The global market for Vertical Farming is projected to reach US$6.7 billion by the year 2027, trailing a post COVID-19 CAGR of 14% over the analysis period 2020 through 2027. Factors such as global warming and climate change are threatening stability and availability of fresh produce and food for the global population that is projected to increase from 7.7 billion to more than 10 billion by the mid-21st century. In addition, COVID-19 has disrupted food supply chain and highlighted the pressing need for measures to ensure fast and direct delivery of foods to consumers. These concerns are prompting various agro-tech companies to exploit vertical farming for achieving food safety and feeding the exponentially-growing global population. Companies such as Vertical Field are harnessing smart designs, geoponic technology and agricultural proficiency to deal with these concerns. These players are offering vertical agricultural solutions to reduce human handling and waste while ensuring availability of more, fresh and nutritious produce through the year directly and locally to people. In a major development in vertical farming, Indoor agro-tech expert IGS is setting up a vertical farm system in Scotland. The facility is estimated to offer around 70 tons of produce including leafy greens and crops like basil per year. On the other hand, various companies are planning to place vertical farms in restaurants and retail chains across cities. In addition, players are looking forward to work with a diverse range of local clients including caterers and retailers to deliver nutritious, fresh and quality produce. These products are anticipated to promote and facilitate sustainable life while positively influencing the environment, offering a sustainable alternative to conventional agriculture.

The concept of vertical farming is garnering significant attention during the COVID-19 crisis that has triggered the demand for locally-grown foods. Vertical farming offers organic fruits and vegetables while consuming less land and water in comparison to traditional agriculture. In contrast to various industries that have been hit hard by the COVID-19 pandemic, vertical farming is gaining ground on account of its ability to satiate the need for locally-grown lettuce and kale. While participants are already operating large-scale facilities in Europe, Asia and the Middle East, others are announcing new projects since the onset of COVID-19. Vertical farms are witnessing considerable expansion across urban areas as they control various aspects like seed and storage as well as provide consumers with information about the source and production of food. While traditional crops are rotting in fields across several regions owing to disruptions in supply chains and farming amid COVID-19, vertical farms are recording high output. These disruptions to conventional farming practices have left consumers struggling for fresh food. On the other hand, operators of vertical farms are enjoying strong demand and supporting people with safer, fresher food. In addition to exploiting advanced technology to reduce the requirement of inputs like water, operators are betting on automation, machine learning and vision systems for crop monitoring. Moreover, the practice uses no pesticides, around 95% less water and scores considerably higher than conventional agriculture in terms of productivity.

The continuous expansion of vertical farming across urban areas is prompting various startups to join the bandwagon. Plenty, a San Francisco-based startup, is working on a new farm site in Los Angeles, while Kalera, based in Orlando, has set up its second facility that is estimated to yield nearly 6 million lettuce heads annually. By boosting localized production along with shortening and improving resiliency of the supply chain, vertical farming is anticipated to aid economic growth. However, there are certain concerns associated with vertical farming such as its capital- and energy-intensive nature. On the other hand, the use of LEDs and solar panels is expected to reduce energy requirements and make the option more sustainable. While vertical farming is unlikely to replace traditional agriculture, it is anticipated to post major gains in urban areas. The idea is supported by increasing funding secured by startups and other participants. Moreover, vertical farming has expanded to numerous countries and regions including the UAE, Sweden and Singapore. In addition, COVID-19 is prompting various countries to accelerate vertical farming projects as a result of increasing focus on urban agriculture and local output. In a notable development, AeroFarms voiced plans for setting up a large-scale R&D vertical farming facility in Abu Dhabi. Vertical farming is anticipated to be also bolstered by its ability to reduce distance to consumers and adapt to various shocks. The impact of COVID-19 on the agricultural and food supply chains is expected to provide a considerable opportunity for vertical farming. The concept is likely to drive various companies to invest in vertical farming.