Indoor framing can be defined as the practice of growing plants in soilless environments, using technologies such as aquaponics, hydroponics, and aeroponics, or it can refer to controlled-environment agriculture, which focuses on maximizing plant growth. An indoor farm commonly consists of shallow trays piled inside a structure and illuminated by LED lights on each level. These farms have to provide everything, including water, fertilisers, sunlight, and perhaps pollinators and pest control as well. Others may be constructed in enormous greenhouses to maximise the Sun's heat and light while also managing other inputs like fertiliser and water.
There is an expansion in food demand due to Argentina’s dramatically growing population, and the need to create a reliable and secure food supply is driving increased demand for indoor farming in the country. For instance, according to official data, Argentina's population was projected to reach 46 million as of 1 January 2023. This is an increase of 1.04% over the 45 million population from the previous year. A decrease in the production of staple food crops such as wheat, and rice due to unfavourable weather conditions is also propelling demand for indoor farming practices. For instance, according to Bolsa de Cereales de Buenos Aires data, the wheat production in Argentina was 12.4 million metric tons in 2022 which is a 36 per cent decrease from the last 5 years' average production. Inferior yields have resulted from late-season frosts and minimal rainfall throughout the growing season in the main wheat-producing areas.
Conventional agriculture is becoming less and less feasible as water and land become scarcer. As a result demand for indoor farming in Argentina is increasing as a result of its capacity to produce more food with fewer resources. For instance, World Bank data shows that Argentina’s proportion of agricultural land decreased from 41.7% in 2017 to 39.6% in 2020.
The ability to optimize the growth process for greater yields is indoor farming's largest benefit. All of the risks associated with growing outside, like floods, storms, pest infestations, and droughts, are eliminated in indoor farming practices. Instead, producers have total control over every aspect of their operations, even down to how much light plants receive on a minute-by-minute basis.
However, the high cost associated with indoor farming techniques, lack of knowledge, and skilled manpower are some of the factors that will hinder the growth of the indoor farming market in Argentina.
Various government initiatives is also spurring the adoption of indoor farming practices during the projection period.
In October 2019, an agricultural group in Argentina worked with Asociacion de Cooperativas Argentinas which uses digital agriculture to grow food more effectively, economically, and sustainably to address issues including resource scarcity, rising food demand, and growing population. ACA also has a broad network of industrial and small-holder farmers. Because of this, Argentina is the ideal location for testing new technologies that will alter the country's agricultural economy such as indoor farming.
Market Key Developments
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Growth Rate | CAGR during the forecast period |
| Base Year | 2021 |
| Forecast Period | 2023 – 2028 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered | Growing System, Component, Facility Type, And Crop Type |
| Companies Covered | Microgreens Argentina, Corteva Agriscience, UPL, Kilimo, ADBlick Agro |
| Customization Scope | Free report customization with purchase |
Segmentation: