In this article, we will take a look at the 18 Biggest Vertical Farming Companies. You can also check out 10 Best Farmland and Agriculture Stocks To Buy According to Hedge Funds for our discussion on the impact Russia-Ukraine war has had on the farmland and agriculture industry.

Exploring Vertical Farming Companies: Innovations, Challenges, and Market Trends

Vertical farming provides a promising solution to the challenge of feeding a growing global population expected to reach 10 billion by 2050, according to the World Bank, amidst shrinking arable land and water resources. This method involves cultivating crops in stacked layers within controlled environments, optimizing space use, and allowing for year-round production with minimal pesticide use and water conservation. While it faces challenges like high initial costs and energy consumption, vertical farming’s benefits, such as higher yields and proximity to urban centers, make it a crucial innovation for future food security in an increasingly resource-constrained world.

The global vertical farming market saw its value decrease from $8.47 billion in 2022, according to Straits Research, to $5.70 billion in 2023, primarily due to significant energy consumption and operating costs. Vertical farming’s heavy reliance on artificial lighting systems contributed to its energy-intensive nature, making scalability and economic viability challenging. Specifically, vertical farms consumed an average of 38.8 kWh per kilogram of produce, much higher than the 5.4 kWh per kilogram consumed by traditional greenhouses, as highlighted by the 2021 Global CEA Census Report.

However, the market is poised for substantial growth, projected to expand from $6.92 billion in 2024 to $50.10 billion by 2032, according to Markets and Markets. This optimistic outlook is driven by advancements in vertical farming automation, such as robotic harvesting and vertical conveyor systems, which enhance operational efficiency and reduce labor costs. Additionally, innovations like the CoolGrow VF light introduced by Colruyt Group in October 2023, in collaboration with LED grow light producer MechaTronix, have made vertical farming installations up to 38% more energy-efficient than traditional setups.

Vertical farming, once a niche concept, has rapidly evolved into a burgeoning industry, particularly in North America, which accounts for nearly 40% of the global market, according to Globest. The United States leads this trend with the highest concentration of vertical farms. In 2019, the USA alone hosted over 2,000 vertical farms, with more than 60% being small, local operations. While many big companies like Plenty and Browery Farming stay private, there are many public companies like Village Farms International, Inc. (NASDAQ:VFF) and Hydrofarm Holdings (NASDAQ:HYFM).

Village Farms International, Inc. (NASDAQ:VFF)

Village Farms International Inc. (NASDAQ:VFF) stands out in the vertical farming industry, having pioneered controlled environment agriculture in North America since 1987. Over the past three decades, Village Farms has evolved into a leading producer of cucumbers, peppers, and tomatoes. The company owns over 500 acres of vertical farming assets across North America, according to Stock Trades, producing both vegetables and marijuana. Notably, Village Farms expanded its portfolio by acquiring Pure Sunfarms, a major retail cannabis brand in Canada, cementing its status as a powerhouse in both produce and cannabis production.

Hydrofarm Holdings (NASDAQ:HYFM)

Hydrofarm Holdings (NASDAQ: HYFM), a manufacturer and distributor of essential equipment for vertical farming, including high-intensity grow lights, climate control solutions, and growing media. The company operates nine distribution centers across the U.S., Canada, and Spain. Despite its critical role in supporting the vertical farming industry, Hydrofarm has faced significant challenges recently. In 2023, the company experienced a substantial drop in sales, with net sales falling to $226.6 million from $344.5 million in 2022. This decline has forced Hydrofarm to restructure and cut costs to adapt to the downturn.

Also see: 15 Best Farm and Ranch Insurance Companies Heading into 2024 & 11 Best Organic Food and Farming Stocks To Buy.

Methodology

For the purpose of this ranking, we curated a list of companies working in the vertical farming industry. Given that some of the big names in the industry are privately owned, we relied on using revenue as a metric for their size. With this approach, we gathered revenues for the latest fiscal year for each company and picked the companies that had reported the highest revenue in 2023 and arranged them in ascending order.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

18. Square Roots

Revenue Reported in 2023: $3.8 million

Square Roots, a private enterprise with facilities in Brooklyn and Grand Rapids, provides fresh, local greens to nearby communities and offers a unique transparency feature that allows consumers to trace the life of their purchased greens via lot numbers on their website. In June 2024, Square Roots launched a pioneering program, supported by a grant from the Bill & Melinda Gates Foundation, to eliminate the need for artificial lighting in commercial vertical farming, according to Vertical Farm Daily. This innovation retains all the benefits of indoor farming while drastically reducing energy consumption, leading to significantly lower production costs and reduced carbon dioxide equivalent (CO₂e) emissions.

