Urban Farming Market Size, Share, Trend (2024)

Updated On: 26 February 2024

Urban Farming MarketReport Overview

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The global urban farming market size was USD 129.63 billion in 2021 and the market is expected to reach USD 203.67 billion in 2027, exhibiting a CAGR of 7.82% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the urban farming market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

The practice of growing or raising food in cities and inside city limits is referred to as urban farming or urban agriculture. Urban agriculture is practiced there with the goal of raising standard of living, enhancing food access, and expanding economic prospects. Urban farming differs significantly from other activities such as community gardening, gardening, or even homesteading in that it is focused on making a profit. Urban farms are miniature traditional farms that are used to cultivate, process, and distribute crops and agricultural goods in a city environment. Farming is not just done on residential premises; it can also involve a number of other practices, such as rooftop farming, vertical farming, communal farming, and others. Farming can be practiced in any area of the city and can involve activities including livestock raising, agroforestry, aquaculture and horticulture that are similar to rural or village farming.

The size of the urban agriculture industry was quite strong in 2021, and it is anticipated that throughout the projection period, revenue will grow quickly. A number of important drivers are anticipated to fuel market revenue growth over the projected period, including rising use of improved production techniques, expanding awareness of health and nutrition training, and nutrition security. Additionally, increased urbanization, the usage of technology-driven agriculture, and advanced agriculture methods are some other important variables that can further support market revenue growth. These aspects all affect the demand for food goods and high-quality produce.

COVID-19 Impact: Lack of Workers and Lighting lead to Slowing Down of the Farming Industry

The COVID-19 epidemic has had a major impact on the global electronics and semiconductor industries. Due to the recession and lack of manpower availability globally, which also resulted in a labor shortage in the urban farming industry, the manufacturing plants had been shut down. The COVID-19 outbreak had caused a significant and long-lasting drop in manufacturing utilization, and travel restrictions and facility closings had managed to keep employees from their factories, which in turn had slowed the expansion of the urban agriculture industry in 2020. Electronics needed in farming facilities, such as lighting, among other things, were also affected by this.

Latest Trends

"Introduction of Campaign to Promote Urban Agricultural Practices and Lower the Use of Pesticides"

An initiative to promote urban farming in Delhi was started by the Delhi government in March 2022. In addition to providing ward-level plans of action for the execution of farming, the Delhi government expects that this campaign would stimulate communal and garden agriculture for the best use of space in cement buildings and homes. The Delhi government also intends to expand the production of premium foods while lowering the use of pesticides and herbicides. It also included plans for the Delhi Environment Protection Committee (DEPC) to promote urban agriculture and encourage its use. With regard to the farming, the DEPC seeks to educate, coach, and offer solutions.

Urban Farming Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Food and Non-food Crops

• By Application Analysis

Based on application, the market can be divided into Commercial, Community, Home Gardens, Corporate and Others

Driving Factors

"Advantages Offered by Hydroponics over Conventional Farming Techniques Alleviates Farmers’ Business Concerns"

Due to its many advantages over conventional farming techniques, hydroponics makes up approximately half of the urban farming industry. This method ensures the right chemical balance for successful growth by continuously monitoring and adjusting the growing circ*mstances. It requires less water than conventional agriculture techniques. This technique lowers labor costs by getting rid of weeds, bugs, and any other unwanted as it doesn't need soil. Additionally, there are no limitations when it comes to putting in a hydroponics system on rural agricultural property. As a result, it is more easily accessible and no longer requires a complicated distribution system, enhancing the farmer's income. The technology can be used throughout the year, alleviating farmers' business concerns and enhancing community access to regional produce.

"Farmers' Returns on Investment Increased as a Result of Using LED Technology in Farming"

The entire cost of farming can now be reduced thanks to light-emitting diodes (LEDs). Thus, recent advances in LED technology have aided in the expansion of the urban agricultural industry. Artificial lighting is a prerequisite for any indoor agricultural application. With increased efficiency and longevity, LED prices have significantly decreased in recent years. As a result, producers saw improved returns on their investments (ROIs) and an increase in the amount of urban farms producing profitably. Since they may be utilized for different crop types and are available with full spectrum, horticulture producers' LED lights and inter-light fixtures are well-recognized in comparison to other technologies.

Restraining Factors

"Environmental Problems and High Operational Costs Associated with Urban Agriculture can Hinder the Industry from Expanding"

Farming segment revenue development may be hampered by high operations costs, high starting setup costs, and a shortage of experienced labor. Heavy metals in urban soil can create uncertainty about food safety. Urban agriculture can contaminate the land and water, as well as cause other environmental problems. In addition, controlled conditions for lighting, humidity, temperature, and water are needed for this type of farming. These conditions can be challenging to attain and increase the price of crop growing and output. Additionally, sustaining such temperatures necessitates heavy electricity usage, raising the overall cost of production. These issues impede farming's global adoption and may slow the urban farming market growth.

Urban Farming MarketRegional Insights

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"Significant Investments and Use of Cutting-edge Farming Technology Promoted North America to hold the Greatest Revenue Share"

Due to significant investments made in the agriculture industry, the use of cutting-edge farming techniques, and the increased use of this type of farming methods such as vertical farming in these regions, North America is anticipated to account for the greatest urban farming market share over the projected period. The US is a significant participant in the urban agricultural sector in North America. The Federal Advisory committee for Urban Agriculture and Innovative Production will hold its first open meeting in March 2022, the U.S. Department of Agriculture (USDA) stated. In order to develop local food systems, increase access to high-yielding crops and wholesome local food, and promote equity, the committee seeks to offer insights and knowledge to urban agriculture producers.

Due to its rapidly growing population, less reliance on climate for agricultural cultivation, higher demand for crops with high yields, and increasing focus on chemical-free, wholesome produce, Asia Pacific is predicted to experience significant revenue growth over the projection period. In addition, the Asia Pacific region is likely to adopt this type of farming more widely due to increased urbanization and a decline in the amount of arable land available. A few other significant variables pushing the share of the revenue of the farming field include the use of improved urban agricultural methods and tools to increase annual crop yield and rising investments by leading market players.

Key Industry Players

"Key Players Focus on Partnerships and Investing in R&D to Survive the Competitive Industry "

To increase their market share, major market players engage in activities including business expansions, partnerships, the creation of new products, and contracts. For product advancement and improvement, the players are spending in R&D. In order to make the necessary transformation for surviving in this fiercely competitive market, they are also using the upgraded database of consumers, products, and procedures.

List of Market Players Profiled

• Bowery Farming (U.S.)
• GrowUP Urban Farms (U.K.)
• Freight Farms (U.S.)
• Edenworks Inc. (U.S.)
• Brooklyn Grange Farm (U.S.)
• Sky Green (Singapore)
• BrightFarms (U.S.)
• Metropolitan Farms (U.S.)
• Garden Fresh Farms (U.S.)
• Square Roots (U.S.)
• SproutsIO (U.S.)

Report Coverage

This report covers the urban farming market. The CAGR expected to be in during the forecast period, and also the USD value in 2021 and what it is expected to be in 2027. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.