More Consolidation - Are We Reaching a Level Playingfield?

Indoor Farming in Transition: M&A, Funding Pressures, and the Push for Efficiency Heading Into Q4 2025

Hello Indoor Farmer Readers! We have almost reached Q4 in 2025, and the post-summer conference season has officially kicked off again. Is there a future for Vertical Farming? According to Rick Schneiders from Siemens there is! This year, we have seen more indoor farms and turnkey providers going out of business, as well as a wave of M&A activities. Fueled with new investments and a dramatic rise in debt and private equity funding, the strongest operators are prioritizing efficiency, technology moats, and new crop portfolios—while those unable to adapt are shuttering operations. Is a level playing field finally in sight for indoor ag? While the days of easy funding are gone, the combination of consumer demand for fresher, healthier foods and mounting food security pressures keeps industry optimism alive—if tempered by the lessons learned thus far.

When we zoom out, it becomes clear that the industry conversation often feels like a patchwork of headlines—funding wins, partnerships announced, or another closure making the rounds. What’s missing is a common methodology that helps us put these movements into context and understand their true weight. The graphs below offer a snapshot of recent trends in funding, partnerships, and M&A, but more than numbers, they remind us how much clarity the sector still needs to separate lasting signals from short-term noise.

What happened in the world of Indoor Farming

LI-COR Launches New HOBO® Data Loggers for Precision Environmental Monitoring - LI-COR’s new HOBO® Data Loggers offer growers advanced precision environmental monitoring, empowering indoor farms to optimize conditions with real-time data for better crop outcomes and resource efficiency.

Nature Fresh Farms Partners with Revol Greens to Enter Greenhouse-Grown Leafy Greens Market - This strategic partnership marks Nature Fresh Farms’ bold entry into greenhouse-grown leafy greens, demonstrating a growing trend of collaboration to scale sustainable production with quality and efficiency.

Moleaer Partners with Xylem to Scale Nanobubble Technology for Wastewater Treatment - Moleaer and Xylem are joining forces to expand the adoption of nanobubble technology, enhancing wastewater treatment solutions that support sustainable water management for large indoor and vertical farms.

NY Sun Works Partners with Birmingham City Schools to Launch Hydroponic Classrooms - NY Sun Works is empowering the next generation of growers by bringing hydroponic classroom programs to Birmingham City Schools, linking education with hands-on sustainable farming innovations.

Nasekomo Hits Insect Reproduction Milestone - Nasekomo has reached a milestone in Black Soldier Fly (BSF) reproduction, producing ~25g of eggs per cubic meter per day. This output makes the company’s technology suitable for mid- to large-scale insect farming operations. The achievement stems from advances in genetics (via its FlyGenetics program), biology, and industrial process design at its “MultiFly” Multiplication Center. It follows progress made in Nasekomo’s automated vertical rearing platform earlier in 2025.

New in Startups

The AgTech industry has surpassed a new milestone with over $1 billion in funding this year. Innovations are speeding up across the board, fueling the scale-up of robotic organic farms and AI-driven growing platforms. Here is what happened in the world of startups particularly in Indoor Farming:

NeoFarm Raises €30M to Scale Robotic Organic Farms Across Europe - Accelerating their robotic organic farm rollout, solidifying their vision to revolutionise European farming through automation and sustainability.

Singrow Raises $4.5 Million Series A For Expansion - Singrow is fueling expansion with fresh capital, focusing on delivering smarter indoor farming solutions and new crop portfolios that meet rising demand.

INNOFarms.AI Launches GrowSmartRobotics at GVF 2025 Dubai - A cutting-edge platform leveraging AI and robotics for plant health and precision harvesting, showcased at the landmark Global Vertical Farming Show Dubai.

Charlie Guy Outlines LettUs Grow’s Shift To Greenhouse Partnerships & Advanced Aeroponics - A strategic pivot toward greenhouse partnerships and aeroponic technology as they seek higher yields and wider market penetration.

Conference Season Resumed - Meeting points for the Industry

Global Vertical Farming Show in Dubai: The 6th Global Vertical Farming Show (GVF) 2025 Dubai took place under the patronage of the UAE’s Ministry of Climate Change and Environment, with participation from international and regional stakeholders.

  • Exhibitors presented technologies in lighting, hydroponics, automation, AI, and turnkey farm systems.

  • INNOFarms.AI introduced its new GrowSmartRobotics platform, designed for controlled-environment agriculture, greenhouses, and orchards.

  • Conference discussions addressed profitability, scalability, policy support, and competitive pressures from imported produce.

  • Regional investment analysis highlighted a gap between outbound capital flows and funding directed to MENA-based startups.

CEA Summit East in Virginia: Indoor Ag-Con and the Controlled Environment Agriculture (CEA) Innovation Center — a joint project with Virginia Tech’s School of Plant and Environmental Sciences, the Institute for Advanced Learning and Research (IALR), and the Virginia Seafood Agricultural Research and Extension Center

  • CEA East is very much a farm-first conference with a focus on production, profitability, and what really works on the ground.

