Key Takeaways:
- Indoor strawberry farming is technically feasible but economically challenging, requiring high input costs and careful market positioning.
- Unique crop needs—including lighting, pollination, and climate control—drive complexity compared to leafy greens.
- Premium pricing is crucial for profitability, with successful examples like Oishii demonstrating potential at scale.
- Recent failures in the sector underscore the importance of technical expertise and strong go-to-market strategies.
- Contributions from Innophyte Consulting and Gush Farms helped shape this analysis.
Indoor Strawberries: An Emerging Segment in Controlled Environment Agriculture
Interest in indoor strawberry farming has grown as Controlled Environment Agriculture (CEA) operators look beyond leafy greens to diversify and pursue higher-margin crops. Rising demand for year-round fruit, climate resilience, and pesticide-free produce has made strawberries a focal point for innovation.
However, industry experts caution that strawberries bring a unique set of challenges. “Strawberries already have a well-established outdoor production system,” said Katia Zacharaki, CEO of Innophyte Consulting. “For indoor farming to make sense, it needs to clearly outperform in quality, availability, and sustainability.”
Crop Requirements: Environmental Control Is Key
Strawberries require specific environmental conditions for optimal yield and quality. These include:
- Light: ~350 µmol/m²/s PPFD with tailored spectrum
- Temperature: ~18°C with natural diurnal fluctuations
- Humidity: 60–75% during the day, up to 80% at night (early growth)
- Nutrients: Moderate EC (~1.5); pH 5.6–5.8
Managing these inputs creates a high HVAC and lighting load. “There is still no public data comparing cultivar performance under varying indoor conditions,” noted Zacharaki, highlighting a research gap in the sector.
System Design and Technology Adoption For Indoor Strawberry Farming
System layout and automation are critical in indoor strawberry operations. Unlike leafy greens, strawberries often require horizontal layouts to ensure accessibility and proper light distribution.
- Pollination: Typically involves bumblebees or early-stage robotic solutions
- Automation: Still underdeveloped, especially for harvesting
- Lighting: Spectral tuning plays a key role in shaping fruit quality
“Dynamic lighting will open new possibilities in optimizing growth,” said Ophelia Sarakinis, co-CEO of Gush Farms.
Cost Structure, Revenue Potential, and Risk of Indoor Strawberry Farming
CEA strawberries carry elevated costs due to energy-intensive lighting, HVAC needs, and frequent manual harvesting. That said, premium indoor berries can command significantly higher prices:
- Field-grown strawberries: ~$2–3/kg
- Indoor premium berries: $10–20+/kg in niche markets
Profitability hinges on scale, automation, and proximity to high-income consumers. Industry exits by Plenty, Smartkas, Infarm, and Agricool suggest that underestimated costs and technical issues remain common pitfalls.
“People are drawn to strawberries by the perceived margin, but underestimate the operating costs,” said Zacharaki.
Read the complete feasibility study here.
