What are the recent vertical farming announcements?

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The vertical farming industry in 2025 is experiencing a strategic transformation marked by record-breaking investments, technological breakthroughs, and a fundamental shift toward profitability-focused business models.

Major partnerships like Planet Farms' €200 million joint venture with Swiss Life Asset Managers and 80 Acres Farms' $115 million funding round demonstrate that institutional capital is backing proven operators with sustainable unit economics.

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What are the most significant vertical farming projects announced globally since January 2025?

The most significant vertical farming development in 2025 is Planet Farms' strategic partnership with Swiss Life Asset Managers, representing a €200 million infrastructure investment for EMEA expansion.

This partnership includes a £25 million UK facility covering 20,000 square meters, scheduled to begin production by 2027. The facility will replicate Planet Farms' successful Cirimido model, which already supplies over 25% of Italian retail leafy greens. Swiss Life's involvement signals institutional capital's confidence in vertical farming as an infrastructure asset class.

Other major projects include iFarm's vertical farm construction in Switzerland through partnership with Hygrow, featuring 1,031 square meters of cultivation area using iFarm StackGrow technology. The facility begins operations in summer 2025, demonstrating European expansion of automated vertical farming systems.

In Asia, Malaysia launched its largest indoor vertical farm in Johor through a RM40 million joint venture between Farmbyte and Singapore's Archisen. The 4,830 square meter facility produces an estimated 306,000 kg of fresh produce annually, showcasing the scale potential for vertical farming in Southeast Asia.

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Which companies have secured the largest investments or funding rounds in vertical farming so far this year?

80 Acres Farms leads 2025 vertical farming investments with $115 million in funding, achieving a $1.2 billion valuation for scaling salad green production and acquiring Israeli biotech company Plantae Biosciences.

Oishii completed a $134 million Series B round led by Japanese telecommunications giant NTT, with participation from Bloom8, McWin Capital Partners, Mizuho Bank, and Yaskawa Electric Corporation. The funding supports expansion of premium strawberry and tomato production alongside advanced robotics development.

The vertical farming sector secured approximately $582.5 million in total funding during 2024, with 2025 year-to-date activity exceeding $300 million through major infrastructure partnerships. However, funding for novel farming systems declined by 53% compared to previous years, reflecting increased investor scrutiny and demands for proven unit economics.

This shift represents market correction rather than collapse, with investors now prioritizing profitability over rapid expansion. Infrastructure capital dominates through insurance funds, pension assets, and real estate investment vehicles following the Swiss Life Asset Managers model.

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What new technologies or innovations have been introduced in vertical farming systems in 2025?

AI-powered farming systems represent the most significant technological advancement in 2025, increasing crop yields by up to 70% compared to traditional methods through precision environmental control and automated decision-making.

AutoStore and OnePointOne launched the Opollo Farm, featuring fully automated vertical farming systems supplying Whole Foods Market stores in Phoenix. The system uses robotic bins moving through precision-controlled environments, delivering harvest-ready greens in just 15 days.

Robotics integration revolutionizes seed sowing and harvesting processes, with systems achieving significant improvements in crop yield, labor cost reduction, and resource utilization. Advanced harvesting robots developed through partnerships like Oishii-Yaskawa demonstrate the industry's move toward complete automation.

LED technology costs decreased by 80% in the past decade while efficiency gains boosted crop yields by 20-25%. Modern systems achieve up to 35% energy savings beyond existing LED benefits through full-spectrum lighting that mimics natural sunlight while consuming less energy.

Energy-efficient innovations include smart energy management systems analyzing consumption patterns and adjusting operations during off-peak hours. Next-generation LEDs and smart climate control could cut vertical farm energy use by approximately 27%, potentially making certain crops' environmental footprint definitively lower than open-field agriculture by 2030.

Which startups or scaleups have announced major facility expansions or new farm launches for 2025 or 2026?

LettUs Grow and KG Systems announced a global partnership in March 2025 to deploy Advanced Aeroponic Technology worldwide, with plans to deliver over ten hectares of Aeroponic Rolling Bench systems globally by 2030.

Crysp Farms partnered with Alesca Technologies to deploy 500 vertical farms across the Middle East over the next five years, representing one of the largest regional expansion commitments in the industry.

IGS (Intelligent Growth Solutions) secured £22.5 million in Series C funding to support global expansion, including the Dubai GigaFarm project - a 900,000 square foot facility set to produce 3 million kg of food annually by 2025. The facility will feature 200 twelve-meter-high IGS Growth Towers providing 87,000 square meters of growing space.

