In this article, we will take a look at the Biggest Vertical Farming Company. We have also compiled a full free list of the 18 Biggest Vertical Farming Companies.
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.
A close up of a farmer harvesting specialty crop grown for the company.
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 company that had reported the highest revenue in 2023.
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1. Is The Scotts Miracle-Gro Company (NYSE:SMG) the Biggest Vertical Farming Company?
Revenue Reported in 2023: $3,550 million
The Scotts Miracle-Gro Company (NYSE: SMG), based in Marysville, Ohio, is a leading manufacturer and marketer of products for lawn care, garden care, and indoor and hydroponic gardening. The company invests in vertical farming technology.
With a revenue of $3,550 million in 2023, The Scotts Miracle-Gro Company (NYSE: SMG) is the biggest vertical farming company.
For the fiscal year ending September 30, 2023, Scotts Miracle-Gro (NYSE: SMG) reported a 10% decrease in overall sales, totaling $3.55 billion compared to the previous year. The U.S. Consumer segment experienced a 3% decline in sales, dropping to $2.84 billion from $2.93 billion in 2022. This decrease was primarily due to lower sales volumes, which were partially offset by price increases.
You can see the full free list by going to the 18 Biggest Vertical Farming Companies.
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