U.S. Vertical Farming Market Size, Share, Opportunities, And Trends - Forecasts From 2025 To 2030

Description

U.S. Vertical Farming Market Size:

The U.S. Vertical Farming Market is anticipated to expand at a high CAGR over the forecast period (2025-2030).

The U.S. Vertical Farming Market represents a critical evolution in controlled-environment agriculture (CEA), utilizing vertically stacked layers to optimize land use and crop yields. This sector is characterized by the use of hydroponic, aeroponic, and aquaponic systems within repurposed warehouses, shipping containers, and purpose-built urban facilities. By decoupling food production from traditional soil and seasonal climate constraints, vertical farming addresses the imperative for year-round local supply and reduced transportation miles.

The market has transitioned from a phase of venture-capital-led expansion to one of operational maturity and financial discipline. The "AgTech winter" of 2023–2024 served as a catalyst for a more sustainable business model, where the focus has shifted from facility count to energy efficiency and crop optimization. The remaining market participants are increasingly integrated with major retail chains like Whole Foods and Costco, establishing vertical farming as a permanent, albeit specialized, fixture in the U.S. food supply chain.

U.S. Vertical Farming Market Analysis

• Growth Drivers

The primary driver for the U.S. Vertical Farming Market is the increasing demand for climate-resilient food systems. Frequent extreme weather events in traditional growing regions like California and Arizona have disrupted field-grown produce supplies, creating a direct demand for the reliability of indoor, climate-controlled environments. Additionally, the consumer preference for pesticide-free, locally grown produce remains a major catalyst. Urban consumers increasingly seek "clean" food with high nutrient density, which vertical farms can provide without the use of chemical herbicides or long-distance shipping. Furthermore, advancements in LED lighting efficiency have lowered the energy threshold for profitable operations, making the technology more accessible to commercial-scale operators.

• Challenges and Opportunities

The market faces severe headwinds from high initial capital expenditure (CAPEX) and energy volatility. The cost of specialized LED arrays, HVAC systems, and automated fertigation remains a significant barrier for new entrants and has contributed to the exit of several high-profile firms. However, these challenges have opened an opportunity for the integration of renewable energy and on-site solar power. Companies that can minimize their carbon footprint while reducing grid dependence are finding greater success in securing institutional funding. Moreover, the expansion into non-leafy green crops, such as fruiting vegetables and pharmaceutical-grade herbs, presents a significant untapped opportunity for market diversification and higher revenue per square foot.

• Raw Material and Pricing Analysis

Vertical farming is a hardware-intensive industry, where the pricing of high-efficiency LED chips and medical-grade polymers for hydroponic trays directly impacts the bottom line. In 2025, the supply chain for LED semiconductors has stabilized, though prices for high-purity fertilizers and plant nutrients have fluctuated due to global trade tensions. Additionally, the landed cost of specialized shipping containers and modular growth units has risen by approximately 10% following recent U.S. trade tariffs on imported steel and aluminum. Pricing for the final consumer product remains at a premium, reflecting the high OPEX of indoor operations and the "ultra-fresh" value proposition.

• Supply Chain Analysis

The supply chain for U.S. vertical farming is increasingly localized to major urban centers to minimize "food miles." Key production hubs are concentrated in the Northeast (New Jersey/Pennsylvania), the Midwest (Ohio), and the Mid-Atlantic (Virginia). While the downstream supply chain, from farm to retail, is highly efficient, the upstream supply chain remains dependent on global technology providers for sensors and automation components. In recent years, logistical complexities arose from the need for specialized "cold chain" transport for delicate microgreens. To mitigate these dependencies, major firms like 80 Acres Farms have adopted vertically integrated models, developing their own proprietary hardware and software stacks to reduce reliance on third-party technology vendors.

