Food Crops Grown Under Cover Market Report 2025

This Food Crops Grown Under Cover market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The food crops grown under cover market size has grown rapidly in recent years. It will grow from $64.28 billion in 2024 to $71.74 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to extended growing seasons, protection from pests and diseases, climate control, water conservation, urban agriculture, and crop diversification.

The food crops grown under cover market size is expected to see rapid growth in the next few years. It will grow to $113.04 billion in 2029 at a compound annual growth rate (CAGR) of 12%. The growth in the forecast period can be attributed to global population growth, climate change mitigation, vertical farming expansion, organic and sustainable farming, consumer preference for local produce, efficient resource use. Major trends in the forecast period include advanced automation and robotics, innovations in crop protection, LED lighting for crop growth, integration of IoT and data analytics, diversification of covering materials, and controlled environment agriculture.

The rising interest in organic food is anticipated to drive the growth of the market for food crops cultivated under cover in the future. Organic products are cultivated and processed without synthetic pesticides, fertilizers, or genetically modified organisms (GMOs), all of which can pose risks to human health and the environment. Awareness of the advantages of organic consumption has led to a surge in demand for these foods in recent years. For example, in May 2023, the Organic Trade Association, a trade group based in the U.S., reported that organic food sales in the United States surpassed $60 billion for the first time in 2022, marking a significant milestone for the flourishing organic industry. In total, organic sales, including both food and non-food items, reached a record $67.6 billion. Furthermore, the sales of organic baby food and formula rose nearly 13 percent, totaling $1.4 billion. Similarly, sales of organic rice, grains, and potato products increased by over 10 percent, amounting to $387 million. Organic dip sales also saw a notable increase, climbing 18 percent to reach $194 million. Consequently, the growing demand for organic food is fueling the expansion of the market for food crops grown under cover.

The growing incidence of pest infestations is anticipated to drive the expansion of the market for food crops grown under cover in the future. Enclosed environments like greenhouses and indoor farms provide controlled settings that facilitate effective pest management. This method reduces reliance on chemical pesticides, shields crops from outside pest threats, decreases losses, ensures continuous production throughout the year, improves crop quality, and enables the cultivation of high-value crops. Moreover, the implementation of precision agriculture technologies and the growing consumer demand for pesticide-free products further enhance market growth. For example, in April 2024, the Direct Line Group, a UK-based insurance provider, reported a significant increase in residential calls regarding cockroaches and bedbugs in 2023. Local councils noted a 23% rise in bedbug-related visits, increasing from 11,819 in 2022 to 14,587. Similarly, calls related to cockroach infestations rose by 3%, from 8,455 to 8,706 visits compared to the previous year. Therefore, the escalating pest outbreaks are fueling the growth of the market for food crops grown under cover.

Leading companies in the market for food crops grown under cover are developing innovative strategies to boost crop yields, optimize resource usage, and enhance sustainability within controlled environments like greenhouses and indoor farming systems. Innovative solutions encompass new and creative techniques, technologies, or approaches aimed at effectively tackling specific challenges. For example, in September 2024, Urban Crop Solutions, a Belgian agricultural firm, partnered with another Belgian company, Inagro, to unveil the first of three vertical farming towers. These towers are engineered to optimize space and improve production efficiency by enabling multiple layers of crops to be cultivated in a compact area. They employ advanced hydroponic and aeroponic systems, which reduce water consumption and eliminate the need for soil, leading to healthier plants and quicker growth cycles. By incorporating smart technologies, such as automated monitoring and climate regulation, Urban Crop Solutions and Inagro seek to refine growing conditions, lower labor costs, and boost overall sustainability in urban agriculture. This initiative marks a significant advancement in addressing the increasing demand for fresh produce in urban settings while tackling the environmental issues linked to traditional farming practices.

Major players in the food crops cultivated under cover market are leveraging new vertical farming facilities to secure competitive advantages. Vertical farming, involving vertically stacked layers or inclined surfaces for crop cultivation, especially in controlled indoor environments, has gained prominence. For instance, in February 2022, a concept was unveiled to completion package for fully automated indoor growing facilities. These modular vertical farming facilities, starting at 5,500 sqm, offer investors and retailers control over supplies and consistent conditions for crops like lettuce and rocket. Partnering with automated warehousing specialist SEC Group ensures automation and scalability, providing a turnkey solution encompassing indoor growing, climate control, engineering, and energy provision for large-scale commercial use.

In April 2022, Local Bounti Corporation, a prominent US-based indoor agriculture entity, completed the acquisition of Hollandia Produce Group, Inc. for $122.5 million. This strategic move is aimed at bolstering margin expansion for Local Bounti Corporation by integrating its proprietary Stack and Flow Technology into Pete's facilities. This acquisition positions Local Bounti Corporation to leverage operational synergies while fortifying its presence in the indoor farming sector. Hollandia Produce Inc., known as Pete's, specializes in cultivating and distributing top-quality greenhouse-grown produce, encompassing a range of products such as tomatoes, cucumbers, and bell peppers. The acquisition aligns with Local Bounti Corporation's strategic vision for growth and innovation within the indoor agriculture landscape.

Food crops grown under cover encompass crops cultivated within structures like greenhouses or under protective covers like tunnels. Agricultural practices like crop rotation, no-till methods, and organic farming significantly support and enhance this technique.

The primary categories of food crops grown under cover include fruits and vegetables, herbs and microgreens, flowers and ornamentals, along with other varieties. Fruits and vegetables constitute essential components of a nutritious diet. Various growing systems for these crops include hydroponics, aeroponics, aquaponics, soil-based cultivation, and hybrid methods. The two main components crucial for this cultivation are the hardware (physical structures and equipment) and software (management practices and techniques). Several types of facilities are employed for growing food crops under cover, including glass or poly greenhouses, indoor vertical farms, container farms, indoor deep-water culture systems, and other specialized facility types designed for controlled cultivation.

The food crops grown under cover market research report is one of a series of new reports that provides food crops grown under cover market statistics, including food crops grown under cover industry global market size, regional shares, competitors with a food crops grown under cover market share, detailed food crops grown under cover market segments, market trends and opportunities, and any further data you may need to thrive in the food crops grown under cover industry. This food crops grown under cover market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the food crops grown under cover market include Argus Control Systems Ltd., LumiGrow Inc., Netafim Ltd., Richel Group, General Hydroponics, Crop One Holdings Inc., Metropolis Farms Inc., Bright Farms Inc., Bowery Farming Inc., Certhon Group, Vertical Farm Systems, Hydrodynamics International, Illumitex Inc., Garden Fresh Farms, Green Sense Farms LLC, Sky Greens Pte Ltd., AeroFarms Inc., Plenty Unlimited Inc., Gotham Greens LLC, AppHarvest Inc., Kalera Inc., Revol Greens LLC, Eden Green Technologies Pvt. Ltd., Infinite Harvest Inc., Fifth Season Gardening Company, Little Leaf Farms LLC, FreshBox Farms Inc., Local Roots Farms Inc., Bright Agrotech LLC, Urban Crop Solutions, Green Spirit Farms LLC, Modular Farms Co, PLENTY Canada Inc., Square Roots (Electric) Inc., Vertical Harvest Jackson Hole LLC, ZipGrow Inc.

North America was the largest region in the food crops grown under cover market in 2024. Asia-Pacific is expected to be the fastest-growing region in the food crops grown under cover market report during the forecast period. The regions covered in the food crops grown under cover market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the food crops grown under cover market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The food crops grown under cover market consist of sales of food crops grown under protection such as fruits and vegetables in greenhouses and hoop houses, as well as transplants for commercial vegetable production. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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