Middle east & Africa Vertical Farming Market Outlook, 2029

Due to the shortage of water and adverse climate conditions, the Middle East and Africa region is witnessing an increase in demand for adopting innovative and alternative agricultural processes in various developing economies across the region. The high necessity for large production of food crops due to meager land arability and geographic factors is driving the market for vertical farming in the Middle East and Africa. Also, many companies are looking to capitalize on this factor by providing higher investments to their R & D departments.

The emergence of new businesses and expanding collaborations with international and domestic enterprises has resulted in a significant increase in demand for innovative approaches to alternative farming practices. For instance, in Saudi Arabia, the Ministry of Environment, Water and Agriculture has allocated USD 27 million to develop and localize vertical-farming technologies across the country. On the other hand, taking the UAE alone, the population is projected to reach 11.5 million by 2025. This presents huge challenges to the economy and food security. However, the vertical farming industry is projected to be a booming sector across the region, which can overcome these challenges. Also, vertical farming initiatives across the region have been supported by local governments as they can allow various economies to target their sustainable approach to the environment.

According to the research report, 'Middle East & Africa Vertical Farming Market Outlook, 2029,', Middle East & Africa Vertical Farming market is anticipated to add to more than USD 1.35 Billion by 2024-29. Vertical farms offer the prospect of growing more produce locally and making better use of the region’s limited water resources. These factors are projected to lead to the overall market growth during the forecast period. The Middle East & Africa vertical farming market is segmented into three prominent countries, including the UAE, Saudi Arabia, and South Africa. Among these countries, South Africa is projected to lead the market by 2029 with more than 21% market share.

As agricultural land is limited in South Africa, vertical farming is gaining more traction in the country. Vertical farming can supply fresh food for those who cannot farm or whose soil conditions are not suitable for farming. Also, with the limited water resources in South Africa, they can grow more crops through vertical farming (as it consumes up to 95% less water than traditional farming). Furthermore, in South Africa, Pick n Pay On Nicol in Sandton and Pick n Pay Constania in Cape Town are the first stores to launch vertical farms.

The vertical farming sector in the Middle East and Africa is experiencing significant growth, propelled by hydroponic, aeroponic, and aquaponic systems that are revolutionizing agriculture in regions facing extreme climates and limited cultivable land. Hydroponics has emerged as a prominent method due to its capacity to cultivate crops without soil, making it particularly suitable for areas characterized by arid or desert-like environments. This technique enhances water efficiency, a vital consideration in the water-scarce regions of the Middle East, and facilitates the year-round cultivation of leafy greens and herbs, which are in high demand.

Aeroponics, which employs mist to supply nutrients directly to plant roots, is gaining traction as a sophisticated solution, providing even greater water savings and accelerated crop growth. This method is particularly attractive to nations in the region aiming to optimize food production while minimizing resource consumption, especially in urban areas where space is at a premium. Meanwhile, aquaponics, which combines fish farming with hydroponic plant growth, is gradually attracting interest, promoting sustainable agriculture through its closed-loop system that recycles both water and nutrients. This environmentally friendly approach aligns with the priorities of governments and organizations focused on enhancing food security and promoting sustainability.

The vertical farming industry in the Middle East and Africa is undergoing remarkable growth, especially through the adoption of building-based and container-based systems. Building-based vertical farms, typically found in urban centers and converted warehouses, are gaining popularity as they provide the capability for large-scale production in controlled settings. These facilities support year-round cultivation, which is essential for satisfying the increasing demand for fresh, locally grown food in regions where traditional agriculture is hindered by arid climates and limited arable land.

The scalability and potential for high yields make building-based systems an appealing option for countries striving to improve food security and lessen their reliance on imports. In contrast, container-based farming systems are emerging as a flexible and mobile solution, enabling smaller-scale production that can be implemented in both urban and rural environments. These mobile farms, located in repurposed shipping containers, are particularly suited for addressing food security challenges in remote areas and provide an affordable entry point for small-scale farmers or startups. Both types of structures emphasize resource efficiency, particularly in water conservation, which is critical in a region facing significant water scarcity.

COVID-19 Impact

The impact of COVID-19 on major economies in the Middle East and Africa region was severe. Due to growing infections, the government imposed a lockdown across various regions and the Middle East & Africa was one of them. Social distancing norms and work from home scenarios have resulted in a lower labor force and a drop in the revenue generation for major production plants. The supply chain was also heavily affected across the whole region. However, by the first quarter of 2021, market players regained their manufacturing at a higher pace to remain in the competition. Also, a change in consumer preference and high demand for organic food has fuelled the market growth in the Middle East and Africa.

Considered in this report

• Geography: Middle East & Africa
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Middle East & Africa 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

• UAE
• Saudi Arabia
• South Africa

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.

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