• Government Regulations

U.S. Vertical Farming Market Segment Analysis

• By Technology: Hydroponics

The Hydroponics segment remains the dominant technology in the U.S. Vertical Farming Market, accounting for the largest share of active facilities. This dominance is driven by the technology's proven reliability and high water-use efficiency, using up to 90% less water than traditional soil-based agriculture. The ability to provide precise, real-time control over nutrient delivery, which is essential for maximizing yields of leafy greens and herbs, propels the need for the hydroponic system. In recent times, the segment has seen a shift toward Closed-Loop Fertigation, where water is continuously filtered and recirculated, further reducing resource waste. The scalability of hydroponics has also made it the preferred choice for large-scale commercial facilities, such as those operated by Gotham Greens and BrightFarms. The relative simplicity of hydroponic maintenance compared to aeroponic systems makes it a lower-risk investment for institutional lenders, ensuring it remains the foundational technology for the industry's ongoing expansion into the retail sector.

• By End-User: Institutions (Hospitals and Education)

The Nonprofit, Healthcare, and Education sector is a rapidly emerging end-user segment for modular vertical farming solutions. The imperative for institutional food security and educational enrichment drives this demand. Hospitals are increasingly installing container-based farms to provide ultra-fresh, pesticide-free greens for patient meals, aligning with broader wellness and nutrition goals. Similarly, universities and K-12 schools use vertical farms as living laboratories for STEM education and to supply campus dining halls with sustainable produce. Companies like Freight Farms have specifically targeted this segment, selling over 220 container units in 2023 with continued strong growth through 2025. This end-user segment is less sensitive to the strict profit-margin pressures of the retail market, as the value is derived from educational outcomes and institutional sustainability mandates. This provides a stable and diversified revenue stream for technology providers beyond the competitive commercial farming sector.

U.S. Vertical Farming Market Competitive Environment and Analysis

The competitive landscape is currently undergoing a process of "survival of the fittest," where companies with the strongest unit economics and retail partnerships are consolidating their market share.

• 80 Acres Farms

80 Acres Farms has positioned itself as a leader in operational execution and regional scale. Headquartered in Ohio, the company operates a network of high-tech vertical farms that serve over 17,000 retail doors. In August 2025, 80 Acres announced a strategic merger with Soli Organic, creating a national powerhouse with projected annual revenues approaching $200 million. This merger integrates 80 Acres' proprietary GroLoop™ automation platform with Soli Organic's extensive retail reach and 35 years of agronomic expertise. Their strategy focuses on "the next phase of business maturity," prioritizing consistent yields and food safety over rapid, unhedged expansion.

• AeroFarms

AeroFarms, a pioneer in aeroponic technology, has successfully navigated a 2023–2024 restructuring to emerge as a profitable entity in 2025. Based in Danville, Virginia, the company is the leading U.S. supplier of microgreens. AeroFarms' strategic positioning is built on superior nutrient density, with 2025 third-party research confirming their micro-broccoli contains up to 35x more vitamin C and other phytonutrients than traditional broccoli florets. In December 2025, the company secured new funding from existing stakeholders to explore strategic alternatives and support ongoing operations, demonstrating continued investor confidence in their high-margin, technology-driven model.

• Plenty Unlimited Inc.

Plenty operates a proprietary, high-volume vertical farming platform featuring 30-foot vertical grow towers. Despite filing for Chapter 11 protection in April 2025 to restructure its debt and address operational losses, Plenty remains a significant technological player. The company has pivoted its strategy to focus exclusively on high-value strawberry production at its $300 million Richmond, Virginia campus, developed in partnership with Driscoll’s. This shift away from low-margin leafy greens toward a high-volume, designer-fruit model is supported by nearly $1 billion in cumulative venture funding and significant tax assets, including estimated federal NOLs of $662 million as of late 2024.

