United States Plant Factory Market Size, Share, Price, Trends, Forecast 2025 – 2029

Market Overview

United States Plant Factory Market was USD 1,423.04 Million in 2023 and is expected to reach USD 2,559.23 Million with a CAGR of 10.42% during the period 2023-2029.

Plant Factory market in the United States is a growing market in the agricultural sector. Spurred by the growing demand for locally grown, fresh produce, and the necessity for effective utilization of urban space, the vertical farming sector is seeing heavy investment and innovation. The issues related to climate change and the need to minimize agricultural water consumption are driving adoption of these technologies. This market ranges from small city-center urban farms to commercial-scale facilities producing a wide array of crops on a year-round basis. Even though this is a young industry, the Plant Factory market holds strong promise for the future of sustainable and efficient US agriculture.

Key Market Players

• Gotham Greens Farms LLC
• Bowery Farming Inc.
• Freight Farms
• Plenty Unlimited Inc.
• AeroFarms, LLC
• BrightFarms Inc.
• Iron Ox, Inc.
• AppHarvest, Inc.
• Vertical Harvest Farms
• Dream Harvesting Farming Company LLC

Key Market Drivers

Increasing Demand for Locally Sourced & Fresh Produce
One of the main forces behind the United States plant factory market is the rising demand for fresh and locally produced produce. Consumers are becoming increasingly aware of where their food comes from and how fresh it is, and this has created a demand for fruits, vegetables, and herbs that are produced near them. Plant factories, also known as vertical farms or indoor farms, provide a solution to meet this demand by enabling year-round cultivation in controlled environments. Overall produce sales in the United States saw a modest increase of 1.5% in 2023, driven primarily by higher prices (+1.6%) rather than volume, which saw a slight decline of -0.1%. Growth in both fruit (+1.7%) and vegetables (+1.2%) was comparable. As per Circana’s household panel data, the trend is seen also in consumer shopping behavior during 2023. Although the number of households buying fruits and vegetables did not change, there has been a marginal rise in the number of shopping trips as well as money spent per trip (<1%).

Key Market Trends

More Collaboration & Partnerships within the Industry
Partnerships and collaborations among technology suppliers, agricultural specialists, and investors have become more prevalent and central to the U.S. plant factory industry. Strategic partnerships are established to leverage the combined knowledge in technology, agriculture, and finance with the goal of stimulating innovation, solving key challenges, and expanding operations to new levels. By encouraging cooperative actions, these partnerships ensure the efficient flow of knowledge, resources, and capital to build a more sustainable, stronger, and more dynamic plant factory sector in America. In this cooperative environment, diverse stakeholders like researchers, engineers, and entrepreneurs converge to change the dynamics of how crops are grown. With the help of cutting-edge technologies like artificial intelligence, robotics, and data analytics, these joint initiatives are going to revolutionize conventional farming techniques. Not only will this ensure food security, but it will also ensure a greener and more sustainable agricultural horizon for the future.

Segmental Insights

Facility Type Insights
In accordance with the Facility Type, within the United States Plant Factory Market, Indoor Farms are already burgeoning in the agrarian scene. This new way of cultivation offers a highly controlled environment for plant growth, providing the best conditions for year-round production irrespective of external climatic variations. Through the use of sophisticated methods such as hydroponics and aeroponics, indoor farming optimizes resource utilization and reduces environmental footprint, making it especially attractive in highly populated urban areas with limited space. As demand for locally produced, fresh fruits and vegetables continues to increase, the trend of indoor farming is likely to expand exponentially, transforming how we grow crops and paving the way for a sustainable food future.

Light Insights
According to the Light, in the fast-expanding business of plant factories in the United States, artificial light has taken center stage, surpassing sunlight with dominance and innovation. These high-tech indoor farms are dependant to a great extent on state-of-the-art LED lighting systems to carefully regulate and optimize growing conditions so that there is consistent and high-yield production throughout the year, irrespective of outside weather conditions. The ability to control light wavelengths with pinpoint accuracy for every stage of plant growth is a key advantage of artificial lighting over its natural equivalent, making it the first choice in this fast-paced market.

Regional Insights
Presently, the West region, which includes states like California, Washington, and Oregon, is beyond doubt leading the United States Plant Factory Market. This is due to a multitude of reasons that have driven its success and growth. To begin with, the West region has exhibited incredible technological developments in farming methods. From high-tech hydroponics to climate control automation, cutting-edge solutions have transformed the cultivation of plants. Not only do these technologies increase efficiency, but they also provide the best possible conditions for plant growth, leading to increased yields and better quality produce. Similarly, the West region enjoys a favorable regulatory framework that promotes innovation in agriculture. There are incentives and policies aimed at motivating farmers to try and adopt new age farming practices. This helps growers test new means, such as aquaponics or vertical farming, and lead the curve regarding sustainability and the management of resources.