Organic Fertilizers Market Trends

Global Organic Fertilizer Market Overview

Global Organic Fertilizer Market Size was valued at USD 9.58 billion in 2023. The Organic Fertilizer industry is anticipated to grow from USD 10.61 billion in 2024 to USD 23.98 billion by 2032, exhibiting a CAGR of 10.73% during the forecast period (2024 - 2032). The increasing consumer demand for foods devoid of any synthetic fertilizers and pesticides is expected to propel market growth in the upcoming years. 

Organic fertilizers are increasingly utilized to improve crop yields and there is a huge potential to use them as an alternative to conventional inputs. Moreover, the increased efforts of the government and market players operating in the market to encourage the use of organic fertilizers are predicted to drive market growth in forthcoming years. For instance, the European government under its Common Agricultural Policy (CAP) rural growth program has allotted 30% of the budget to encouraging and supporting organic farming. Organic farming is gaining popularity worldwide as it can easily be used as a substitute for modern forms of farming such as the utilization of synthetic fertilizers, and other artificial techniques. The use of synthetic fertilizers and pesticides has recorded large-scale and widespread damage to the environment which is predicted to boost the demand for organic fertilizers.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Organic Fertilizer Market Trends

• Increasing Demand for Organic Food

As consumers become more aware of the health benefits of organic food, the demand for organic products is increasing. This, in turn, is driving the demand for organic fertilizers as farmers aim to produce high-quality organic crops. The global population is growing, and with it, the demand for food is also increasing. As a result, farmers are looking for ways to increase crop yields, which is driving the demand for organic fertilizers. The rising popularity of organic products and consumption has forced the expansion of organic farming across the globe. Subsequently, the market for biological organic fertilizers has grown dramatically in response to the recent surge in interest in regenerative agriculture, organic farming, and soil health. Natural organic fertilizers contain specific levels of microorganisms (such as nitrogen-fixing bacteria); organic fertilizers similarly contain microorganisms and typically come from animals and plants, such as livestock manure and crop residues, which are highly suitable for Organic Farming.

According to the Research Institute of Organic Agriculture, the area under organic farming increased by 4.1% in 2020. In addition, the regional statistics of both developed and developing countries have depicted the growth of organic agriculture in the country. For instance, according to the statistics by the government of India, the area under the organic farming certification process in India has almost doubled in 2021-2022, indicating the increasing initiatives and adoption of organic farming, with the full production accounting for 20,540.63 metric tons. Thus, owing to the rising organic area under cultivation and the increasing demand for good-quality crops, cultivators are anticipated to use biological organic fertilizers instead of excessive synthetic fertilizers, driving the market. The trend of home gardening is increasing as people become more interested in growing their own food. Organic fertilizers are becoming more popular among home gardeners as they provide a natural and safe way to grow plants.

Organic Fertilizer Market Segment Insights

Organic Fertilizer Product Type Insights

The Organic Fertilizer Market segmentation is based on the product type, such as Composts, manures, and others. The composts segment emerged as a major segment in the Organic Fertilizer Market in 2022. Composts are rich in essential nutrients such as nitrogen, phosphorus, and potassium, as well as other micronutrients. They also improve soil structure, promote healthy root growth, and increase water retention in the soil. Additionally, compost can act as a natural pest repellent, helping to reduce the need for chemical pesticides. There are several different types of composts, including hot compost, cold compost, and vermicompost. Hot composts are made by actively managing the decomposition process to create high temperatures, which helps to kill pathogens and weed seeds. Cold composts are made by simply piling organic materials and allowing them to decompose naturally over time. Vermicompost is made by adding worms to the organic materials, which helps to speed up the decomposition process and increase the nutrient content of the compost. Green manure is the largest segment of organic fertilizers in the country. The green manure approach to crop production aids in improving economic viability while reducing the environmental impacts of agriculture. This is augmenting the growth of the market in the long term.

Organic Fertilizer Form Insights

The Organic Fertilizer Market is also studied based on Form, dry, and liquid further splits. Among these segments, the dry segment held a prominent market value of 67% in 2022 and is likely to register a CAGR of 11.04% in the upcoming years. The dry segment with estimated to grow with a CAGR of 11.23% till the forecast period. In 2022, the dry organic fertilizers segment is estimated to account for the largest share of the global organic fertilizers market. The largest market share of this segment is attributed to the rising adoption of dry organic fertilizers for lawn and garden applications, the long-lasting effects of dry fertilizers, the high efficiency of dry fertilizers in all climatic conditions, and the high & easy availability of raw materials.