U.S. Vertical Farming Market Developments

• December 2025: Following a WARN notice, AeroFarms received unexpected funding from an existing stakeholder, allowing the company to continue supplying microgreens and explore strategic alternatives. The funding supports their Danville, Virginia facility.
• August 2025: 80 Acres Farms and Soli Organic announce merger. The two indoor farming leaders merged to form a national network serving 17,000 retail locations with a projected $200 million in first-year revenue. The combined entity operates under the 80 Acres Farms name.
• March 2025: Plenty Unlimited Inc. files for Chapter 11 protection. Plenty filed for bankruptcy to address mounting losses and unpaid vendor claims while pursuing a reorganization plan. The company intends to focus its remaining operations on the Virginia strawberry campus.

U.S. Vertical Farming Market Scope:

U.S. Vertical Farming Market Segmentation:

BY TECHNOLOGY

• Hydroponics
• Aeroponics
• Aquaponics

BY STRUCTURE

• Building-Based Vertical Farms
• Shipping Container-Based Vertical Farms

BY CROP TYPE

• Leafy Greens (Lettuce, Kale, Spinach)
• Microgreens and Herbs
• Berries (Strawberries)
• Others (Tomatoes, Peppers)

BY END-USER

• Retail and Supermarkets
• Foodservice and Restaurants
• Institutions (Hospitals and Education)

Our Best-Performing Industry Reports:

• Indoor Farming Technology Market
• LED Farming Market
• Precision Farming Market

Table Of Contents

1. Introduction
2. Country Outlook
2.1. Demographic Trend 
2.2. Economic Scenario
2.3. Political Scenario
2.4. Stock market movement over the last year
2.5. Trade Dynamics
2.5.1. Import-Export
2.5.2. Major Global Trading Partners
3. U.S. Agriculture Outlook
3.1. Vegetable Production 
3.1.1. Short Term
3.1.2. Medium Term
3.1.3. Long Term
3.1.4. Supply-Demand Scenario 
3.2. Key Industry Policies and Regulations
3.3. Industry Participants
3.4. Key Players
4. Investment Analysis
4.1. Recent deals in the last two years
4.2. Foreign Direct Investments
4.3. Proposals and Memorandum of Understanding (MoUs)
5. U.S. Vertical Farming Market by Technology

5.1. Introduction

5.2. Hydroponics

5.3. Aeroponics

5.4. Aquaponics

6.      U.S. Vertical Farming Market by Structure

6.1. Introduction

6.2. Building-Based Vertical Farms

6.3. Shipping Container-Based Vertical Farms

7.      U.S. Vertical Farming Market by Crop Type

7.1. Introduction

7.2. Leafy Greens (Lettuce, Kale, Spinach)

7.3. Microgreens and Herbs

7.4. Berries (Strawberries)

7.5. Others (Tomatoes, Peppers)

8.      U.S. Vertical Farming Market by End-User

8.1. Introduction

8.2. Retail and Supermarkets

8.3. Foodservice and Restaurants

8.4. Institutions (Hospitals and Education)

9. World Bank and United Nations Outlook for U.S. Agriculture Industry
10. Sustainable Food Production Goals
10.1. Organic Vegetables Demand
10.2. Policies
10.3. Tariffs
10.4. Subsidies and Investments
11. U.S. Vertical Farming Market Outlook
11.1. Market Size and Forecast
11.1.1. Short Term
11.1.2. Medium Term
11.1.3. Long Term
11.2. Competitive Intelligence
11.3. Total Cost of Ownership
12. Future Outlook

13. Company Profiles

13.1. AeroFarms

13.2. Bowery Farming

13.3. Plenty Unlimited Inc.

13.4. Gotham Greens

13.5. BrightFarms

13.6. 80 Acres Farms

13.7. Local Bounti

13.8. Oishii

13.9. Eden Green Technology

13.10. Freight Farms

13.11. Revol Greens

13.12. Vertical Harvest

List of Figures

List of Tables

Companies Profiled

AeroFarms 

Bowery Farming 

Plenty Unlimited Inc. 

Gotham Greens 

BrightFarms 

80 Acres Farms 

Local Bounti 

Oishii 

Eden Green Technology 

Freight Farms 

Revol Greens 

Vertical Harvest

Related Reports