The organic fertilizers market will be seeing rapid growth at a rate of 12.89% CAGR with 13.67 billion from 2022 to 2030.
The organic fertilizers market will be seeing rapid growth at a rate of 12.89% CAGR with 13.67 billion from 2022 to 2030, expects MRFR (Market Research Future).
Rising preference for organic food products coupled with the heightened awareness level of environmental safety enhances the demand for organic fertilizers. Additionally, the abundance of organic waste and the innovations in organic fertilizer manufacturing techniques further encourage market growth.
The effects of COVID-19 on the organic fertilizers industry have been devastating. China, one of the top consumers and producers of organic fertilizers, faced shutdown of production units as well as restrictions on import and export of organic fertilizers as well as chief raw materials. This had a debilitating effect on the sales, operations and production of organic fertilizers. The pandemic has been unfavorable for the organic fertilizers market in several other countries such as the U.S., Australia, India, France, Brazil, and more. Several Indian fertilizer units had to be shut down or were working at lower capacity in view of the lockdown, which resulted in considerable losses in the nationwide production of organic fertilizers.
The fertilizers sector in various Southeast Asian countries has been facing challenges due to the pandemic, which has impacted the distribution within as well as across the entire Asia Pacific region. However, Malaysia has been performing well despite the lockdown imposition, since the production units have received clearance to maintain operations as fertilizers are essential in maintaining the food supply.
But with governments and several regulatory bodies worldwide barring the use of chemical fertilizers, the focus on organic fertilizers has risen considerably among the growers. On top of this, promotion and awareness regarding organic agriculture by several governmental bodies and farmers will present growth opportunities to the organic fertilizers market.
Covid - 19 Analysis of Organic Fertilizers Market
Covid 19 had serious impacts on most of the industries worldwide and Organic Fertilizers market is not an exception too. Though agricultural activities were continuing during the period farmers had to face a shortage in supplies. These problems were a result of disruptions in supply chains owing to restrictions.
The organic fertilizers market showed only moderate growth during the period. In fact, the industry is yet to recover from the impact. Moreover, the closure of production units and distributor outlets is also a major cause of the decline in sales. However, there was an uprise in positive views towards organic farming. Many local farmers around the globe got a chance to connect directly with their local customers. Embracing natural farming from these customers has influenced such cultivators to try organic fertilizers.
Awareness among people about the possible benefits of organic farming is increasing with time. This will lead to the market growth of organic produce as well as organic fertilizers. Moreover, the rising bourgeoisie population has increased the demand for quality food. To meet the rising demand, many farmers are shifting towards organic agriculture. This will definitely increase the market share of organic fertilizers.
Another reason for the increasing area under organic agriculture is the better price for organic produce. Organic produce being higher in quality fetches good remuneration for farmers. So, the farmers are easily motivated to practice organic farming. Moreover, Organic Fertilizers Market sustains soil productivity for a long time which is not possible with chemical fertilizers.
Governments and different regulatory bodies around the globe are putting a bar on many chemical fertilizers. This will also propel the farmers to go for organic fertilizers. In addition, awareness and promotion of organic agriculture by governmental bodies are bringing a major change in the fertilizer market. Analyzing all these factors with the rising population, organic fertilizers are expected to play a greater role in farming during the forecast period.
As every good product has some limitations, the organic fertilizers market with immense benefits also have some drawbacks. The first is that the production process of organic fertilizers often exceeds the price of chemical fertilizers. Hence, organic fertilizers being Healthy to soil has a less cost-benefit ratio for the short term.
Although we generate a large amount of organic waste, very few go for proper utilization. Therefore, it is creating a shortage of raw materials for fertilizer production. It is still a daunting task to channelize the collection of raw materials for organic fertilizers production.
Moreover, organic fertilizers are bulky in comparison with chemical fertilizers except for some biofertilizers. Hence, the total nutrients derived from a unit quantity of organic fertilizers is much less than that of chemical fertilizers.
Lack of knowledge about organic fertilizers among the farmers of developing and underdeveloped countries is also a major hindrance. The farmers, aware of its importance, go for the application of locally available materials rather than buying them from the market.
