Vertical Farming Vegetables and Fruits Market Size, Share, Growth, and Industry Analysis, By Type (Hydroponics Planting, Aeroponics Planting, and Others), By Application (Vegetables, and Fruits) and Regional Forecast to 2032

Updated On: 26 August 2024

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VERTICAL FARMING VEGETABLES AND FRUITS MARKET REPORT OVERVIEW

The global Vertical Farming Vegetables and Fruits Market size was USD 0.401 billion in 2022 and the market is projected to touch USD 3.34 Billion by 2032, exhibiting a CAGR of 25.7% during the forecast period.

Fruits and vegetables grown in the rows of vertical clusters are called vertical farming, and their corridors are often mixed with other houses such as skyscrapers, shipping container ships, or prepared warehouses. This approach uses controlled environment agriculture (CEA) generation, which regulates every component of the environment, together with temperature, mild, and humidity. Leafy greens, herbs, and microgreens are often grown plants in vertical farms; a few farms are also starting to grow strawberries, tomatoes, and different small fruits. This method minimizes the need for pesticides, uses less water, and makes the high-quality use of to-be-had space.

The market of vertical farming is growing rapidly due to the rising interest in local products due to freshness and innovative opportunities in farming. The primary force behind the market is the increasing urban populace combined with the growing global population because vertical farming is a viable means of food production in highly populated, yet compact regions such as metropolitan cities. Market advancement on the other hand is being boosted through technological advancement besides research and development. Industry analyses reveal that North America, Europe, and the Asia-Pacific vicinity will be the primary rising zones for the vertical farming industry, which tends to develop more in the coming years.

COVID-19 Impact: The Pandemic Increased the Market Growth Due to the Rise in Demand for Fresh Products

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market growth and demand returning to pre-pandemic levels.

Due to the COVID-19 outbreak, many vertical farming industries were affected majorly notably within the fruit and vegetable industry. Since the crisis has revealed the inefficiency of conventional supply chains there has been a significant increase in the attention paid and governmental subsidies for regional agriculture under controlled conditions. As a result of supply chain interruptions, green buildings that are capable of growing food all year round and close to markets hence, became more popular because people and retailers sought reliable, fresh foods. Moreover, food safety and hygiene made the vertically grown produce even more attractive, as such produce is typically grown in chemist-free, pesticide-free environments. Due to this, the market of vertical farming developed rapidly during the epidemic, proving to be a stable and sustainable model.

LATEST TRENDS

"Focuses on Expanding the Variety of Crops Lead to Market Growth"

The innovation of vertical farming is slowly expanding the number of crops being grown such as peppers, tomatoes, strawberries, and other fruits besides leaves. Two causes can explain this diversification: on the one hand, new technologies that enable the accurate orchestration of growing conditions; on the other hand, increasing consumers’ awareness and, therefore, demand for locally grown, pesticide-free fruit. Furthermore, the market for vertical farming is set to grow rapidly because of the rising numbers of collaborations and investments, the increasing urban population, and environmental issues. The use of artificial intelligence and the Internet of Things in vertical farming is also enhancing operation efficiency and this makes the strategy of vertical farming manners to enhance food security and reduce the negative impacts of conventional farming on the environment.

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MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Hydroponics Planting, Aeroponics Planting, and Others

• Hydroponic Planting: This method of growing fruits and vegetables involves utilizing nutrient-rich water solutions to grow them without the need for soil, which leads to effective nutrient uptake and minimal water consumption.
• Aeroponics Planting: This method of producing fruits and vegetables involves spraying nutrient-rich water onto the roots of plants to encourage quick development and maximum nutrient absorption. The plants are grown in an air or mist environment.

By Application

Based on application the market is classified into Vegetables, and Fruits.

• Vegetables: In order to address the rising demand for fresh vegetables in metropolitan areas, businesses concentrate on growing a range of leafy greens, tomatoes, cucumbers, and other vegetable crops in regulated indoor environments.
• Fruits: This includes growing berries, strawberries, and other fruit kinds through cutting-edge methods including hydroponics and aeroponics, which provide year-round access to high-quality fruits despite seasonal constraints.

