The vertical farming market is sure to grow exponentially in the coming years, an estimated annual growth of 23.5% to be exact (Emergen Research). There are several reasons for this immense growth, and after some logical thinking you will probably not be surprised by this potential in the market.
1. Population growth: Let’s kick it off with a big one. More than 10 billion will roam the planet by 2050, and they all need food. Yet, food supply is endangered by geopolitical tensions, extreme weather conditions, etc. The need for innovative food production will be essential to ensure a steady food supply in the future.
2. Urbanization: Directly linked to population growth is urbanization. By 2050, about 70% of the world population is expected to live in a city, which increases the need for localized food supply, and thus a reduced supply chain. Since vertical farming can be practiced almost anywhere, this presents the sector with huge opportunities to develop near cities.
3. Increased environmental awareness: As the current heatwave wreaks havoc around the Northern hemisphere, it is once again illustrated that climate action is desperately needed. Vertical farming uses about 90% less water, needs less land and uses resources more efficiently, which makes it an ideal alternative for traditional farming.
4. Demand for quality food: Not only do we need food, but we also require it to be both good for us and the environment. In the controlled environment of a vertical farm, optimal growing conditions can be used, so the plant has maximal access to oxygen and nutrients. The use of pesticides is also eliminated, and by localizing food production, the quality loss in transport is drastically reduced.
5. Technological advancements: Many companies have invested heavily in technology over the past few years. Now the sector is reaping the benefits of this R&D effort, seeing costs massively reducing, and production augmenting. Different technologies that have developed significantly are among others lighting solutions or data collection. Make sure to read our other blogs, and our market research report to learn more!