Key Takeaways
- Fourteen indoor farming and CEA-related bankruptcies were recorded in 2025, many involving well-capitalized companies.
- Vertical farming operators accounted for the majority of failures, reflecting structural pressure from high CAPEX models.
- Several failed companies had raised tens to hundreds of millions of dollars prior to insolvency.
- Greenhouse technology providers and growers were also affected, though to a lesser extent.
- The wave of bankruptcies coincided with increased consolidation and asset acquisitions across the sector.
Indoor Farming Bankruptcies in 2025: A Concentration of Failures in Vertical Farming
Indoor farming bankruptcies in 2025 highlighted a period of market correction across the controlled-environment agriculture (CEA) sector. According to data from the Indoor Farming Trends in 2025 report, 14 bankruptcies were recorded during the year, with vertical farming companies representing the largest share of insolvencies.
Notably, these failures were not confined to early-stage startups. Several companies that ceased operations had previously raised significant venture capital, underscoring the financial challenges associated with scaling indoor farming models in a tighter capital environment.
Among the most highly funded companies to fail were Plenty in the United States, which had raised approximately $1.19 billion, Eden Green Technology, Freight Farms, AeroFarms, and Vertical Future in the United Kingdom. Combined historical funding across all failed companies exceeded an estimated $1.37 billion.
