Assessing the Economic Viability of Vertical Farming in Urban Areas for Reducing Food Insecurity in Mega Cities

Abstract

Rapid urbanization and population growth have intensified food insecurity challenges in mega cities, necessitating innovative and sustainable urban food production systems. Vertical farming has emerged as a promising solution due to its ability to produce high-quality crops within controlled environments while minimizing land use and supply-chain inefficiencies. Despite its environmental advantages, concerns regarding high capital investment, energy consumption, and operational costs continue to limit widespread adoption. This study evaluates the economic viability of vertical farming in urban contexts and examines its potential contribution to reducing food insecurity. Using a mixed-methods experimental approach, the research integrates quantitative financial modeling with qualitative insights from industry stakeholders to assess cost structures, productivity, profitability, and scalability across multiple operational scenarios. The results demonstrate that while baseline vertical farming systems face economic constraints, financial performance improves significantly through energy-efficient technologies, automation, economies of scale, and policy support mechanisms. Sensitivity and profitability analyses indicate that optimized vertical farming models can achieve positive net present value and stable revenue streams, particularly when aligned with diversified crop portfolios and market-responsive strategies. Beyond direct financial returns, the findings highlight indirect economic and social benefits, including enhanced urban food availability, reduced waste, and employment generation. Overall, the study concludes that vertical farming can become an economically viable and resilient component of urban food systems when supported by technological innovation, strategic investment planning, and enabling policy frameworks.