Private Equity Eyes Horticulture Again as Consolidation Pressures Mount
January 23, 2026 
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Private equity (PE) interest in the global horticulture sector is rebounding after a slowdown driven by energy shocks and macroeconomic uncertainty, according to a January 2026 report from Oaklins, an international M&A advisory firm specializing in horticulture. While deal volumes have not returned to earlier peaks, transaction activity in 2025 closely tracked 2024 levels, signaling a period of stabilization and renewed confidence in the sector’s long-term fundamentals.
For CEA produce growers, the findings underscore a shifting investment landscape in which scale, operational efficiency, and technological sophistication are increasingly tied to access to capital and long-term competitiveness.
Consolidation Driven by Cost Pressures and the Need for Scale
The report identifies several internal pressures accelerating consolidation across the horticulture value chain, including rising labor and energy costs, margin compression from large retailers, and growing sustainability and reporting requirements. These forces are particularly relevant for CEA produce operations, where capital intensity and ongoing investment in climate control, automation, and data systems are already high.
Oaklins notes that larger, more integrated platforms are better positioned to absorb volatility, standardize processes, and negotiate input and offtake agreements. As a result, financial sponsors are increasingly drawn to growers and vertically integrated businesses that can demonstrate economies of scale, strong management teams, and resilience to input-cost fluctuations.
Succession challenges, especially among family-owned operations, are also cited as a meaningful driver of M&A activity. For some growers, partnering with private equity offers an alternative to a full strategic sale, allowing partial liquidity while retaining operational control and accessing growth capital.
What PE Investors Are Looking for in CEA Operations
According to the report, PE involvement in horticulture declined from more than 50% of transactions in 2020 to roughly 25% between 2022 and 2024, before rebounding to 32% in 2025. That recovery reflects renewed interest in businesses with scalable, differentiated models—criteria that increasingly align with high-tech greenhouse and indoor farming operations.
Investors are particularly focused on companies that can leverage automation, robotics, AI-driven crop management, and data analytics to improve productivity and reduce labor dependence. Oaklins highlights that rapid technological development is both a competitive advantage and a capital requirement, favoring operators with the balance sheets and governance structures to support ongoing investment.
While a return to pre-2020 deal volumes is unlikely in the near term, the report projects a growing pipeline of transactions centered on platform-building and buy-and-build strategies. For CEA growers, this suggests that access to capital—and the expectations that come with it—will play an increasingly important role in shaping growth strategies, whether through expansion, partnerships, or eventual exits.
As consolidation continues, the report concludes, horticulture will become more professionalized, efficient, and internationally oriented, with financial investors acting as key catalysts in that transformation. You can access the full report here.