Figure 2: Organic Fertilizer Market, by Form, 2021 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Organic Fertilizer Market Crop Type Insights

The Organic Fertilizer Market is also categorized based on crop types which include oilseeds and pulses, cereals & grains, fruits & vegetables, and others. The cereal & grains segment reported the leading market value of USD 2.88 billion in 2022. Furthermore, the oilseeds & pulses segment secured the ranked at second position and is forecasted to grow with a CAGR of 10.93% during the estimated years. Moreover, Oilseeds and pulses are important crops that are widely grown for their nutritional and economic value. These crops require a variety of nutrients to grow and produce high yields. Organic fertilizer is an effective and sustainable option for providing these nutrients to oilseeds and pulses. Organic fertilizers are becoming increasingly popular among commercial farmers as they are a natural and sustainable way to provide essential nutrients to crops and avoid the use of harmful chemical fertilizers. The commercial crops organic fertilizer market is driven by the increasing demand for organic produce from consumers. Many consumers are looking for healthy and sustainable food options and are willing to pay a premium for organic products.

Organic Fertilizer Regional Market Insights

The Organic Fertilizer Market is also analyzed based on regions such as North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Asia Pacific accounted for the leading share based on region for the Organic Fertilizer Market and is estimated to grow with an 11.25% CAGR during the forthcoming years. In the United States, organic food sales have experienced tremendous growth in the last decade. For this reason, not only specialized retailers sell organic foods but also traditional supermarkets and discounters. Widely known specialized organic retailers in the United States include Whole Foods Market and Sprouts Farmers Market. Whole Foods Market is the largest specialized organic retailer in the United States, with headquarters in Austin, Texas.

The consumption of organic fertilizers in the region is concentrated between Germany, Italy, France, the United Kingdom, and Spain, as these account for more than 60% of the regional market share. An increase in the number of organic farms in most of the country's regions is anticipated to increase organic fertilizer adoption. Increased concern about the environment has paved the way for using bio-based organic fertilizers. Increasing the cost of chemical fertilizers and push from governments for sustainable farming are enabling farmers to adopt organic farming practices. The favorable regulatory scenario in Europe makes the region the largest market for organic fertilizer demand.

The two major factors driving the organic fertilizer market are the increasing focus on organic farming practices and the high availability of raw materials for fertilizer production. Saudi Arabia is the largest market. According to the Research Institute of Organic Agriculture (FiBL) Statistics, the total farmland under organic farming in Saudi Arabia was 17.0 thousand ha in 2017, which reached 26.6 thousand ha by 2020.

In addition, the key countries considered for this study include the U.S., Germany, Canada, France, Italy, the UK, Spain, Japan, India, China, Australia, Brazil, New Zealand, and South Korea.

Figure 3: ORGANIC FERTILIZER MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Organic Fertilizer Key Players & Market Competitive Landscape

The major companies are also focusing on signing partnership agreements with distributors, capacity expansions, and adopting different operational strategies to gain an edge in the competitive market space The market for Organic fertilizer has grown significantly due to their increasing consumption in numerous Crop Types. Market participants compete based on several parameters, such as product performance, quality, technical competence, price, and corporate reputation. New product launches, licensing agreements, distribution network expansion, technological investments, and mergers & acquisitions are some of the key strategies adopted by the companies to strengthen their market position and gain a larger market share.

The escalating demand for organic food products is likely to create a dire need for large-scale development of organic fertilizers in the forthcoming years, which in turn will create a wide field of opportunities for stakeholders. Sensing the growing demand for organic fertilizers, market goliaths have shifted their focus on expanding their organic fertilizer produce to capitalize on the growing unmet demand from consumers. For instance, in February 2019, BioStar Organics, a waste-to-energy company opened a new organic fertilizer plant in Washington with an aim to produce up to 500,000 gallons of SuperSix organic liquid fertilizer annually. In Focus - Consumer Demand Trends & Latest Organic Farming Methods A large number of organic fertilizers market players are shifting their focus towards leveraging the latest approaches of farming to improve the quality of their products, in line with the increased demand for value-ensuring produce. Significant focus on analyzing market trends and consumer demand patterns has also become instrumental for manufacturers that are eying diversified product offerings to ensure uninterrupted revenue generation.

Key Companies in the Organic Fertilizer market include

• Rallis India Ltd. (India)


• Midwestern BioAg (US)


• Coromandel International Ltd. (India)


• AgroCare Canada (Canada)


• Italpollina S.P.A. (Italy)


• The Scotts Miracle-Gro Company (US)


• Sustane Natural Fertilizer (US)


• Al Yahar Organic Fertilizers Factory (UAE)


• Emirates Bio Fertilizer Factory (UAE)


• Tadweer Food Recycling Company (Saudi Arabia)

Organic Fertilizer Market Segmentation

Organic Fertilizer Product Type Outlook

• Composts


• Manures


• Others

Organic Fertilizer Form Outlook

• Dry


• Liquid

Organic Fertilizer Crop Type Outlook

• Oilseeds & Pulses


• Cereals & Grains


• Fruits & Vegetables


• Others

Organic Fertilizer Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Netherlands
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Colombia
  
  
  • Rest of South America
  
  
  
  


• Middle East & Africa
  
  
  
  • UAE
  
  
  • Egypt
  
  
  • Saudi Arabia
  
  
  • Kuwait
  
  
  • Oman
  
  
  • South Africa
  
  
  • Morocco
  
  
  • Ghana
  
  
  • Nigeria
  
  
  • Rest of the Middle East & Africa