Organic Fertilizers Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Organic Fertilizers Market Growth Drivers & Opportunities

Growing Demand for Organic Food and Beverages in North America and Europe

• The surging demand for organic food and beverages in North America and Europe drives the market growth.
• As per data and several reports periodically released by the International Federation of Organic Agriculture Movement (IFOAM), the demand for organic products was chiefly concentrated in and generated from Europe and North America.
• Countries such as the U.S., Germany, and France continue to generate a strong demand for these products, with the per capita spending compounding at a significant rate.
• This growth has a considerable value potential for not only localized organic stakeholders but also for companies in APAC and LATAM countries that are involved in the organic food supply chain globally.

Macroeconomic Growth in Developing Economies Is a Growth Opportunity

• Although developing economies, which mainly comprise middle- and low-income countries such as India and Brazil, possess an appreciable ecosystem for the development of organic farming, they usually have less than 10% of the land for this farming model as compared to conventional farming.
• Furthermore, high premiums on organically produced products render them beyond the reach of a major share of the local population. In recent years, economic growth and a rise in disposable income in such countries have improved the demand for organic products.
• In foresight, this growth trajectory is expected to further generate a high demand for organic products, thereby benefitting the players operating in the organic fertilizers market.

Higher input costs and lower yield of organic farming compared to conventional farming

• The scalability and mainstream adoption of organic fertilizers are often riddled with a series of challenges. For instance, the low nutrient content and the bulky nature of manure render transportation inconvenient and costly.
• The issue is further compounded by the chemical attributes and performance of these fertilizers. The efficacy of organic fertilizers is low and the quality and quantity of nutrients supplied by these fertilizers to the soil are inconsistent.
• Furthermore, organic fertilizers also result in lower farm yield when compared with mineral fertilizers.
• In certain studies, this low-yield farming is also held liable for a high level of deforestation and carbon emissions, as it warrants more land for the same volume of produce than conventional farming practices.

Organic Fertilizers Industry Outlook

Source Insights

• The animal-based category held the largest revenue share of around 70% in 2023 and it is expected to maintain its dominance during the forecast period as well.
• The requirement for animal-sourced fertilizers has grown rapidly over the last few years. The increasing importance of animal-based fertilizers is the major factor propelling the expansion of the market in this category.
• Moreover, fertilizers produced from animal waste, bone meal, and blood meal are rich in potassium, phosphorous, and nitrogen, which are major nutrients needed by plants. Therefore, due to the above benefits of animal-based fertilizers, their usage is rapidly surging globally.
• Moreover, the growth is also driven by the snowballing demand for animal manure, which is commonly used in the making of healthy and maximum yield sustainably.
• Furthermore, key operating players are more focused on the launches of new products and enormous R&D investments.
• For instance, on 25 Jul 2022, the Ministry of Fisheries, Animal Husbandry & Dairying launched NDDB's subsidiary for manure management.

Sources covered in the report include:

• Plant (Faster-Growing Category)
• Animal (Larger Category)

Crop Type Insight

• The cereals & grains category held the largest revenue share of around 50% in 2023, and it is expected to maintain its position in the years to come.
• This is because such agrochemicals are most commonly used in cereals & grains, turf & ornamental plants, oilseeds & pulses, fruits & vegetables, and other types of crops.
• Moreover, the demand for such fertilizers is also growing because they can be easily produced and help give high yields of cereals & grains.
• In addition, according to the data released by several private and government sources, a significant portion of the organic farming area was being used for producing rice, barley, oats, and wheat, which boosts the requirement for these items.
• Moreover, non-toxicological and environmentally sustainable attributes of sustainably farmed cereals and grains are contributing toward the growth of the market in this category.

The following crop types are included in the report:

• Cereals & Grains (Largest Category)
• Oilseeds & Pulses (Fastest-Growing Category)
• Fruits & Vegetables

Form Type Insights

• The solid category held the larger market share in 2023, and it will maintain its dominance in the coming years.
• This is due to the greater use of granular-form fertilizers than liquid ones. The solid form of fertilizers is mostly used for lawn and garden applications, due to its long-lasting effect and easy availability of raw materials.

Form types covered in the report are:

• Solid (Larger Category)
• Liquid (Faster-Growing Category)

Application Insights

• The broadcasting category held the largest share of around 45% in 2023. This is because it allows large acreages to be sown in a very short time, which makes it suitable for farmers to spread fertilizers in the whole field.

It is further classified as:

• Broadcasting (Largest Category)
• Fertigation
• Foliar (Fastest-Growing Category)

Europe Is the Largest Region

• The European market held the largest share of 55% in 2023 and it is expected to grow significantly during the forecast period, because the region has the largest organic arable land area, over 17 million hectares.
• Moreover, the increasing public and private investments, integration of technology in farm-assistive practices, and government policies and initiatives to improve agricultural income have assisted the industry growth in Europe.
• Furthermore, the implementation and ratification of legislations, such as the Common Agricultural Policy (CAP) and the EU Regulation 2018/848, high per capita spending, and the presence of an organized supply chain for supporting the production, packaging, and distribution of sustainably grown produces are propelling the demand for organic fertilizers in the region.
• Whereas, APAC is the fastest-growing regional market. This growth is mainly ascribed to the rising health awareness among customers, broad cultivation land, growing population & per capita income, and enhanced mechanization and irrigation capabilities in the region.
• In addition, strict government rules and growing concerns by enterprises about the side effects of chemical-based fertilizers are propelling the demand for organic agrochemicals.
• Moreover, APAC is the third-largest consumer of organic products in the world, as consumer awareness of the benefits of such products is increasing in countries, such as India, China, and Indonesia.
• These food products were less prominent in the past decade, but following the trend in Europe and North America, large food retailers in the APAC region have become more active in the sales of such agricultural commodities.
• The major producers of these crops are India, China, Indonesia, Thailand, Sri Lanka, and the Philippines.
• However, the largest consumers are from the most affluent countries, such as China, South Korea, Japan, Taiwan, and India.
• Moreover, China and India started as large producers and exporters of organic products and have only recently developed a sizeable internal market.
• In addition, as per the Australian Organic Market Report 2021, since the beginning of the pandemic, millions of Australian people have shifted toward sustainable agriculture, and over half of the retailers have bought approved organic foods.
• Moreover, the price of organic fertilizers across the APAC region is the lowest in the world. This can be attributed to the prevalence of high-volume livestock and farm waste and integrated supply chains.

Further, regions and countries analyzed for this report include:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe (Largest Regional Market)
  • Germany (Fastest-Growing Country Market)
  • U.K.
  • France (Largest Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Fastest-Growing Country Market)
  • Mexico
  • Argentina (Largest Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market Nature – Fragmented

The organic fertilizers market is fragmented in nature, with the presence of a diverse range of players globally. The competitive nature of the market is dependent on the prices, product portfolio, product quality, and brand reputation. Moreover, players in the market actively focus on mergers & acquisitions, product launches, and promotion of soil health and regenerative agriculture, to gain a competitive analysis.

Organic Fertilizers Industry News

• In December 2023, Yara International ASA announced the acquisition of an organic-based fertilizer business of Agribios Italiana.
• In February 2024, Israel Chemicals Ltd. announced that it acquired Nitro 1000, a provider of biologicals in Brazil for around $30 million.
• In July 2023, Bionema Group Ltd. introduced a new range of biostimulant products in the U.K.
• In March 2022, Midwestern BioAg (MBA) announced its partnership with Indigo Agriculture to achieve success in the market for agricultural carbon credits.