Japan Indoor Farming Market Insights Forecasts to 2033

• The Market is Growing at a CAGR of 10.23% from 2023 to 2033
• The Japan Indoor Farming Market Size is Expected to Hold a Significant Share by 2033

The Japan Indoor Farming Market Size is Anticipated to Hold a Significant Share by 2033, Growing at a CAGR of 10.23% from 2023 to 2033.

Market Overview

The process of growing crops indoors, usually in greenhouses or structures, is known as indoor farming. It makes use of several strategies to enhance production and optimize plant growth. An inventive kind of farming that has the potential to solve issues like shortages of resources and availability of food is indoor farming. There is a significant benefit to indoor farming over conventional techniques. Farmers may optimize plant growth by adjusting light, temperature, and nutrients in a controlled setting, which could result in significantly higher harvests. By doing this, they may also get beyond seasonal restrictions and produce fresh harvests all year long. Surprisingly, indoor farms use substantially less area and consume far less water. Furthermore, in Japan, consumers are looking for food that is locally grown, responsibly produced, and fresh. These needs can be perfectly met by Japanese indoor farms. No matter the season or climate, they can grow crops all year round in regulated conditions. Consequently, Japanese urban populations may now get fresh, locally farmed produce that is abundant in nutrients and flavour. The use of dangerous pesticides is also frequently decreased by indoor farming techniques, which is in line with Japanese consumers' growing desire for sustainable and safe food production practices.

Report Coverage

This research report categorizes the market for the Japan indoor farming market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan indoor farming market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan indoor farming market.

Driving Factors

Japan's market for indoor farming is growing rapidly as a result of the country's growing need for sustainable and effective farming practices to meet its rising food demands. Additionally, in a country with a scarcity of fertile land, indoor farming in Japan allows for year-round crop production, despite seasonal variations and inclement weather. Another factor propelling industry expansion in Japan is the government's support of innovative agricultural technologies and urban farming initiatives. Furthermore, Japanese developments in hydroponics, aeroponics, and LED lighting are increasing crop yields and resource efficiency, which makes indoor farming more feasible and appealing. In addition, the increasing demand for locally grown, fresh, and pesticide-free food in Japan is driving the country's adoption of indoor farming systems. Additionally, traditional farming is becoming less and less viable due to the numerous issues facing Japan's agriculture industry. The majority of crops grown in Japan are vegetables, which today occupy only 20% of the country's land area. In Japan, the amount of arable land is gradually declining as industrialization and urbanization encroach on agricultural areas. To optimize output and guarantee food security, creative methods like indoor farming are required due to the decrease in available farming space.

Restraining Factors

High initial investments result from the use of air conditioners and heaters to regulate the temperature rather than using natural air.

Market Segmentation

The Japan indoor farming market share is classified into facility type and growing mechanism.

• The vertical farms segment is expected to hold the largest market share through the forecast period.   

The Japan indoor farming market is segmented by facility type into greenhouses, vertical farms, and others. Among these, the vertical farms segment is expected to hold the largest market share through the forecast period. Advanced approaches, including controlled environment agriculture technology, which uses artificial surveillance of the environment, fertigation methods, and light management, are used in vertical farming to protect crops from harsh weather conditions.

• The hydroponics segment is expected to dominate the Japan indoor farming market during the forecast period.       

Based on the growing mechanism, the Japan indoor farming market is divided into aeroponics, hydroponics, and aquaponics. Among these, the hydroponics segment is expected to dominate the Japan indoor farming market during the forecast period. The inexpensive installation costs and simplicity of use of hydroponics make it a popular farming technique. In order for the plant to grow, a mineral solution is put around the roots of the plant in place of the soil.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan indoor farming market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Mirai
• Spread
• Chubu Electric Power
• ES-CON Japan
• Infarm
• Daio Wasabi Farm
• Kinokuniya
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In May 2023, the Kyoto-based firm Spread Co., Ltd. has sold more than 100 million servings of its Vegetus brand of indoor leaf lettuce. Vegetus, created on the company's "Sustainable Vegetable" idea, provides environmentally friendly, wholesome, and nutrient-dense lettuce. With an emphasis on indoor hydroponic farming for pesticide-free, naturally tasting lettuce, the company has consistently innovated cultivation technologies and operational enhancements. Additionally, Spread has introduced eco-friendly goods including "Chigiri" and "Stick Lettuce."

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Japan Indoor Farming Market based on the below-mentioned segments:

Japan Indoor Farming Market, By Facility Type

• Greenhouses
• Vertical Farms
• Others

Japan Indoor Farming Market, By Growing Mechanism

• Aeroponics
• Hydroponics
• Aquaponics