Organic fertilizers are by-products of biological waste materials such as animal manure, food waste, sewage sludge, crop residues and green manure. They are rich in nutrients like nitrogen, phosphorus, and potassium that help improve soil fertility and provide balanced nourishment for better plant growth. Organic fertilizers are seeing increasing popularity among farmers as they enhance soil health and yield quality crops without harming the environment.
The Organic Fertilizer Market is estimated to be valued at US$ 12.64 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Organic fertilizers have two main drivers fueling their demand globally –
The growing environmental concerns about the adverse effects of chemical fertilizers on soil health and water quality have prompted many farmers and cultivators to shift to eco-friendly organic variants. Moreover, organic produce commands a premium price in the market and helps farmers boost their incomes. Additionally, government support through favourable policies and subsidies for organic farming is also encouraging more farmers to opt for organic inputs like fertilizers and manure. However, the limited availability and higher costs of organic fertilizers continue to restrain broader adoption compared to conventional synthetic alternatives.
Segment Analysis
The organic fertilizer market is dominated by the plant based organic fertilizers segment. This segment accounts for over 60% of the market share owing to rising health concerns among consumers regarding chemical based fertilizers. Plant based organic fertilizers are obtained from plants and plant materials like compost, manure, cover crops and green manures. They help retain soil moisture and increase microbial activity in the soil.
PEST Analysis
Political: The governments across regions are supporting organic farming through various subsidies and incentives in order to promote sustainable agriculture. This is positively impacting the demand for organic fertilizers.
Economic: The rising disposable incomes have increased the willingness of consumers to pay premium prices for organic products. Currently, organic fertilizers have higher prices than conventional fertilizers but their demand is increasing steadily.
Social: More people are preferring organic food products today due to rising health awareness regarding the ill effects of chemicals used in conventional fertilizers and pesticides. This trend is benefiting the organic fertilizer market.
Technological: The organic fertilizer manufacturers are developing innovative techniques for production which reduce costs and increase shelf life of their products. Some are using biotechnology solutions as well to enhance nutrient delivery in organic fertilizers.
Key Takeaways
Global Organic Fertilizer Market Size is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing environmental concerns regarding the excessive use of chemical fertilizers.
North America dominates the organic fertilizers market with over 30% share. Stringent regulations regarding the use of chemical fertilizers and growing organic farmland in the US and Canada are driving the market in the region.
Asia Pacific is expected to be the fastest growing market for organic fertilizers during the forecast period. Countries like India and China are encouraging organic farming which will boost regional demands.
Key players operating in the organic fertilizer market are Scotts Miracle-Gro Company, National Fertilizers Ltd., and Fertikal N.V. Scotts Miracle-Gro is a leading player with strong distribution network for organic products across North America. National Fertilizers focuses on producing neem coated urea, which is plant based and considered organic by many farmers in India.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it