Vertical Farming in North America: An Industry in Consolidation
North America accounts for roughly 40% of the global vertical farming market, valued at an estimated $1.58 billion in 2026 in the U.S. alone. After a wave of high-profile exits — AeroFarms (Chapter 11, 2023), Bowery Farming (ceased operations, November 2024), AppHarvest (bankruptcy, 2023) — the sector is consolidating around operators that have proven unit economics at scale.
Who Survived and Why
The companies still standing share common traits: hybrid growing models that lower energy costs, strong retail distribution partnerships, and a focus on high-margin crops rather than commodity produce.
- Plenty Unlimited
- Backed by over $900M in funding, Plenty operates farms in Compton, CA and Richmond, VA, with the latter designed to produce 4M+ lbs of Driscoll's strawberries annually. A research center in Laramie, WY and planned international expansion to Abu Dhabi signal continued scale-up.
- Gotham Greens
- With 13 hydroponic greenhouses spanning 1.8 million sq ft across nine states (NY, IL, RI, MD, VA, CO, CA, GA, TX), Gotham Greens has built the widest geographic footprint of any indoor farming company in North America.
- 80 Acres Farms + Soli Organic
- Their August 2025 merger created a national powerhouse with projected revenues approaching $200M and capacity for 15–20 million lbs of produce annually across seven farms. The GroLoop™ automation platform and Soli's 35-year retail network serve 17,000+ retail locations.
The Economics Driving Consolidation
| Factor | Impact on Operations |
|---|---|
| Energy costs | Represent 25–35% of OpEx; operators shifting to renewable PPAs and hybrid greenhouse models to reduce LED dependence |
| Crop selection | Leafy greens dominate (~70% of output); strawberries and herbs emerging as higher-margin alternatives |
| Retail partnerships | Direct grocery chain contracts (Walmart, Kroger, Whole Foods) replace foodservice-heavy models that collapsed during demand volatility |
| Automation | Fully automated seeding-to-harvest reduces labor costs by 40–60% at scale; critical differentiator for survivors |
Canada's Indoor Farming Sector
Canada's indoor farming market is projected to reach $2 billion by 2030. GoodLeaf Farms, backed by McCain Foods, operates multiple facilities growing microgreens and baby greens year-round. Little Leaf Farms, while headquartered in the U.S., commands over 50% market share in indoor lettuce and continues expansion into the Northeast corridor. Government programs from Agriculture and Agri-Food Canada support CEA adoption with favorable financing for controlled-environment operations.
Investment Landscape
Despite high-profile failures, capital continues to flow: $475 million was deployed across 74 indoor farming deals in 2024, a 3.6% year-over-year increase. Investors are now favoring later-stage operators with proven revenue over pre-revenue vertical farm startups — a marked shift from the 2020–2022 era of speculative seed rounds.