With the global population continuing to expand, the world will need to double its food supply over the next three decades. That's a daunting task, especially as arable land for farming shrinks due to climate change, urban sprawl, and soil destruction. At the current pace, farmable land could fall 50% by 2050, making an already daunting challenge even tougher.
Since it's become more challenging to find additional farmland to meet our growing food needs, farmers are starting to go vertical. Here's a closer look at some of the agricultural companies focused on vertical farming.
Top stocks
Top vertical farming stocks in 2025
Vertical farming isn't a new technique. However, it's an emerging sector for those seeking more sustainable investments. There aren't too many publicly traded companies focused on the space yet, especially since a couple of notable ones have gone bankrupt in recent years. Here are some top options for investors to consider:
| Vertical Farming Stock | Ticker Symbol | Market Cap | Company Description |
|---|---|---|---|
| Local Bounti | (NYSE:LOCL) | $19.7 million | The controlled environment agriculture company uses a hybrid of vertical farming and hydroponic greenhouse farming called Stack & Flow Technology. |
| Village Farms International | (NASDAQ:VFF) | $89.9 million | A pioneer in controlled environment agriculture. |
| Hydrofarm Group | (NASDAQ:HYFM) | $30.2 million | A major manufacturer and distributor of controlled environment agriculture equipment and supplies. |
These are very small companies, which makes them highly risky. That disclaimer aside, here's a closer look at some of these indoor vertical farming stocks.
Local Bounti
1. Local Bounti
Local Bounti is a controlled environment agriculture company. It utilizes its patented Stack & Flow Technology, which is a hybrid of vertical farming and hydroponic greenhouse farming. The company uses this process to grow healthy food sustainably and affordably. Its technique uses 90% less water and 90% less land than traditional farming methods.
The company grows living lettuce, herbs, and loose-leaf lettuce. It has six operational facilities and sells 27 retail products through more than 13,000 retail partners. The company is investing heavily in expanding its capacity and innovation. It has launched several new products, including spinach, arugula, and grab-and-go salad kits. Those investments have expanded the company's total addressable market opportunity to more than $75 billion.
Village Farms
2. Village Farms
Village Farms International pioneered controlled environment agriculture in North America more than 30 years ago. The company is leveraging its experience to expand into new markets, with a focus on cannabinoid and related health and wellness markets.
Today, Village Farms grows produce on more than 200 acres across the U.S. and Canada. It also has producing partners in Canada and Mexico and owns produce distribution centers in Canada and Texas. The company sells its produce under the Village Fresh Farms brand. In addition to growing fresh produce, Village Farms also grows botanicals to produce cannabinoids for the recreational, medical, and health and wellness markets in the U.S., Canada, and the Netherlands.
Hydrofarm Holdings
3. Hydrofarm Holdings
Hydrofarm Holdings manufactures and distributes hydroponic equipment and supplies for the controlled environment agriculture market, which includes vertical farming. The company's products include high-intensity grow lights, climate control solutions, grow media, and nutrients. It focuses on the wholesale market, distributing its products to retailers from six centers in the U.S., two in Canada, and one in Europe.
The company has been actively expanding its portfolio by acquiring companies that manufacture complementary products. Hydrofarm Holdings aims to use its growing scale and financial strength to consolidate the highly fragmented controlled environment agriculture equipment and supply segment. That strategy positions it to gain market share while it helps supply the fast-growing vertical farming market with the materials to keep expanding food production.
However, like many in the vertical farming sector, Hydrofarm Holdings has fallen on hard times in recent years. Its sales slumped in 2024, which forced the company to restructure by cutting costs. It also shifted its focus to selling its higher-margin proprietary brands. Those moves enabled it to narrow its losses steadily and put it on track to grow over the long term.
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Vertical farming stocks have a lot of promise (and risks)
Vertical farming could play a crucial role in helping to meet the world's growing demand for food, especially given the challenges of shrinking farmable acres. That sets investors up for a lot of growth as companies like Local Bounti and Village Farms expand their farming operations. The expected growth will also benefit equipment and supply makers like Hydrofarm Holdings. That makes these stocks interesting options for investors looking to get into this fast-growing space.
However, the sector is also quite risky. A couple of notable vertical farming stocks have declared bankruptcy in recent years due to unsustainable financials. Investors need to tread carefully when considering vertical farming stocks.
Vertical farming investment FAQ
Are any vertical farms publicly traded?
Most of the top vertical farms are private companies. Meanwhile, many of the largest publicly traded vertical farms have gone bankrupt. However, there are a few public companies capitalizing on the vertical farm trend, including Local Bounti, Village Farms, and Hydrofarm Holdings.
Can you invest in vertical farming?
You can invest in vertical farming. However, there aren't currently many pure-play vertical farming stocks since most have either gone bankrupt or are still private companies. There are a few publicly traded options, including Local Bounti, Hydrofarm Holdings, and Village Farms, which are very small and risky companies that don't all focus on vertical farming.
What is the biggest company in vertical farming?
AeroFarms is the world's largest vertical farming company. It operates one of the largest indoor vertical farms in the world. Financial struggles forced the company to file for bankruptcy a few years ago. However, it emerged in late 2023 with a new focus on driving profitability.
Can vertical farming be profitable?
Vertical farming can be profitable. However, many vertical farming companies aren't profitable because they're spending heavily to expand their operations, including building new vertical farms.
