Japan Vertical Farming Market Overview, 2029

The concept of vertical farming was presented by Professor Dickson Despommier in 1999 to utilise fewer areas of land to produce food in cities. He had a vision to grow fresh foods for urbanites at a faster pace and at comparatively low costs. As a result of this, vertical farming evolved as vertically stacked layers of food were produced. It looks like a tower-like structure, which uses a combination of natural and artificial lights to maintain a perfect environment for the plants. Soil is replaced by aeroponics, hydroponics, or aquaponics as a growing medium. It has become a sustainable way of farming, requiring nearly 90% less water than traditional farming. Vertical farming is a boon to decreasing arable land and rapid urbanisation. With innovation and technology advancements, various new methods are applied in vertical farming to increase quality and produce. Vertical farming does not have to face natural or severe climatic changes or natural disasters as these are done indoors and not in open spaces. Vertical farming has come to the aid of the world's ever-increasing population by alleviating food shortages.

According to the research report, "Japan Vertical Farming Market Outlook, 2029," published by Bonafide Research, the Japan Vertical Farming market is anticipated to add to more than USD 1521 Million by 2024–29. The growth of vertical farming in Japan has surged significantly, driven by the country's limited arable land and the pressing need for innovative agricultural solutions. The number of vertical farms, often referred to as "vegetable factories," has expanded dramatically, increasing from 93 in 2011 to around 390 by early 2021. This trend is largely attributed to advancements in automation and artificial intelligence, which enhance efficiency and reduce labor costs. Notable companies like Spread have pioneered large-scale operations, producing tens of thousands of heads of lettuce daily in controlled environments that minimize the impact of weather and soil conditions. The average age of farmers in Japan is rising, with many over 65, prompting a shift towards more sustainable and less labor-intensive farming methods. Additionally, government support through subsidies and funding has encouraged investment in vertical farming technologies. The focus on local food production aligns with consumer demand for fresh, pesticide-free produce while reducing transportation emissions.

In Japan, the vertical farming market is shaped by two primary structure segments: building-based and container-based systems, each offering unique advantages that cater to the country’s urbanized landscape and high demand for fresh produce. Building-based vertical farms are typically situated in repurposed warehouses or factories, enabling large-scale production and the integration of advanced technologies such as hydroponics and automated climate control systems. These facilities are particularly beneficial in densely populated areas like Tokyo, where land scarcity drives the need for efficient food production methods. Meanwhile, container-based vertical farms are gaining popularity for their modularity and flexibility, utilizing shipping containers to create compact growing units that can be deployed in various urban settings. This approach appeals to entrepreneurs and smaller operators due to its lower initial investment and ease of setup. The trend in Japan’s vertical farming market is increasingly moving toward innovation and sustainability, with an emphasis on smart farming technologies and eco-friendly practices.

The vertical farming market in Japan, a country renowned for its technological advancements and limited arable land, is experiencing rapid growth, fueled by innovative cultivation techniques. Hydroponic, aeroponic, and aquaponic systems are at the forefront of this agricultural revolution, offering sustainable and efficient solutions to address the challenges posed by urbanization and resource constraints. Hydroponic farming, which involves growing plants in nutrient-rich water solutions, has gained significant traction in Japan. This method allows for year-round production, reduced water consumption, and the ability to control the growing environment, making it particularly suitable for the country's climate and limited land resources. Aeroponic farming, where plants are suspended in air and misted with nutrient-rich water, is also gaining popularity due to its potential for even faster growth rates and higher yields. Aquaponic farming, a symbiotic system that combines aquaculture with hydroponics, has emerged as a sustainable and efficient approach in Japan. By recycling nutrients from fish waste to fertilize plants, aquaponic systems offer a closed-loop agricultural model that minimizes environmental impact and maximizes resource utilization.


COVID-19 Impact
The COVID-19 pandemic had a significant impact on the vertical farming market in the Japan. Disruptions in traditional agricultural supply chains, labor shortages, and increased concerns about food security drove interest in vertical farming as a more resilient and sustainable alternative. The crisis highlighted the need for local, controlled-environment agriculture, reducing reliance on long-distance food transportation. Additionally, the surge in consumer demand for fresh, healthy, and locally grown produce spurred investment in vertical farming technologies. However, supply chain challenges and economic uncertainty also delayed some projects, creating both opportunities and hurdles for the market's growth.
Considered in this report
• Geography: Japan
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029



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

Based on Growth Mechanism:
• Hydroponics
• Aeroponics
• Aquaponics

Based on structure type:
• 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 reports 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 the verticle farming 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.