Organic Fertilizer Market Is Estimated To Witness High Growth Owing To Increased Demand For Organic Food And Growing Concerns Regarding Environmental Pollution
The organic fertilizer market is estimated to be valued at USD 12.31 billion in 2024 and is projected to reach USD 18.63 billion by 2031, exhibiting a CAGR of 6.1% over the forecast period from 2024 to 2031. The global organic fertilizer market is primarily driven by the growing demand for organic food owing to increasing health consciousness among consumers. Furthermore, adoption of organic farming practices is rising due to growing concerns regarding environmental pollution and health hazards associated with the use of chemical fertilizers.
Increased demand for organic food
There has been a strong rise in the demand for organic food products globally due to growing awareness about the health benefits of consuming organic and chemical-free foods. Organic farming uses organic fertilizers which enrich the soil with nutrients and promote plant growth naturally without using any synthetic chemicals. This increases the demand for organic fertilizers from farmers.
Concerns about environmental pollution
Continuous use of chemical fertilizers over the years has severely impacted soil quality and caused pollution of land and water bodies. This has prompted farmers and governments to promote sustainable and eco-friendly organic farming techniques which utilize organic fertilizers.
Growing consumer awareness about the impact of chemical fertilizers on the environment is driving the demand for organic fertilizers
Rising awareness among consumers about the harmful effects of chemical fertilizers on the environment and human health has positively impacted the organic fertilizer market. Many consumers now understand that the excessive use of chemical fertilizers can pollute water bodies and soil while also releasing greenhouse gases. They are increasingly choosing organic options that do not use synthetic chemicals and are better for sustainability. Manufacturers have responded to this shift in demand by expanding their organic fertilizer product lines. Many farmers have also started adopting organic techniques to cater to consumer preferences for chemical-residue free foods. The consumer preference for eco-friendly products is a major factor propelling the organic fertilizers market.
Stringent regulations on the use of chemicals in farming practices are boosting the organic fertilizers market
Governments across nations have implemented stricter regulations on the application of chemical fertilizers and pesticides on agricultural lands due to growing pollution concerns. They are promoting sustainable agricultural practices with minimal synthetic input usage. These regulatory changes have encouraged many farmers to reduce dependency on chemicals and adopt organic techniques involving natural fertilizers. The implementation of laws restricting the quantity of chemicals that can be used per hectare has created opportunities for organic fertilizer producers. The introduction of regulations curbing the overuse of chemicals in crop cultivation is a pivotal driver positively impacting the organic fertilizer market.
High production costs associated with organic fertilizers act as a restraint
One of the key challenges for the organic fertilizer market is the higher production expenses involved compared to chemical fertilizers. Producing organic variants requires more manual labor for activities like collecting raw materials, processing, and applications. This makes organic fertilizers costlier than their synthetic counterparts. The price restraint prevents some farmers and cultivators from fully shifting to organic techniques. Producing organic fertilizers on a large commercial scale also needs higher capital investment that small producers may not be able afford. The relatively greater manufacturing expenditures are a major restraint for wider adoption of organic fertilizers.
Abundant availability of organic waste for the production of organic fertilizers presents lucrative opportunities
With increasing urbanization and population growth, the generation of organic waste from various sources has also surged tremendously providing substantial raw material for fertilizer production. Agriculture residues, food processing wastes, livestock manure, and others can be converted into value-added organic fertilizers using appropriate waste management techniques. This presents a huge opportunity for companies to collect, process, and convert such biomass into marketable fertilizer products. Governments and farmers also see waste-to-wealth projects as a means to sustainably manage mounting waste volumes. The organic fertilizer market stands to greatly benefit from the abundant availability of cheap agricultural and food processing waste streams.
Growing organic farmland across the world is opening up new opportunities
With the adoption of organic farming practices increasing globally, there is rising demand for certified organic inputs including fertilizers and manure. According to credible estimates, the total area under organic cultivation has expanded over the last few years in Europe and North America. New markets are also emerging in Asia Pacific and Latin America. This trend provides scope for organic fertilizer manufacturers to tap new consumer territories and gain wider market access. Companies can invest in infrastructures closer to organic farmlands for cost-effective distribution. They can also collaborate with farmer producer organizations to scale up production and meet the rising need for organic soil amendments.
Link: https://www.coherentmarketinsights.com/market-insight/organic-fertilizer-market-377
Key Developments
- In 2023, Windfall Bio secured USD 9 million in seed funding to launch its groundbreaking methane-to-organic fertilizer solution. This innovative technology converts methane, a potent greenhouse gas, into a valuable organic fertilizer, offering a sustainable and environmentally friendly alternative for agriculture and other industries.
- In January 2023, Sumitomo Chemicals, a global chemical company, announced its decision to acquire FBSciences Holding, Inc., a leading U.S.-based company specializing in biostimulants and naturally derived agricultural materials. This acquisition aims to expand Sumitomo Chemicals' presence in the agricultural sector and enhance its offerings in sustainable farming solutions.
- In 2021, Khetiwalo launched Dharti Shakti, an organic fertilizer designed to support farmers in their agricultural endeavors. This eco-friendly fertilizer helps promote sustainable farming practices and provides a natural alternative to synthetic fertilizers, contributing to a healthier environment and more productive crops.
- In 2020, TS-Agros launched the Telangana Siri brand of organic fertilizer. This initiative aimed to provide farmers with a reliable and sustainable source of organic fertilizers, promoting eco-friendly farming practices and enhancing crop yields.
Key Players
Yara International ASA, PT Pupuk Kalimantan Timur, BASF SE, FMC Corporation, Lallemand Inc., T Stanes & Company Limited, Madras Fertilizers Limited, Cropmate Fertilizers Sdn Bhd, Midwestern BioAg, Biostar Renewables, LLC, NatureSafe, Biolchim Spa, Rizobacter Argentina S.A., National Fertilizers Limited, Gujarat State Fertilizers & Chemicals Ltd., String Bio, Rashtriya Chemicals & Fertilizers Ltd, Agrinos, Biomax Naturals, and Symborg (Corteva Agriscience)
