United Kingdom Indoor Farming Market Overview, 2029

Agriculture in the United Kingdom boasts a profound historical significance and remains a vital sector of the national economy, generating approximately £11 billion each year. With more than 70% of the nation’s land dedicated to agricultural activities, key crops include wheat, barley, and rapeseed, alongside a strong emphasis on livestock farming. To satisfy the food requirements of a population exceeding 67 million, innovation is essential, prompting UK farmers to increasingly embrace advanced technologies. Precision agriculture, which incorporates tools such as drones, GPS, and data analytics, enhances crop management, leading to higher yields and a diminished environmental footprint. The UK government actively supports agri-tech initiatives, exemplified by the £90 million “Transforming Food Production” program, which fosters pioneering innovations like AI-driven machinery and robotic harvesting systems. Furthermore, the rise of vertical farming is noteworthy, enabling continuous production in controlled settings, a necessity as climate change impacts conventional farming practices. Sustainability remains a central concern, with farmers implementing strategies such as crop rotation, reduced pesticide application, and organic farming to enhance soil health and promote biodiversity.

According to the research report "United Kingdom Indoor Farming Market Overview, 2029," published by Bonafide Research, the United Kingdom Indoor Farming market was valued at more than USD 1444 Million in 2023. The indoor farming market in the United Kingdom is experiencing robust growth, driven by a combination of technological advancements and shifting consumer preferences towards sustainable food production. As urbanization increases and traditional farming faces challenges such as limited arable land and unpredictable weather patterns, indoor farming presents a viable solution. This method allows for year-round cultivation in controlled environments, significantly enhancing crop yields while minimizing resource usage. Vertical farming is particularly gaining traction, utilizing innovative techniques like hydroponics and LED lighting to optimize growth conditions and maximize space efficiency. Greenhouses also play a crucial role, providing a familiar structure that enhances productivity while protecting crops from external elements. The UK government actively supports these initiatives through funding and research programs aimed at improving food security and sustainability. Additionally, the rising consumer demand for fresh, locally sourced produce is prompting supermarkets and restaurants to invest in indoor farming solutions, further driving market expansion. Notably, the integration of smart technologies, such as climate control systems and automated monitoring, is enhancing operational efficiency and reducing labor costs.

The United Kingdom indoor farming market is increasingly characterized by various facility types, including vertical farming, greenhouses, and other innovative structures. Vertical farming is gaining significant traction due to its ability to maximize space and yield in urban environments where traditional agriculture faces limitations. By utilizing stacked layers and controlled environments, vertical farms can produce crops year-round, significantly reducing the impact of weather variability and pests. This method not only enhances food security but also minimizes transportation costs by bringing production closer to consumers. Greenhouses remain a popular choice, providing a controlled environment that allows for the cultivation of a wide range of crops while protecting them from adverse weather conditions. They are particularly effective for growing vegetables and fruits, contributing to the UK's goal of increasing local food production. Other facility types, such as container farms and hydroponic systems, are also emerging as viable alternatives that leverage technology to optimize resource use and improve sustainability. The UK government actively supports these innovations through funding and incentives aimed at enhancing agricultural productivity and sustainability. As urbanization continues to rise, the demand for locally sourced produce is expected to drive further investment in indoor farming facilities.

The United Kingdom indoor farming market is evolving rapidly, driven by various growth mechanisms, including hydroponics, aeroponics, aquaponics, soil-based systems, and hybrid methods. Among these, soil-based systems remain the largest segment due to their familiarity and effectiveness in producing a diverse range of crops. Soil-based farming provides growers with a traditional approach that allows for natural nutrient uptake and supports a wide variety of plants, making it a popular choice for many indoor farms. Hydroponics is also gaining momentum, offering a soilless growing technique that uses nutrient-rich water solutions to promote faster growth and higher yields. This method is particularly appealing in urban settings where space is limited and environmental control is essential. Aeroponics, which involves growing plants in an air or mist environment without soil, is emerging as a highly efficient alternative that reduces water usage while enhancing growth rates. Aquaponics combines fish farming with plant cultivation, creating a sustainable ecosystem that maximizes resource efficiency. Hybrid systems that integrate multiple techniques are also being explored to optimize productivity and sustainability. The UK government actively supports these innovations through funding initiatives aimed at enhancing agricultural productivity and sustainability.

Covid-19 impact:
Traditional farming was hit hard during the pandemic due to lockdowns, border closures, quarantines, and supply chain disruptions. This limited access to fresh agricultural produce paved the way for indoor farming. In fact, the pandemic pushed the market demand for indoor farming as the populace was already experiencing high levels of food insecurity. During the pandemic's early stages of spread, the agriculture sector encountered difficulties. There were severe labor shortages on farms; some farmers lost their window of opportunity to harvest seasonal crops; agricultural product prices were plummeting; and logistics were disrupted. All this in spite of the fact that agriculture didn’t face a harsh shutdown as it was under essential services that were exempted. The development of indoor farming can also help in addressing all aspects of various food security concerns. Increased health awareness and the consumption of food free of residues have made it possible to use cutting-edge methods, such as indoor farming. In order to have food that is pest-free, people are cultivating essential crops on a modest scale in their own homes, which has increased productivity.




Considered in this report
• Geography: United Kingdom
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• United Kingdom Indoor Farming market with its value and forecast along with its segments
• various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Growth Mechanism
• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based
• Hybrid

By Facility Type
• Vertical Farm
• Greenhouse
• Others

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the battery manufacturers, 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.