17. CubicFarm Systems Corp.

Revenue Reported in 2023: $4.01 million

CubicFarms, a farmer-founded leader in local chain Ag-Tech, provides innovative solutions for vertical farms and localized food suppliers. Their offerings include systems for growing leafy greens, micro-greens, herbs, and an innovative “vertical pastures” solution for hydroponic animal feed. The company also markets fresh produce under their brand, ALLWays Local.

16. Agrify Corporation (NASDAQ:AGFY)

Revenue Reported in 2023: $16.9 million

Agrify Corporation (NASDAQ:AGFY), with a market cap of $5.912 million, provides vertical farming units, and LED grow lights and purifiers tailored for the cannabis industry. Despite its diversified product line, Agrify (NASDAQ:AGFY) experienced a sharp decline in revenue, from $58.3 million in fiscal year 2022 to $16.9 million in fiscal year 2023. This downturn contributed to a net loss of $18.7 million, or $12.51 per diluted share, in fiscal year 2023, a significant improvement from the $188.2 million net loss, or $902.19 per diluted share, in fiscal year 2022.

15. Revol Greens

Revenue Reported in 2023: $19 million

Revol Greens specializes in cultivating fresh produce, particularly lettuce and greens, and offers a variety of products including salad blends, salad kits, and head lettuces. Committed to sustainability, Revol Greens focuses on water conservation and using clean, plant-based nutrients in their growing processes. As part of their long-term strategy, the company plans to repurpose their California greenhouse to streamline and balance operations across their advanced greenhouse facilities in Minnesota, Texas, California, and Georgia. This consolidation aims to enhance operational efficiency and align with Revol Greens’ objective of concentrating on growth markets through sustainable unit economics, according to Horti Daily.

14. Freight Farms

Revenue Reported in 2023: $22.4 million

Freight Farms provides a comprehensive vertical farming solution designed to empower individuals to grow food in any location and at any time. Their flagship product, the Greenery™ S, is a modular hydroponic farm housed within a shipping container, offering a versatile platform for year-round cultivation. The company also offers Farmhand® Software for farm automation and a range of essential farm supplies. In the fourth quarter of 2023, Freight Farms experienced significant growth, receiving orders for 95 farms, marking an 83% increase year-over-year, the company announced in a press release. This growth includes orders for their new Garden model, highlighting strong market demand. Sequentially, orders surged by 111% from 45 in the third quarter and significantly surpassed the 33 orders received in the second quarter.

13. AppHarvest, Inc. (NASDAQ:APPH)

Revenue Reported in 2023: $22.44 million

AppHarvest (NASDAQ:APPH) operates some of the world’s largest high-tech indoor farms in Appalachia, leveraging cutting-edge technologies to maximize crop yields while drastically reducing water usage by up to 90% compared to traditional farming methods. These facilities exemplify AppHarvest’s (NASDAQ:APPH) commitment to sustainability and efficiency in food production. However, despite their initial success, AppHarvest filed for bankruptcy, impacting their operations, including their notable 60-acre Appalachian indoor farms.

12. Local Bounti Corporation (NYSE:LOCL)

Revenue Reported in 2023: $27.6 million

Local Bounti distinguishes itself in the agricultural landscape by focusing on local, fresh, and sustainable produce year-round, positioning itself as the “Farm of the Future™.” With five locations across the United States, the company is committed to innovative agricultural practices. In 2023, Local Bounti reported a significant 42% increase in sales, reaching $27.6 million compared to $19.5 million in the previous year. This growth was primarily driven by the inclusion of the April 2022 acquisition of Pete’s in their financial results for the full twelve months. Additionally, sales from the company’s facilities in Georgia and Montana contributed to this positive performance.

