Vertical Farming

Vertical Farming Companies, Vertical Farm Manufacturers and Related Companies

One of the top challenges facing Japan's agricultural industry is its aging population and lack of successors. To survive, the industry must transition into the sixth industry. This requires collaboration with other industries, such as food production and restaurants; promotion of cutting-edge technologies, including robotic sensors and various IT technologies; and establishment of labor-saving and low-cost production systems through large-scale management.

In this context, vertical farming has garnered attention. Many companies from different industries have entered this field, due to its ability to stabilize production regardless of the season or climate, as well as its high productivity per area. According to the Ministry of Agriculture, Forestry, and Fisheries (MAFF), the number of vertical farming facilities using artificial lights increased 1.8-fold, from 106 in March 2012 to 195 in February 2024.

However, the market has reached a turning point. The number of these facilities has decreased slightly, reaching 191 in February 2025 and to 190 in February 2026. They have entered a phase where only profitable businesses remain.
These businesses prioritize improving cultivation techniques, including temperature and moisture management, as well as operational management. They also focus on establishing trading partnerships, including securing stable trading partners and improving unit prices. Since these challenges involve fundamental business management principles, the vertical farming market is still in the process of becoming a full-fledged industry.
This report reveals which companies are profitable by surveying leading vertical farming companies and material-related companies. After clarifying the challenges and the directions for solving them, the report provides insights into future marketability. This information assists with decision-making regarding market entry, investment, and business reassessment.

I. Prospects and Key Trends in the Vertical Farming Market

1. Current State of Vertical Farming Sites Using 100% Artificial Lights
   　　1) Types of Vertical Farming Facilities
   　　2) Number of Vertical Farming Facilities Using 100% Artificial Lights
   　　3) List of Japan's Vertical Farming Sites
   　　4) Cases of Vertical Farming Facilities Restructured or Reviewed in Japan
   　　5) Vertical Farming Industry Landscape Map
2. External Environments Increasing the Necessity of Vertical Farming
   　　1) Global Demands
   　　　　- Increase in Food Demands Associated with Inflating Populations Worldwide
   　　　　- Vertical Farming-Related SDG Targets
   　　　　- Vertical Farming Expected from the Food Security Perspective
   　　2) Decreased Agricultural Labor and Aging Society
3. Vertical Farming Regulations and Certifications
4. Measures Against Rising Vertical Farming Costs
   　　1) Soaring Running Costs
   　　2) Transportation Constraints after Logistics Regulations Took Effect and Response
                 Measures by Vertical Farming Companies
5. Collaboration Among Vertical Farming, Agriculture, and Social Welfare, and Utilization of Underutilized Land
   　　1) Background to the Growing Interest in Agriculture-Welfare Collaboration: The
                 Increase in the Statutory Employment Rate for People with Disabilities
   　　2) Utilization of Underutilized Assets: Converting Closed Schools, Vacant Facilities,
                 and Abandoned Farmland into Vertical Farming Sites
   　　3) List of Major Examples of Agriculture-Welfare Collaboration and Underutilized
                 Land Utilization
   　　4) A Comparison of Agriculture-Welfare Collaboration-Type Vertical Farming by
                 Category
6. Status and Outlook of AI and Data Utilization in Vertical Farming
   　　1) Background of the Growing Need to Use AI and Data
   　　2) Policies
   　　3) Utilization Scopes and Initiatives
   　　4) Evaluations during the Shifts toward Proliferation (Shift from Obtaining Data to
                 Using Data for Decision-Making)
   　　5) Impacts on Business Models
   　　6) Challenges and Problems
   　　7) Future Outlooks
7. The Japan Plant Factory Association, a Specified Nonprofit Corporation
8. Outlook and Directions for the Vertical Farming Market in Japan

II. Trends in Leading Vertical Farming Businesses

1. Reasons for Entering Business by Major Companies
2. Cultivation Overview: Lettuces Remain the Most Popular Plants to Grow Under Artificial Lights
   　　1) Trends in Items Grown Under Artificial Lights in Vertical Farming Facilities
   　　2) Overview of Leading Companies' Cultivation
   　　3) Feasibility Assessment for Promising Items
   　　4) Strawberries
   　　5) Herbs
   　　6) Wasabi
   　　7) Other Items (Edible Flowers, Melon, Rice, Soybeans)
3. Facilities for Cultivation
4. Subsidy Usage
5. Distribution and Sales Systems
6. Challenges and Issues
7. Rising Production Costs and Response Measures
8. Logistics Optimization and Delivery Network Establishment
9. Future Business Strategy
10. The Global Vertical Farming Market and Winning Strategies for Japanese Companies

III. Trends in Vertical Farming Facility and Component Manufacturers

1. Trends among Market Entrants
2. Trends in Technology by Category and Trends in Products
   　　1) Solution Culture System
   　　2) Light Source for Raising Plants
   　　3) Environmental Complex Control System
   　　4) Automation System
3. Major Products Handled
4. Product Policies and the Direction of Development
5. Sales Trends
6. Trends in Demand Sectors
   　　1) Overview: Increasing Diversification of Adopters and Implementation Goals
   　　2) General Companies in Other Industries: Utilizing Idle Factory Space and Applying
                 In-House Technologies
   　　3) Railways, Electric Power, and Real Estate: Expanding Adoption for Community
                 Development
   　　4) Retail, Food Service, Hotels, and Food Industries: Growing Vegetables In-House
                 for In-House Use
   　　5) Research, Universities, and Educational Institutions
   　　6) Agriculture-Welfare Collaboration, Employment Support for People with
                 Disabilities, and Employment of Seniors: Steady Increase in the Number of
                 Organizations Involved
   　　7) Future Demand Outlook
7. Distribution Flow and Sales Channel
8. Challenges and Problems
9. Response Measures Against Rising Production Costs
10. Logistics Optimization and Delivery Network Establishment
11. Standardization Trends for Related Materials
12. Future Corporate Strategies
13. Future Prospects

IV. Questionnaire for Vertical Farming Companies

1. Survey Results
2. Respondent Company Attributes
3. Latest Financial Results (Based on Operating Income)
4. Number of Years Took to Stabilize the Business
5. Impact of Rising Production Costs on Business Management
6. Growth Margin for Agricultural Production Costs
7. Light Sources for Plant Cultivation Currently Using
8. Intention to Expand the Business (Production) Scale
9. Free Opinions Regarding Vertical Farming
10. List of Vertical Farming Sites That Have Withdrawn from or Are Currently Suspended from the Market

• Vertical Farming Sites Using 100% Artificial Light That Responded to the Questionnaire (48 Companies)

V. Trends in Leading Market Entrants (25 Companies)

• 8 Vertical Farming Companies
• 17 Plant Manufacturers and Related Companies