US Vertical Farming Market Size
| 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
*Disclaimer: Major Players sorted in no particular order |
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).
Growing concerns about food security and nutrition are anticipated to open several novel opportunities for the industry to prosper. The United States is anticipated to invest a significant share in facilitating the ecosystem for future foods. As more consumer insights develop toward "fresh-from-farm-to-table," the availability of freshly harvested vegetables across retail outlets is likely to increase in the country (which is the pioneering idea for adopting this concept).
- The onset of urban population dwellings across cities, such as New York, Chicago, and Milwaukee, propelled the environment for vertical farming with activities such as revamping derailed vacant warehouses, derelict buildings, and high rises. This led to an increase in the production of fresh-grown foods.
- Hydroponic growing systems are largely favored by the organizations in this market. Given the rising popularity of greenhouse horticulture and agriculture in the country, the United States is one of North America's largest markets for hydroponic systems. North America accounts for about 35% of the vertical farming market, and according to Agri Farming, more than 2,300 farms are growing hydroponic crops in the United States. The future of the hydroponics market in the country mainly depends upon the development of production systems that are competitive in cost with open-field agriculture.
- The increasing demand for healthy products has led to the need for maximizing crop yields. This trend is expected to drive the US vertical farming market in the future. Many commercial growers are adopting high capital expenditure technologies, such as advanced hydroponic systems and electronic traceability systems. In addition, growers are heavily investing in LEDs and other innovative lighting products to reduce their exposure to associated risks by carefully monitoring and investing in new technologies.
- The key players in terms of yield include Plenty Unlimited Inc., Bowery Farming Inc., and Aerofarms. In terms of equipment, the major players in the market include Signify Holding, Heliospectra, and Freight Farms. In 2022, to meet increased customer demand, AeroFarms Danville VA established the world's largest aeroponic smart farm with the newest indoor vertical farm capable of growing over 3 million lb of fresh leafy greens annually.
US Vertical Farming Market Trends
The Hydroponics Segment Dominates the Market
About 77% of the available water in the United States is used for agriculture. Water availability in most of the central and northern regions of the country is scarce. Adding to these issues, the regions classified as water-stressed are also where the economy has developed more extensively compared to the rest of the country. This is due to the proximity of these areas to the United States. This has also resulted in the stagnation of agricultural areas.
Subsequently, the number of farms and farmlands in the United States has gradually decreased for a decade, with an estimated decline of 2% of farms and farmland every decade. For instance, as per the USDA (United States Department of Agriculture), the number of farms in the United States in 2021 was 2,012,050, down 2,019,000 farms from 2020. Similarly, total land in farms, at 895.3 thousand acres, decreased by 896.6 thousand acres from 2020.
Therefore, the demand for mechanisms like hydroponics has increased in recent years. Hydroponics has a very high potential to combat the issues faced by the current agriculture methods in the United States. The prevalence of using less water and opting for sustainable methods for growing food is being implemented all over the country. This is also highly preferred by consumers and the government. As a result, the US hydroponics farming market is anticipated to flourish during the forecast period.
In addition, hydroponics farming plants are grown in a nutrient medium, which reduces 90% of water use in agriculture. It has gained huge popularity in the country. According to the United States Geological Survey report, agriculture is a major user of ground and surface water in the United States. Irrigation accounted for more than 40% of the nation’s total freshwater withdrawals. The low usage of water in crop production in the hydroponics system drives the growth of the segment in the country. According to official reports, the country has more than 2000 hydroponics farming units. The United States is witnessing expansions in hydroponics farming. For instance, in 2022, an Ohio-based hydroponic farming company, 80 Acres Farms, began constructing a USD 120 million facility in suburban Atlanta.
