High-tech leafy green indoor farming is facing a moment of reckoning. Over the last six years, the industry has gone from a dollar magnet to a graveyard for some hundreds of millions of dollars’ worth of failed businesses, leaving many barely standing.
Report summary
Post-mortem forensics show that self-inflicted wounds, systemic risks, competition with conventional agriculture, and untimely demand-related trends are the main factors behind the recent setbacks. In light of this, we emphasize recommendations for a less risky and more successful business model.
Industry experts, however, remain somewhat bullish and ‘long’ on high-tech leafy green indoor farming, particularly in the greenhouse segment. The current correction is viewed as a healthy shake-up that will eventually make the industry much more resilient.
There are still many bright spots for the future of indoor pre-packaged leafy green products. Demand for indoor-grown pre-packaged leafy greens will recover as inflation subsides. In addition, many successful farms offer other incumbents and new entrants hard-learned lessons about what to do and what not to do to be successful.
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