  • Simple insights can drive big results: Success often comes from doing the basics really well.

  • Sessions like the one on plant breeding and variety selection highlighted how aligning genetics with production goals can unlock consistency, quality, and efficiency for growers.

  • The trade show leaned educational, creating a great space to learn, ask questions, and walk away with actionable ideas.

Dinner With The FoodPreneurs Collective in Dubai

Dinner Co-Organized With The FoodPreneurs Collective in Dubai: We were delighted to co-organize a wonderful dinner with FoodPreneurs at Culinera Dubai. A special thank you to Sascha Dutta, Tammy Ho, and Jamal Maxey for helping make the evening possible.

It was inspiring to see so many new and familiar faces come together for great food and conversations. We enjoyed connecting with Lorenzo Hernández Duarte, David Selakovic, Balazs L., Chadha Ben Mahmoud, Lukas Verner, Sylvain Perret, Theoharis Ouzounis, and Tristan Fischer, among many others.

Events like this remind us of the strength and creativity of our community in Dubai and beyond. To be invited to future in-person gatherings we’ll be organizing, you can join the iGrow Network at network.igrownews.com.

VertiFarm in Munich: 9th AVF Vertical Farming Summit 2025: A Platform for Collaboration and Inspiration

  • Global and political recognition: Keynotes from UNEP Copenhagen Climate Centre and Bavarian Minister Hubert Aiwanger highlighted the global relevance of Vertical Farming (VF) and political support for integrating innovative concepts into existing agricultural systems.

  • Diversity and inclusion focus: The Women in AgTech Panel underscored the importance of gender equality as a driver of innovation, with the audience’s strong engagement reinforcing the need for visibility and inclusion.

  • Collaboration and innovation pathways: Dialogue between science and industry emphasized cooperation, with concrete proposals like energy alliances between farms to stabilize costs and strengthen resilience.

  • Urban food systems and future roadmap: Pillar IV discussions stressed the central role of cities in implementing VF, calling for a joint White Paper to embed the sector into urban climate and food strategies, while the Startup Challenge showcased the sector’s creativity and disruptive ideas.

Future Food Forum 2025: UAE Food Cluster Vision and Industry Growth

  • National food cluster strategy: H.E. Abdullah bin Touq, Minister of Economy & Tourism, outlined ambitious targets to reduce food import dependency, create 20,000 jobs, and add $10 billion to GDP through the UAE food cluster.

  • Public–private collaboration: Saleh Lootah, Chairman of the UAE Food & Beverage Business Group, emphasized long-term efforts to align government and private sector stakeholders under one unified growth agenda.

  • Entrepreneurship and SME growth: HE Najla Al Midfa, Vice Chair and Managing Director of the Emirates Growth Fund, highlighted growth equity’s role in scaling SMEs, bridging financing gaps, and positioning UAE-based companies as global champions.

  • Franchising as a growth engine: H.E. Noor Altamimi, Chairwoman of the Emirates Franchise Association, positioned franchising as a tool for innovation and scale, building UAE’s role as both a global destination and launchpad for food brands.

  • Logistics and resilience: Abdulla Al Hashmi, COO of DP World GCC Parks & Zones, addressed global supply chain challenges, stressing the UAE’s role as a secure trade gateway supported by advanced logistics and technology.

  • Consumer trends and future outlook: Ghassan Aboud, Chairman of Ghassan Aboud Holding, shared insights on changing consumer behaviors, the rapid rise of e-commerce in UAE food and beverage, and new opportunities driven by Gen Z demand and hyper-personalization.

Readworthy:

Jobs & Opportunities in the Industry

How Would You Rate This Newsletter?

Login or Subscribe to participate in polls.

Conclusion

We’ve nearly reached Q4 of 2025—a milestone in a year marked by dramatic change for our sector. Post-summer, the conference season reveals an industry in transition: major vertical farms and solution providers have exited or been absorbed, and M&A activity is the new norm. While many have faced tough realities—closures, bankruptcies, and shrinking funding—there’s a palpable sense of renewal among the survivors. Established players are consolidating scale, while innovators are doubling down on product diversification, efficiency, and technology. Resilient operators are leveraging new business models and capitalizing on global food security and sustainability trends.

The good news? As more players push for transparency and better benchmarking tools, the path toward a shared, data-driven understanding of our industry is finally beginning to take shape. We’re not at a true level playing field yet—the sector is still in the thick of market consolidation—but the momentum is building. Step by step, the groundwork is being laid for a more stable, competitive, and opportunity-rich future for controlled environment agriculture.

Special Thanks to Our Directory Members

Not listed yet? Add your company to the directory and start getting noticed!

Reply

or to participate.