Vertical Farming Industry Trends for 2024
As we head into 2024, the agriculture and vertical farming industry is changing—fast. We’re sharing what’s gaining traction and what’s upcoming: for both growers and retailers.
Let’s dive in and get a sneak peek of this upcoming year!
The vertical farming industry is going back to basics: how can you grow what your customers want efficiently and reliably?
Summary
Vertical farming trends for 2024:
Technological advancements
Customized crop varieties
Supply assurance with greenhouses
Investments and funding for growers
Retail trends for food
Hyper-localization
Focus on sustainability
Online/omni-channel shopping
What can we expect to see more of in 2024?
Vertical Farming Trends
Technological advancements
Technology is ever-changing, and vertical farming is no exception to this. Advancements in the industry include automation, data analytics, advanced LED light systems, and even AI (artificial intelligence)!
Automation: With manual (or semi-automated) vertical farms, crops are typically grown on static multi-level racks and human labour is required for all essential processes.
With automation, the only human labour tasks required are for maintenance. For example, more and more automated farms have growing trays with plants that are automatically moved from zone to zone according to the crops’ current growing cycle, reducing labour time significantly.
There’s also focus on growers using energy-efficient solutions including the use of renewable energy sources, improved insulation, and energy-efficient HVAC (heating, ventilation, and air conditioning) systems.
Data analytics: By using data analytics with agriculture, farmers can enhance the efficiency of their resources and adjust factors like water usage, lighting schedule, nutrient mixing and temperature control in response to real-time data. Making real-time changes not only maximizes your investment but maximizes your harvest and ROI, too.
(Did you know? Growcer’s Osiris® modular farm features remote monitoring and control of your farm from anywhere.)
AI: AI is gaining momentum, and vertical farming is no exception. Like another (super genius) team member, it can predict how (and how well) your crops are going to grow and spot potential diseases. What’s really cool about it is being able to tweak nutrient levels or send in super-targeted treatments, meaning higher yields and healthier crops!
However, getting back to basics is also a trend for 2024 after a few booms and busts in the vertical farming industry. Sometimes - depending on your operation - you’re better off sticking to more traditional practices overseen by head growers to keep your production economics profitable. A discerning eye for technology advancements will help you see through the hype and focus on what will leave a meaningful impact to you and your plants.
Customized crop varieties
Vertical farms are in a unique position to change crops to what customers request with shorter growing cycles.
More and more, vertical farms are using and offering customized crop varieties. It allows growers to tailor their produce to meet customer preferences and market trends.
Here’s how they’re doing it:
Microgreens and Specialty Crops: Vertical farms are well-suited for growing microgreens and specialty crops. These farms can experiment with various varieties to produce unique and exotic microgreens, herbs, and edible flowers that are in high demand among chefs and consumers looking for gourmet ingredients. It’s all about knowing your customers - like cultivating a unique Japanese strawberry using vertical farms in North America.
Customization for Chefs and Restaurants: Vertical farms often collaborate with chefs and restaurants to grow crops that meet their exact specifications. Chefs can work directly with growers to select and develop varieties that match their customers’ needs.
Brand Differentiation: Offering unique crop varieties can help modular farms differentiate themselves in the market and build a strong brand based on innovation and quality. Brand your greens!
What should you grow in a vertical farm?
Here’s what Growcer’s R&D team recommends.
Shifting supply indoors
A modular farm can grow fresh greens even in the middle of winter!
With climate change and weather affecting crop quality and availability, many growers and suppliers have chosen to shift their growing to greenhouses or modular, indoor farms. Of course, a major advantage to this is the ability to extend your growing season beyond traditional climate limits.
It’s not a fringe trend either - late in 2023, popular burger chain Wendy’s looked to move its lettuce supply to greenhouses because of climate change concerns.
Other reasons why shifting indoors just makes sense:
Climate control: regulate temperature, insulation, humidity, and light levels.
Reduced pests and disease: modular farms and greenhouses act as a barrier to many pests, ultimately reducing or eliminating the need for chemical pesticides.