11. Urban-Gro, Inc. (NASDAQ:UGRO)

Revenue Reported in 2023: $71.5 million

Urban-Gro, Inc. (NASDAQ:UGRO) is a prominent player in the agricultural sector, specializing in designing, engineering, building, and integrating sophisticated environmental equipment systems for indoor controlled environment agriculture. Looking ahead to 2024, urban-gro (NASDAQ:UGRO) anticipates robust growth with consolidated revenues expected to surpass $84 million, marking a significant 17% increase from the previous year. Additionally, the company projects positive Adjusted EBITDA for the full year, reflecting strong operational performance and financial stability.

10. BrightFarms

Revenue Reported in 2023: $75.0 million

BrightFarms specializes in locally grown, clean, and pesticide-free baby greens. The company prioritizes environmental consciousness by using only seeds, water, and sunshine in their cultivation processes, avoiding traditional methods like chlorine baths, sprays, or gas flushes. This commitment ensures high-quality produce while minimizing environmental impact. Currently, BrightFarms operates six greenhouses across the Midwest and the East Coast. To support their vision for growth and sustainable farming, the company is expanding with three new greenhouse hubs planned for Yorkville, IL; Lorena, TX; and Macon, GA. These expansions are set to quadruple BrightFarms’ production capacity in 2024, according to Greenhouse Grower.

9. iPower Inc. (NASDAQ:IPW)

Revenue Reported in 2023: $88.9 million

iPower Inc. (NASDAQ: IPW), based in Duarte, California, is a prominent online retailer and supplier of hydroponics equipment and accessories. The company serves the growing market for hydroponic farming by providing a wide range of products essential for modern indoor agriculture. For the most recent fiscal year, iPower reported significant growth in total revenue, increasing by 12% to $88.9 million, compared to $79.4 million in the previous year. Gross profit also rose by 5%, reaching $34.8 million from $33.2 million. However, the gross margin decreased slightly to 39.1%, down from 41.8%.

8. Village Farms International, Inc. (NASDAQ:VFF)

Revenue Reported in 2023: $114.0 million

Village Farms International, Inc. (NASDAQ: VFF), headquartered in Delta, Canada, is a vertically integrated supplier focusing on controlled environment agriculture to produce plant-based consumer packaged goods. The company leverages advanced agricultural techniques to supply high-quality produce and other plant-based products. In the latest fiscal period, Village Farms reported a substantial improvement in financial performance. The consolidated net loss per share narrowed to $0.29. Adjusted EBITDA saw a significant increase, reaching $7.6 million. Additionally, cash flow from operations improved considerably to $5.3 million.

7. GreenState AG

Revenue Reported in 2023: $155.7 million

GreenState AG, a company dedicated to developing modular and vertical farming solutions along with hardware and software, focuses on making vertical farming more cost-effective. To enhance its market presence and product offerings, GreenState is integrating Yasai, a Swiss vertical farming company, into its operations. Post integration, GreenState will continue to market its products under the well-established Yasai brand, while Yasai’s existing brand and operations will remain unchanged. This strategic move allows GreenState to leverage Yasai’s strong market presence while introducing its innovative solutions from Neuhausen under the Yasai brand, as given by Vertical Farm Daily.

6. GrowGeneration Corp. (NASDAQ:GRWG)

Revenue Reported in 2023: $225.9 million

GrowGeneration Corp. (NASDAQ: GRWG), headquartered in Greenwood Village, Colorado, is the largest hydroponic store and organic garden center supplier in the United States. The company operates a network of retail stores offering a wide range of hydroponic supplies, commercial grow lights, and other organic gardening products. In Q1 2024, GrowGeneration (NASDAQ:GRWG) reported revenue of $47.9 million, a decline from $56.8 million in Q1 2023. The company also faced increased financial challenges, with a net loss of $8.8 million in Q1 2024, compared to a net loss of $6.1 million in the same period the previous year.

5. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)

Revenue Reported in 2023: $226.6 million

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM), headquartered in Shoemakersville, Pennsylvania, is a key manufacturer and distributor of controlled environment agriculture equipment and supplies for the vertical farming sector. In the first quarter of 2024, Hydrofarm (NASDAQ:HYFM) reported net sales of $54.2 million, down from $62.2 million in the same period of 2023. This 13% decline in sales volume and product mix was primarily attributed to an oversupply in the cannabis industry, which affected demand for Hydrofarm’s products.