The increasing environmental consciousness of consumers has fueled the demand for food that is produced with sustainable practices. 

Organic fertilizers not only enhance crop yield, but also improve the health and fertility of the soil. They also enhance crop resistance to diseases, and thus reduce costs on plant protection products. 

The market for organic fertilizers is growing rapidly. A study by Valuates Reports shows that this market is estimated to grow at CAGR of 10.4% during 2021-2026, reaching US$13.8 billion by 2026 from $6.9 billion in 2019.

Markets in different regions

Asia Pacific is the fastest growing market compared to North America, South America, Europe and Africa. The demand for organic fertilizers in Asia Pacific is concentrated among key agricultural countries, such as China and India which are the leading countries in terms of their usage. Demand for organic farming in China is rising fast which, to a large extent, benefits from the rapid growth of a middle class-population. China is also the biggest supplier of organic agri-food products to the European Union (source: FiBL & IFOAM), and also exports large amount of organic produce to the United States and Japan etc. These all positively impact organic fertilizer market in China.

North America is leading the global organic fertilizer market, with the demand projected to expand there due to favorable climatic conditions and abundant land for farming. 

However, the United States is highly dependent on imports for organic produce, which is a constraint to the growth of the organic fertilizer market.

Europe had the largest revenue share of the organic fertilizer market during 2015–2019 (source: Prescient & Strategic Intelligence). This region has the world’s largest organic arable land and the area is still increasing. The market growth there also benefits from the EU Regulation 2018/848, the Common Agricultural Policy as well as an organized supply chain.

In South America, Argentina dominates the biological organic fertilizer market. The country accounted for 48.6% of the total biological organic fertilizer market in 2018. It exports 70% of its biological organic fertilizers (source: Mordor Intelligence).

The organic fertilizer market in Africa is estimated to develop at a CAGR of 9.3% from 2020 to 2026 (source: Mordor Intelligence). The demand for sustainable farming, government subsidies and initiatives (such as the Ecological Organic Agriculture Initiative) facilitate market growth.

Future perspective

• Organic fertilizers increase the bioavailability of all kinds of nutrients, and improve the biological and physical properties of the soil. They enhance the crop yield and quality and contribute to the profitability for growers (also due to premium prices of organic produce). Growers are expected to increasingly adopt organic fertilizers as alternatives to synthetic fertilizers.

• From a consumer perspective, considering the health benefits of organic produce, the increase in demand for consumers of such food is driving the adoption of organic practices and fertilizers.

• Governments providing subsidies to the manufacturers and growers improve the availability and adoption of organic fertilizers.

• Product innovations continue to appear in the industry. Technological advancements keep improving the sustainability of using organic fertilizers and further increase the demand for such products.

• Farmers in developing and underdeveloped regions still use a large number of synthetic fertilizers as they are cheap and readily available. Their lack of knowledge about the benefits of organic fertilizers makes them choose synthetic products over others. This hinders the market expansion for organic fertilizers. However, as education and training come to the growers, this situation is changing with a growing positive attitude toward organic fertilizers in many regions. 

• The equivalence agreements between countries worldwide for product certification is another factor for the growth of the organic fertilizer market.

  
  

      From AgroPages