South America Vertical Farming Market Outlook, 2029

Beyond providing fresh local produce, vertical farming could help increase food production and expand agricultural operations as the world’s population is projected to reach 9 Billion by 2050. Also, by the same year, it is expected that two out of every three people will live in urban areas. Producing fresh greens and vegetables close to this urban population could help to meet the increasing food demands across the globe. Vertical farming offers a sustainable and environmentally responsible way of life for the upcoming enhanced lifestyle. In South America, the market is projected to expand as the consumer demand for organic foods is being complemented by rising disposable incomes and a growing population. Further, increasing penetration of technology advancements in the vertical farming industry across South America, which will bring down the overall cost, is forecasted to direct the market towards higher momentum. For instance, AgroUrbana was the first vertical farm established in South America with its 3000 square foot pilot facility located in Santiago (Chile). Furthermore, South America is planning to replicate this farm on a larger scale (30,000 square feet). This new facility will allow AgroUrbana to increase its output by twentyfold and will fuel the higher market growth. AgroUrbana currently produces lettuce as a house mix. It will soon be launching kale and basil, and it has experimented with strawberry production.

According to the research report "South America Vertical Farming Market Overview, 2029," published by Bonafide Research, the South America Vertical Farming market is anticipated to grow at more than 17.56% CAGR from 2024 to 2029. Better yield with lower requirement for space, shorter growing time, less water usage, a gassy product, and superior organic taste are some of the major driving forces for the South American vertical farming market. The South American vertical farming market is segmented into three prominent countries, including Brazil, Argentina, and Columbia. Among these countries, Brazil is estimated to lead the South American vertical market during the forecast period. Brazil is considered to be one of the largest markets across the region, followed by Argentina and Columbia. Vertical farming companies have arisen in all of the main Brazilian metropolises. Embrapa is the main agricultural research agency in Brazil that has been researching mineral nutrition management for hydroponically grown vegetables. In addition to that, Brazil has abundant land resources and vegetable production is more strongly limited by climate conditions than land availability. According to research, in the city of Sao Paulo alone, there are at least three vertical farms. Also, Brazil is mainly known for its vertical farms. It is based on the concept of using innovative technology to grow food "up" rather than "out," bringing fresh and local production to urban areas with less impact on the environment. Currently, Pink Farms is growing micro-greens, which are sold directly to the consumers.

The vertical farming market in South America is experiencing notable growth, with hydroponic, aeroponic, and aquaponic systems each playing a critical role in shaping the region's agricultural innovation. Hydroponics has emerged as the most prominent mechanism, largely due to its ability to grow crops without soil, making it highly efficient in urban areas and regions with limited arable land. This method is particularly well-suited for producing leafy greens, herbs, and other high-demand crops, addressing the increasing consumer preference for fresh and locally grown produce in South America’s densely populated cities. Aeroponics, which involves suspending plants and delivering nutrients through mist, is gaining attention for its resource efficiency, particularly in areas where water conservation is a priority. This system promotes faster crop growth and higher yields, making it attractive to farmers looking to maximize productivity with minimal environmental impact. Meanwhile, aquaponics, which combines fish farming with plant cultivation, is slowly gaining traction as a sustainable farming solution. Its closed-loop system not only reduces water consumption but also recycles nutrients, making it highly appealing to eco-conscious farmers and consumers in South America who are focused on sustainability. The adoption of these advanced farming techniques is driven by the region’s increasing urbanization, rising demand for locally sourced food, and the need to enhance food security, while also responding to environmental challenges such as water scarcity and soil degradation.

The vertical farming market in South America is seeing significant expansion, with both building-based and container-based systems gaining traction across the region. Building-based vertical farms, often set up in repurposed urban warehouses or large indoor spaces, are becoming increasingly popular due to their ability to cultivate a high volume of crops year-round, regardless of external climate conditions. This structure type is particularly suited to large-scale operations in densely populated cities, where there is a growing demand for locally grown, fresh produce that minimizes transportation and reduces carbon footprints. On the other hand, container-based systems are becoming a flexible and cost-effective solution for smaller-scale farming. These portable farms, typically housed in repurposed shipping containers, are ideal for startups and independent entrepreneurs who want to experiment with vertical farming without significant infrastructure investment. The portability of container farms allows them to be deployed in rural or underserved urban areas, addressing food security issues by bringing farming closer to consumption centers. Both structure types focus on water conservation, energy efficiency, and reducing waste, which aligns with the growing sustainability movement in South America.

Covid-19 Impact:
From corporate agricultural production systems to small and medium-scale farm households, all types of farming systems were heavily impacted during the COVID-19 pandemic. The various government-implemented measures, such as reduced mobility, closure of public and private venues, and a halt in production units, had varying degrees of severity. Imposed lockdown situation resulted in a major drop in revenue generation as well as disrupted supply chains for vertical farming instruments. However, staying at home has changed the mindset and preference of many consumers and has directed them to organic food consumption. Such factors are expected to propel higher market growth during the forecast period in the South American vertical farming market.



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 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
• Brazil
• Argentina
• Colombia

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

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.