Green City Farming in Sweden secured SEK 7.5 million in funding to support production scaling and product development, while Thailand's vertical farming market experiences significant growth with operations achieving production capacity of up to 1 ton per month in northern regions.

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What are the estimated production capacities, crop types, and projected revenues for the largest announced projects?

Current vertical farming operations focus primarily on leafy greens, herbs, strawberries, tomatoes, and microgreens due to their quick growth cycles and strong market demand.

Which countries or regions are seeing the most government or institutional support for vertical farming in 2025?

The United States leads government support with the USDA announcing $14.4 million in Urban Agriculture and Innovative Production grants for 2025, funding community hydroponic farms and school CEA programs.

The European Union's Horizon Europe program allocates substantial funds for sustainable agriculture technologies, with specific focus on vertical agriculture, AI monitoring, and renewable energy integration. The UK implemented a $6.4 million funding competition blending grants with private investment to boost agricultural research.

Asia-Pacific shows strong institutional support with Singapore's 30×30 Express Grants supporting urban farms and agtech companies in the city-state's initiative to produce 30% of food locally by 2030. Japan's Ministry of Agriculture provides grants targeting smart agriculture and advanced CEA systems.

The Middle East demonstrates significant government backing, with the UAE government supporting projects through entities like ADQ, investing in seed genetics for desert farming and local vertical farm ventures. Saudi Arabia expanded its subsidy program for indoor farming equipment in June 2025, offering to cover up to 50% of costs for growers adopting water-saving hydroponic systems.

These government initiatives drive rapid build-out of CEA capacity, exemplified by projects like Bustanica in Dubai producing 1,000+ tons of greens yearly and upcoming mega-farms in Saudi's NEOM city, all aiming to localize food production in water-scarce climates.

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What new trends in energy usage, water efficiency, or automation have been reported in recent vertical farming announcements?

Modern vertical farms now use up to 95% less water than traditional agriculture through advanced hydroponic, aeroponic, and recirculating systems with closed-loop water recycling becoming the industry standard.

Energy efficiency breakthroughs include full-spectrum LEDs that mimic natural sunlight while consuming significantly less energy, with some systems achieving up to 35% energy savings beyond existing LED benefits. Smart energy management systems analyze consumption patterns and adjust operations during off-peak hours, reducing costs and environmental impact.

Automation advances include integrated platforms managing irrigation, lighting, and robotic harvesting in high-volume facilities. Vertical farms increasingly integrate sensors for real-time tracking of plant health, enabling early detection of issues like mold, nutrient deficiencies, or environmental stress.

Infrastructure innovations feature modular racking systems, mobile vertical shelving, and aisle-access robotics improving space utilization and labor efficiency. Remote monitoring dashboards provide operators real-time visibility across multiple sites, enabling centralized crop management.

Partnership developments include renewable energy integration, with vertical farms forming partnerships with energy providers for innovative facility powering solutions. Dürr's EcoY turnkey vertical farm system leverages natural sunlight while utilizing up to 95% less water than conventional cultivation methods.

How are major retailers or food distributors getting involved in vertical farming projects this year?

Whole Foods Market partnered with AutoStore and OnePointOne's Opollo Farm to supply locally grown produce to Phoenix area stores, featuring robotic systems that deliver harvest-ready greens in just 15 days.

Planet Farms supplies over 25% of Italian retail leafy greens and serves Swiss retailers through its automated facilities, while beginning to supply Waitrose stores in the United Kingdom as of April 2025 with Planet Farms branded salad products.

Eden Green Technology leverages its partnership with distributor Robinson Fresh to deliver herb varieties traditionally imported, significantly reducing carbon emissions and transportation costs. The company currently produces 70% herbs and 30% leafy greens specifically for retail distribution channels.

80 Acres Farms products including just-picked salads, tomatoes, cucumbers, herbs and microgreens are sold at major grocery chains and to national foodservice distributors, demonstrating successful integration into mainstream retail supply chains.

Oishii products are available at Whole Foods Market, FreshDirect, and specialty grocers, with each tray retailing between $10-15, showing premium positioning in retail partnerships. The company expanded availability to the Northeast US in 2023, with plans for further retail expansion using new funding.

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What regulatory changes or public policies announced in 2025 could impact the vertical farming industry in 2026?

The FDA Food Safety Modernization Act (FSMA) ensures continued compliance requirements for hydroponic and aeroponic farming systems, with regulatory policies supporting vertical farming through energy-efficient infrastructure incentives.

Government initiatives increasingly focus on creating urban agriculture policies, offering tax incentives for vertical farming operators, and integrating vertical farming into climate resilience strategies. Zoning reforms and financial incentives are being implemented at state and local levels to support urban farming adoption.

