Urban Farming Market Size, Share, Growth, and Industry Analysis, By Type (Animal Husbandry,Aquaculture,Agroforestry,Urban Beekeeping,Horticulture), By Application (Commercial,Community,Home Gardens,Corporate,Others), Regional Insights and Forecast to 2033

Urban Farming Market Overview

Global urban farming market size is anticipated to be worth USD 20110.93 million in 2024, projected to reach USD 24035.84 million by 2033 at a 2% CAGR.

The urban farming market has rapidly transformed into a critical component of global agricultural strategies, particularly as urbanization continues to increase. With over 4.4 billion people living in urban areas as of 2023, the need for fresh produce within city environments has pushed urban farming into the spotlight. Approximately 15% of the world’s food is now produced in urban areas, and this figure is expected to exceed 20% by 2027. Across 35 countries, more than 800 cities have implemented policies supporting urban agriculture initiatives. In New York City alone, over 700 urban farms and gardens were registered by the end of 2023. Urban farming methods such as hydroponics, vertical farming, and aquaponics are being widely adopted, with vertical farming installations increasing by 18% in urban spaces between 2022 and 2023. The availability of rooftops, abandoned buildings, and vacant lands has contributed to over 120 million square meters being utilized globally for urban farming activities. In addition, urban farming has created over 260,000 jobs worldwide by the end of 2023. With urban areas consuming nearly 70% of all food supplies, the urban farming market is becoming essential for sustainable food systems.

Key Findings

Top Driver reason: Rising food demand in densely populated urban areas.

Top Country/Region: United States, with over 700 urban farms operating in metropolitan areas.

Top Segment: Horticulture, accounting for more than 55% of urban farming outputs globally.

Urban Farming Market Trends

The urban farming market is witnessing transformative trends in 2023 and 2024, shaped by rapid urban population growth and innovations in agricultural technologies. One of the most prominent trends is the adoption of vertical farming. Over 85 vertical farming facilities exceeding 5,000 square meters each were constructed globally in 2023 alone. These farms utilize up to 95% less water than traditional farming methods and increase yield density by 12 times per square meter. Another significant trend is the rise in hydroponic systems, which saw a 21% growth in adoption across urban residential sectors in 2023. Hydroponics contributed over 40% of produce yield in metropolitan cities in the U.S., Japan, and Singapore.

The integration of Internet of Things (IoT) and artificial intelligence (AI) in urban farming has also surged, with over 14,000 IoT-enabled greenhouses active globally by the end of 2023. These smart systems have enhanced yield predictability by 22% and reduced labor costs by 17%. Organic produce continues to dominate urban consumer demand, with urban organic farming increasing by 29% year-on-year. Furthermore, rooftop gardening in apartment complexes and commercial buildings has risen by 34% between 2022 and 2023 in countries such as South Korea, Germany, and Canada. Urban aquaponics—combining fish farming and hydroponics—has grown in popularity, accounting for 7% of all urban farming setups worldwide.

Urban Farming Market Dynamics

DRIVER

Rising demand for locally-grown and fresh food in urban zones.

Urban populations are projected to grow by 2.5 billion by 2050, according to global census data. This demand spike has led to a 23% increase in indoor urban farms within the last year. Locally produced food reduces transportation needs by nearly 68%, lowering urban carbon footprints significantly. Urban consumers in 2023 spent an average of 17% more on fresh produce compared to processed food, making localized farming economically attractive. In cities like Tokyo and London, urban farming meets over 20% of local vegetable needs. Government subsidies have also contributed to this surge, with 160 municipal governments offering incentives that reduce urban farm setup costs by 30–45%.

RESTRAINT

Limited space availability and high capital costs for infrastructure.

Urban land remains expensive, with average per-square-meter costs for urban farm installations in North American cities exceeding USD 1,200. Furthermore, building vertical farms requires initial capital ranging between USD 3 million to USD 12 million for facilities over 10,000 square feet. Limited rooftop weight capacity restricts infrastructure in older buildings, with over 58% of residential structures failing to meet structural load requirements for vertical gardens. Additionally, only 42% of city councils have streamlined zoning laws for urban agriculture, leading to delays and administrative challenges.

