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The vertical farming market in South Africa is rapidly expanding, offering innovative solutions to the nation's agricultural issues. This approach involves growing crops in vertical layers or towers, utilizing controlled environments and cutting-edge technology. It allows for continuous cultivation throughout the year, regardless of external weather conditions, while maximizing land efficiency and reducing water consumption. Vertical farming can produce a range of crops, including leafy greens, herbs, microgreens, and specialty items. The rich culinary diversity in South Africa, along with an increasing demand for unique and nutritious produce, presents vertical farmers with opportunities to cater to specialized markets and high-value products, potentially enhancing market uniqueness and profitability. Additionally, the growth of the vertical farming sector creates job opportunities in areas such as farm management, agricultural technology, and system maintenance, which can help alleviate unemployment, particularly among young people, while promoting agricultural skill development. The vertical farming industry thrives on collaboration among various stakeholders, including farmers, researchers, technology providers, and government agencies. This cooperation fosters knowledge exchange, technological advancements, and research sharing, ultimately driving the growth and sustainability of the vertical farming market.
According to the research report "South Africa Vertical Farming Market Overview, 2029," published by Bonafide Research, the South Africa Vertical Farming market is anticipated to grow at more than 23.45% CAGR from 2024 to 2029. The rise of vertical farming in South Africa is becoming an essential part of the agricultural framework, fuelled by the urgent need for sustainable food production in the face of challenges like climate change and urban growth. With limited farmland and decreasing water supplies, vertical farming presents a space-efficient alternative that enables crops to be cultivated in stacked layers, greatly minimizing the land area needed for agriculture. This innovative approach can utilize up to 90% less water compared to conventional farming, tackling the pressing issue of water scarcity prevalent in various regions of South Africa. Moreover, vertical farms can function throughout the year, ensuring a steady supply of fresh produce irrespective of external weather fluctuations, which is crucial given the erratic climate conditions impacting the nation. The adoption of cutting-edge technologies, including automation and renewable energy, boosts productivity and sustainability, aligning with global movements towards environmentally friendly practices. Additionally, vertical farming supports local economies by generating jobs and lowering food transportation expenses due to its urban location. As the demand for fresh, locally sourced food continues to grow, vertical farming is set to be a key player in enhancing food security while fostering environmental sustainability within South Africa's agricultural landscape.
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The vertical farming sector in South Africa is mainly divided into two categories: building-based systems and container-based systems, both of which tackle the challenges associated with urban agriculture. Building-based vertical farms make use of existing infrastructures, such as warehouses and rooftops, to establish multi-layered growing environments. This approach optimizes the limited space available in urban areas and incorporates cutting-edge technologies like automated climate control and LED lighting, facilitating year-round crop cultivation. The growth of this segment is largely influenced by the increasing demand for sustainable food sources in the face of water scarcity and land constraints, positioning it as a practical solution for urban areas like Johannesburg. On the other hand, container-based vertical farming is becoming increasingly popular due to its adaptability and mobility. Shipping containers can be set up in various urban settings, promoting decentralized food production that reduces transportation costs and environmental impact. This method is particularly effective in overcoming land shortages and can function independently of external weather conditions. Both segments benefit from government initiatives designed to foster agricultural innovation and sustainability.
Hydroponics is gaining significant popularity in South Africa as an innovative agricultural solution, particularly suited for urban settings where traditional farming encounters challenges such as limited land and unpredictable weather. This method enables efficient crop production without soil, allowing for year-round yields and reduced dependency on conventional farming practices. Similarly, aeroponics is emerging as a favorable technique, utilizing a misting system to directly deliver nutrients to plant roots. This approach not only accelerates growth rates but also conserves water, an essential resource in a country facing water scarcity issues. Additionally, aquaponics is becoming recognized as a sustainable alternative that combines fish farming with plant cultivation, creating a symbiotic ecosystem that minimizes waste and enhances biodiversity. The integration of these growth mechanisms reflects South Africa's commitment to improving food security and promoting environmental sustainability amidst ongoing climate challenges. As urban agriculture initiatives gain traction, the potential for vertical farming to reshape the agricultural landscape is increasingly evident.
