PUBLISHER: The Business Research Company | PRODUCT CODE: 1996430
PUBLISHER: The Business Research Company | PRODUCT CODE: 1996430
Urban farming refers to the practice of cultivating agricultural produce, raising animals, or generating food within an urban setting, which includes residential and commercial structures. This can take various forms, including indoor controlled environment farming, community gardens, and rooftop gardens. Urban farming is aimed at promoting sustainable agriculture, reducing food miles (the distance food travels from the point of production to consumption), and enhancing local food security by growing crops within city borders. It often involves utilizing unoccupied or underutilized spaces to cultivate fresh vegetables and contribute to a more sustainable and locally sourced food supply.
The primary types of urban farming include aquaponics, hydroponics, aeroponics, and others. Aquaponics is a sustainable food production system within urban farming that integrates aquaculture (fish farming) and hydroponics (soil-less plant culture). In aquaponics, fish waste provides nutrients for plants, and the plants, in turn, filter and purify the water for the fish. Urban farming structures are categorized as indoor or outdoor, and the crops grown can include both non-food crops and food crops. Urban farming finds applications in various sectors, including commercial and agricultural purposes, contributing to the cultivation of fresh produce in urban environments.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs on agricultural equipment, controlled-environment farming components, and imported hydroponic or aeroponic systems have raised operational and setup costs for urban farming projects, slowing adoption particularly in regions dependent on foreign technologies such as North America and parts of Asia-Pacific. Commercial and agriculture application segments are the most impacted due to high-volume equipment needs. However, tariffs may stimulate domestic manufacturing of urban farming technologies, potentially lowering long-term costs and supporting localized supply chains.
The urban farming research report is one of a series of new reports from The Business Research Company that provides urban farming market statistics, including the urban farming industry's global market size, regional shares, competitors with a urban farming market share, detailed urban farming market segments, market trends and opportunities, and any further data you may need to thrive in the urban farming industry. This urban farming market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The urban farming market size has grown strongly in recent years. It will grow from $173.18 billion in 2025 to $185.7 billion in 2026 at a compound annual growth rate (CAGR) of 7.2%. The growth in the historic period can be attributed to rise in urban population density, early adoption of community garden programs, increasing awareness of food miles reduction, initial development of hydroponic systems, growth in demand for fresh local produce.
The urban farming market size is expected to see strong growth in the next few years. It will grow to $242.68 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to expansion of commercial indoor farming projects, rising preference for sustainable food systems, increasing adoption of modular farming technologies, growing investment in urban agri-startups, higher focus on local food security initiatives. Major trends in the forecast period include growing adoption of rooftop and vertical farming, increasing demand for localized fresh food production, expansion of community-based urban agriculture initiatives, rising use of compact modular farming systems, growing popularity of organic and chemical-free urban produce.
The declining availability of farmland is expected to drive the growth of the urban farming market in the coming years. Availability of farmland refers to the extent of land that is accessible, suitable, and legally permissible for agricultural production to support food supply and rural livelihoods. This decline is mainly caused by rapid urbanization, which converts fertile agricultural land into residential, industrial, and infrastructural areas, reducing the land available for cultivation and disrupting the balance between land demand and agricultural productivity. Urban farming leverages limited urban spaces for food production, helping to ease the pressure on conventional farmland and promoting more sustainable, localized food systems. For example, in December 2023, GOV.UK, a UK-based government department, reported that the total utilized agricultural area in the UK fell by 2.3% in 2023, reaching just over 17.0 million hectares. Therefore, the decreasing availability of farmland is driving growth in the urban farming market.
Leading companies in the urban farming market are focusing on developing advanced solutions like smart vertical farms, collaborating with AgriTech firms to boost food security and meet key industry needs. A smart vertical farm with an AgriTech partner enhances food security by maximizing crop yields in urban areas, optimizing resources, leveraging IoT for real-time monitoring, and providing fresh, local produce year-round. For instance, in February 2024, UAE-based renewable energy company Masdar City launched a smart vertical farm in partnership with AgriTech firm Madar Farms as part of a broader initiative to strengthen food security in the UAE. This collaboration aims to promote self-sufficiency by employing innovative farming methods suited to the UAE's arid climate. Designed to grow leafy greens and other produce using significantly less water than traditional farming, the farm addresses both food and water security challenges. This project supports the UAE's National Food Security Strategy, which emphasizes sustainable practices and local production to reduce dependency on imports, aligning with Masdar's commitment to sustainable urban innovation.
In May 2024, Mucci Farms, a Canada-based supplier of greenhouse-grown fresh fruits and vegetables, acquired Hacienda North Farms for an undisclosed sum. Through this acquisition, Mucci Farms aimed to expand its greenhouse operations, increase production capacity, and strengthen its ability to meet the rising demand from retail partners across North America. Hacienda North Farms, also based in Canada, specializes in greenhouse-grown bell peppers and other fresh produce.
Major companies operating in the urban farming market are Infarm, Richel Group, UrbanFarmers AG, Plenty Unlimited Inc., Bowery Farming, Dalsem, Certhon, Aerofarms, Pasona, Plantagon International AB, Agrilution GmbH, BrightFarms Inc., Square Roots Urban Growers Inc., Brooklyn Grange Farm, Green Spirit Farm, Urban Crop Solutions, American Hydroponics, Sky Greens, GrowUP Urban Farms, Edenworks Inc., Garden Fresh Farms Inc, Metropolitan Farms, General Hydroponics, Green Sense Farms LLC, Eden Green Technology, Gotham Greens, Mirai Co. Ltd., SproutsIO Inc., Spread Co. Ltd, Harnois Greenhouses
North America was the largest region in the urban farming market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the urban farming market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the urban farming market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The urban farming market consists of the revenues earned by entities by providing services such as food production, urban redevelopment, job creation, environmental sustainability, and urban farming subscription services. The market value includes the value of related goods sold by the service provider or included within the service offering. The urban farming market also includes sales of robotic vertical farm systems, microcontrollers, nondispersive infrared CO2 detectors, and light-emitting diodes. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Urban Farming Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses urban farming market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for urban farming ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The urban farming market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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