Can Indoor Agriculture Finally Scale Up?

Consolidation and fresh capital push indoor farming toward the mainstream while high energy costs still loom

13 Nov 2025

Vertical farming, long a niche in US agriculture, is entering a more assertive phase as operators seek scale and steadier cost structures. The shift became clearer after 80 Acres Farms said it would merge with Soli Organic, a move designed to combine distribution networks and strengthen ties with large retailers. The deal also sets up a new contest for national reach in controlled indoor growing.

Other companies are exploring acquisitions of their own. Analysts say the pace of consolidation reflects expectations of sustained demand rather than another cycle of optimism and retreat. Several executives argue that indoor agriculture is moving from a technical experiment to a reliable source of salad greens and herbs.

Policy discussions are also gaining ground. While federal rules have not yet been updated, local authorities are adjusting zoning codes and building standards to accommodate large indoor facilities. Supporters view these steps as early recognition that controlled-environment farms may help cities meet energy targets, improve food safety and provide more stable supplies during volatile seasons.

Consumers are beginning to see the change on shelves. Produce from Plenty, 80 Acres and other growers is appearing more often in national supermarket chains. These partnerships remain selective, but they point to a model based on shorter transport routes and products marketed as locally grown.

Challenges remain significant. Energy consumption continues to weigh on margins, and regulatory frameworks differ sharply by state and municipality. Competition is increasing as new entrants seek to capture retailer contracts. Investors warn that the industry’s long-term viability depends on reducing production costs and cutting energy use to a fraction of total operating budgets.

Even so, the combination of new investment, consolidation and rising attention from local governments suggests the sector is nearing a turning point. If operators succeed in lowering power costs and standardising operations, indoor farming may shift from the edge of the market to a more regular presence in US grocery aisles.