OPPORTUNITY

Technological integration and modular urban farm designs.

The use of modular farming units—prefabricated farming containers—has risen by 41% in the past year. These units can be deployed in spaces as small as 50 square meters, producing up to 2,000 kg of leafy greens annually. Companies have invested over USD 400 million in R&D toward automation and nutrient optimization in modular systems. Smart sensors and AI have reduced water usage by 88% and nutrient waste by 34%. Over 300 start-ups in Asia-Pacific alone are focusing on IoT-based urban farming technologies, with more than 70 patents filed in 2023 on nutrient delivery systems.

CHALLENGE

Energy consumption and sustainability hurdles.

Urban farming operations, especially those using artificial lighting, consume significantly more energy—up to 200 kWh per square meter annually—compared to traditional open-field farms. In regions with high energy prices, operational costs can exceed USD 2,500 per month per 100 square meters of indoor farm. Additionally, 62% of urban farmers report challenges integrating renewable energy systems due to high initial installation costs and limited rooftop orientation. The use of synthetic growth mediums also raises concerns about waste management, with an estimated 7,400 tons of growth media disposed annually without recycling solutions.

Urban Farming Market Segmentation

Urban farming is segmented by type and application. By type, the urban farming market includes animal husbandry, aquaculture, agroforestry, urban beekeeping, and horticulture. By application, it is segmented into commercial, community, home gardens, corporate, and others.

By Type

• Animal Husbandry: Animal husbandry in urban areas accounts for approximately 12% of urban farming practices, with poultry being the most common. In cities like Nairobi and Dhaka, over 100,000 urban residents raise chickens for both eggs and meat. The average output per household ranges from 120 to 200 eggs monthly. Waste management and health regulation remain issues, with 18% of municipalities lacking formal guidelines.
• Aquaculture: Urban aquaculture is responsible for 8% of urban farming, with tilapia and catfish making up 70% of urban fish production. Cities such as Jakarta and Bangkok produced over 2,300 metric tons of fish in urban aquaponic systems in 2023. These setups use 90% less water than conventional ponds and reduce space requirements by 60%.
• Agroforestry: Urban agroforestry practices are limited to 5% of urban farming types but have gained popularity in cities with abundant green belts. Community-led agroforestry projects in Brazil’s urban outskirts have planted over 1.2 million trees in the last five years, contributing to a 15% rise in local biodiversity indices.
• Urban Beekeeping: Urban beekeeping is practiced in over 60 major cities worldwide. In Paris alone, over 700 hives produced 28 metric tons of honey in 2023. Beekeeping supports pollination in over 19% of community farms and increases yields of crops like tomatoes and strawberries by 24%.
• Horticulture: Horticulture dominates urban farming, accounting for 55% of production. Lettuce, kale, and tomatoes are among the most grown items. Over 48 million square meters of urban space is devoted to horticulture globally, yielding over 500,000 metric tons of produce annually.

By Application

• Commercial: Commercial urban farms produce approximately 1.8 million metric tons of vegetables and fruits annually. Facilities over 10,000 square feet increased by 22% in 2023. These farms supply retailers, with distribution partnerships covering over 900 supermarket chains worldwide.
• Community: Community farming initiatives, often NGO-led, serve more than 18 million people. In 2023, over 90,000 community gardens were operational globally, with 61% located in low-income urban zones. These farms average 220 square meters and produce 280 kg of vegetables annually.
• Home Gardens: Home-based urban farms, primarily using hydroponic kits, saw an 18% increase in installations. Over 3.5 million households worldwide maintain indoor gardens. Average yield per 10 square meters ranges between 8 and 12 kg per month.
• Corporate: Corporate urban farms have expanded in business campuses. In 2023, more than 1,500 office complexes globally integrated food gardens. These setups reduce corporate food procurement costs by 12% and improve employee wellness by 24%, as per HR health metrics.
• Others: Educational institutions, military bases, and correctional facilities represent the ‘others’ category. Over 3,400 schools introduced educational urban farming kits by 2023, each producing 5 to 10 kg of fresh produce monthly for school cafeterias.

