How the Indoor Farming Market is Changing the Way We Think About Food Production.

Pooja Neharkar
Pooja Neharkar

Updated · Nov 2, 2022

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The future and the current generation are facing the most important challenge: how continuously increasing population and climate change badly affect food security. While preventing negative environmental impact, complete transformation is needed in the food system, where more production can happen in less optimal and space-limited areas.

According to, “The indoor farming market is projected to grow by USD 172.86 Billion by 2032 with a compound annual growth rate of 14.2%.

indoor farming market value research team quoted, ” Increasing population and demand for food these factors drive the indoor farming market growth. Prominent factors like urbanization, diminishing water supply, and climate change contribute to the loss of arable land. In turn, it drives the demand for indoor farming to produce more food.

 China and other developing countries have 334 million acres of arable soil. Of these, 37 million are not cultivable. This is a serious threat to the country’s growing population. 

An alternative to increasing arable land is to increase the productivity and yield of land being cultivated. These technologies include high-yielding varieties, the management of pesticides and fertilizers, mechanization, irrigation management, and the employment of new farming techniques like indoor farming.

The popularity of indoor farming is growing in the United States. It allows farmers to grow more vegetables and fruits with fewer resources while minimizing the environmental impact. Due to changing lifestyles, consumers are also more likely to grow essential crops on their farms to avoid pests. This is boosting the country’s indoor farming market.

Lands and agricultural production are both influenced by climate. Goods produced worldwide, and the integrity of the food supply could be at risk by climate change. Carbon dioxide stimulates by plants, but it depends on the expense of crop nutrition. The highest carbon dioxide level can nourish the plants, but these factors may counteract changing temperature, water, nutrient constraints, ozone layer, etc.

Floods, droughts such environmental changes affect the crop, and indoor farming pacifies climate change. Traditional farmers have less no contro over the environment than indoor farmers. Indoor farming has a small footprint, and it saves nutrients and water. Indoor farming reduces the effects of seasonality and weather on crop yields and allows for year-round agricultural production, which is a key driver of market demand.

North America is the second-largest market for vertical farming worldwide and will grow rapidly over the forecast period. Market growth can be attributed to factors like the alarming rate at which water levels are declining, the existence of drought-stricken countries, and increasing environmental concerns. Nano-farms are the latest trend. Living Greens Farm, for instance, built 60,000 square feet of stacked growth space on October 6, 2018, and can produce 3 million high-quality leaves.

According to World Bank statistics, South Asia uses more than 90% of its arable land potential. Sub-Saharan Africa is home to only 20% of its potential arable land. Rain-fed agriculture is also practiced on approximately 80% of the arable land. Because of these constraints, indoor farming can produce more from less land. Indoor farming allows for higher yields of different crops. As arable land shrinks, indoor farming will be a growing market.

Indoor farming allows you to grow crops and plants indoors on a large scale. This type of farming often uses hydroponics and artificial light to provide plants with the nutrients and lighting they need for their development. The growing demand for fresh food is driving indoor farming to great popularity. 

To create new production systems, many companies collaborate. For example, Aerofarms entered into a partnership in April 2021 with Hortifrut SA (a Chilean-certified B corporation). This partnership focused on research and development in blueberry and cranberry cultivation in fully controlled vertical farms and indoor environments. 

Bright Farms added three sustainable greenhouse farms to its Massachusetts, New York, and North Carolina construction units in 2019. The industry is being driven by deforestation and the increased availability of certified products. 

The challenges like increasing global temperature and weather conditions are barriers to the traditional farming technique. The main reason for declining yields is the shrinking of cultivable land. This is in addition to adverse weather conditions like droughts and floods, soil erosion, heavy pesticide use, and high soil fertility levels.

The changing climate can lead to environmental problems such as soil degradation, groundwater depletion, and other issues that could affect the production of food and agricultural products. This may hinder the market’s growth over the forecast period. In addition to other initiatives, governments encourage the construction of indoor farms. This will likely increase market growth over the forecast period.

Pooja Neharkar

Pooja Neharkar

Hii! This is pooja, I work as a digital marketing associate. I am proud to be a part of the core SEO team. I am interested in industry research, content writing, and entrepreneurship. I am passionate about digital marketing in research and SEO.