Organic fertilizers are produced from naturally derived products such as plant and animal-based. Organic fertilizers promote environmental sustainability and healthy growth of microbes as well as plants. According to the Organic Trade Association, organic fertilizer also increases species biodiversity by 30% compared with synthetic fertilizer. It also reduces the risk of damage to plant and soil by retaining moisture and nutrients. Manure, phosphate rock, ground bone, guano, dried and powdered blood, finely pulverized fish, crushed shells, and wood are some of the raw materials used to produce organic fertilizers. Organic fertilizers are mostly available in liquids, powders, and solids.
The global organic fertilizer market is estimated to account for slightly less than US$ 6.7 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 7.2% during the forecast period (2019-2027)
Drivers
Increasing government initiatives and subsidies encouraging the use of organic fertilizers for promoting the sustainable farming method is predominantly fueling the market growth of organic fertilizers. According to the Coherent Market Insights analysis, the government of India, under National Project on Organic Farming has provided subsidies for the manufacture of organic and biofertilizers, CISS (Capital Investment Subsidy Scheme). Under this scheme, the commercial manufacturers are provided 25% of the total capital cost investment by the government (maximum of 40 lakhs) for setting up fruit/vegetable waste-based production unit.
Market Opportunities
Europe is an already large market of organic fertilizers, and the manufacturers in this region are focusing on expanding their customer bases by increasing establishing a new facility for producing organic fertilizers. This will favor the market growth over the forecast period. For instance, in February 2016, the Italpollina, USA, Inc. established a new manufacturing facility in Anderson, Indiana, the U.S. This new location is the headquarters for the subsidiary Italpollina, USA, Inc. This is in line with the company’s strategy of expansion in the North American region.
Market Restraints
The lower content of nutrients and efficiency as compared to synthetic fertilizers is projected to hinder the market growth of organic fertilizers. Organic fertilizer is lower in nutrient content such as nitrogen, phosphorous or potassium and they need to be used at a higher rate. Moreover, overgrowth of algae coupled with the pollution of groundwater because of animal-based organic fertilizers is projected to restrict the market growth over the forecast period.
Key Takeaways
On the basis of application, the cereals and crops has dominated the global organic fertilizer market in 2018 with a 74% of market share in terms of value, followed by fruits & vegetable and lawns & turfs.
Market Trends
The growing focus of manufacturers on establishing distribution partnerships with numerous local and international players to expand the footprint on regional as the well global level is expected to fuel the market growth of organic fertilizer. For instance, in February 2015, Biostar Renewables entered into distribution agreements with some organic and bio-fertilizer distributors, such as True Organics Products (Helm, CA), Midwestern BioAg (Blue Mounds, Wisconsin) and Purely Organic Products (Portsmouth, NH) for the distribution of its N2PK fertilizers. This development is in line with the company’s strategy of expansion in the domestic market.
The growing trend of using organic fertilizers in combination with other mineral fertilizers due to lower nutrient content is expected to foster the market growth of organic fertilizers. This approach allows farmers to obtain optimal crop production without degradation of soil fertility and also improves both the quality of crop production and prevents damages to the environment. This trend is expected to fuel the market growth of organic fertilizers.
Regulations
Animal By-Products Regulation
According to the European Commission, new technologies have widened the possible use of animal by-products or derived products to a large number of production sectors, in particular for the generation of energy. However, the use of those new technologies might pose health risks that must also be minimized.
Competitive Section:
Key players operating in global organic fertilizer market are Italpollina spa, ILSA S.p.A, Biostar Renewables, Plantin, Sustane Natural Fertilizer Inc., True Organic Products Inc., California Organic Fertilizers Inc., The Fertrell Company, Purely Organics LLC, Pupuk Kaltim, and Qingdao Sonef Chemical Co., Ltd
Few Recent Developments
ILSA S.p.A
- In 2016, the company signed a joint agreement with Biochilm a Brazil-based manufacturer for the expansion in the Latin America region. Now, the companies together hold 8 manufacturing facilities worldwide
- In March 2017, the company with its Chili based strategic partner ECR Ltda made an investment in the expansion of customer base in the South American region
BioSTAR Renewables
In February 2015, the company entered into distribution agreements with organic and bio-fertilizer distributors, such as True Organics Products (Helm, CA), Midwestern BioAg (Blue Mounds, Wisconsin) and Purely Organic Products (Portsmouth, NH) for the distribution of its N2PK fertilizers. This development is in line with the company’s strategy of expansion in the domestic market
Market Taxonomy
By Source
- Plant Origin
- Animal Origin
By Application
- Cereals and Crops
- Fruits and Vegetables
- Lawns and Turfs
By Form
- Solid
- Liquid
By Region
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East & Africa
