Can vertical farming overcome its growing pains? | FT Rethink

Industry Overview - Vertical farming has experienced a boom but also faced difficulties [1] - Over $6 billion was invested in vertical farming startups in the past decade [1] - The global market is expected to more than treble from around $8 billion in 2023 to about $25 billion in 2030 [4] Funding and Financial Challenges - Funding dropped significantly from over $2 billion in 2021 to around $280 million last year [2] - Major players like Barry Farming and App Harvest have collapsed [2] - High energy costs for LED lighting and ventilation are a major problem [2] - Higher interest rates have made financing more expensive [2] Challenges and Obstacles - Shortage of skilled labor is a contributing factor to the industry's struggles [3] - Secrecy around technology has hindered learning from mistakes [3] - More arable land is being used for biofuels, and soil degradation is a problem [5] - Crops are under pressure from climate change, and water scarcity is an issue [5] Future Prospects and Opportunities - Environmental, economic, and structural reasons could fuel demand for vertical farms [4][5] - Concerns about food security may drive the need to bring food sources closer to home [6] - Advances in AI could significantly improve the efficiency of vertical farms [6] - Vertical farming's potential is greater in areas like Singapore, which only grows 6% of its own produce [7]