Market Research Future (MRFR) has published on the “Global Organic Fertilizer Market”.
Organic Fertilizer Market Highlights
The global organic fertilizer market is categorized based on product type, form, crop type, and region. Composts, manures, and others are the main subsegments based on product type. Based on form, the organic fertilizer market has been segmented into dry, and liquid. Based on the crop type, the organic fertilizer market has been segmented into Oilseeds & pulses, cereals & grains, fruits & vegetables, and others. North America, Europe, Asia Pacific, and the Middle East are the key regions considered to study the global organic fertilizer market.
Market Synopsis
According to the MRFR analysis, global organic fertilizers are projected to reach USD 24.77 billion by 2032 at a CAGR of 11.11%.
Organic fertilizer is a product type of plant food made from natural materials, such as plant waste, animal manure, or compost. It provides essential nutrients for plant growth and improves the structure and fertility of soil. Organic fertilizers are considered more environmentally friendly than synthetic fertilizers, as they do not contain chemical compounds that can harm soil or water. They also provide a slow release of nutrients, which helps to reduce the risk of over-fertilization. Examples of naturally occurring organic fertilizers include manure, slurry, worm castings, peat, seaweed, and guano. Green manure crops are also grown to add nutrients to the soil.
COVID-19 Impact on Organic Fertilizer Market
Health and wellness issues concern consumers focusing on disease avoidance and building personal immunity. Demand for organic foods has surged since the pandemic began in spring 2020. Healthy growth is expected to continue in the coming years as consumers associate organic foods with good health, nutrition and wellness. However, there are many challenges ahead. Supply chain issues are expected to continue, whilst competition will come from sustainability standards and eco-labeled products. There are also concerns about adequate supply and regulations. The COVID-19 pandemic has had a significant impact on the organic fertilizer market. The initial lockdowns and restrictions on movement and trade have led to a reduction in demand for organic fertilizers as farmers were unable to access their fields and markets. Additionally, supply chain disruptions have resulted in shortages of raw materials and a reduction in production of organic fertilizers.
However, as the pandemic progressed, the demand for organic fertilizers has started to recover as farmers and gardeners have been able to access their fields and markets again. Additionally, the pandemic has led to an increase in interest in organic gardening and farming, as people have been spending more time at home and looking for ways to grow their own food.
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Competitive Landscape
The organic fertilizer market is fragmented due to prominent international and regional players. Collaborations with government organizations and expansion in the market, along with product innovation, are some of the strategies adopted by the companies. Also, products are undifferentiated due to the limited ability of variable composition and types, thereby creating intense competition among vendors. However, the growing nature of the market along with immense scope for innovation presents significant market opportunities for new players. Some of the key players in this market are Rallis India Ltd, Midwestern BioAg, Coromandel International Limited, Agrocare Canada, Italpollina S.P.A., The Scotts Miracle-Gro Compan, Al Yahar Furtilizers, and Emirates Bio Fertilizers Factory among others. These companies dominate the market due to their extensive product portfolio catering to each Crop Type and global brand presence. These companies dominate the global market with their extensive presence throughout the value chain.
Segmentation
By Product Type
- Composts: As consumers and farmers become more aware of the environmental benefits of using organic fertilizers, the demand for composts is increasing. The use of composts in organic farming is becoming more common as farmers look for sustainable and natural ways to provide nutrients to their crops. Composts are a cost-effective alternative to synthetic fertilizers and can improve soil health, reduce the need for chemical pesticides, and increase crop yields. The growth in the organic food market is also driving demand for composts. Organic farmers rely on composts to provide the necessary nutrients for their crops, and with the increasing demand for organic produce, the demand for composts is also increasing.
- Manures: Manures are another popular type of organic fertilizer used in the organic farming and gardening market. Manures are made from the excrement of animals such as cows, horses, chickens, and sheep. They are rich in nutrients such as nitrogen, phosphorus, and potassium, as well as other micronutrients. Manures are often used as a soil amendments to improve soil structure, promote healthy root growth, and increase water retention in the soil. They also act as a natural pest repellent, helping to reduce the need for chemical pesticides. Additionally, manures can also improve the soil’s ability to retain moisture, which is beneficial for plants during dry seasons.
- Others: Mineral-based organic fertilizers are a type of fertilizer that combines organic and mineral ingredients. They are made by blending organic materials such as composts and manures with mineral-based ingredients such as rock dust, volcanic ash, and sea minerals. These mineral-based ingredients provide a source of essential micronutrients such as calcium, magnesium, and trace elements that are often lacking in organic materials.
