According to the report published by Virtue Market Research in The Urban Farming Market was valued at USD 140 billion in 2025 and is expected to grow at a CAGR of 3.8% from 2026 to 2030, reaching a market size of USD 168.7 billion by 2030.
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The urban farming market is growing as cities look for smarter ways to produce food close to where people live. One strong long-term driver for this market is the rising need for food security in crowded urban areas. As cities expand and farmland outside cities becomes harder to access, urban farming offers a way to grow fresh vegetables, fruits, and herbs within city limits. Rooftops, balconies, warehouses, and unused buildings are being turned into green spaces that produce food year-round. This helps reduce dependence on long supply chains and lowers the risk of food shortages caused by weather, fuel costs, or transport delays. During the COVID-19 period, this market saw a noticeable shift. Lockdowns and movement restrictions disrupted traditional food supply systems, making people more aware of where their food comes from. Urban farming gained attention because it allowed local production even when borders were closed and transport was limited. Many households, communities, and businesses started small-scale farming projects to ensure access to fresh food, which strengthened long-term interest in urban agriculture.
Segmentation Analysis:
By Farming Technique: Vertical Farming, Hydroponics, Aquaponics, Rooftop Farming, Community Gardens
The Urban Farming Market, when viewed by farming technique, shows clear differences in scale, speed, and purpose across methods. Vertical farming stands as the largest subsegment in this category because it fits well into dense cities where land is scarce, and buildings rise high. Crops grow in stacked layers, often indoors, using controlled light and temperature, which allows food to be grown every day of the year. This method supports a steady supply and attracts commercial users. Hydroponics, however, is the fastest growing during the forecast period. It uses water instead of soil and needs fewer natural resources, making it easier to install in homes, schools, and small businesses. Aquaponics follows a balanced path by combining fish farming with plant growth, yet it grows at a slower pace due to higher setup needs. Rooftop farming remains popular for fresh local produce, but is limited by building strength and weather. Community gardens play a social role, offering shared spaces for growing food, though they remain smaller in scale and focus more on local engagement than volume.
By Crop Type: Vegetables, Fruits, Herbs, Flowers, and Ornamentals
When analyzed by crop type, the Urban Farming Market shows strong preference patterns shaped by space, time, and consumer habits. Vegetables are the largest subsegment in this category because they grow quickly, need less space, and are used daily in many meals. Leafy greens like lettuce and spinach fit urban systems well and are easy to harvest often. Herbs are the fastest-growing subsegment during the forecast period. They require minimal space, offer strong aroma and flavor, and are widely used in cooking, medicine, and wellness products. Their high value per unit makes them attractive for small urban farms. Fruits are grown less often because many types need more time and space, which does not always match city limits. Flowers and ornamentals hold a unique place, adding beauty and color to urban areas, yet they are grown mainly for decoration rather than food. Each crop type serves a different role, shaping how urban farms choose what to grow and how they plan daily operations.
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Regional Analysis:
From a regional view, the Urban Farming Market grows in varied ways depending on local needs, climate, and city planning. North America is the largest region in this segment due to strong awareness of local food systems, early adoption of new farming methods, and support from private and public groups. Cities here often combine technology with farming to improve yield and consistency. Asia-Pacific is the fastest growing region during the forecast period. Rapid urban population growth, rising food demand, and limited farmland push cities to explore creative farming solutions. Small indoor farms and rooftop systems are spreading quickly in this region. Europe shows steady development driven by sustainability goals and environmental care, while South America adopts urban farming to improve food access in crowded cities. The Middle East & Africa region explores urban farming as a response to water scarcity and harsh climates, though growth remains moderate due to cost and infrastructure limits. Each region shapes the market in its own way, adding diversity to global urban farming practices.
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Latest Industry Developments:
- Broader Technology Adoption as a Trend: Companies in the Urban Farming Market are increasingly adopting advanced technologies as a trend to enhance market share. Farms are integrating AI, Internet of Things (IoT) sensors, and automation systems to monitor and control water use, light, and nutrient delivery, which improves crop yields and reduces manual labor. Smart systems help farms operate more efficiently and predict plant needs before issues arise, making production more reliable and resource-efficient. These technologies also allow urban farming operations to scale into new spaces such as containers and rooftops while keeping costs competitive, helping the overall market grow into new customer segments.
- Partnership and Ecosystem Expansion as a Trend: Another market trend shows urban farming entities forming partnerships across food supply chains and urban infrastructure networks. Urban farms are linking with retailers, restaurants, and online delivery services to secure stable demand for fresh produce while gaining broader visibility in city markets. Collaborations with real estate developers and smart city planners are enabling the integration of farming units into commercial and residential buildings, bringing produce closer to consumers. These partnerships help urban farms access new customers, share logistical resources, and create integrated food ecosystems that support rapid distribution and customer loyalty, increasing overall market penetration.
- Sustainability and Resource Efficiency as a Trend: Sustainability-driven practices have emerged as a strong trend driving competitive positioning in the Urban Farming Market. Farms are designing systems that reduce water consumption, lower energy use through efficient LED lighting, and incorporate renewable energy sources where possible. Many operations emphasize local, low-carbon production to appeal to environmentally conscious consumers. Sustainable methods such as waste recycling, closed-loop water systems, and organic practices also help farms maintain cost-effectiveness while aligning with broader climate goals. By highlighting eco-friendly credentials and reduced environmental impact, urban farms differentiate their offerings and strengthen market share with consumers seeking fresh, responsible food options.
