Asia-Pacific Vertical Farming Market Outlook, 2027

As economies grow and the majority of the population demands a higher standard of living, personal health and well-being become a top priority. In the Asia-Pacific region, an increasing number of consumers are searching for fresh leafy vegetables that are free from pesticides and safe to eat raw. Asia-Pacific is one of the most lucrative markets for the higher growth of the vertical farming market. A growing population across the region directs the higher need for crops to feed them. Also, increasing urbanization has resulted in a lack of arable space across the region. In this scenario, vertical farming is expected to be the viable option. In addition to that, the demand for vertical farming technology is expected to increase across the region into the foreseeable future due to an increasing concentration on organic food consumption. From the research, it has been found that Asia-Pacific consumes over 75% of all vegetables across the globe. Also, the Asia-Pacific is home to some of the largest vertical farms compared to other regions. Companies involved in vertical farming are investing and expanding their operations to other countries, which will, in turn, fuel the market's growth by 2027. Moreover, the growing penetration of technology-enabled devices such as artificial intelligence (AI), robotics, smart monitoring, and advanced sensors into vertical farming have propelled the market growth in Asia-Pacific.

According to the report titled "Asia-Pacific Vertical Farming Market Outlook, 2027", published by Bonafide Research, the vertical farming market is anticipated to grow at a 25.55% CAGR for 2022–2027. The increasing demand for environmentally friendly food production is gaining more traction in the region. The geographical opportunities for vertical farming across the region have created enhanced opportunities for this industry to grow exponentially. Also, the region aims to save water consumption in agricultural fields and to supply large amounts of pesticide-free food. The Asia-Pacific vertical farming market is segmented into five prominent countries, including China, Japan, Taiwan, Singapore, and South Korea. Among these countries, Japan is anticipated to acquire the largest portion of the market share during the forecast period.

Japan has been one of the early adopters of the vertical farming industry. Due to the aging population and rural migration across the country, vertical farming has found its way. According to the research, the number of vegetable vehicle farms or factories across the country has grown from 93 in 2011 to 390 in 2021. This surge is attributed to the technological advancements taking place in the vertical farming industry. In Japan, Spread Co., Ltd., Chubu Electric Power Co., Inc., and ES-CON Japan will jointly establish a new company that will construct and operate vertical farms. As for the first initiative, the company is planning to build an automated vertical farm called "Techno Farm Fukuroi." This farm will be the world’s largest automated farm and will be capable of producing 10 tons of lettuce per day.

According to the report, the Asia-Pacific vertical farming industry is segmented into three types of growth mechanisms, including hydroponics, aeroponics, and aquaponics. Among these types, the hydroponics segment is expected to occupy the largest market share during the forecast period with more than 55%. Vertical farming companies across the Asia-Pacific region are implanting new innovative technologies, majorly in hydroponics. Sustenir (Singapore), for example, opened a 3000 square foot hydroponics vertical farming facility in Tuen Mun (Hong King) in 2019.Further, the market is segmented into two structure types, including building-based vertical farming and shipping container-based vertical farming. Among these structure types, the building-based vertical farming segment is expected to occupy the largest market share with more than 55% during the forecast period. However, the shipping container-based vertical farming segment is projected to grow at a higher growth rate for 2022–2027.

COVID-19:
The pandemic has admittedly upended economic activity across the Asia-Pacific region. In 2020, the government imposed strict lockdown and social distancing norms across the country. That resulted in a major drop in various production units across the region. However, the impact of the free flow of other goods and services combined with the lack of an available labor force has raised the specter of longer-term disruptions to daily life, livelihoods, and cash on hand. By the first quarter of 2021, the demand for organic food will have gained higher momentum across the Asia-Pacific region. Higher concentration on health has accelerated the overall market growth.

Major Companies present in the market:
Sky Greens, Pentair Aquatic Eco-systems Inc., Signify Holding, Heliospectra AB, OSRAM GmbH., 4D Bios, Inc., Everlight Electronics co. Ltd, ZipGrow Inc., Koninklijke Philips NV

Considered in this report
  • Geography: Asia-Pacific
  • Historic Year: 2016
  • Base year: 2021
  • Estimated year: 2022
  • Forecast year: 2027

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

Countries covered in the report
• China
• Japan
• Taiwan
• Singapore
• South Korea

Based on Growth Mechanism of vertical farming in the report:
• Hydroponics
• Aeroponics
• Aquaponics

Based on structure type of vertical farming in the report:
• Building based-vertical farming
• Shipping based-vertical farming

Based on hydroponics components of vertical farming in the report:
• Lighting
• Climate Control (HVAC)
• Sensors
• Other Hydroponic Components (Irrigation & fertigation system)

Based on application type in the report:
• Indoor-vertical farming
• Outdoor-vertical farming

Based on crop type in the report:
• Tomatoes
• Bell & Chili peppers
• Lettuce
• Herbs
• Leafy Greens (excluding lettuce)
• Strawberry
• Others

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, analyzing 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.

Keywords: Global vertical farming market size, herbal, botanical, Skyscraper farming, Agricultural techniques, Vertical farming component, farming equipment, Tomato Lettuce vertical farming, Bell & Chili, food & beverage, market demand of vertical farming, hydroponics, aeroponics, aquaponics, shipping container vertical farming, top vertical farming countries, top vertical farming companies, top hydroponics farming by countries, Asia, Asia-Pacific, China, Japan, India, Australia, South Korea.

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