Key Takeaways

• Governmental Push for Vertical Farming: Crises such as Fukushima and COVID-19 prompted the Japanese government to actively promote Vertical Farming. Since 2021, it has been part of the Green Growth Strategy, supported by programs for energy-efficient, automated plant factories. Political frameworks can significantly accelerate scaling.
• Core Challenges for Vertical Farming: Automation, cost reduction, scaling, and regulatory approvals remain the main hurdles for economically viable systems. Addressing these factors will determine competitiveness and market penetration.
• The Cheaper Food Paradigm – A Vicious Cycle: Cost pressure drives intensification, soil depletion, and biodiversity loss, accelerating climate change and health issues. Breaking this cycle requires a shift toward sustainable systems.
• Unsustainable Path Dependencies: Market concentration and existing business models favor cheap, highly processed foods and accept waste as economically rational. Innovation remains incremental while ecological and health risks rise. Systemic transformation demands new incentives and regulatory frameworks.
• Scaling Technologies – Lessons from Alternative Proteins: The WBAE report shows: High initial costs are typical for new technologies but decrease with production scale, similar to solar energy or semiconductors. For Vertical Farming, standardization and technology support are essential to reduce investment costs and enable scaling.
• Shifting Consumption – Limited Environmental Gains: Reduced meat consumption in Germany often leads to higher dairy intake, leaving overall environmental impact largely unchanged. Real progress requires a shift to alternative protein sources.
• Brand Development Beyond Labels: Building a strong brand is key for market success. Long-term strategies cannot rely solely on certification labels—clear values, consistency, and trust are critical for differentiation and customer loyalty.