|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
11.32 Billion
|
|
CAGR
(2023-2028)
|
4.59%
|
|
Fastest
Growing Segment
|
Animal
|
|
Largest
Market
|
Asia-Pacific
|
Market Overview
Global
Organic Fertilizer Market has valued at USD 11.32 Billion in 2022 and is
anticipated to project impressive growth in the forecast period with a CAGR of 4.59%
through 2028. Organic fertilizers are naturally derived carbon-based
fertilizers. They are substances that can be added to soil or applied to plants
to provide essential nutrients, promoting growth. Common examples of organic
fertilizers include mineral sources, animal waste (including meat processing
waste, manure, slurry, and guano), and plant-based fertilizers such as compost
and bios lids. Additionally, there are other biotic, non-chemical fertilizer
technologies available that adhere to the Principles of Organic Agriculture,
which determine their suitability for commercial organic agriculture. These
organic fertilizers encompass peat, animal and plant wastes from agriculture,
and treated sewage sludge. Peat, also referred to as turf, is a partially
decomposed plant material.
Key Market Drivers
Increasing
Awareness About the Harmful Effects of Chemical Fertilizers
Increasing
awareness of the detrimental effects of chemical fertilizers is expected to
drive global demand for organic fertilizers. Typically, chemical fertilizers
are preferred for their immediate and strong impact on crop yields. However,
the environmental and health consequences linked to their use, such as soil
degradation, water pollution, and harm to beneficial soil microorganisms, have
become more apparent and widely recognized in recent years. This greater
awareness is largely due to concerted efforts by environmental advocacy groups,
scientific research publications, and even policy directives aimed at
sustainable farming practices. As a result, farmers, agricultural businesses,
and home gardeners are gradually shifting towards organic fertilizers, which
are derived from natural substances like compost, manure, and bone meal.
Organic fertilizers not only improve soil fertility and crop yield over time
but also contribute to a healthier ecosystem and safer food products.
Furthermore, the use of organic fertilizers aligns with the global trend
towards sustainable development and the increasing consumer preference for
organic food. This growing consciousness and the subsequent shift in farming
methods are expected to significantly increase the global demand for organic
fertilizers.
Rising
Demand for Organic Food Products
Growing
consciousness about health and environmental sustainability is significantly
driving the demand for organic food products worldwide. This heightened
inclination towards organic food is simultaneously catalyzing a surge in the
global organic fertilizer market. Organic fertilizers are a vital component of
organic farming, ensuring the production of chemical-free, nutrient-rich crops.
These fertilizers not only fortify the soil with essential microorganisms but
also reduce water pollution by limiting the leaching of harmful nitrates. As
consumers become more educated about the detrimental impacts of synthetic
fertilizers on the environment and human health, the demand for organic
alternatives is predicted to increase significantly. Furthermore, the implementation
of favorable government policies promoting organic farming is expected to
further stimulate this demand. In addition, the increasing availability of
innovative organic fertilizer products tailored to specific crop requirements
is enticing more farmers to transition towards organic farming practices. Thus,
the rising popularity of organic food products is poised to significantly fuel
the global demand for organic fertilizers.
Advancements
in Bio-Fertilizer Technology
Advancements
in bio-fertilizer technology are rapidly accelerating the global demand for
organic fertilizers. As these scientific developments continue, they
significantly enhance the efficacy and productivity of bio-fertilizers, making
them a more attractive alternative to traditional chemical fertilizers. Rather
than depleting the soil's nutrients, these biological solutions enrich the
soil, contributing to a sustainable agricultural system and healthier crops.
Coupled with growing consumer awareness and preference for organically grown
produce, this has the potential to drive an unprecedented rise in organic
fertilizer demand.
In
addition, the environmental implications of traditional fertilizers, laden with
chemicals, have led to a shift towards more eco-friendly practices.
Bio-fertilizers, being a by-product of microorganisms, reduce the environmental
footprint of agriculture, aligning with the global objective of achieving
sustainability. They also decrease the need for synthetic fertilizers, reducing
the pollution of groundwater caused by fertilizer runoff.
Furthermore,
the economic promise of bio-fertilizers is bolstering their global demand. As
the technology continues to evolve, the cost of producing these fertilizers is
expected to decrease. This would make organic farming even more economically
viable for farmers, encouraging a widespread shift towards these products. In
conclusion, advancements in bio-fertilizer technology are anticipated to
significantly contribute to the global escalation in the demand for organic
fertilizers.
Adoption
of Sustainable Farming Practices
The
global demand for organic fertilizer is expected to surge in response to the
growing adoption of sustainable farming practices. Farmers around the world are
increasingly recognizing the detrimental effects of synthetic fertilizers on
soil health and the environment. This awareness is driving them towards seeking
more environmentally friendly alternatives. Organic fertilizers, derived from
plant and animal waste, offer a multitude of benefits. Not only are they
nutrient-rich, but they also contribute to enhancing soil health. By improving
the structure and moisture holding capacity of the soil, organic fertilizers
promote optimal conditions for plant growth.
