Vertical farming rebounds with tech-driven firms leading recovery in 2025

Vertical farming rebounds with tech-driven firms leading recovery in 2025

Industry News
Vertical Farming

After a period of high-profile collapses, vertical farming is stabilising in 2025, with companies like Bowery Farming and Intelligent Growth Solutions expanding through advanced automation and international partnerships amid ongoing cost and scalability challenges.

The vertical farming sector, once celebrated as a revolutionary approach to urban agriculture promising pesticide-free produce, reduced water usage, and negligible food miles, has witnessed significant turbulence since its initial surge in investor enthusiasm. While numerous high-profile startups have succumbed to financial difficulties or ceased operations, a resilient core of companies continues to innovate and expand within this evolving market. The Robotics & Automation News reports an updated perspective on the landscape of vertical farming in 2025, highlighting the most active and notable enterprises and outlining prevailing challenges and opportunities.

Among the leading companies in the field is Bowery Farming, a U.S.-based operation employing artificial intelligence, robotics, and controlled environment agriculture to produce pesticide-free greens. The company maintains an upward trajectory through operational expansion and product diversification. Similarly, Oishii, also in the United States, has carved a niche by integrating Japanese horticultural methods with vertical farming technology to cultivate premium strawberries, which are sold at high market values.

From Texas, Eden Green Technology operates large hybrid greenhouse-vertical farms, steadily broadening its presence in retail and institutional supply channels. The UK's Intelligent Growth Solutions (IGS) has developed modular vertical farming towers enhanced with sensors, robotics, and LED lighting, recently extending its international reach to the Middle East and Asia via strategic partnerships. In Australia, Stacked Farm stands out for its fully automated and scalable farming solutions, currently exploring expansion into the United States.

European contributions include Jones Food Company and GrowUp Farms from the UK, both emphasising sustainable practices such as low energy consumption and renewable energy integration. Jones Food Company focuses on herb and leafy green production for UK retailers, while GrowUp Farms recently inaugurated a large-scale commercial facility dedicated to salad cultivation. Freight Farms in the U.S. promotes scalable container-based farming solutions targeted at schools, entrepreneurs, and non-profit organisations to encourage small-scale local food production.

Other notable players include Urban Crop Solutions in Belgium, focusing on turnkey vertical farm solutions and research services; AgroUrbana, Latin America’s first vertical farm located in Santiago, Chile; and Canada's GoodLeaf Farms, operating multiple farms with a focus on microgreens and leafy vegetables, supported by backing from McCain Foods. New York’s Farm.One provides boutique vertical farming services for restaurants and subscriber-based delivery, whereas Gotham Greens operates greenhouse-style farms across multiple U.S. cities, blending vertical and horizontal farming methods.

Asian innovation is represented by Singapore’s Sky Greens, known for its innovative rotating vertical growing towers that optimise land use, serving as a model in several cities across Asia. Other companies in the U.S. market include AeroFarms, which after restructuring post-bankruptcy in 2023, continues to develop aeroponic leafy green production; Kalera, which remains operational on a reduced scale focusing on niche markets; and Vertical Harvest in Wyoming, a company combining vertical farming with social employment missions, expanding into new urban areas.

European-based Infarm, once a global leader, has scaled back its operations but continues to supply in-store vertical farming units for retail locations in Europe. CropOne Holdings operates one of the world’s largest vertical farms in Dubai, catering primarily to the aviation and hospitality sectors through a partnership with Emirates Flight Catering. Taiwan’s YesHealth Group maintains a quiet but stable presence by developing vertical farming infrastructure across Asia and Europe, often as a white-label partner.

Several once-promising companies have exited the market due to financial challenges. AppHarvest (USA) filed for Chapter 11 bankruptcy in 2023, followed by liquidation. Plenty, a high-profile U.S. startup, shut down operations in 2025 despite raising considerable funds. Fifth Season ceased activities due to lack of profitability, and Iron Ox abandoned its autonomous farming systems before closing. Upward Farms also folded in 2023, citing rising operational costs. In Europe, Agricool entered bankruptcy after unsuccessful scaling attempts. Local Roots disappeared quietly from the U.S. market, and 80 Acres Farms faces uncertainties amid layoffs and significant downsizing.

The market outlook for vertical farming remains cautiously optimistic. Analysts forecast the global vertical farming market to exceed $20 billion by 2029, propelled by urban demands for food security, advances in energy-efficient LED lighting, automation technology, and a consumer trend favouring local, pesticide-free produce. Integration with smart city infrastructure and resilience to climate change are also considered key factors driving growth.

Nonetheless, the sector faces ongoing obstacles, particularly high electricity costs, logistics complexities, and the substantial capital expenditures required for operation and scale. This has led several companies to pivot towards focusing on technology provision rather than farm management. The emerging generation of vertical farming enterprises are characterised by leaner operations, a stronger emphasis on technology, and measured growth strategies, acknowledging the intrinsic challenges of reimagining the food supply chain alongside agricultural production. The Robotics & Automation News is reporting this evolving narrative of vertical farming as it adapts and continues to seek viable pathways forward.