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The global organic fertilizers market was valued at $4,512.1 million in 2019 and is projected to demonstrate a CAGR of 14.1% during the forecast period (2020–2030). Both upstream and downstream variables, such as the increasing acreage and number of organic farmlands across the world and the growing demand for organic food products in North America and Europe, are providing impetus to the market demand and are likely to fuel the growth of the organic fertilizers industry in the coming years as well.
The demand for these natural fertilizers for the production of cereals and grains generated the highest revenue, of over 60.0%, in the organic fertilizers market in 2019. In the same year, a significant share of organic farm area, amounting to nearly 4.8 million hectares, was employed for the production of cereals and grains. Furthermore, as per the data released by several government and private sources, a significant portion of this acreage was employed for the production of wheat, oats, rice, and barley, on account of the high downstream demand for these products. Moreover, the perceived environmentally sustainable and non-toxicological attributes of organically farmed products have contributed to the market growth in this category.
The COVID-19 outbreak has caused major supply chain disruptions in Asian countries and a fair degree of adverse effect across the European continent due to complete/partial lockdowns and temporary suspension of trade activities. Farmers are facing logistical issues in sourcing materials, conducting farming and allied activities, and selling their produce.
From a retail perspective, however, the stakeholders have reported positive consumer sentiment toward organic food and beverages, with a surging interest due to the perceived health benefits of these products. This, in turn, is driving the mainstream adoption of these products and translating into indirect growth of the organic fertilizers market.
Animal-based organic fertilizers have witnessed a strong demand in recent years and are expected to continue dominating the market throughout the forecast period, on account of their increasing preference among the end users. Fertilizers derived from animal waste, blood meal, and bone meal are rich in nitrogen, potassium, and phosphorus, which are primary nutrients required by plants for growth. Owing to such benefits of animal manure, the market is projected to continue witnessing high demand in this category.
The organic fertilizers market has been categorized into solid and liquid fertilizers on the basis of form. Between the two, the solid category held the larger share in 2019, on account of the ease of use of fertilizers in granular form. Moreover, solid fertilizers tend to retain nutritional value for a longer duration when compared with liquid fertilizers. Owing to these factors, the market is witnessing higher demand in this category, and the trend is likely to continue in the coming years as well, thereby supporting the market growth in this category.
During the historical period (2015–2019), Europe held the largest revenue share in the organic fertilizers market. The region has the largest tract of organic arable land across the world and has been witnessing a surge in organic cultivation across several countries, including Germany, France, Spain, and Italy. Furthermore, a number of factors, including the introduction and ratification of legislations and policies such as the EU Regulation 2018/848 and the Common Agricultural Policy (CAP), downstream retail demand for organic products, high per capita spending, and an organized supply chain for the production–packaging–distribution model, are helping the organic fertilizers industry advance in the region.
The growth in the Rest of the World (RoW) organic fertilizers market is primarily driven by the increasing product demand in the Latin American (LATAM) and African countries. As against its 2019 share, RoW is expected to nearly double its share in the global market by 2030. The demand for organic fertilizers in LATAM countries for the production of quinoa, coffee, cocoa, bananas, and sugarcane is growing considerably. In the African region, the demand for these fertilizers continues to witness growth for the cultivation of coffee, oilseeds, textile crops, olives, nuts, and cocoa.
With the rising levels of soil degradation, organic agriculture has gained momentum and is finding widespread interest among differentiated stakeholders in the industry, such as policy makers, farmers, and landowners. Government and private investments, coupled with initiatives such as the Ecological Organic Agriculture Initiative (EOA-I) and those by institutions such as the African Organic Network (AfrONet) and the Network of Organic Researchers in Africa (NOARA), are likely to propel growth in the regional market.
In recent years, the land under organic farming has compounded across several regions of the world. This can be attributed to a number of direct and indirect factors. Primary factors contributing to this include the increasing investments by public and private players in the organic food supply chain and the growing downstream demand for organic products due to their perceived health benefits and low chemical leaching during their production, further resulting in premium pricing and higher margins.
Secondary factors also contribute to the increasing emphasis on organic farming. As per the data released by the Research Institute of Organic Agriculture (FiBL), equivalence agreements between countries for product certification, benchmarking, and labeling; government initiatives and policies; and participatory guarantee systems (PGSs) pushing landowners toward organic farming are the factors propelling growth in the organic fertilizers market, globally.
As per the data released by the International Federation of Organic Agriculture Movement (IFOAM), as of 2019, the demand for organic products was chiefly concentrated in North America and Europe, with countries such as the U.S., Germany, and France generating a high-volume demand for these products on account of the high per capita income. Furthermore, the forecast model indicates that the demand for these products is projected to rise in the near future, further translating into lucrative opportunities for the stakeholders in the organic fertilizers industry.
Moreover, the growth in these markets is creating a considerable value potential for not just localized organic stakeholders but also for individuals engaged in the organic supply chain in the APAC and Latin American (LATAM) countries. Dependency of the region on the import of agricultural commodities can be leveraged to increase the supply of organic products, thereby opening avenues for the expansion of the organic fertilizers market size in the coming years.
|Base Year (2019) Market Size||$4,512.1 million|
|Forecast Period (2020-2030) CAGR||14.1%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies’ Strategical Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||By Source, By Form, By Crop Type, By Region|
|Market Size of Geographies||U.S., Canada, Spain, Italy, France, Germany, Poland, Sweden, China, India, Australia, Argentina, Brazil, Uruguay|
|Secondary Sources and References (Partial List)||Bio Suisse, Demeter International, European Organic Certifiers Council European Union, Eurostat, Food and Agriculture Organization, International Federation of Organic Agriculture Movements, Irish Organic Association, National Centre of Organic Farming|
The organic fertilizers market is fragmented in nature, with startups and small- to medium-scale organic chemical companies operating in the industry.
In recent years, the market has witnessed several strategic activities by players in terms of product launches, partnerships, and facility expansions, in order to stay ahead of their competitors. For instance:
The organic fertilizers market offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.
Based on Crop Type