One
of the significant advantages of organic fertilizers is their minimal impact on
groundwater contamination. Unlike synthetic fertilizers, which often leach
harmful chemicals into the soil, organic fertilizers pose a reduced risk of
water pollution. This makes them an attractive choice for environmentally
conscious farmers who are seeking sustainable solutions. The shift towards
organic farming is not limited to developed nations; it is gaining momentum in
developing countries as well. As the principles of sustainable agriculture
become more widely embraced, the adoption of organic farming practices is
becoming increasingly pronounced. This transition towards organic farming
represents a significant step towards ensuring the long-term viability of our
food production systems while minimizing negative impacts on the environment.
Download Free Sample Report
Key Market
Challenges
High
Production Costs
High
production costs are projected to significantly impact the demand for organic
fertilizer on a global scale. Organic fertilizers, though highly beneficial for
soil health and productivity, are often more expensive to produce than their
synthetic counterparts. This is mainly due to the extensive processes involved
in sourcing and processing organic materials, as well as the stringent
regulations that organic fertilizer manufacturers must adhere to. As a result,
the retail price for organic fertilizers is often higher, making it less
accessible for many farmers, particularly those in developing economies. With
the agriculture sector continually striving for cost-effectiveness, these
elevated costs are likely to deter many potential users of organic fertilizers.
Additionally, the global economic challenges and uncertainties caused by
factors such as climate change and the COVID-19 pandemic may further discourage
investment in higher-priced inputs, including organic fertilizers. Thus, unless
measures are taken to lower production costs or provide subsidies to organic
fertilizer manufacturers, the demand for these products is expected to fall in
the coming years.
Lower
Nutrient Density
Lower
nutrient density in soil is a significant issue that is anticipated to curb the
global demand for organic fertilizers. The fundamental purpose of using organic
fertilizers is to enhance soil fertility by increasing the density of essential
nutrients. However, in many agrarian regions, farming practices like
over-cultivation and excessive use of chemical fertilizers have led to
decreased nutrient density, resulting in the soil becoming less able to retain
organic fertilizer nutrients. Consequently, the effectiveness of organic
fertilizers is reduced, diminishing their appeal to farmers. Furthermore, the
low nutrient density often necessitates the application of larger volumes of
organic fertilizer, increasing costs for the farmers. This financial implication
is a major deterrent, particularly for small-scale farmers in developing
regions. The situation is exacerbated by the higher initial costs of organic
fertilizers compared to synthetic alternatives. All these factors combined are
expected to negatively affect the global demand for organic fertilizers.
However, it is important to note that sustainable farming practices and
policies emphasizing soil health can potentially reverse this trend, restoring
the efficacy of organic fertilizers and stimulating their demand once more.
Key Market Trends
Growing
Trend of Urban Gardening & Farming
The
rising trend of urban gardening and farming is fast becoming a pivotal factor
in the escalating global demand for organic fertilizers. Urban dwellers around
the world are increasingly embracing the concept of producing their own food,
driven by the desire for fresh, healthy produce and the satisfaction of
self-sufficiency. This shift is particularly noticeable in densely populated
cities where conventional farming is impractical. Organic fertilizers play a
key role in these urban farming initiatives, as they are not only
eco-friendlier and more sustainable but also essential for cultivating
healthier and more nutritious produce in these unconventional settings.
Furthermore, the use of organic fertilizers aligns well with the environmental
consciousness often associated with urban gardening enthusiasts. The increasing
popularity of organic food and concerns about synthetic fertilizers' adverse
environmental impact further fuel the demand. As a result, the global market
for organic fertilizers is expected to grow significantly. Therefore, urban
gardening and farming's growth trend, coupled with the rising environmental
consciousness, is playing a significant role in boosting organic fertilizer use
globally.
Rising
Investments In R&D For Organic Farming Practices
Global
demand for organic fertilizers is projected to witness significant growth,
largely driven by the rising investments in Research and Development (R&D)
for organic farming practices. As the world becomes more conscious of the
adverse effects of synthetic fertilizers, there has been a shift towards more
sustainable and eco-friendly practices in agriculture. This includes organic
farming, which relies heavily on natural fertilizers. Governments and private
organizations worldwide are now investing heavily in R&D initiatives
targeted towards improving organic farming techniques and increasing the
efficiency of organic fertilizers. These investments not only aim to enhance
the quality and yield of organically grown crops but also to make organic farming
more affordable and accessible. As such, advancements in R&D are expected
to increase the effectiveness of organic fertilizers, thereby driving their
demand globally. Moreover, the growing consumer preference for organically
grown food products, coupled with the increasing awareness about the benefits
of organic farming for the environment and soil health, further augments the
global demand for organic fertilizers. Consequently, rising investments in
organic farming R&D are set to propel the global organic fertilizer market
in the coming years.