COVID-19 Impact
The COVID-19 pandemic had a significant impact on the vertical farming market in the South Africa. 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.
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Manmayi Raval
Research Consultant
Considered in this report
• Geography: South Africa
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029
Aspects covered in this report
• South Africa 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
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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.
Table of Contents
1. Executive Summary
2. Market Structure
2.1. Market Considerate
2.2. Assumptions
2.3. Limitations
2.4. Abbreviations
2.5. Sources
2.6. Definitions
2.7. Geography
3. Research Methodology
3.1. Secondary Research
3.2. Primary Data Collection
3.3. Market Formation & Validation
3.4. Report Writing, Quality Check & Delivery
4. South Africa Macro Economic Indicators
5. Market Dynamics
5.1. Market Drivers & Opportunities
5.2. Market Restraints & Challenges
5.3. Market Trends
5.3.1. XXXX
5.3.2. XXXX
5.3.3. XXXX
5.3.4. XXXX
5.3.5. XXXX
5.4. Covid-19 Effect
5.5. Supply chain Analysis
5.6. Policy & Regulatory Framework
5.7. Industry Experts Views
6. South Africa Vertical Farming Market Overview
6.1. Market Size By Value
6.2. Market Size and Forecast, By Growth Mechanism
6.3. Market Size and Forecast, By Structure
7. South Africa Vertical Farming Market Segmentations
7.1. South Africa Vertical Farming Market, By Growth Mechanism
7.1.1. South Africa Vertical Farming Market Size, By Hydroponics, 2018-2029
7.1.2. South Africa Vertical Farming Market Size, By Aeroponics, 2018-2029
7.1.3. South Africa Vertical Farming Market Size, By Aquaponics, 2018-2029
7.2. South Africa Vertical Farming Market, By Structure
7.2.1. South Africa Vertical Farming Market Size, By Building-based Vertical Farm, 2018-2029
7.2.2. South Africa Vertical Farming Market Size, By Shipping container-based Vertical Farm, 2018-2029
8. South Africa Vertical Farming Market Opportunity Assessment
8.1. By Growth Mechanism, 2024 to 2029
8.2. By Structure, 2024 to 2029
9. Competitive Landscape
9.1. Porter's Five Forces
9.2. Company Profile
9.2.1. Company 1
9.2.1.1. Company Snapshot
9.2.1.2. Company Overview
9.2.1.3. Financial Highlights
9.2.1.4. Geographic Insights
9.2.1.5. Business Segment & Performance
9.2.1.6. Product Portfolio
9.2.1.7. Key Executives
9.2.1.8. Strategic Moves & Developments
9.2.2. Company 2
9.2.3. Company 3
9.2.4. Company 4
9.2.5. Company 5
9.2.6. Company 6
9.2.7. Company 7
9.2.8. Company 8
10. Strategic Recommendations
11. Disclaimer
Table 1: Influencing Factors for Vertical Farming Market, 2023
Table 2: South Africa Vertical Farming Market Size and Forecast, By Growth Mechanism (2018 to 2029F) (In USD Million)
Table 3: South Africa Vertical Farming Market Size and Forecast, By Structure (2018 to 2029F) (In USD Million)
Table 4: South Africa Vertical Farming Market Size of Hydroponics (2018 to 2029) in USD Million
Table 5: South Africa Vertical Farming Market Size of Aeroponics (2018 to 2029) in USD Million
Table 6: South Africa Vertical Farming Market Size of Aquaponics (2018 to 2029) in USD Million
Table 7: South Africa Vertical Farming Market Size of Building-based Vertical Farm (2018 to 2029) in USD Million
Table 8: South Africa Vertical Farming Market Size of Shipping container-based Vertical Farm (2018 to 2029) in USD Million
Figure 1: South Africa Vertical Farming Market Size By Value (2018, 2023 & 2029F) (in USD Million)
Figure 2: Market Attractiveness Index, By Growth Mechanism
Figure 3: Market Attractiveness Index, By Structure
Figure 4: Porter's Five Forces of South Africa Vertical Farming Market
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