Organic Fertilizers Market Size, Share & Growth Report 2031

Report Description

Organic Fertilizers Market Outlook 2031

The global organic fertilizers market size was valued at nearly USD 9.31 Billion in 2022 and is anticipated to reach USD 15.60 Billion by 2031, expanding at a CAGR of 5.9% during the forecast period, 2023 – 2031. The market growth is depending on the growing government policies and rising awareness about organic fertilizers.

Organic fertilizers are carbon-containing fertilizers that are produced naturally. It benefits the soil and plants, as well as insects, it further increases soil texture, and fungal activity allowing it to hold water for longer periods of time in the soil. Animal dung, human faeces, vegetable matter, and animal waste are all used to make organic fertilizers.

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Organic fertilizers benefits farmers as well as maintain plant growth due to which market players are investing and growing business with these products. It increases awareness of organic waste and crops produced from them which in turn results in good quality products and growing business opportunities.

Slurry, organic manure, peat, worm castings, seaweed, and guano are examples of naturally occurring organic fertilizers, whereas manufactured organic fertilizers include bone meal, compost, blood meal, and seaweed extracts.

Farmers are using organic fertilizers since they are inexpensive and have a long-lasting positive influence on the land. Organic fertilizers help to organically balance the soil ecology and boost plant health.

The report finds that the COVID-19 pandemic has favorable effects on the market. The pandemic resulted in increasing awareness about sustainable agriculture and food security. The pandemic has disrupted the supply chain system and reduced the availability of chemical fertilizers, increasing the demand for organic fertilizers.

According to research from Fertiliser India, a premium quality fertilizer and agricultural solutions company, India is the second-largest consumer of fertilizer worldwide with annual consumption of 61.2 Mn tons during 2020-21, which is 7.1% more than in 2019-20​​​​​. 

Organic Fertilizers Market Dynamics

Major Drivers

Growing concerns about environmental safety drive the organic fertilizers market. Organic fertilizers are better alternatives than chemical ones which are harmful to the environment and human health.

Organic fertilizers help in reducing the risk of water and soil pollution, protect the environment and promote sustainable agriculture. Furthermore, the rising government policies toward organic farming are expected to boost the market. Thus, such factors help to boost the market.

Existing Restraints

The high cost of organic fertilizers is expected to restrain the market. Organic fertilizers are more expensive than chemical fertilizers, so farmers cannot pay for the premium prices of organic fertilizers. Moreover, a lack of proper knowledge is also expected to restrain the market as farmers are not completely aware of the benefits of organic fertilizers thus, only prefer to pay for chemical fertilizers. Organic farming is not suitable for all soil types, limiting its use in some agricultural regions.

Emerging Opportunities

Increasing amount of organic waste around the world is expected to create opportunities for the market players. Organic waste works as a key material for organic fertilizer production, organic waste including food and agricultural waste formed into organic fertilizer through the process of composting and through other methods. Additionally, fertilizer created from organic waste helps to reduce the cost of production and improve environmental sustainability.

Scope of Organic Fertilizers Market Report

The market report includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Organic Fertilizer Market Segment Insights

Source Segment Analysis

Based on source, the organic fertilizers market is fragmented into animals, plants & minerals, and others. The animals segment is further categorized into bone meal, blood meal, organic manure, and others. The plants segment is further classified as seaweed extract, green manure, and others. Moreover, the minerals segment is fragmented into silica, rock phosphate, and others.

The animal segment is projected to hold a significant market share. Animals, fish, and birds are used to produce animal-based organic fertilizers such as bone meal, blood meal, feather meal, fish meal, and organic manure, which aids in crop growth. A blood meal is powdered blood from animals that provides 14% nitrogen and micronutrients like copper, zinc, and boron. It is highly rich in nitrogen and contains 0.6% potassium and 1.0% of phosphorus. It helps in healing and balancing the soil when it is growing, it further helps to nourish the plant roots.

The plant segment is anticipated to account for a significant market share during the forecast period.  Seaweed extract is broadly used as an organic fertilizer due to its various benefits. The proteins, amino acids, nutrients, and other nutrients present in seaweed extracts help to improve soil conditioning functions and fertility. Seaweed extracts are primarily applied to vegetables, trees, flower crops, and others.

• For instance, On December 26, 2022, KRIBHCO launched a sustainable product SIVARIKA, a seaweed bio-stimulant that is fortified with seaweed extract. It works as a metabolic bio-enhancer as it offers carbohydrates, proteins, and other nutrients including cytokinin, auxin, and mannitol.

Crop Type Segment Analysis

On the basis of crop type, the market is segmented into oilseeds & pulses, cereals & grains, turf & ornaments, fruits & vegetables, and others. The cereals & grains segment is further classified as wheat, maize, rice, and other cereals & grains. The cereals & grains segment is anticipated to account for a substantial market share.

Cereals are one of the most significant staple crops worldwide, with rice ranking first in terms of volume of production, according to the Food and Agricultural Organization. They are one of the most essential components of nutrient management since they are renewable and less expensive than synthetic fertilizers. Organic fertilizers improve nutrient absorption in cereal crops. They also boost crop immunity to pathogens, lowering crop protection chemical costs. These fertilizers not only boost plant growth and productivity but also improve the soil's health and fertility.

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Form Segment Analysis

In terms of form, the organic fertilizers market is bifurcated into liquid and dry. The dry segment is further categorized as powder, granular, pellets, and others. The dry form segment is projected to expand at a rapid pace. Dry organic fertilizers can be made up of a single ingredient, such as rock phosphate, or they might be made up of a combination of several ingredients.

These fertilizers are less expensive; however, they must be applied in greater quantities than liquid fertilizers since they are not completely absorbed by the crops. Almost all dry organic fertilizers give a wide variety of nutrients; however, there are a few dry organic fertilizers that provide a balanced ratio of NPK and micronutrients.

Application Segment Analysis

Based on application, the market is classified as broadcasting, gardening, foliar application, farming, fertigation, and others. The broadcasting segment is predicted to register a high CAGR.

The broadcasting method is economical, efficient, and simple. Furthermore, the increasing deployment of modern broadcasting equipment contributes to the expansion of this industry. This is a commonly used method of fertilizing; this is less time consumption and an easy method when the soil fertility is rich. 

Foliar application segment is anticipated to expand at a considerable CAGR during the forecast period. It is a method of applying organic fertilizers to plants that offer nutrients to the plants at the time of nutrient deficiency. In this method, liquid forms of organic fertilizers are preferably used for quicker application. Thus, applying such an application during plant damage or insufficient nutrients is boosting the segment.

Regional Analysis

In terms of region, the organic fertilizers market is categorized as Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. Asia Pacific is expected to dominate the market.

Fruits and vegetables, cereals, and grains are among the principal crops grown in this region. In addition, advances in communication technology have enabled people to become aware of the growth and wellness dynamics, which has strengthened this industry globally, particularly in emerging countries.

North America accounts for a key share of the market owing to the increased agricultural practices, and the growing number of farmers that help to produce good quality crops. The total number of certified organic farms increased by 36%, moreover, the number of agricultural lands was increased to 3.54 Mn hectares in 2021.

The United States Department of Agriculture (USDA) labeled the products produced by organic farms in the U.S. as “Certified Organic”. Thus, good-quality organic fertilizers and the increasing number of farms are expected to boost the market in the region.

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