Urban Farming Market Regional Outlook

The urban farming market has exhibited notable differences in regional performance due to policies, land availability, and technological adoption.

• North America

leads the global urban farming market, with the United States alone hosting over 700 large-scale urban farms. In Canada, Toronto supports over 250 registered community gardens. In 2023, U.S. cities produced approximately 6.4 million kg of leafy greens through hydroponics and vertical systems.

• Europe

follows with significant support from government policies. Germany operates more than 950 community gardens, while the Netherlands has over 400 vertical farming units. In London, 180 rooftop farms supplied 2,800 kg of herbs and vegetables to local restaurants in 2023.

• Asia-Pacific

is experiencing the fastest growth. Japan, South Korea, and Singapore account for 65% of the region’s high-tech urban farms. Singapore’s urban farms produce over 10,000 metric tons of vegetables annually, supplying 15% of its total vegetable demand.

• Middle East & Africa

are developing their capabilities, with the UAE investing over USD 100 million into vertical farming infrastructure by the end of 2023. In Nairobi and Johannesburg, over 70 urban agriculture cooperatives produced 1,100 metric tons of fresh produce for urban populations in the past year.

List of Top Urban Farming Market Companies

• Gotham Greens
• BrightFarms
• Brooklyn Grange Farm
• UrbanFarmers AG
• GrowUP Urban Farms
• Garden Fresh Farms
• Edenworks
• Pasona
• Sky Green
• Green Sense Farms
• American Hydroponics
• Agrilution
• Certhon
• Dalsem
• Harnois Greenhouses
• Richel Group
• Urban Crop Solutions
• Vertical Farm Systems
• Philips Lighting
• Everlight Electronics
• Argus Controls Systems
• Netafim
• Hydrodynamics

Top Two companies with highest share

Gotham Greens: Gotham Greens operates over 600,000 square feet of technologically advanced greenhouses across U.S. cities. In 2023, the company produced over 15 million heads of lettuce and leafy greens using 95% less water than conventional farming. Their rooftop greenhouse in Chicago spans 75,000 square feet, producing 10,000 kg of fresh produce monthly.

BrightFarms: BrightFarms manages five commercial hydroponic greenhouse farms with a combined output of over 12 million pounds of produce annually. Their greenhouse in Pennsylvania alone produces more than 900,000 kg of salad greens each year. The company delivers fresh produce to over 2,500 grocery retailers across the United States.

Investment Analysis and Opportunities

Urban farming investments surged in 2023, with over USD 1.2 billion allocated to infrastructure, technology, and capacity expansion globally. In North America, more than 230 investment deals were closed within the year, targeting vertical farms, smart irrigation systems, and modular hydroponic kits. Investments in rooftop farming solutions increased by 28%, supported by green building incentives and sustainability certifications.

Private equity firms have increasingly entered the urban farming market, with over 40% of large-scale urban farms receiving Series A or B funding in 2023. Notably, more than 90 urban farming start-ups raised above USD 5 million each within a 12-month period. Government investments also expanded, with over 18 countries introducing subsidies covering up to 40% of urban farm installation costs. Japan and Singapore each dedicated more than USD 100 million toward urban agriculture innovation zones, benefiting over 700 tech-driven projects.

Global container-based farms drew significant attention due to their portability and scalability. In 2023, over 6,000 modular farms were shipped globally, with production capabilities of 2,000–4,000 kg annually per unit. These units attracted investment from logistics and retail conglomerates looking to reduce last-mile food supply costs.

