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.
Capital Intensity and Profitability Pressures
A recurring theme across indoor farming failures in 2025 was capital intensity. Large-scale vertical farming operations often require substantial upfront investment in infrastructure, lighting, climate systems, and automation. When projected volumes or pricing failed to materialize, cash runways shortened rapidly.
The report also identified what it described as “silent bankruptcies,” referring to companies that either exited with limited public visibility or would likely have filed for insolvency had they not been acquired prior to collapse. These cases further illustrate the financial fragility of some business models within the sector.
Impact Beyond Vertical Farming Operators
While vertical farming accounted for most of the indoor farming bankruptcies, other segments were also affected. Greenhouse technology providers such as CE-Line and CleanGreens Solutions entered insolvency despite prior investor backing, signaling commercial scaling challenges for certain hardware and automation vendors. Greenhouse growers were not immune either, with Bushel Boy Farms exiting operations amid rising operational costs.
Industry participants continue to emphasize the link between integration and economic outcomes. Michael Taylor of The Blackmore Company, speaking in the context of greenhouse system integration, noted that improved operational design enabled the company to “cut labor in half — and at the same time increase the proportion of healthy, packable trees,” directly influencing cost structures.
Consolidation Follows Insolvency
The wave of indoor farming bankruptcies in 2025 coincided with increased merger and acquisition activity, as stronger players acquired distressed assets or absorbed failed operations. According to the report, this consolidation reflects a broader shift from expansion toward rationalization, with companies focusing on operational efficiency and technology integration.
Access the Full Analysis of Indoor Farming Bankruptcies In 2025
This article summarizes selected findings on indoor farming failures from the Indoor Farming Trends in 2025 report. The full report includes detailed company-level data, funding histories, and analysis of restructuring and consolidation activity across the global CEA sector.
👉 Download the full report here: https://network.igrownews.com/forms/ac0f9cc6
