From Yahoo Finance: 2025-04-09 09:42:00

The global hydroponics market is expected to reach $25.1 billion by 2027, while the vertical farming industry is forecasted to hit $50.1 billion by 2032. However, rising operational costs, scalability issues, and financial instability are causing some companies in the sector to struggle, impacting profitability and growth potential.

High capital investment is required for vertical farms, with innovations like LED lighting and AI-driven automation increasing operational costs. Energy-intensive operations and supply chain disruptions post-COVID-19 have further complicated matters, making it challenging for companies to scale efficiently and maintain profitability.

Regulatory uncertainty in the hydroponics sector and higher price points for vertically farmed produce compared to traditional agriculture are posing challenges. Investor sentiment is shifting, with doubts surrounding capital-intensive agritech ventures and difficulties in securing funding for hydroponic and vertical farming companies.

Village Farms International, Inc. (NASDAQ:VFF) is active in the energy, fresh produce, and cannabis markets, with a strong presence in North America and global markets. Despite revenue growth, profitability challenges persist due to quality control issues, impacting its Canadian cannabis business.

Village Farms International, Inc. (NASDAQ:VFF) has expanded into New Zealand with its cannabis products, aiming to tap into the rapidly growing market there. However, the company faces risks in the fresh produce segment and challenges in the cannabis industry, reflected in its stock performance decreasing by over 40% YTD.

Ranked 4th on the list of worst vertical farming and hydroponic stocks to buy, Village Farms International, Inc. (VFF) faces pricing pressures, regulatory uncertainties, and competitive challenges in the cannabis sector. Investors are concerned about its stock performance, emphasizing the importance of considering AI stocks for higher returns within a shorter timeframe.

Read more: Is Village Farms International, Inc. (VFF) the Worst Vertical Farming and Hydroponic Stock to Buy?