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Japan Vertical Farming Market Research Report, 2027

Japan Vertical Farming Market Research Report, 2027

Actual Market Research 27-07-2022 58 Pages Figures : 8 Tables : 15 Region : Asia-Pacific Country : Japan Category : Food & Beverages Agriculture

Growing green crops inside stacked layers or other vertical structures are known as vertical farming. These methods enable year-round food production in constrained areas devoid of soil and natural light. About 1% of the GDP of Japan is attributable to the agriculture industry. Even though just 20% of the island nation's land area is suitable for cultivation, it is intensively cultivated, with rice paddies and fields taking up most of the surrounding countryside. One of the initial adopters of vertical farming was Japan. In Japan, where traditional agriculture is declining due to an aging population and rural emigration, vertical farming has emerged out of need. Vertical farming has revolutionized how Japan addresses the growing population and energy concerns. This is an entirely new and different approach to agriculture. A vertical farm uses organic growing methods like hydroponic, aeroponic, or aquaponics, so there won't be any pesticides or synthetic fertilizers to contaminate the waterways. Traditional agriculture often necessitates exacting temperature, precipitation, and light growth conditions. The natural environment greatly influences the flavor and productivity of vegetables. On the other hand, based on scientific evidence, vegetables in a vertical farm may grow in a tightly regulated sanitary laboratory without influencing the environment.

According to Actual Market Research’s (AMR) report titled "Japan Vertical Farming Market Overview, 2027," the vertical farming market in Japan is expected to grow with a CAGR of 27% from 2022 to 2027. Japan leads the Asia-Pacific vertical farming market with a major market share. It is one of the fastest-growing countries in the vertical farming market. Japan introduced a new concept to the world called "vegetable factories," which is expanding from Japan to the world. Japan in 2021 will have 390 vertical vegetable farms, or "factories," up from 93 in February of 2011. This boom in technology has boosted the capabilities of vertical farms. The rise in vertical farming operations for vegetables in Japan is attributed to automation and artificial intelligence (AI) developments. Techniques for indoor farming and controlled-environment agriculture (CEA) technologies are used in vertical farming concepts to manage all environmental elements. These facilities use artificial lighting, fertilization, and environmental control. 

More than any other country in the world, Japan boasts at least 150 hydroponic plant factories producing food in climate-and humidity-controlled structures with fluorescent lighting. Japan has been able to increase its output of fruits and vegetables through the use of vertical farming in buildings and shipping containers. In Japan, a CAGR of roughly 29% is anticipated for vertical agriculture based on shipping containers. To ensure that crops may thrive without agronomic restrictions, Japan's vertical farming system integrates many technologies, including big data analytics, robots, the internet of things, artificial intelligence, etc. Japan uses hydroponic, aquaponic, and aeroponic methods for vertical farming. Plants receive physical support from growing media such as clay pellets, perlite, coconut coir, rock wool, oasis cubes, and other hydroponics components. The hydroponics components market size is around 80 million USD, growing at more than 25% CAGR. Japan is adopting the fastest growing technology for vertical farming, which is aeroponics. Technology is also impacting the country by reaching an approximate 85 million dollar market size in a shorter period. Japanese companies collaborate to build a vertical farm that can produce more crops per day. Chubu Electric Power Co., Inc., and ES-CON Japan Ltd. have signed an investment agreement to build and operate vertical farms as part of the formation of TSUNAGU Community Farm LLC.

The COVID-19 situation in Japan is not as serious as it is in other nations. Its economy, however, has also sustained serious harm. In 2020, Japan's GDP shrank by 4.7 percent. The government's borrowing has grown as a result of three additional budgets to pay for anti-crisis initiatives. As a consequence, the percentage of borrowings increased to 64.1%, a large increase over the global financial crisis year of 2009 (52.1%). For the first time in 11 years, unemployment grew, and the pandemic negatively impacted public catering, tourism, and the automobile industries.

As a result of the COVID-19 pandemic, food service sales in Japan at restaurants and hotels have plummeted, while retail sales at supermarkets have increased. This is because schools have closed, travel has ceased, and public outings have decreased due to official requests that people stay at home. Small-to-medium-sized importers, wholesalers, and distributors that provide cafeterias at work, hotels, department shops, and restaurants are suffering from the shift in consumer spending. Imports have been slightly impacted by global shipping delays, decreased air cargo capacity, and rising cargo prices. Still, the Ministry of Agriculture, Forestry, and Fisheries (MAFF) claim that the country's food supply is safe.

Considered in this report
• Geography: Japan
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• Japan Vertical Farming Market with its value and forecast along with its segments
• Application-wise vertical farming distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Based on Growth Mechanism:
• Hydroponics
• Aeroponics
• Aquaponics

Based on structure type:
• Building based-vertical farming
• Shipping Container based-vertical farming

Based on hydroponics components:
• Lighting
• Climate Control (HVAC)
• Sensors
• Other Hydroponic Components

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agricultural industry, food & beverage industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.


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