Published: June 2020 | Report Code: CM12036 | Available Format: PDF | Pages: 146
The organic fertilizers market revenue stood at $4,512.1 million in 2019, and the market is predicted to advance at a CAGR of 14.1% between 2020 and 2030. Both downstream and upstream variables, such as the increasing number of organic farms and growing acreage all over the world and burgeoning requirement for organic food products, especially in Europe and North America, are fueling the market advance.
The COVID-19 pandemic has caused severe disruptions in the supply chain in various Asian and European countries due to the imposition of partial/complete lockdowns and restrictions on trade activities. Resultingly, farmers are encountering huge logistical issues in conducting farming and other allied activities, sourcing raw materials, and selling their produce.
However, many stakeholders in the retail industry have reported that the consumer sentiment toward organic food products and beverages is rather positive and growing, because of the various health benefits of these items. This is, consequently, fueling the consumption of organic food products, which is, in turn, driving the advance of the market for organic fertilizers.
The cereals & grains category held the largest revenue share, of more than 60.0%, in 2019, under the crop type segment of the organic fertilizers market. This is because cereal and grain production accounted for the major share of the organic farming area, of around 4.8 million hectares, in 2019. 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 due to the high downstream requirement for these items. The non-toxicological and environmentally sustainable attributes of organically farmed cereals and grains are contributing toward the expansion of this category.
The demand for animal-based organic fertilizers has grown sharply over the last few years, which is why this source category is predicted to hold the larger share in the market. The growing preference for animal-based organic fertilizers is the major factor propelling the expansion of this category, under the source segment of the market for organic fertilizers. Fertilizers produced from animal waste, bone meal, and blood meal are rich in potassium, phosphorous, and nitrogen, which are the major nutrients needed by plants. Because of these benefits of animal-based fertilizers and manure, their usage is surging across the globe.
The industry is bifurcated into liquid and solid fertilizers, depending on form. Of these, the solid category led the organic fertilizers market in 2019 due to the greater ease of usage of granular-form fertilizers than the liquid ones. Moreover, solid fertilizers are more likely to retain their nutritional value for a longer period. Due to these factors, this category is demonstrating rapid expansion in the market, and the situation will remain the same in the forthcoming years.
Europe had the largest market share from 2015 to 2019, primarily because it has the largest organic arable land area in the world. This is because countries such as Italy, Spain, France, and Germany have been witnessing a sharp rise in organic farming over the last few years. 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 presence of an organized supply chain for supporting the production, packaging, distribution of organic produce are propelling the demand for organic fertilizers in the region.
The fastest advance of the industry in the Rest of the World (RoW) will mainly be due to the surging demand for organic fertilizers in African and Latin American (LATAM) countries. The RoW region is predicted to almost double its share in the organic fertilizers market from 2019 to 2030. In LATAM countries, the requirement for organic fertilizers for the cultivation of coffee, quinoa, cocoa, sugarcane, and bananas is rising sharply. Similarly, the requirement for these fertilizers for the production of textile crops, cocoa, coffee, olives, oilseeds, and nuts is growing rapidly in the African region.
Moreover, with the increasing deterioration of the soil quality, the popularity of organic agriculture is mushrooming, and various stakeholders in the industry, such as farmers, landowners, and policymakers, are focusing on this farming method. Additionally, the enactment of initiatives such as the Ecological Organic Agriculture Initiative (EOA-I) and several schemes by organizations such as the Network of Organic Researchers in Africa (NOARA) and African Organic Network (AfrONet) and the surging investments being made by private and government entities are driving the advance of the organic fertilizers industry in this region.
The organic farming area all over the world has grown massively over the last few years. The soaring investments by private and public players in the organic food supply chain and increasing requirement for organic products because of their health benefits and low level of chemical leaching that happens during their growth are essentially aiding the organic fertilizers market advance.
According to the data produced by the Research Institute of Organic Agriculture (FiBL), government policies and initiatives, equivalence agreements between countries for product labeling, certification, and benchmarking, and implementation of participatory guarantee systems (PGSs) are encouraging landowners to adopt organic agriculture.
The expansion of the retail organic food and beverage sector in Europe and North America is a major factor driving the growth of the market. According to the data released by the International Federation of Organic Agriculture Movement (IFOAM), the requirement for organic food products was mainly concentrated in Europe and North America, with countries such as France, Germany, and the U.S. generating a huge demand for these items due to their high per capita income. The sales of these products are predicted to further shoot up in the coming years, which will lure the stakeholders and players operating in the market.
The expansion of the market is creating a huge value potential for not only localized organic stakeholders but also for the people engaged in the organic supply chain in the LATAM and Asia-Pacific (APAC) countries. The reliance of these regions on the import of various agricultural commodities and products can be leveraged for increasing the organic product supply, which will open avenues for the organic fertilizers market growth in the forthcoming 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 report offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.
Based on Source
Based on Form
Based on Crop Type
The organic fertilizers market will likely grow to $14,746.2 million by 2030 from $4,512.1 million in 2019.
The solid form has been more profitable for the organic fertilizers industry players.
The most-lucrative opportunities to invest in the organic fertilizers market are coming from the RoW region, which majorly includes LATAM and MEA.
The organic fertilizers industry report covers the U.S., Canada, Spain, Italy, France, Germany, Poland, Sweden, China, India, Australia, Uruguay, Mexico, and Brazil.
The nature of the organic fertilizers market is fragmented.
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