South America Indoor Farming Market Outlook, 2029

Major food futurists and industry leaders across the globe state that high-tech indoor farming operations are the future of the agriculture industry. Indoor farming is able to operate everywhere, virtually invincible against pests and poor weather, and produce local, fresh, high-quality, low-carbon food year-round. The principal benefit of indoor farming regarding the land is the fact that no soil is used with a lower amount of water. This approach to food production has several positive consequences for land use as well as the environment. As for South America, growing demand for indoor farming in highly populated urban countries, AI-controlled farms, and thriving demand for locally grown products are the major driving forces. In addition to that, the market is projected to expand as the customer demand for organic food is complemented by rising disposable incomes and an accelerating population. However, South America is anticipated to grow at a moderate growth rate during the forecast period owing to a lack of awareness about indoor and vertical farming across the region although the vast majority of the farmland is still available in South America, resulting in the expansion of local and national crop production economies. When it comes to Brazilian indoor farms, Brazil is majorly known for its pink farms. Pink Farms indoor farms produce up to 100 times more than open fields due to the level of multilevel structures with no air exchange with the external environment with temperature, humidity, and air quality controls. This farm also indicates a reduction in water consumption of up to 95% and a fertilizer usage reduction of 50%. In parallel, through the R&D sector of the company, it seeks to increase its portfolio with products such as strawberries and tomatoes, among others.

According to the research report, "South America Indoor Farming Market Outlook, 2029," published by Bonafide Research, the South America Indoor Farming market is anticipated to add to more than USD 0.896 Billion by 2024–29. Despite being widely used in agriculture, indoor farming is virtually unknown in South America. Many market players and industry leaders are trying to change this scenario by bringing their expertise and experience into the market. For instance, in 2018, Bunster and Sjogren launched AgroUrbana, which is believed to be South America’s first indoor large-scale farm. Since then, the momentum has increased and recently, AgroUrbana crossed USD 4 million in series A funding with the aim of implanting indoor farming production across the region. The company currently operates a 3000 square foot climate-controlled pilot facility in Santiago that grows lettuce varieties using hydroponics and artificial lighting systems. The South American indoor vertical market is segmented into three prominent countries, including Brazil, Argentina, and Colombia. Among these countries, Brazil is estimated to lead the market during the forecast period.

The indoor farming sector in South America is undergoing substantial growth, propelled by diverse cultivation techniques such as hydroponics, aeroponics, aquaponics, soil-based systems, and hybrids. Hydroponics is the leading segment, celebrated for its ability to yield high outputs with minimal land requirements, making it particularly advantageous in urban areas where space is scarce. This approach supports year-round crop production, meeting the rising demand for fresh produce in densely populated regions. Aeroponics, which nourishes plant roots through misting, is gaining traction for its water-saving capabilities and accelerated growth. Aquaponics, which integrates fish farming with plant cultivation, creates a sustainable ecosystem that appeals to environmentally aware consumers. While traditional soil-based systems continue to exist, they are increasingly being integrated into hybrid models that utilize advanced technologies to enhance productivity. A significant trend in the region is the growing consumer preference for locally sourced, pesticide-free food, driven by health consciousness and sustainability concerns. Technological advancements, such as automation and climate control systems, are boosting operational efficiencies across all farming segments.

The South America indoor farming market is segmented by facility type into vertical farms, greenhouses, and others, with vertical farms emerging as the largest and fastest-growing segment. Vertical farms utilize stacked layers to maximize space and are particularly effective in urban areas, allowing for year-round production of crops such as leafy greens and herbs. This method is gaining traction due to its ability to produce high yields in limited spaces, addressing the increasing demand for fresh produce in densely populated regions. Greenhouses remain a significant facility type, leveraging natural sunlight while providing controlled environments for plant growth. They are increasingly incorporating advanced technologies like climate control systems and automated irrigation, enhancing their efficiency and productivity. The "others" category includes container farms and indoor deep water culture systems, which offer flexible solutions for growers looking to optimize space and resources. A notable trend driving growth across these facility types is the rising consumer preference for locally sourced, organic food, propelled by health awareness and sustainability concerns.

The indoor farming market in South America is divided into two main components: hardware and software. Currently, the hardware segment dominates the market and is witnessing substantial growth. This segment includes critical technologies such as climate control systems, lighting, irrigation tools, and sensors, all of which are essential for creating optimal conditions for indoor agriculture. As the need for efficient food production escalates, there has been a notable increase in investments in advanced hardware solutions, allowing farmers to enhance their yields while reducing resource usage. This trend is especially evident in vertical farming, where advanced systems are crucial for managing the intricacies of layered crop cultivation. On the other hand, the software segment is also on the rise, fueled by the demand for integrated solutions that improve data management and operational efficiency. Software applications enable farmers to monitor growth conditions, manage expenses, and optimize resource use through real-time analytics. The growing adoption of smart farming technologies throughout South America is driving progress in both segments, with software anticipated to expand rapidly as more growers acknowledge its role in boosting productivity and sustainability.



In South America, the indoor farming sector is divided by crop type into fruits, vegetables and herbs, flowers and ornamentals, and other categories. The fruits and vegetables segment is the largest and fastest-growing, driven by a surge in consumer demand for fresh, nutritious produce, particularly among urban dwellers looking for sustainable food solutions. Commonly grown crops in this segment include tomatoes, leafy greens, and bell peppers, which thrive in controlled environments and offer high profitability for farmers. The vegetables and herbs category benefits from the ability to produce year-round, allowing farmers to respond to market demands without being affected by seasonal variations. Flowers and ornamentals also capture a significant market share, appealing to both commercial florists and consumers who prioritize aesthetics in urban areas. The "others" category features a range of specialty crops that are gaining traction but currently occupy a smaller portion of the market. A key trend across these segments is the rising adoption of hydroponic and aeroponic systems, which improve crop yields while conserving water.

Covid-19 Impact:
The COVID-19 pandemic has severely impacted the South American region. Brazil had the highest number of COVID-19 confirmed cases, followed by other countries, such as Ecuador, Peru, Chile, and Argentina. The governments of various countries in South America imposed several initiatives to protect people and to control COVID-19’s spread in the region through lockdowns, trade bans, and travel restrictions. These measures had a direct impact on the region’s economic growth as the region would face lower export revenues, both from the drop in commodity prices and the reduction in export volumes. However, a change in consumer preference for healthy and organic foods has positively impacted the market. Also, due to the work from home scenario, a major population has adopted farming as a hobby, which is expected to drive the higher market growth.

Considered in this report
• Geography: South America
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• South America Indoor Farming Market with its value and forecast along with its segments
• Country wise Indoor Farming market analysis
• Application wise Indoor Farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Brazil
• Argentina
• Colombia

Based on Growth Mechanism:
• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

Based on Facility type:
• Vertical Farm
• Greenhouse
• Others

Based on components:
• Hardware
• Software

Based on Crop type:
• Fruits, Vegetables & Herbs
• Flowers & Ornamentals
• Others (rest crops)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.