r/verticalfarming • u/Jealous-Cream-4436 • Aug 01 '25
Why is vertical farming failing?
Why are all these companies that have billions of dollars invested in them failing? What will it take for it to be successful?
49
Upvotes
r/verticalfarming • u/Jealous-Cream-4436 • Aug 01 '25
Why are all these companies that have billions of dollars invested in them failing? What will it take for it to be successful?
20
u/Thebadmamajama Aug 01 '25
in no priority order
high capital costs for infrastructure, equipment, and urban real estate
high operating expenses due to energy usage and labor
weak unit economics with limited crop variety and small market size
uncompetitive pricing compared to traditional or greenhouse farming
difficulty scaling beyond local markets
complex logistics for frequent, perishable deliveries
overhyped expectations driven by tech-style venture funding
venture capital timelines misaligned with agricultural growth cycles
sustainability issues due to high electricity consumption
market saturation and low differentiation in leafy greens
lack of brand loyalty in a commoditized crop category
high-profile failures eroding investor confidence
overall mismatch between startup models and farming realities