From Yahoo Finance: 2025-04-09 10:42:00

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

High capital investment is needed for innovations like LED lighting and AI-driven automation in vertical farming, leading to increased operational costs. Energy-intensive operations and supply chain disruptions post-COVID-19 are further challenges, impacting profitability and scalability for many companies in the sector.

Regulatory uncertainties in the hydroponics industry and higher price points for vertically farmed produce compared to traditional agriculture are also hindering growth. Despite increasing demand for vertical farming, budget-sensitive consumers often opt for cheaper options, limiting the market reach of vertically farmed produce.

Investor sentiment is shifting as doubts rise about capital-intensive agritech ventures, leading to increased short interest in underperforming stocks. Structural challenges and economic pressures have resulted in significant stock underperformance for many vertical farming and hydroponic companies.

Among the worst vertical farming and hydroponic stocks is iPower Inc. (IPW), ranking 7th on the list. The company has seen a 44.12% drop in share price year-to-date, with concerns over declining cash reserves and dependence on external platforms affecting its long-term potential.

iPower Inc. (IPW) posted a revenue of $19.1 million for Q2 2025, a 14% increase from the previous year, driven by the SuperSweet platform. Despite efforts to boost operational efficiency, liquidity concerns and financial challenges have impacted the company’s performance, making it one of the worst agriculture stocks to buy.

Read more: Is iPower Inc. (IPW) the Worst Vertical Farming and Hydroponic Stock to Buy?