Vertical farming: A modern approach to feeding a growing population

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  Quantumrun Foresight
• April 2, 2022

Insight summary

Vertical farming, a tech-focused approach to agriculture, is emerging as a viable solution to increase crop production, especially in the face of growing global population and environmental challenges. By stacking crops in confined spaces and utilizing advanced technologies, it offers the potential to outproduce traditional farming methods, reduce environmental impact, and localize food production. The trend is shaping the future of agriculture with implications ranging from disruption of the agriculture sector to shifts in labor market demands, changes in real estate values, and the need for new regulations and standards.

Vertical farming context

Vertical farming is a system of growing crops that involves stacking multiple rows of crops on top of one another under artificial lights and controlled temperatures. This tech-focused approach to agriculture allows crops to grow efficiently inside confined spaces, like warehouses or shipping containers. As a result, vertical farms can compete with the production levels of traditional farms while using significantly less land and water. 

According to the United Nations, the global population is growing by one billion every thirteen years. Unfortunately, current farming methods don’t produce enough crops to supply such a drastic global increase in population. Other limitations to consider:

• Conventional farming has a more significant environmental impact compared to vertical farming, making it relatively unsustainable.


• There simply isn’t enough land or freshwater to increase global food production at this rate. 


• Climate change is gradually shrinking the total land available for agriculture globally. 


• Traditional methods of transporting crops from overseas farms to local grocery markets are becoming increasingly precarious due to global supply chain limitations. 


• These factors and more are why some agricultural investors are advocating for vertical farming as a viable solution to increase crop production. 

For instance, vertical farming can squeeze approximately 60 acres of produce into one warehouse. Additionally, vertical farming reduces the need for water by about 39 gallons for a pound of lettuce. It also requires fewer human resources, which means the farms can keep running during pandemics, reducing the chance of a food shortage. That method is also safe from pests, eliminating the use of harmful pesticides. These warehouses can also be located close to urban centers to minimize logistical/delivery challenges.

Disruptive impact 

The trend of vertical farming, actively pursued by well-capitalized startups in 2021, is shaping the future of agriculture. With significant investment in refining the methodologies, vertical farming may replace traditional farming for many crop varieties in several regions of the world by the 2050s. However, this shift seems more feasible in developed regions where there is access to affordable and reliable electricity networks. The transition to vertical farming in these areas could lead to more efficient use of space and resources, reducing the environmental impact of agriculture.

In contrast, countries with limited farmland stand to gain immensely from the rise of vertical farming. By allowing better control over domestic food supply, these nations can shield themselves against global supply chain shocks, a matter that will become increasingly valuable as climate change continues to impair the productivity of traditional farms. This could lead to a more resilient food system, reducing dependency on imports and enhancing national security in terms of food supply. 

However, the need for specialized equipment, skilled labor, and continuous monitoring of growing conditions may create barriers for widespread adoption, particularly in less developed regions. Governments, companies, and educational institutions may need to work together to develop training programs, provide financial incentives, and create supportive policies to overcome these hurdles. By doing so, the benefits of vertical farming could be extended to a broader range of communities, fostering a more sustainable and secure global food system.

Implications of vertical farming

Wider implications of vertical farming may include:

• Allowing vertical farming startups to disrupt the agriculture sector by outproducing traditional farmers, co-ops, and established agriculture corporations through the application of advanced technologies and processes, leading to a shift in market dynamics and competitive landscapes.


• Lighting, HVAC, and other tertiary equipment suppliers experiencing newfound sales opportunities in the agriculture industry, leading to diversification and expansion of their product offerings.


• Job growth for conventional farmers may stale or decrease, while vertical farming job opportunities may see significant growth during the 2030s, especially near urban centers, leading to a shift in labor market demands and required skill sets.


• Localizing food production, reducing the chances of food shortages during supply chain disruptions, natural disasters or disease outbreaks, leading to increased resilience in food supply and potential changes in governmental emergency planning.


• The potential reduction in transportation costs and emissions by growing food closer to urban centers, leading to more sustainable urban development and a decrease in the carbon footprint of the food industry.


• A shift in land use patterns as vertical farming requires less space than traditional farming, leading to potential changes in real estate values, zoning laws, and urban planning strategies.


• The potential for vertical farming to enable year-round production of certain crops, leading to changes in seasonal pricing and availability, and possibly affecting consumer behavior and dietary habits.


• The need for new regulations and standards specific to vertical farming practices, leading to changes in agricultural policy and potential challenges in international trade agreements.


• The potential for vertical farming to provide opportunities for producing specialized or rare crops in non-native regions, leading to a broader variety of produce available to consumers and potential impacts on global trade dynamics.


• The increased reliance on technology in vertical farming, leading to concerns over cybersecurity, data management, and the need for specialized technical support and infrastructure within the agriculture sector.

Questions to consider

• Do you think vertical farming can replace traditional farms completely? 


• Do you think a combination of conventional and vertical farming is enough to tackle the food demands of a growing global population?