Asia Pacific Vertical Farming Market Outlook, 2029

As economies grow and the majority of the population demands a higher standard of living, personal health and well-being become a top priority. In the Asia-Pacific region, an increasing number of consumers are searching for fresh leafy vegetables that are free from pesticides and safe to eat raw. Asia-Pacific is one of the most lucrative markets for the higher growth of the vertical farming market. A growing population across the region directs the higher need for crops to feed them. Also, increasing urbanization has resulted in a lack of arable space across the region. In this scenario, vertical farming is expected to be the viable option.

In addition to that, the demand for vertical farming technology is expected to increase across the region into the foreseeable future due to an increasing concentration on organic food consumption. From the research, it has been found that Asia-Pacific consumes over 75% of all vegetables across the globe. Also, the Asia-Pacific is home to some of the largest vertical farms compared to other regions. Companies involved in vertical farming are investing and expanding their operations to other countries, which will, in turn, fuel the market's growth by 2027. Moreover, the growing penetration of technology-enabled devices such as artificial intelligence (AI), robotics, smart monitoring, and advanced sensors into vertical farming have propelled the market growth in Asia-Pacific.

According to the research report 'Asia Pacific Vertical Farming Market Overview, 2029,', the Asia Pacific Vertical Farming market is anticipated to grow at more than 27.69% CAGR from 2024 to 2029. The increasing demand for environmentally friendly food production is gaining more traction in the region. The geographical opportunities for vertical farming across the region have created enhanced opportunities for this industry to grow exponentially. Also, the region aims to save water consumption in agricultural fields and to supply large amounts of pesticide-free food. The Asia-Pacific vertical farming market is segmented into five prominent countries, including China, Japan, Taiwan, Singapore, and South Korea.

Among these countries, Japan is anticipated to acquire the largest portion of the market share during the forecast period. Japan has been one of the early adopters of the vertical farming industry. Due to the aging population and rural migration across the country, vertical farming has found its way. According to the research, the number of vegetable vehicle farms or factories across the country has grown from 93 in 2011 to 390 in 2021. This surge is attributed to the technological advancements taking place in the vertical farming industry. In Japan, Spread Co., Ltd., Chubu Electric Power Co., Inc., and ES-CON Japan will jointly establish a new company that will construct and operate vertical farms. As for the first initiative, the company is planning to build an automated vertical farm called 'Techno Farm Fukuroi.' This farm will be the world’s largest automated farm and will be capable of producing 10 tons of lettuce per day.

The expansion of the vertical farming sector in the Asia-Pacific region is primarily influenced by three key methods: hydroponics, aeroponics, and aquaponics. Hydroponics, which facilitates plant growth in nutrient-enriched water without the use of soil, stands out as the most prevalent technique due to its effectiveness and scalability. This method is especially advantageous in urban settings where land availability is limited, allowing for continuous production of high-quality crops while conserving water resources. Aeroponics further optimizes this process by suspending plant roots in air and misting them with nutrients, leading to accelerated growth rates and lower resource consumption.

This technique is increasingly favored by growers seeking sustainable practices that utilize less space and water. Aquaponics merges hydroponics with aquaculture, establishing a mutually beneficial ecosystem where fish waste supplies nutrients for plants, and in turn, plants purify the water for the fish. This holistic approach resonates with environmentally aware consumers and fosters biodiversity. The prevailing trend among these methods underscores a rising consumer preference for fresh, locally sourced produce, motivated by health and sustainability considerations. Furthermore, technological advancements, including automation and IoT integration, are improving operational efficiencies and crop yields across all three systems.

The Asia-Pacific vertical farming sector is fundamentally categorized into building-based and container-based frameworks, each addressing unique operational demands and preferences. Building-based vertical farms capitalize on existing infrastructures, such as warehouses and expansive facilities, which enable significant crop production within urban locales. This model is particularly advantageous due to its scalability and versatility in accommodating various growing systems, making it well-suited for larger operations that prioritize high-volume production. On the other hand, container-based vertical farms utilize repurposed shipping containers, offering a more flexible and modular farming approach.

These systems are especially appealing because of their reduced initial investment and ease of mobility, allowing producers to establish their operations in multiple urban environments with minimal land requirements. A prominent trend in this market is the rising consumer demand for locally sourced, pesticide-free produce, which is driving innovation in both structural types. Additionally, advancements in technology, including automated climate control and LED lighting systems, are enhancing operational efficiency across both segments. As urbanization intensifies in the region, these farming methodologies are emerging as crucial solutions to the food security challenges posed by limited arable land and growing populations.

COVID-19 Impact

The pandemic has admittedly upended economic activity across the Asia-Pacific region. In 2020, the government imposed strict lockdown and social distancing norms across the country. That resulted in a major drop in various production units across the region. However, the impact of the free flow of other goods and services combined with the lack of an available labor force has raised the specter of longer-term disruptions to daily life, livelihoods, and cash on hand. By the first quarter of 2021, the demand for organic food will have gained higher momentum across the Asia-Pacific region. Higher concentration on health has accelerated the overall market growth.

Considered in this report

• Geography: Asia Pacific
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Asia Pacific 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

• China
• Japan
• Taiwan
• Singapore
• South Korea

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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