Organic fertilizers are soil nutrition substances that are derived from organic sources such as plants and animals. Fertilizers are a substance which can add nutrition to the soil. Hence, two types of Fertilizers are available based on their source of extraction:
Organic fertilizers comprise plants and animal products, wastes, microbial concentrate, and natural minerals, etc. As we source them from natural substances, they cause no harm to soil and improve soil properties. On the other hand, chemical fertilizers damage the microbial activity of soil causing long-term damage. Moreover, organic fertilizers are rich in micronutrients, plant growth hormones and act as a conditioner to the soil. It also helps in sustaining soil properties which are essential for crop growth and healthy food production. The commonly available organic fertilizers are manures, worm castings, oil cakes, blood meal, guano, biofertilizers, etc.
On basis of the source of production, the organic fertilizers market is divided as: -
The animal-based fertilizer segment is showing higher growth among the other types. Such fertilizers being rich in nitrogen and phosphorus content greatly helps in improving soil productivity. Besides this, animal-based organic fertilizers are also rich in secondary micronutrients such as Calcium and Magnesium.
Secondly, on the basis of crop source biofertilizers market is segmented as:
Fruits and vegetables are the fastest growing market segment due to the rising importance of their inclusion in the diet. However, cereals and pulses hold the largest market share. It is due to their large area under cultivation and importance regarding food security.
Thirdly, on the basis of certifications, the Organic Fertilizers Market is segmented as: -
Moreover, on the basis of form, we can classify the organic fertilizers market into
Out of these two types, liquid organic fertilizers are showing a higher growth rate. This growth is supported by its property of faster absorbability. Liquid fertilizers are more rapidly available to plants than any other form and are easy to apply. However, dry fertilizers hold the largest market share due to their easy production and traditional market.
On the basis of regions, we can divide the global organic fertilizers market as:
Europe holds the largest share of the global organic fertilizers market. In fact, Europe has a large area ( 13.8 million hectares ) under organic cultivation. Countries such as Sweden, Austria, Denmark & Germany are the biggest market for organic fertilizers. Moreover, the high purchasing power of people in this region makes farmers able to spend on organic inputs.
However, Asia- Pacific is the fastest-growing market. Favorable government policies, rising literacy rates, and purchasing power are the main contributors to the growth. The North - American region is also expected to witness moderate growth in market share during the forecast period.
The organic fertilizers market is represented by different key players around the globe. Some of the key global and regional players of this market are:
Safi Organics has developed an affordable organic fertilizer that facilitates the restoration of agriculture while elevating the productivity rate. Safi Organics has used MIT's D-Lab technology for creating organic fertilizers that help rehabilitate farmlands.
All stakeholders of the organic fertilizers market can benefit from this report. It will be more helpful to those who are directly connected with the organic fertilizers market such as:
This report provides overall information about the organic fertilizers Market. It contains market details in terms of current value and future forecasts. Moreover, we have identified opportunities regarding the organic fertilizers market and also restraints for its growth. Furthermore, this report provides an overview of market expansion in terms of different segments in different regions around the globe. This report also provides information about key players in the market and some recent developments.
|Market Size||USD 13.67 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Source, By Crop, By Certifications, and By Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Tata Chemicals Ltd. (India), Midwestern BioAg (USA), Tata Chemicals Ltd. (India), Agrocare Canada (Canada), Coromandel International Limited (India), Italpollina S.p.A. (Italy), The Scotts Miracle-Gro Company (USA), Sustane Natural Fertilizer Inc. (USA)|
|Key Market Opportunities||Awareness among people about organic fertilizers|
|Key Market Drivers||Increasing willingness to pay for organic food|
Organic fertilizers are soil nutrition substances that are derived from organic sources such as plants and animals.
The liquid form of organic fertilizers is showing a faster growth rate. It is easy to apply and is more quickly available to plants than other forms.
Tata Chemicals Ltd. (India), Midwestern BioAg (USA), Tata Chemicals Ltd. (India), Agrocare Canada (Canada), Coromandel International Limited (India), Italpollina S.p.A. (Italy), The Scotts Miracle-Gro Company (USA), Sustane Natural Fertilizer Inc. (USA)
Europe is expected to show the highest market growth during the current forecast period. Europe has a large land area under organic cultivation and a high purchasing capacity of farmers.