By Form
- Dry: Dry organic fertilizers can be made up of a variety of different chemicals or just one substance, such as rock phosphate. Although these fertilizers are less expensive than those in liquid form, they are still needed in greater amounts because the crop does not entirely absorb them. Most dry organic fertilizers offer a wide range of nutrients, although only a few contain a balanced combination of NPK and micronutrients. Easy application and usage make these types a preferred choice for regular use by farmers.
- Liquid: liquid organic fertilizers are more easily absorbed by plants, leading to more efficient use and better results. However, compared to chemical fertilizers, liquid organic fertilizers are relatively expensive and are not as readily available in all regions.
By Crop type
- Oilseeds & Pulses: Oilseeds such as soybeans, sunflowers, and canola require a high amount of nitrogen for optimal growth and yield. Organic fertilizers such as blood meal, fish meal, and poultry manure are rich in nitrogen and can provide the necessary nutrients for these crops. Pulses such as lentils, peas, and beans also require nitrogen but also benefit from the addition of phosphorous and potassium. Organic fertilizers such as bone meal and rock phosphate can provide these essential nutrients.
- Cereals & Grains: The demand for cereals & grains is also growing because they can be easily produced and give high yields. In addition, according to the data released by several private and government sources, a significant portion of the organic farming area was being used for producing rice, barley, oats, and wheat due to the high requirement for these items. The non-toxicological and environmentally sustainable attributes of sustainably farmed cereals and grains are contributing toward the growth of this category. The increasing cultivation of cereals because they are consumed as a staple across the globe coupled with the high profit associated with the cultivation of organic cereals are projected to boost the utilization of organic fertilizers among cereal growers.
- Fruit & Vegetables: Organic fruits and vegetables are grown without the use of synthetic chemicals and pesticides, making them a popular choice among health-conscious consumers. The fruits and vegetables organic fertilizer market is expected to grow in the future as more people are becoming conscious of the environmental impact of their food choices and looking for sustainable and natural ways to grow their food. The market is also expected to grow as more people are becoming health-conscious and looking for healthier food options.
- Others: Organic fertilizers are made from natural materials such as animal manure, bone meal, blood meal, and seaweed extract, and they provide a slow release of nutrients to the soil, reducing the risk of chemical runoff and promoting the growth of beneficial microorganisms. The demand for organic fertilizer is driven by factors such as increased awareness of the environmental impact of chemical fertilizers, rising consumer interest in sustainable gardening practices, and government regulations promoting the use of organic products. The market is expected to continue growing in the coming years, with an increasing number of consumers and landscaping professionals turning to organic options for their turf and ornamental needs.
By Region
- North America: According to the Gianni foundation of Agricultural Economics, California is one of the leading states in organic production with an increasing number of organic farms, land in organic production, and sales of organic products. Most organic sales in California are from produce and the rest from livestock, and field crops. According to the Research Institute of Organic Agriculture, the area under certified organic farms in the United States increased from 2,031,318 ha in 2017 to 2,023,430 ha in 2018. With the increasing demand for organic food, the area under organic cultivation is increasing. This is subsequently resulting in the growth of the market studied.
- Europe: The organic fertilizer market in Europe is expected to continue to grow in the coming years, driven by increasing demand for organic food and a growing awareness of the environmental benefits of organic farming. Additionally, the European Union's Common Agricultural Policy, which promotes sustainable agricultural practices, is expected to further drive growth in the market. Government support coupled with increased awareness about the use of organic fertilizers is driving the growth of the European market for organic fertilizers. Moreover, the introduction by the regulatory bodies of strict regulations on the use of synthetic fertilizers and adverse effects induced by the excessive use of chemical fertilizers drive the adoption of organic fertilizers.
- Asia-Pacific: The popularity of organic food has been continuously increasing across Asia Pacific and this is noticed as the prime driver for the organic fertilizers market. The total market size for organic packaged food and beverages in China was recorded as USD 2.8 billion in 2017. The country ranks as the 4th largest market in the world by value. The country had 3.1 million hectares of agricultural land in 2018, which was 0.1 million hectares more than the previous year.
- South America: The demand for organic fertilizers is increasing due to strict rules and regulations set by the government to reduce the negative effect of chemical fertilizers on the crop, and it is expected to grow the organic fertilizers market in the coming years.
- Middle East: Saudi Arabia has the highest arable land among all the countries in the GCC region, though the arable land is only 1.63% of the total land area. There are significant developments taking place in Saudi Arabia. On the supply side, these developments are expected to boost the demand for organic fertilizers, increase the adoption rate of hydroponics, and encourage attempts to convert desert land into arable farmland.
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