Indoor Ag in the Stock Market

January 12, 2023



Image

Indoor Ag in the Stock Market is now of interest to practicioners as the industry matures.

Indoor ag – growing crops in warehouses, container farms and greenhouses – has become an attractive private investment sector over recent years. In the past two years alone, more than $2.5bn has been invested in the sector by private investors. High profile investors in the space include Amazon, Bain Capital Ventures, Cargill and Walmart.

Traditionally, the next step for a fast growing company is to list on public markets, and many indoor ag firms have chosen to do just that. For many, the mechanism that they utilized was a special purpose acquisition corporation (SPAC). This allows private indoor ag companies to be acquired by existing listed entities, side stepping the usual rigors of the initial listing process. It speeds up the path to becoming a listed company. As SPACs saw a renaissance, and interest rates remained low, so indoor ag companies benefited by listing in increasing numbers.

Amidst the optimism and overall upward growth of the industry, at Contain, we have been tracking indoor ag in the stock market through our stock market index, and since the initial surge of listings, they have consistently underperformed the broader market index.

By mid 2022, the SPAC bubble burst and the euphoria that surrounded the indoor ag sector faded. The sector’s underperformance has most widely been linked to its poor profitability, and there’s no doubting that the listed sector has struggled with widespread losses. It has seen numerous bankruptcies, from companies like Portuguese Agricool and Dutch Glowfarms, layoffs and earnings misses. Thanks to high initial capital costs and an energy-driven increase in operating costs over the past year, indoor agriculture is especially vulnerable to the withdrawal of capital lines from loss making firms. But this is only part of the story, as there are plenty of profitable sectors that have also struggled. Media outlet CNBC recently described how the tech sector lost $7.4 trillion in market value over the past year, for example.

The Contain Indoor Ag Stock Index™ follows the returns of a portfolio of controlled environment agriculture related listed stocks. The largest share of the index is US listed, but it also includes European, Canadian and Japanese exchange listed stocks. It excludes stocks that are focused only on cannabis.  In this briefing paper, we cover the index composition, performance and other attributes.

Download the full briefing paper on Contain Insights.


Share on socials!

Vertical Farm Funding

July Indoor Ag Update: Acquisitions Accelerate & Funding Returns


Vertical farm funding hit $4.8m in July, while we saw major M&A consolidation with Growcer’s acquisition...

Blog
Data
Funding

indoor farming innovations

Five Farms Making a Go of Indoor Agriculture


At Contain, we’re always on the hunt for indoor farming innovations to add to our Insights...

Blog
Crops
Funding

Dyson's vertical farming technology

Dyson’s 250% Yield Breakthrough Headlines June AgTech: Vertical Farming Advances, M&A Activity, and Industry Setbacks


June saw the debut of Dyson’s rotating vertical system, along with expansion at Little Leaf Farms...

Blog
Crops
Funding
Vendors

Harvest Wall from Harvest Today

Indoor Agriculture Pivots to Home Gardens as Vertical Farming Failures Drive Strategic Reevaluation


The indoor agriculture industry is pivoting as high-profile vertical farming failures force tech manufacturers to reevaluate...

Blog
Rural Life
Urban Farming
Vendors

Image

Zordi Series B and May 2025 Indoor Agriculture Developments


May was one of the quietest months since we began tracking the sector, with just two...

Blog

Freight Farms Bankruptcy

Freight Farms Bankruptcy and iUNU’s $20M Raise Highlight April’s Indoor Ag Contrasts


The Freight Farms bankruptcy naturally dominated April’s news. It masked positive funding announcements, with a new...

Blog
Data
Funding
Vendors

Freight Farms Bankruptcy

Freight Farms Resources: Indoor Ag Companies Stepping Up to Support Freight Farmers


The indoor farming world lost a pioneer last week. On April 30, 2025, Freight Farms-the Boston-based...

Blog
Funding
Urban Farming
Vendors

hydroponic financing 2025

How to Finance Your Hydroponic Project in 2025: Finding Opportunity in a Shifting Market


Hydroponic financing in 2025 is at a crossroads. Over the past two years, high-profile bankruptcies and...

Blog
Data
Funding

Adam Bergman

Indoor Ag’s New Reality: Practical Advice from Investment Banker Adam Bergman


The past few years have been anything but smooth for the indoor agriculture sector. After a...

Blog

Plenty Unlimited bankruptcy

Plenty Unlimited bankruptcy dominates March’s indoor ag news, overshadowing new farm plans


The Plenty Unlimited bankruptcy dominated indoor ag news in March.  Linkedin commentators were quick to condemn...

Blog

80 Acres Farms

80 Acres Farms secures $115m, Square Roots expands to Japan, and indoor ag sees farm shakeups in February


80 Acres Farms anchored the month with a $115 million raise and acquisition of plant science...

Blog
Crops
Funding

Robobees

Robobees take flight, vanilla goes vertical, and a new IPO is on the horizon in indoor agriculture’s January


January is traditionally a quiet month in the indoor ag sector, but this one proved surprisingly...

Blog
Crops
Funding