Segmental Insights
Source Insights
Based on the Source,
the Animal Source segment has emerged as the dominant force in the Global
Organic Fertilizer Market. These fertilizers, derived from animal sources such
as manure, bone meal, and fish emulsion, are rich in essential nutrients like
nitrogen and phosphorus. This nutrient-rich composition plays a crucial role in
enhancing soil productivity by promoting healthy plant growth and development.
Not only do
animal-based organic fertilizers provide primary nutrients, but they also offer
an array of secondary micronutrients such as calcium and magnesium. These
micronutrients further enrich the soil, ensuring a balanced nutrient profile
that supports sustainable agriculture practices. By nourishing the soil with
these organic fertilizers, farmers can cultivate healthier crops, minimize
environmental impact, and contribute to the long-term viability of our
agricultural systems.
Crop Type Insights
Based on the Crop
Type, cereals, such as wheat, rice, and corn, hold the largest share of the
Global Organic Fertilizer Market. According to the Food and Agricultural
Organization (FAO), cereals are not only a vital source of sustenance but also
one of the globe's most essential staple crops. Organic fertilizers play a
crucial role in supporting the growth of cereal crops by facilitating efficient
nutrient absorption. Unlike synthetic fertilizers, organic fertilizers are
renewable and cost-effective, making them an important aspect of nutrient
management. By promoting plant growth and increasing yield, these fertilizers
contribute to the overall health and fertility of the soil. Additionally, they
aid in strengthening disease resistance in crops, thereby reducing the need for
crop protection chemicals and lowering associated costs. The use of organic
fertilizers in cereal production not only enhances sustainability but also
supports the goal of producing nutritious food in an environmentally friendly
manner.
Download Free Sample Report
Regional Insights
During
the projected period the Asia Pacific region emerged as the dominant force in
the Global Organic Fertilizer Market. This can be attributed to several
factors. As per capita income rises in this region, there is a corresponding
increase in the demand for organic food. This surge in demand is driving the
organic fertilizer business, as farmers are adopting organic farming practices
to meet the growing consumer preferences for healthier and more sustainable
food options. Additionally, advancements in communication technology have
played a pivotal role in boosting the organic fertilizer industry globally.
With easy access to information, consumers have become more aware of the
benefits of organic farming and the impact it has on growth and wellness
dynamics. This heightened awareness has led to an increase in the adoption of
organic fertilizers, particularly in developing countries like Brazil and
India.
In
terms of crop cultivation, fruits and vegetables, cereals, and grains are among
the principal crops grown in these countries. India, China, and Australia, in
particular, are recognized as three of the most important agricultural
countries in the region. These countries have a rich agricultural heritage and
are known for their diverse agricultural exports. Cotton, sugarcane, fruits and
vegetables, and grains are some of the most commonly exported agricultural
products from these nations. Overall, the Asia Pacific region continues to be a
key player in the Global Organic Fertilizer Market, driven by the rising demand
for organic food, advancements in communication technology, and the
agricultural prowess of countries like India, China, and Australia.
Recent Developments
- October 2022: ACI Biolife Fertilizer and the
Bangladesh Institute of Nuclear Agriculture (BINA) entered into a Memorandum of
Understanding (MoU) for the development and testing of Trichoderma as a
biofertilizer. ACI Fertilizer is establishing a Biofertilizer Lab in Jhikorgacha,
Jessore, with support from BINA.
- September 2022: Corteva Agriscience completed
the acquisition of Symborg, a leading provider of microbiological technologies
based in Murcia, Spain. The acquisition of Symborg represents a significant
milestone in Corteva's strategy to expedite the development of an outstanding
biological portfolio as an integral part of its integrated solutions.
- March 2022: Rizobacter expanded its
product offerings to several African countries, including Malawi, Zambia,
Nigeria, Ghana, Uganda, Kenya, Sierra Leone, and Tanzania, in addition to South
Africa. These expansions signify Rizobacter's commitment to serving a broader
market and contributing to agricultural advancements in the region.
Key Market Players
- Rizobacter Argentina S.A.
- Lallemand Inc.
- National Fertilizers Limited
- Madras Fertilizers Limited
- T Stanes & Company Limited
- Gujarat State Fertilizers & Chemicals Ltd
- String Bio Private Limited
- Rashtriya Chemicals & Fertilizers Ltd
- Agrinos Inc.
- Protan AG
|
By Source
|
By Crop Type
|
By Form
|
By Region
|
|
|
|
- Fruits & Vegetables
- Cereals
- Others
|
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
|
|
|
|
|
Report
Scope:In
this report, the Global Organic Fertilizer Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Organic Fertilizer Market, By Source:
o
Plant
o
Animal
o
Others
- Organic Fertilizer Market, By Crop Type:
o
Fruits & Vegetables
o
Cereals
o
Others
- Organic Fertilizer Market, By Form:
o
Dry
o
Liquid
- Organic Fertilizer Market, By
Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Global Organic Fertilizer Market.
Available
Customizations:
Global
Organic Fertilizer market report with the given market data, TechSci
Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
Global Organic
Fertilizer Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]