Better water efficiency: Greenhouse systems use water-efficient solutions, but modular farms using hydroponic systems allow growers to produce food sustainably and quickly using less water.
Increased investments and funding
A growing trend of investment in agriculture and agribusiness is largely driven by several factors, including the increased demand for local food, favourable investment returns, and reduced pricing volatility of the industry. An increased interest in funding local food projects, like Growcer’s modular farms, is also what led to the creation of Growcer Finance late last year.
Growcer Finance is a program that matches aspiring growers with financing options and offers investment opportunities for accredited investors. Learn more about Growcer Finance.
Retail Trends
Hyper-localization
Hyper-localization (or just “hyper-local food”) means growing it close to where it is going to be consumed. The term “local” itself is a broad term, but in this instance we’re referring to hyper-local to mean the practice of growing food within the community that it will be sold and enjoyed.
Localizing food growth is efficient and more sustainable than traditional methods.
Growcer Story:New Horizon Co-op in northern Alberta partnered with Growcer in 2021 so they would have the ability to supply their co-op members with hyper-local greens year-round—even in sub-zero temperatures. Their modular farm is located in the parking lot; it doesn’t get more local than that! In as little as six weeks, growers can grow up to 800 heads of various produce such as lettuce, kale, spinach, and various herbs.
New Horizon Co-op in northern Alberta partnered with Growcer in 2021 so they would have the ability to supply their co-op members with hyper-local greens year-round—even in sub-zero temperatures.
Focus on sustainability
Up until recently sustainability has been a “nice-to-have,” but that’s about to change. According to research published in the Harvard Business Review, we’re fast approaching this tipping point where sustainability will be considered a baseline requirement for purchase. This comes as no surprise as headlines around humans’ impact on the environment and natural disasters grace our feeds with more frequency than before.
The research found “when Gen Z and Millennial customers believe a brand cares about its impact on people and the planet, they are 27% more likely to purchase it than older generations are — a clear measure of sustainability’s power to drive buying decisions in this group.” As the buying power of younger generations grows, sustainability will remain a focus for consumers.
Vertical farming and sustainability go hand-in-hand.
Localized production means less transportation emissions
Hydroponic farming means less water and land use
Grower education and community involvement through local vertical farming builds sustainable thriving communities
Growcer Story:Gitmaxmak’ay Nisga’a Society, a non-profit in one of the rainiest and cloudiest cities in Canada, saw an opportunity to use indoor hydroponic farming when they couldn’t rely on traditional agriculture to increase food security. Now the community of 1,600 members gains access to fresh leafy vegetables weekly with a subscription box. Greens are also sold to local businesses and surplus is donated to community members in need.
Gitmaxmak’ay Nisga’a Society, a non-profit in one of the rainiest and cloudiest cities in Canada, saw an opportunity to use indoor hydroponic farming when they couldn’t rely on traditional agriculture to increase food security.
Online/omni-channel shopping
Post-pandemic, more shoppers feel comfortable with online shopping than ever before.
If you’re a vertical farming grower, you also are keenly aware that you can sell directly to customers for a higher price than what you can sell to grocery stores who would buy your products at wholesale prices.
We’ll see a continuation of online and direct to consumer avenues (like subscription boxes) be one of the distribution channels for smaller vertical farms:
Online ordering platforms (e-commerce)
Online subscription services/co-op
Digital marketing (social media, email newsletters)
Click and collect services
Growcer story: Nipissing First Nation's (NFN) Mnogin Greenhouse grows a variety of fresh greens for the community of about 3,000 and nearby restaurants year-round. Chief McLeod shares that this venture is a unique opportunity for NFN members to get involved and also have their location serve as a training hub for First Nations who want to get into this type of business.
A screenshot of Mnogin Greenhouse’s online store.
Looking ahead to 2024
These anticipated trends are shaping the industry—taking your vertical farm to the next level with tech, hyper-local growth and omnichannel shopping.
What trends are you seeing? Leave your thoughts in the comments below!