a pressing challenge for berry producers in Mexico. To counter these challenges and boost production, advanced cropping techniques, including hydroponics and aquaponics, are being increasingly adopted, fueling segment growth.
- Furthermore, the implementation of new projects for the growth of berries in controlled environments is boosting the segment's growth. For instance, in 2024, a Hydroponic Systems company started a new project in Mexico which aimed to install a total of 12,168 linear meters of its Evolution system, consisting of an Elevated Spacer and a metal gutter. This system is specifically designed for the cultivation of strawberries that are able to achieve a high production per plant. Therefore, the high export potential of the berries coupled with the new project favouring the production of the produce in controlled environments are the factors driving the market growth during the forecast period.
Mexico Vertical Farming Industry Overview
The Mexican vertical farming market is highly consolidated, with the top players occupying a major share of the market. The major players in the Mexican vertical farming market are Signify Holding, Heliospectra AB, Inverfarms Mexico, Karma Verde Fresh, and Verde Compact, among others. As vertical farming in Mexico is at a nascent stage, stakeholders, including direct customers, are willing to experiment with products that suit best.
Mexico Vertical Farming Market Leaders
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Signify Holding (PHILIPS)
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Verde Compacto
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Karma Verde Fresh
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Heliospectra AB
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Inverfarms Mexico
*Disclaimer: Major Players sorted in no particular order
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Mexico Vertical Farming Market News
- September 2024: Globalmex International Inc., operating under its Magic Sun brand, has launched USDA-certified organic Roma tomatoes, cultivated in high-tech hydroponic greenhouses, in central Mexico. These tomatoes are now part of the offerings at Globalmex International's five greenhouse locations in the region.
- April 2023: iFarm, a provider of vertical farming technologies, has partnered with Mexico's Opus 2G Group to establish a state-of-the-art automated vertical farm in Tehuantepec, a Smart City located in Oaxaca, southern Mexico. This ambitious project aligns with the government's Interoceanic Corridor initiative for the Tehuantepec Isthmus and gets backing from the Oaxaca state government.
- February 2023: Rising Farms, a high-tech indoor farming firm based in Mexico, announced the extension of its indoor farming space from 12 to 62 acres, increasing its capacity 5 fold to grow hydroponic crops and providing the market with a more comprehensive choice of high-quality produce.
Mexico Vertical Farming Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Water Scarcity and Shrinking Agricultural Land
4.2.2 Increased Focus on Food Security
4.2.3 Growing Technological Advancements
4.3 Market Restraints
4.3.1 High Initial Investment
4.3.2 Lack of Technical Expertise
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Growth Mechanism
5.1.1 Aeroponics
5.1.2 Hydroponics
5.1.3 Aquaponics
5.2 Structure
5.2.1 Building-Based Vertical Farms
5.2.2 Shipping Container-Based Vertical Farms
5.3 Components
5.3.1 Lighting
5.3.2 Climate Control
5.3.3 Sensors
5.3.4 Other Components
5.4 Crop Types
5.4.1 Tomato
5.4.2 Berries
5.4.3 Lettuce and Leafy Vegetables
5.4.4 Pepper
5.4.5 Cucumber
5.4.6 Microgreens
5.4.7 Other Crop Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Signify Holding (Philips)
6.3.2 Heliospectra AB
6.3.3 Karma Verde Fresh
6.3.4 Verde Compacto
6.3.5 Comercializadora Hydro Environment, S.A. De C.V.
6.3.6 Al Natural
6.3.7 Oasis Grower Solutions
6.3.8 Inverfarms Mexico
6.3.9 Aeroponia Mexicana
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Mexico Vertical Farming Industry Segmentation
Vertical farming is an agricultural method through which crops are grown in vertically stacked layers. It is done in a controlled environment using techniques such as aquaponics, hydroponics, and aeroponics that do not make use of soil. The Mexico vertical farming market is segmented by growth mechanism (aeroponics, hydroponics, and aquaponics), structure (building-based vertical farms and shipping container-based vertical farms), component( lighting devices, climate control, sensors, and other components), and crop type (tomato, berries, lettuce & leafy vegetables, pepper, cucumber, microgreens, and other crop types). The report offers market estimation and forecasts in value (USD) for the above-mentioned segments.
| Growth Mechanism | |
| Aeroponics | |
| Hydroponics | |
| Aquaponics |
| Structure | |
| Building-Based Vertical Farms | |
| Shipping Container-Based Vertical Farms |
| Components | |
| Lighting | |
| Climate Control | |
| Sensors | |
| Other Components |
| Crop Types | |
| Tomato | |
| Berries | |
| Lettuce and Leafy Vegetables | |
| Pepper | |
| Cucumber | |
| Microgreens | |
| Other Crop Types |
Mexico Vertical Farming Market Research FAQs
How big is the Mexico Vertical Farming Market?
The Mexico Vertical Farming Market size is expected to reach USD 318.11 million in 2024 and grow at a CAGR of 10% to reach USD 512.31 million by 2029.
What is the current Mexico Vertical Farming Market size?
In 2024, the Mexico Vertical Farming Market size is expected to reach USD 318.11 million.
Who are the key players in Mexico Vertical Farming Market?
Signify Holding (PHILIPS), Verde Compacto, Karma Verde Fresh, Heliospectra AB and Inverfarms Mexico are the major companies operating in the Mexico Vertical Farming Market.
What years does this Mexico Vertical Farming Market cover, and what was the market size in 2023?
In 2023, the Mexico Vertical Farming Market size was estimated at USD 286.30 million. The report covers the Mexico Vertical Farming Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Vertical Farming Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico Vertical Farming Industry Report
Statistics for the 2024 Mexico Vertical Farming market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico Vertical Farming analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