Investment opportunities lie in automated nutrient delivery systems, urban pollination robotics, and renewable energy-integrated farming modules. Start-ups working on LED light optimization for plant photosynthesis raised USD 85 million collectively in 2023. Urban farming companies implementing AI-based crop forecasting tools showed a 19% increase in investor interest. As global urban food demand rises, investments in cold storage and direct-to-consumer delivery networks for urban farms also expanded, with over 30 new logistics platforms launched by urban growers in 2023.

New Product Development

In 2023 and 2024, urban farming companies introduced over 150 new products ranging from hydroponic nutrient solutions to modular indoor growing systems. Gotham Greens launched a new series of high-efficiency greenhouse control panels that reduced energy consumption by 18% per square meter. BrightFarms introduced an AI-powered farm management system capable of monitoring over 400 environmental parameters in real-time.

New product development in LED grow lighting saw major advancements. Philips Lighting released a horticulture-specific LED light series delivering photosynthetic photon efficacy of 3.4 µmol/J, boosting crop yield by 20% in lettuce and microgreens. Everlight Electronics unveiled a compact LED module integrated with IoT sensors, allowing real-time light spectrum adjustments based on crop needs. Over 4,200 urban farms installed advanced lighting systems in 2023, representing a 32% year-over-year increase.

Container farm producers developed modular plug-and-play systems, including a new generation of solar-powered grow containers. Vertical Farm Systems launched an automated rotating racking system capable of increasing yield per cubic meter by 37%. The product reduced labor costs by 42% and required only 15 minutes of daily human supervision.

In aquaponics, Hydrodynamics introduced a combined fish and plant growth system for residential users capable of supporting 10 fish and 20 crop units in a 2-square-meter space. The setup became a best-seller in Europe with 4,800 units sold in its first year. Agrilution updated its Plantcube smart garden to include humidity regulation and voice command functionality, with over 12,000 units sold by mid-2024.

These innovations indicate a shift toward automation, miniaturization, and energy efficiency in product development, aligning with the need for compact, high-yield systems in urban spaces.

Five Recent Developments

• Gotham Greens Expansion: In October 2023, Gotham Greens opened its largest greenhouse to date in Northern California, spanning 125,000 square feet and producing over 1.2 million kg of leafy greens annually.
• BrightFarms Acquisition: In April 2023, BrightFarms was acquired by a major food distribution company, providing the firm with new distribution channels across 38 states and increasing its production by 18% year-over-year.
• Sky Green Singapore Innovation Hub: Sky Green inaugurated an urban agriculture innovation center in March 2024 focused on developing lightweight vertical farming structures. The center employs 60 engineers and has filed 11 patents since launch.
• Pasona Tokyo Office Garden: In November 2023, Pasona Group completed a 20,000-square-foot indoor garden inside its headquarters, producing 6,000 kg of vegetables annually for in-house cafeterias and wellness programs.
• Urban Crop Solutions Europe Partnership: In January 2024, Urban Crop Solutions signed a strategic agreement with 23 European municipalities to deploy 80 fully automated vertical farming units across public spaces, producing over 400 metric tons of fresh vegetables annually.

Report Coverage of Urban Farming Market

The urban farming market report provides an extensive overview of a global sector addressing food insecurity, sustainability, and urban resilience. With over 4.4 billion people now living in urban areas and 70% of food being consumed in cities, the report examines the role of urban farming in reducing food miles, enhancing nutrition, and supporting local economies. It covers both high-tech approaches like vertical farming and low-tech community gardening.

The report evaluates over 25 types of urban farming systems and categorizes the market by type, including horticulture, aquaculture, urban beekeeping, agroforestry, and animal husbandry. Applications are segmented into commercial, community, home, corporate, and institutional domains. The analysis covers over 50 countries with significant urban farming activities and provides detailed insights into regional developments, especially in North America, Europe, and Asia-Pacific.

Data is based on over 180 case studies, field surveys, and institutional reports, providing more than 1,000 quantitative data points. The report outlines over 90 urban farming technologies, comparing yield efficiency, water usage, energy consumption, and cost per kilogram of produce. It includes over 100 profiles of urban farming companies and start-ups, highlighting production scale, innovation capability, and operational footprint.

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