Growing Demand for Organic Fruits and Vegetables
The demand for organic fruits and vegetables has constantly been growing at a higher rate in the United States due to the increased purchasing power of consumers. For instance, according to the Organic Trade Association, the sales of organic fresh fruit and vegetables in the United States in 2022 totaled USD 22 billion, from USD 21 billion in 2021. The cost of these organic products is high. Yet, many organic fruits and vegetables are being imported into the United States. This has opened the higher potential for vertical farming, with systems that support the growth of various fruits and vegetables that are being imported. This technique accelerates the production of exotic fruits and vegetables and meets the escalating demand in the domestic market.
Furthermore, using vertical farming, farmers can grow certain high-return-on-investment crops, including most house plants, flowering plants, and organic fruits and vegetables, regardless of environmental conditions. Farming through vertical farming systems, such as hydroponics, is less time-consuming and can be done near the customers while providing salad crops and vegetables at low prices with low transportation costs. This factor enhances the need for hydroponics systems and leads to an increment in their production.
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 2022, around 1.39 million tons of strawberries were produced in the United States, which increased from 1.34 million tons in 2021. To keep up with the market demand, many farmers in the country have started growing strawberries through hydroponics. In addition, on average, vertical farms produce 5.45 pounds of lettuce per square foot. Based on the factors mentioned above, vertical farming is anticipated to play a critical role in producing fruits and vegetables in the country.
US Vertical Farming Industry Overview
The US vertical farming market is highly fragmented. The key players in the market include Aero Farms, Plenty Unlimited Inc., Bowery Farming Inc., Green Spirit Farms, and Altius Farms. These players compete against each other mainly by investing in research to launch new techniques by adopting strategies such as mergers, acquisitions, and partnerships.
US Vertical Farming Market Leaders
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Aero Farms
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Plenty Unlimited, Inc.
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Bowery Farming Inc.
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Green Spirit Farms
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Altius Farms
*Disclaimer: Major Players sorted in no particular order
US Vertical Farming Market News
- August 2023: Plenty Unlimited Inc., a San Francisco-based company, began construction on a vertical indoor farming campus that, when completed, is likely to be the largest such operation in the world. The campus, to be developed in phases totaling USD 300 million, will sit on 120 acres in the Meadowville Technology Park.
- 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.
United States (US) 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
4.3 Growing Demand for Organic Fruits and Vegetables
4.4 Increasing Water Scarcity and Reduction in Agricultural Land Area
4.5 Increased Investments in Vertical Farming Domain
4.6 Market Restraints
4.7 Limitation on Types of Crops Grown
4.8 High Capital Investment and Operating Costs
4.9 Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitute Products
4.9.5 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 Vertical Farms
5.3 Crop Type
5.3.1 Fruits and Vegetables
5.3.2 Herbs and Micro-greens
5.3.3 Flowers and Ornamentals
5.3.4 Other Crop Types
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Aero Farms
6.3.2 Freight Farms
6.3.3 Green Sense Farm Holdings Inc.
6.3.4 Green Spirit Farms
6.3.5 Plenty Unlimited Inc.
6.3.6 Bowery Farming Inc.
6.3.7 Altius Farms
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Vertical Farming Industry Segmentation
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 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 (USD) 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 |
United States (US) Vertical Farming Market Research FAQs
How big is the US Vertical Farming Market?
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.
What is the current US Vertical Farming Market size?
In 2024, the US Vertical Farming Market size is expected to reach USD 3.56 billion.
Who are the key players in US Vertical Farming Market?
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.
What years does this US Vertical Farming Market cover, and what was the market size in 2023?
In 2023, the US Vertical Farming Market size was estimated at USD 3.18 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.
What are the key challenges in the US Vertical Farming Market?
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
What are the key challenges in the US Vertical Farming Market?
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
What are the key challenges in the US Vertical Farming Market?
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 vertical farming in USA, 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 vertical farming 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 Intelligence™. Interested parties can explore these trends further by accessing a free report PDF download on the vertical farming market size, the vertical farming market report, and additional industry insights.
US Vertical Farming Market Report Snapshots
