Vertical Farms Regroup as Retailers Hold Course

A sector reset pushes vertical growers and retailers toward efficiency and smarter crop bets

18 Nov 2025

Vertical farming in the US is entering a more restrained phase as operators respond to higher costs, slower returns and pressure to demonstrate viable production models. The recent reset at Plenty, a leading indoor grower backed by Walmart, reflects the sector’s adjustment after several years of rapid expansion.

Walmart invested in Plenty in 2022, drawn by the prospect of pesticide-free greens produced close to stores and delivered with consistent quality. The partnership became an early example of how technology-driven farms might reshape supermarket supply chains.

The economics proved more demanding. Plenty filed for Chapter 11 in March 2025 after construction expenses rose, energy bills increased and expected returns fell short. Its difficulties followed restructurings at other operators, including AeroFarms, as the industry confronted heavy capital requirements and a prolonged path to profitability.

Plenty emerged from bankruptcy in May with a narrower focus on higher-margin crops such as strawberries. The shift mirrors a wider move toward smaller product ranges and stricter financial discipline. Analysts argue the transition indicates a maturing market in which growers are judged on both technical performance and operating stability.

Throughout the turbulence, Walmart has maintained support for vertically grown produce, signalling continued interest in indoor agriculture that can offer fresher supply, reduced exposure to weather and more predictable volumes for retailers.

The sector now faces a period marked by cautious expansion, greater emphasis on efficient systems and partnerships anchored in proven results. While challenges remain, many specialists still expect indoor farming to play a meaningful role in future US food production.