Vertical Farming Market (2025-2032)

Arable land is one of the most important resources required to increase agricultural productivity. Numerous cultivation techniques and inputs, such as synthetic fertilizers and crop protection chemicals, have emerged during the last decade, resulting in the overutilization of land resources, soil pollution, and diminished agricultural productivity.

According to Food and Agriculture Organization (FAO) projections, per capita arable land may decrease from 0.21 hectares per person in 2024 to 0.18 hectares per person in 2050. According to the FAO’s Global Assessment of Land Degradation and Improvement (GLADA) report, globally, around two billion hectares of agricultural land have degraded since the 1950s. Land degradation is one of the world’s most critical environmental problems, which will continue to worsen without rapid remedial action. Land degradation releases soil carbon and nitrous oxide into the atmosphere, making it a significant contributor to climate change. According to scientists at the Global Environment Facility, unsustainable agriculture methods result in the loss of 24 billion tons of productive soil each year. If this trend continues, 95% of the world’s land areas could become degraded by 2050.

The Eastern & Central Asia, Latin America, and Caribbean regions have witnessed significant degradation, affecting around 20% of the total land. According to the United Nations Convention to Combat Desertification (UNCCD), in the sub-Saharan Africa and Latin America & Caribbean regions, 163 million hectares and 108 million hectares, respectively, were lost to land degradation from 2015 to 2024. This loss was mainly attributed to the diversion of cultivable land for non-agricultural purposes, including construction, industries, and other development.

According to the World Bank, by 2050, the global population will reach 9.8 billion, with a significant increase in the demand for food. This increase is expected to exert immense pressure on the already depleted arable land. Therefore, there is an immense need to increase agricultural production with the help of advanced cultivation methods. In recent years, vertical farming has gained traction due to its several advantages, such as lower land & water requirements and more limited use of pesticides compared to traditional farming. Vertical farming has the potential to produce over 350x more food per square yard compared to traditional farming. Also, it involves growing food in controlled environments with zero chemical pesticides and lower fertilizer use.

Thus, the decrease in arable land & the growing need to increase crop yield have boosted the adoption of alternative agricultural production techniques, such as vertical farming.