Organic Fertilizer Market Is Estimated To Witness High Growth Owing To Trends Toward Sustainable Farming

Organic Fertilizer Market


Organic fertilizers are obtained from plant and animal residues or byproducts which helps enrich soil nutrients and improve soil health. It contains essential elements required by plants like nitrogen, phosphorus and potassium. Organic fertilizers are important for sustainable agriculture as they not only improve crop yield but also enhance soil fertility and biodiversity. They release nutrients slowly and do not contaminate groundwater.

The Organic Fertilizer Market is estimated to be valued at US$ 12.64 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The demand for organic fertilizers is growing significantly owing to trends toward sustainable farming practices and concerns over environmental hazards of chemical fertilizers. Farmers are increasingly adopting organic fertilizers made from organic waste to increase soil fertility in a natural way. Strict regulations restricting the use of chemicals in farming has further propelled demand for organic alternatives. Moreover, growing health awareness about dangers of residues of pesticides and chemicals in food items has led consumers to prefer organic food items, thereby boosting organic fertilizer demand from farmers.

Porter's Analysis

Threat of new entrants: Low capital requirements and easy availability of raw materials pose a moderate threat of new entrants. However, established distribution channels and brand loyalty act as a barrier.

Bargaining power of buyers: Large buyers such as farmers and distributors have significant bargaining power due to the availability of substitutes and undifferentiated products.

Bargaining power of suppliers: Key raw material suppliers such as compost and manure producers have moderate bargaining power due to the availability of substitute materials.

Threat of new substitutes: Emerging substitute products such as inorganic and synthetic fertilizers pose a moderate threat. However, the growing demand for sustainable agriculture counterbalances it.

Competitive rivalry: The organic fertilizer market is highly fragmented with players competing based on product quality, pricing and innovation.

SWOT Analysis

Strengths: Growing popularity of organic and sustainable farming practices. Rising consumer awareness about the ill-effects of chemical fertilizers.

Weaknesses: Higher production costs compared to inorganic fertilizers. Need for proper composting methods.

Opportunities: Focus on R&D to develop innovative product solutions. Growth in export opportunities in developed countries.

Threats: Fluctuations in raw material prices. Substitute threat from synthetic fertilizers in price-sensitive regions.

Key Takeaways

Global Organic Fertilizer Market Size is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing preference for organic foods. The market size for 2023 is estimated to be US$ 12.64 Bn.

The Asia Pacific region currently dominates the global organic fertilizer market and is expected to grow at the fastest rate during the forecast period. Countries such as India and China are the major markets owing to the large area under organic cultivation and supportive government policies for sustainable agriculture.

North America is another prominent region for organic fertilizers driven by growing health awareness among consumers and stringent regulations regarding the use of chemicals in farming.

Key players operating in the organic fertilizer market are Scotts Miracle-Gro Company, National Fertilizers Ltd., and Fertikal N.V. The market is competitive with major players focusing on new product development and global expansion to gain market share. 


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