Saudi Arabia Indoor Farming Market Forecasts from 2023 to 2028

Dublin, Feb. 14, 2024 (GLOBE NEWSWIRE) -- The "Saudi Arabia Indoor Farming Market Forecasts from 2023 to 2028" report has been added to * ResearchAndMarkets.com's* offering.

The Saudi Arabia Indoor Farming market is projected to witness a compound annual growth rate of 13.22%, thereby reaching a market size of US$245.049 million by 2028, from US$102.776 million in 2021.

The expansion of the use of contemporary tools and technology in farming methods is the key factor responsible for Saudi Arabia's Indoor Farming market growth. In a vertical farming configuration, the farmers optimize temperature, nutrients, humidity, and light to improve crop production quality and yield while using less water and space.

*Growing government initiatives*

Agriculture is one of the major economic areas that will be reshaped and upgraded as part of the Saudi Vision 2030. The Saudi government is concentrating on lowering the imports of fruits and vegetables, which is expected to spur the growth of the Saudi Arabian vertical farming market in the coming years by providing benefits like tax exemptions, subsidies, and other advantages to promote the adoption of vertical farming practices.

Between 2021 and 2025, the Saudi Arabian Agricultural Development Fund plans to invest over $ 220 million (SAR 825 million) in high-tech greenhouses. Up to 70% of the capital costs for these projects will be covered by the fund which will fuel the Saudi Arabia Indoor Farming market. Saudi Arabia is also picking up ideas from other nations' vertical farming and agricultural technology experiences. For instance, in January 2023, a Saudi-Japanese Virtual Forum for Agricultural Technology was conducted to throw light on new technological adoption for farming.

*Rising organic cultivation in Saudi Arabia*

According to the data published by the Saudi Arabia General Authority of Statistics, the production of organic cultivation for crops surged from 98, 559 tonnes in 2020 to 98, 775 tonnes in the year 2021. This growth is mainly fueled by the various product innovations by major Saudi Arabia Indoor Farming industry players in the country. For instance, The PIF and New Jersey-based AeroFarms announced that the first farm, in Saudi Arabia, is anticipated to be the biggest in the Mena area, with an annual production of up to 1.1 million kilograms of crops utilizing unique agricultural technology.

*Increasing demand for pesticide-free production*

The 2021 Alpen Capital GCC Food Industry report sheds light on the surging demand for top-tier, pesticide-free fresh produce in Saudi Arabia. This upswing is primarily steered by the escalating awareness surrounding healthy dietary patterns and the populace's well-being. Furthermore, the burgeoning premium tourism sectors and affluent expat communities are also amplifying this trajectory. The Estidamah Center highlights an escalating appetite for high-caliber agricultural goods available year-round, unburdened by pesticides.

*Rising adoption of vertical farming*

While Saudi Arabia's agriculture sector is just beginning to embrace vertical farming technologies, the nation has only seen a handful of operational indoor vertical farms. A noteworthy instance is the Bather Smart Farm, which employs iFarm Leafy Greens technology to cultivate lettuce and microgreens. Launched in October 2022, the farm spans over 2, 000 square meters, boasting a potential monthly yield of 16 tons. The domestically cultivated produce caters to local markets, reaping advantages by trimming long logistics chains, especially crucial for maintaining the freshness essential to leafy greens' flavor. This paradigm shift has found resonance in high-end dining establishments and luxury hotels that understand the intrinsic worth of fresh produce and are willing to pay a premium for it further fueling the Saudi Arabia Indoor Farming market growth.

*Decrease in arable lands in the nation*

As reflected by the World Bank data, the limited availability of arable land propels the adoption of indoor farming, especially given the Kingdom's remarkable transformation of desert into cultivable land over the past six decades. Despite this expansion, the agricultural land's stagnancy, hovering around 80.75% of the total land area since 2017, underlines the challenge posed by limited land resources. One key driver is the resolute need for enhanced self-sufficiency in food production and processing, along with the imperative to diversify imports. This impetus has prompted substantial investments in AgTech, notably exemplified by the Agricultural Development Fund's plan to allocate approximately $220 million (SAR 825 million) towards advanced greenhouses between 2021 and 2025. The fund's support, covering up to 70% of capital expenses and offering a two-year profit demonstration moratorium, underscores the government's dedication to modernizing the agricultural landscape.

*Growth in water scarcity in the region*

Water scarcity, a prominent challenge in Saudi Arabia, stands as another catalyst for the growth of vertical farming. With hydroponics requiring a mere 10% of the water used in conventional farming, it serves as a sustainable solution within a water-constrained environment. Dr Abdulrahman Al Ibrahim, advisor to the HRH Minister of Energy, emphasizes the urgency of water conservation and modern agricultural technologies to enhance productivity while rationalizing water use.

*Market Key Developments*

· In February 2023, the Saudi Public Investment Fund revealed a revolutionary vertical farming proposal, a modern urban concept for growing crops in vertically stacked indoor spaces. A joint venture between the Saudi Arabian sovereign wealth fund and the US business AeroFarms will enable the construction of vertical farms in Saudi Arabia and other Middle Eastern and North African nations.· In November 2022, Kolon Global collaborated with the Saudi Arabian food trading company Faidh International Food Company and the South Korean smart farm startup Ollefarm to construct the smart farm infrastructure for strawberries in Saudi Arabia.

*Segmentation:*
*
By Growing System*

· Hydroponics
· Aeroponics
· Aquaponics
· Soil-Based
· Hybrid

*By Component*

· Hardware
· Software
· Services

*By Facility Type*

· Glass or Poly Greenhouse
· Indoor Vertical Farm
· Container Farm
· Indoor DWC System

*By Crop Type*

· Fruits and Vegetables
· Herbs and Microgreens
· Flowers and Ornamentals
· Others

*Key Attributes:*

*Report Attribute* *Details*
No. of Pages 85
Forecast Period 2021 - 2028
Estimated Market Value (USD) in 2021 $102.78 Million
Forecasted Market Value (USD) by 2028 $245.05 Million
Compound Annual Growth Rate 13.2%
Regions Covered Saudi Arabia

*Companies Mentioned*

· Mishkat
· Mowreq
· Astra Industrial Group
· iFarm
· Red Sea Farms

For more information about this report visit https://www.researchandmarkets.com/r/sgc82k

*About ResearchAndMarkets.com*
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*Attachment*

· Saudi Arabian Indoor Farming Market

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