Organic Fertilizer Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Source (Plant, Animal, Mineral), By Form (Liquid, Solid), By Crop Type (Cereals & Grains, Fruits & Vegetables, Seeds & Pulses, Others), And By Geography - Forecasts From 2023 To 2028

Organic fertilizers are fertilizers driven from natural sources such as plants, and animal droppings among others, and their higher nutrition content and less toxicity level in comparison to synthetic fertilizers have become a major driving factor for their market growth. Moreover, the growing population has increased the demand for major crop items such as cereals & grains, fruits & vegetables, and seeds & pulses among others. For instance, according to NITI Aayog’s demand & supply projections, pulses demand in the country is expected to increase from 26.72 million tonnes in 2021-2022 to 32.64 million tonnes in 2029-2030. Such high demand has provided a positive outlook to the organic fertilizer market.

Based on crop type, the organic fertilizer market is segmented into cereals & grains, fruits & vegetables, seeds & pulses, and others. The cereals & grains are projected to hold a decent market share during the forecast period of the organic fertilizer market. Organic fertilizers are carbon-based and cover a variety of macronutrients such as potassium, phosphorous, and nitrogen which are essential for better harvest quality and yield of cereals. With the rapid population growth and improvement in income levels, the demand for major organic crops such as cereals & grains has increased thereby boosting their production scale. For instance, as per the India-Organic Industry market report issued by the U.S. Department of Agriculture, in 2020, India’s organic cereals & millets production reached 321,006 metric tons which represented an increase of 18.2% over 271,534 metric tons produced in 2019. Furthermore, according to Eurostat, in 2020 major organic cereal production held 7.1% of the total production in Sweden, 6.1% in Estonia, and 5.8% in Italy. The growing production of organic cereals will boost the consumption scale of organic fertilizers thereby propelling the overall market demand. Also, the high protein & vitamin content makes organic cereal a high-energy source for people following healthy diets, and the growing health awareness is further expected to push the market demand for such organic food items.

The favourable government schemes and initiatives to promote organic fertilizers are positively impacting their market demand. Organic fertilizers offer a well-balanced nutrient content which improves soil structure and removes harmful contaminants thereby enabling high-crop production. Realizing the essence of organic fertilizers in farming various countries are undertaking initiatives to promote such fertilizers. For instance, in March 2022, the U.S. Department of Agriculture announced investments of US$250 million for supporting an innovative American-made fertilizers program that aims to support the production and supply of sustainable & innovative fertilizers to American Farmers. Furthermore, in July 2022, the Chief Minister of Chhattisgarh launched a scheme for the state government will procure cow urine for Rs 4 per liter for making organic fertilizers. Moreover, strategic plans are being introduced by the government of countries to further the cause of organic farming. For instance, as per the “Strategic Plan” submitted by the newly elected German government in February 2022, for distributing 30 billion euros in subsidies as per EU’s Common Agriculture Policy, more money will be provided to promote by giving access to farmers to voluntary echo-scheme. Such favorable schemes and investments will boost the launch of organic fertilizers in the future, thereby adding more to their market growth.

Recent developments

• In October 2021, Khetiwalo Organics & Agro Technologies Pvt. Ltd launched a wide range of organic fertilizers “Dharti Shakti” which is enriched with natural phosphorous and nitrogen that enables maintaining the pH of the soil for a longer period.
• In September 2021, Coromandel International Ltd launched its new organic fertilizer product namely “GROSHAKTI Plus”, which is suitable for pulses, cereals, fruits & vegetables, and oilseed crops. The fertilizer has higher phosphorous content which enables a better crop yield with improved disease resistance.
• In September 2021, Yara acquired Finland-based recycled fertilizer producer Ecolan Oy. The acquisition comes as the first step for the company to expand its organic fertilizer business in the growing organic farming activities in Europe.

Covid-19 Impact on the Organic Fertilizer Market

During the COVID-19 pandemic, the demand for organic food products witnessed a significant surge owing to the products involving less chemical usage for yielding thereby enabling them to offer better health benefits. Major countries practising organic farming saw an increase in their scale of production due to high demand. For instance, according to the 2021 Organic Industry Development Report issued by the State Administration for Market Regulation, in 2020 the organic planting area in China reached 2,435,000 hectares representing a 10% increase over 2019. Furthermore, according to Eurostat, in 2020, organic farming in EU countries covered 14.7 million hectares which constituted up to 9.1% of the total agricultural land. The governments now lifting COVID restrictions coupled with growing health awareness is also expected to boost the scale of organic farming in such major countries thereby having a positive impact on the market demand for organic fertilizers in the future.

Organic Fertilizer Market Scope:

Segmentation

• By Source
  • Plant
  • Animal
  • Mineral
• By Form
  • Liquid
  • Solid
• By Crop Type
  • Cereals & Grains
  • Fruits & Vegetables
  • Seeds & Pulses
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • German
    • France
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • South Africa
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Vietnam
    • Australia
    • Others