The USDA's Office of Urban Agriculture and Innovative Production (OUAIP) expanded grant programs and technical support for urban and vertical farming projects, indicating sustained federal commitment to controlled environment agriculture development.

International regulatory harmonization efforts focus on food safety standards for indoor-grown produce, with potential implications for cross-border trade of vertically farmed products. The European Union's sustainable agriculture technology funding creates regulatory frameworks supporting vertical farming integration.

Energy policy developments include renewable energy incentives specifically targeting indoor agriculture operations, while water conservation regulations increasingly favor vertical farming's resource-efficient approaches in water-scarce regions.

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Which vertical farming companies are showing strong signs of profitability or sustainable unit economics in 2025?

Italian vertical farms producing microgreens demonstrate economic profitability under current market conditions, with positive operational margins and favorable cost-revenue ratios serving as proof points for sustainable unit economics.

80 Acres Farms shows strong financial performance with 60% revenue compound annual growth rate over the last three years, while maintaining focus on operational execution and sustainable expansion. The company's ability to raise $115 million in current market conditions demonstrates investor confidence in its unit economics.

Planet Farms achieves market leadership by supplying over 25% of Italian retail leafy greens through its automated Cirimido facility, with Swiss Life Asset Managers' €200 million investment validating the company's infrastructure-grade cash flow characteristics.

Oishii demonstrates sustainable premium positioning with products retailing between $10-15 per tray at Whole Foods Market and specialty grocers, focusing on high-value crops like strawberries and tomatoes rather than competing on price with leafy greens.

The industry shows clear differentiation between companies achieving profitability through premium crop focus and operational efficiency versus those struggling with high operational costs and energy consumption challenges. Many high-profile failures stemmed from scaling before achieving unit profitability, emphasizing the importance of lean, modular operations.

What predictions or growth forecasts have been made for the vertical farming sector over the next five years?

The global vertical farming market is projected to grow from $7.74 billion in 2024 to $9.6 billion in 2025, representing a compound annual growth rate (CAGR) of 24.0%.

Long-term projections estimate the market will reach $21.12 billion by 2029 and potentially $24.95 billion by 2030, driven by urbanization, climate change adaptation, and resource scarcity concerns.

North America leads the market with approximately 40% share, driven by advanced technology adoption and significant infrastructure investments. Asia-Pacific is expected to witness the fastest growth, supported by urban population density, food security concerns, and government innovation programs.

Market analysts project the Asia-Pacific vertical farming market will surpass North America by 2028, fueled by heavy investment in countries like China, Japan, and the UAE. The Europe indoor farming market is projected to grow at 9.2% CAGR from 2025 to 2033, reaching approximately $38 billion by 2033.

Industry reports highlight a shift in crop focus: while leafy greens still dominate indoor farming with over 250 commercial sites worldwide, high-margin crops like berries, tomatoes, and herbs are growing fastest in market share as companies pursue profitability over volume.

Which sectors or investor types are driving most of the capital in 2025?

Infrastructure capital dominates 2025 vertical farming investments through insurance funds, pension assets, and real estate investment vehicles, exemplified by Swiss Life Asset Managers' €200 million commitment representing the largest single investor contribution.

SoftBank Vision Fund leads venture capital investments with the largest funding rounds, while specialized agtech funds like S2G Ventures and AgFunder focus on earlier-stage opportunities. Corporate strategic investors like Walmart and Driscoll's provide crucial market access alongside capital investment.

The investment landscape shows clear stage-specific patterns, with seed rounds typically ranging from $5-15 million and Series A rounds between $15-50 million. Late-stage growth investments can reach $140-400 million for proven operations with demonstrated unit economics.

Japanese institutional investors demonstrate significant commitment, with NTT leading Oishii's $134 million Series B alongside Mizuho Bank, Mitsubishi Shokuhin, and the Japan Green Investment Corporation for Carbon Neutrality. These investors bring operational expertise in vertical farming alongside capital.

Traditional venture capital shows more selectivity, with funding for novel farming systems declining by 53% as investors demand proven business models and sustainable unit economics rather than rapid expansion strategies.

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Conclusion

Sources

1. TS2 Global Vertical Farming Developments
2. Food Manufacture UK Vertical Farming Investment
3. Robotics & Automation News Top 20 Vertical Farming Companies
4. AgFunder News Oishii Series B Funding
5. AgFunder News 80 Acres Farms Funding
6. Farmonaut Vertical Farming Technologies 2025
7. Dirobots Vertical Farming 2025 Insights
8. Food Institute Beyond Vertical Farming Hype
9. Robotics & Automation News Dürr EcoY System
10. Newswire 80 Acres Farms Capital Raises