A Urban Agriculture Market Forecasts to 2032 – Global Analysis By Farm Type (Commercial Farms, Community Farms, Home Gardens, and Corporate & Research Farms), Growing Medium (Hydroponics

According to Stratistics MRC, the Global Urban Agriculture Market is accounted for $13.6 billion in 2025 and is expected to reach $28.9 billion by 2032 growing at a CAGR of 11.3% during the forecast period. Urban agriculture integrates farming practices into city environments to produce food locally, addressing food security, sustainability, and environmental concerns. Methods include vertical farming, rooftop gardens, hydroponics, and community plots, using limited space efficiently. It reduces supply chain length, lowers carbon emissions, and supports local economies. Urban agriculture enhances fresh produce access, promotes sustainable land use, and mitigates urban heat island effects. Rising urban populations, environmental awareness, and demand for local food drive adoption.

Market Dynamics:

Driver:

Increasing demand for local food

Urban farming reduces the supply chain length, ensuring fresher produce and decreasing transportation costs and associated carbon emissions. Additionally, growing concerns about environmental impact and food security due to climate change and pandemics have intensified the shift towards localized food systems. Urban agriculture enables year-round production of vegetables, fruits, and herbs in city environments, reducing dependency on rural farming. Moreover, technological advancements in vertical farming and controlled environment agriculture further enhance productivity, supporting this increasing local food demand effectively.

Restraint:

Limited space in dense urban areas

Urban landscapes are already congested with residential, commercial, and infrastructural developments, leaving minimal room for large-scale agricultural activities. High land costs in metropolitan regions render urban farming financially unviable for many small-scale farmers and startups. The challenge of vertical integration and maximizing limited space requires advanced technological solutions, which can be capital-intensive. Moreover, regulatory hurdles and zoning restrictions further complicate urban farming adoption.

Opportunity:

Development of hydroponic solutions

Hydroponics, which involves growing plants without soil using nutrient-rich water solutions, enables efficient resource use and higher crop yields per unit area. This soil-less method allows agriculture to flourish in urban environments with constrained land availability, making it ideal for rooftops and indoor vertical farms. Additionally, hydroponics facilitates year-round crop production, independent of seasonal changes, increasing food supply consistency. Moreover, it reduces water consumption by up to 90% compared to traditional farming, aligning with sustainability goals. These technological advancements can accelerate urban farming proliferation, boosting market expansion.

Threat:

Market competition from traditional agriculture

Conventional farming benefits from expansive land availability, lower per-unit production costs, and extensive supply chain infrastructure developed over decades. Traditional agriculture has strong governmental subsidies and policy support in many regions, enabling large-scale, cost-effective food production. Consumers often perceive traditional farm produce as more affordable compared to urban-grown products, limiting urban agriculture market penetration. Moreover, urban farming faces higher operational costs due to technological requirements and energy-intensive systems like LED lighting and climate control. This intense competition from traditional agriculture constrains the growth of urban agriculture, challenging its market share expansion.

Covid-19 Impact:

The COVID-19 pandemic significantly influenced the Urban Agriculture Market, highlighting its strategic importance in food security. Global lockdowns disrupted traditional agricultural supply chains, exposing vulnerabilities in long-distance food transportation. This crisis accelerated consumer interest in locally sourced produce, thus driving urban farming adoption. Additionally, pandemic-induced labor shortages in rural agriculture pushed investors and governments to seek automated, tech-driven urban agriculture solutions to ensure food availability. Moreover, health concerns regarding food safety increased preference for controlled-environment farming practices inherent in urban agriculture. However, initial capital investment challenges and operational disruptions due to lockdown measures temporarily slowed market growth, although the pandemic ultimately underscored urban agriculture’s critical role in resilient food systems.

The commercial farms segment is expected to be the largest during the forecast period

The commercial farms segment is expected to account for the largest market share during the forecast period. This segment's dominance is attributed to its ability to produce high volumes of crops, meeting the increasing demand for fresh produce in urban centers. Commercial urban farms utilize advanced technologies such as automated systems, IoT devices, and data-driven monitoring to optimize crop yields and resource efficiency. Additionally, they offer a professional and scalable solution to urban food production, appealing to large retailers and food service providers.

The microgreens & sprouts segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the microgreens & sprouts segment is predicted to witness the highest growth rate. This rapid growth is driven by increasing consumer awareness of the health benefits associated with microgreens and sprouts, such as high nutrient density and antioxidant properties. Additionally, microgreens require less space, shorter growth cycles, and lower resource inputs compared to traditional crops, making them ideal for urban farming applications. The growing trend of health-conscious diets and the demand for gourmet culinary ingredients also contribute to the segment’s expansion.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share. The region’s well-established technological infrastructure, favorable government policies, and high consumer demand for sustainable and locally sourced food contribute to this dominance. Additionally, the presence of key market players investing heavily in research and development bolsters market growth. Urban areas in North America are increasingly integrating smart farming technologies, including hydroponics, aeroponics, and vertical farming solutions, enhancing production efficiency and sustainability. Moreover, growing awareness of environmental impact and health consciousness further drives market penetration.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. Rapid urbanization, rising population density, and increasing food security concerns in countries such as China, India, and Japan are primary factors driving market growth. Additionally, government initiatives supporting sustainable agricultural practices and investments in smart farming solutions propel the region’s expansion. The rising middle-class population and growing health awareness stimulate demand for fresh, locally produced food, favoring urban agriculture adoption. Moreover, advancements in low-cost hydroponic and aeroponic systems are facilitating the proliferation of urban farming in space-constrained urban areas.

Key players in the market

Some of the key players in Urban Agriculture Market include AeroFarms, Plenty, Gotham Greens, Freight Farms, BrightFarms, Sky Greens, Infarm, 80 Acres Farms, Urban Crop Solutions, Spread, Bowery Farming, UrbanKisaan, Eden Green Technology, Little Leaf Farms, Badia Farms, Vertical Harvest Farms, Crop One Holdings, CubicFarms, and iFarm.

Key Developments:

In August 2025, AeroFarms, an indoor vertical farming company and the leading supplier of microgreens to the U.S. retail market, has refinanced its debt to support the ongoing operations at its farm in Danville, Virginia, and has raised equity financing to further support existing operations and fund pre-construction activities for its expansion to a second farm.

In March 2025, Cincinnati With its state-of-the-art vertical farms in Hamilton, OH, and Florence, KY, 80 Acres Farms announced this month that it will be more than doubling their operation capabilities with the acquisition of three more vertical farms in Georgia, Texas, and Colorado. 80 Acres Farms has been leading the way in vertical farming, producing branded salads, herbs, microgreens, and tomatoes, with products available at over 1,500 retailers and restaurants across the eastern United States.

Farm Types Covered:
• Commercial Farms
• Community Farms
• Home Gardens
• Corporate & Research Farms

Growing Mediums:
• Hydroponics
• Aeroponics
• Aquaponics
• Soil-based Systems

Structures Covered:
• Indoor Farming
• Outdoor Farming

Crop Types Covered:
• Fruits & Vegetables
• Herbs
• Flowers & Ornamentals
• Microgreens & Sprouts
• Specialty Crops

Applications Covered:
• Food Production
• Urban Redevelopment
• Educational and Community Building
• Environmental Sustainability

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements






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