Organic Fertilizer Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (Plant, Animal, and Others), By Crop Type (Fruits & Vegetables, Cereals, and Others), By Form (Dry and Liquid), By Region and Competition 2018-2028

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.

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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.

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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​

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).

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