As the global population continues to rise and urbanization accelerates, the demand for sustainable and efficient food production methods has never been more critical. Vertical farming, with its promise of higher yields and reduced environmental impact, is emerging as a key solution to these challenges.
In this blog, we will explore the vertical farming market in four diverse countries: Russia, South Korea, Turkey, and Italy -and the dynamic city of Dubai. Each of these places presents unique opportunities and growth potential for this innovative agricultural practice.
Vertical Farming Market
The global vertical farming market is projected to reach a value of between $26.37 billion and $59.13 billion by 2030–2031, with a compound annual growth rate (CAGR) ranging from 22.6%–28.1%. The aeroponics segment will grow the fastest at 27.8%.
Vertical farming involves growing crops in vertically stacked layers, rather than on a single surface. Cultivators often incorporate vertical farming into structures like abandoned mine shafts, used warehouses, skyscrapers, and shipping barrels.
Market growth of vertical farming is attributed to several factors, including:
Climate control technology: Allows growers to create ideal conditions for their crops, reducing the risk of crop failure and increasing energy efficiency.
Resource efficiency: Vertical farms use less water and land than conventional farms.
Urbanization: Indoor vertical farming allows for precise control over environmental factors like temperature, light, and water.
The shipping container-based vertical farms segment is expected to dominate the market in 2024.
Russia Market Size:
Market Size and Growth Rate: According to Mordor Intelligence, the vertical farming market in Russia was valued at approximately USD 28 million in 2023 and is expected to grow at a CAGR of 20% from 2024 to 2030.
Urbanization and Technology Adoption: Over 74% of Russia’s population lives in urban areas, driving the demand for local food production (World Bank). Additionally, investments in agricultural technology have increased by 15% annually over the past five years (IDC).
South Korea Market Size:
Market Size and Growth Rate:
According to Research and Markets,
South Korea’s vertical farming market was valued at around USD 35 million in 2023 and is projected to grow at a CAGR of 22% from 2024 to 2030.
Tech Infrastructure and Urban Density: South Korea ranks 2nd globally in ICT development (ITU), facilitating advanced vertical farming technologies. Approximately 81% of the population resides in urban areas, necessitating efficient food production methods (Statistics Korea).
Turkey Market Size:
Market Size and Growth Rate: According to IMARC Group, the vertical farming market in Turkey reached USD 15 million in 2023 and is expected to grow at a CAGR of 18% from 2024 to 2030.
Population Growth and Government Incentives: Turkey’s population is growing at a rate of 1.2% annually, increasing food demand (Turkish Statistical Institute). The government has allocated over USD 100 million for agricultural modernization projects, including vertical farming (Ministry of Agriculture and Forestry).
Italy Market Size:
Market Size and Growth Rate: According toMarket Data Forecast, Italy’s vertical farming market was valued at approximately USD 25 million in 2023 and is forecasted to grow at a CAGR of 19% from 2024 to 2030.
Sustainable Practices and R&D Investment: Italy ranks 5th in the EU for organic farming practices (Eurostat), aligning with vertical farming’s sustainability goals. Italian investments in agricultural research and development have grown by 10% annually over the past decade (ISTAT).
Dubai Market Size
The market size of vertical farming in Dubai is projected to grow significantly, driven by increasing urbanization, technological advancements, and a focus on sustainable agriculture. According to a report by Market Data Forecast, the vertical farming market in the Middle East and Africa is expected to reach USD 1.38 billion by 2026, with Dubai being a key player due to its investments in innovative agricultural technologies .
The city’s strategic initiatives, such as the Dubai Food Security Strategy and various public-private partnerships, are further propelling the adoption of vertical farming practices to ensure food security and reduce dependency on imports.
These data points highlight the significant opportunities and potential for growth in the vertical farming markets of Russia, South Korea, Turkey,Italy and the city of Dubai. By utilizing technological advancements, government support, and increasing urbanization, these places are well-positioned to become leaders in sustainable and efficient food production.
Conclusion
Vertical farming represents a revolutionary approach to agriculture, addressing the pressing needs of food security, resource efficiency, and sustainability in an increasingly urbanized world.
The projected global market growth underscores its potential, with significant opportunities in countries like Russia, South Korea, Turkey, and Italy as well as the dynamic city of Dubai. Each of them offers unique advantages, from technological infrastructure and government support to urban density and agricultural traditions.
As we move towards 2030, the adoption of vertical farming practices is poised to transform the agricultural landscape, providing fresh, local produce year-round and reducing the environmental impact of traditional farming methods. By capitalizing on these opportunities, these countries can lead the way in sustainable agriculture, ensuring food security for future generations.
References
websites:
Mordor Intelligence
World Bank
Research and Markets
ITU
Statistics Korea
IMARC Group
Turkish Statistical Institute
Market Data Forecast
Eurostat
Italian National Institute of Statistics
AgriNext Awards,Conference & Expo: Promoting Vertical Farming
AgriNext scheduled to take place in Dubai on 13-14 November 2024 is at the forefront of promoting vertical farming, recognizing its potential to revolutionize agriculture in urban environments.
Through its conferences and expos, AgriNext provides a platform for industry leaders, startups, and researchers to showcase cutting-edge vertical farming technologies and share insights on sustainable practices.
The event highlights the benefits of vertical farming, such as efficient land use, reduced water consumption, and year-round crop production. By supporting innovative solutions and fostering collaboration, AgriNext aims to drive the growth of vertical farming, making it a cornerstone of modern agriculture in the region.
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