DRIVING FACTORS

"Urbanization and the Need for Localized Food Production ""Lead to an Increase in Market Demand"

One of the main drivers for vertical farming is the need for local produce given the fact that the world is becoming a more urbanized place. There is therefore a demand for healthy, fresh food produced locally, more so due to the growing population setting up living spaces in urban areas. As for providing an efficient solution for urban regions to develop products close to the consumer and consequently, reducing the resultant CO2 emissions and the costs of transportation, vertical farming can be the answer. This way increases the availability of fruit horticulture products particularly in densely populated areas as it eliminates season hindrances in the production and distribution of food horticulture products. Also, it is evident that the concept of vertical farms can grow food crops to their optimum potential by using any available space in cities like rooftops or other empty buildings.

"Technological Advancements ""Accelerate Market Growth"

Innovation in technology and the goal for sustainability are two other major factors propelling the vertical farming industry. The incorporation of LED lighting, hydroponics, aeroponics, and automated systems has resulted in increased viability and efficiency of vertical farming. Compared to traditional farming, these technologies allow for exact control over the growing environment, which leads to higher yields and less resource usage. Because vertical farming uses a lot less water and pesticides, it can better meet the growing demand from consumers for ecologically friendly and sustainable food production practices. Furthermore, vertical farms' regulated environments may provide high-quality produce with minimal inputs, which makes them a desirable solution for the world's sustainable agriculture problem.

RESTRAINING FACTORS

"High Initial Investment ""Slows Down the Market Growth"

The high initial capital investment and ongoing operating costs are the primary factors impeding the market for vertical growing fruits and vegetables. Advanced technologies that can be prohibitively expensive, like automation, climate control systems, and LED lighting, are necessary to set up a vertical farm. In addition, compared to traditional farming, the costs of operation including maintenance and energy consumption are far greater. The scalability and adoption of vertical farming may be constrained by these financial obstacles, particularly for small and medium-sized businesses, which will slow the Vertical Farming Vegetables and Fruits Market growth.

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VERTICAL FARMING VEGETABLES AND FRUITS MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America to Dominate the Market due to High Consumer Demand for Organic Products"

North America tops the rest of the world with regards to vertical farming for results and greens because of big investments in city agriculture, accelerated clients’ desire for organically grown ingredients and locally sourced ingredients, in addition to advances in generation. Some of the strengths that the location has consist of; there are strong government rules and properly-advanced infrastructure and there are big companies inclusive of AeroFarms, Gotham Greens, and Plenty. North America has the biggest Vertical Farming Vegetables and Fruits Market share in the international due to the inclination for new and advanced farming techniques and client challenges for sustainability.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Among the leading businesses within the market for vertical farming fruits and vegetables are Gotham Greens, AeroFarms, and Plenty. These businesses are leading the way in remodeling the rural industry by way of using contemporary indoor farming strategies such as hydroponics and controlled surroundings agriculture. They use generation to improve growing situations, which increases yields, makes use of fewer assets, and produces fresh, exceptional veggies all 12 months spherical. These predominant stakeholders are changing the face of agriculture by reducing environmental effects and growing entry to nutrient-dense results and veggies for urban citizens even as emphasizing sustainability and local meal manufacturing.

List of Market Players Profiled

• AeroFarms (U.S.)
• Lufa Farms (Canada)
• Gotham Greens (U.S.)
• Garden Fresh Farms (U.S.)
• Sky Greens (Singapore)
• Plenty (Bright Farms) (U.S.)
• Mirai (Japan)
• Spread (Japan)
• Green Sense Farms (U.S.)
• Scatil (China)
• TruLeaf (Canada)
• Sky Vegetables (U.S.)
• GreenLand (China)
• Nongzhong Wulian (China)
• Sanan Sino Science (China)
• Beijing IEDA Protected Horticulture (China)

INDUSTRIAL DEVELOPMENT

February 2024: Series B funding totaling $134 million has been received by US-based vertical farming startup Oishii.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence the market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.