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Organic Fertilizer Market Forecast to Hit US$ 13.8 Bn by 2032 - Persistence Market Research

03-24-2025 08:22 AM CET | Chemicals & Materials

Press release from: Persistence Market Research

Organic Fertilizer Market

Organic Fertilizer Market

The global organic fertilizer market is experiencing significant growth, driven by the increasing demand for sustainable agricultural practices and the widespread adoption of organic farming techniques. As farmers and producers strive for environmentally friendly solutions to enhance soil fertility and improve crop yields, the organic fertilizer market has expanded rapidly. Projections indicate that the market will rise from USD 7.6 billion in 2025 to USD 13.8 billion by 2032, with a compound annual growth rate (CAGR) of 8.9% during the forecast period from 2025 to 2032.

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Overview of the Organic Fertilizer Market

The global organic fertilizer market is heavily influenced by the growing popularity of organic farming. With more countries adopting organic farming practices, the demand for organic fertilizers has surged, especially in regions like North America, Europe, and Asia. Organic farming has become a key component of agricultural sustainability, and countries across the world are increasingly adopting organic inputs like plant-based, animal-based, and mineral-based fertilizers. According to the latest data, global organic farmland has grown by 26.6% since 2021, and organic agriculture now covers over 96.4 million hectares worldwide.

Key growth drivers include consumer demand for organic food products, government incentives, and innovations in fertilizer technologies. The agricultural sector, particularly crop production, remains the leading segment for organic fertilizer consumption, accounting for 69.8% of the market share in 2025. The increase in organic farming acreage, alongside innovations like bio-fertilizers and nano fertilizers, further enhances the market's growth trajectory. Europe and North America are expected to lead the market, with significant contributions from countries like Germany, the United States, and Canada.

Key Highlights from the Report

• The global organic fertilizer market is projected to grow from USD 7.6 billion in 2025 to USD 13.8 billion by 2032.
• North America is expected to hold a 33.4% share of the global market in 2025, driven by the U.S. and Canada's growing organic farmland.
• Plant-based organic fertilizers will dominate the market, with a 47.8% share in 2025.
• The European Union aims to increase organic farmland to 25% by 2030, which will accelerate the market's growth.
• The U.S. organic food market surpassed USD 60 billion in 2022, with organic produce and beverages leading the categories.
• Bio-fertilizer innovations, such as phosphor-nitro composts and liquid bio-fertilizers, are boosting crop yields and supporting eco-friendly farming.

Market Segmentation

The global organic fertilizer market is segmented based on several factors, including source, crop type, form, and end-user. These segments help to understand the diverse needs of different regions and industries.

• By Source: The market is divided into animal-based, plant-based, and mineral-based fertilizers. Plant-based fertilizers, such as compost, seaweed, and green manure, are expected to lead the market in the coming years. They are favored for their sustainability, rich nutrient profile, and minimal environmental impact.

• By Crop Type: Cereals and grains dominate the organic fertilizer market, accounting for a significant share in 2025. Other important crop categories include fruits and vegetables, oilseeds, and pulses. These crops benefit from organic fertilizers as they promote healthy soil conditions and improve crop quality.

The demand for organic fertilizers is also influenced by factors such as crop type, farming practices, and environmental sustainability. The agriculture sector remains the largest end-user, with horticulture and residential gardens emerging as growing segments.

Regional Insights

• North America
North America is a major player in the organic fertilizer market, with the U.S. and Canada leading the charge. The region is expected to account for 33.4% of the market share in 2025. The growing demand for organic products in North America, particularly in the U.S., where organic food sales exceeded USD 60 billion in 2022, fuels the expansion of organic farming. Despite accounting for only 0.8% of North America's agricultural land, the adoption of organic practices continues to grow, providing lucrative opportunities for organic fertilizer manufacturers.

• Europe
Europe is another key region contributing to the market's growth, with Germany showing a steady increase in organic farmland. By 2023, the country had over 36,680 organic farms covering approximately 1.89 million hectares. The EU's Organic Action Plan and the Farm to Fork Strategy are expected to accelerate growth by aiming to increase organic farming to 25% of the total agricultural area by 2030. Europe's strong policy support and consumer demand for eco-friendly products further drive the growth of the organic fertilizer market.

Market Drivers

1. Increasing Adoption of Organic Farming: As more countries recognize the importance of sustainable agriculture, the demand for organic fertilizers continues to rise. Organic farming practices focus on enhancing soil fertility, reducing environmental impact, and promoting biodiversity, which directly contributes to the need for eco-friendly fertilizers.

2. Rising Consumer Demand for Organic Products: The increasing preference for organic food and beverages drives the demand for organic farming inputs. With organic food sales exceeding USD 106 billion in 2019, the global market for organic fertilizers is poised for sustained growth.

3. Government Support and Incentives: Governments around the world, especially in regions like India, Europe, and North America, offer subsidies and financial support to encourage organic farming. Programs like PM-PRANAM and PKVY in India, alongside the EU's Organic Action Plan, are pivotal in boosting the adoption of organic fertilizers.

Market Restraints

1. Lower Yields Compared to Conventional Farming: Organic farming often results in lower yields when compared to conventional farming methods, as organic fertilizers do not always provide the same level of nutrients or pest control. This is a significant challenge for farmers who rely on high yields to meet growing global food demands.

2. High Costs and Limited Availability: The cost of organic fertilizers is higher than traditional chemical fertilizers. The lack of infrastructure for organic farming in certain regions also makes it challenging for farmers to access organic fertilizers, limiting market growth in developing countries.

Market Opportunities

1. Bio-fertilizer Innovations: The development of advanced bio-fertilizers, including phosphor-nitro composts and liquid bio-fertilizers, offers opportunities for improving soil health and increasing crop yields. These innovations align with the growing trend toward sustainable farming practices.

2. Emerging Markets: Regions such as Latin America, Asia, and Africa present untapped opportunities for organic fertilizer manufacturers. As demand for organic farming grows in emerging economies, companies can leverage acquisitions and strategic partnerships to expand their market share.

3. Collaborations to Decarbonize Agriculture: Partnerships between companies like PepsiCo and Yara are paving the way for low-carbon fertilizer solutions, contributing to the global goal of reducing greenhouse gas emissions from agriculture. These collaborations also offer opportunities to enhance the efficiency of fertilizer production, benefiting both the environment and the economy.

Frequently Asked Questions (FAQs)

• How Big is the Organic Fertilizer Market?
• Who are the Key Players in the Global Organic Fertilizer Market?
• What is the Projected Growth Rate of the Organic Fertilizer Market?
• What is the Market Forecast for the Organic Fertilizer Market in 2032?
• Which Region is Estimated to Dominate the Organic Fertilizer Industry through the Forecast Period?

Company Insights

Some of the key players operating in the organic fertilizer market include:
• IFFCO
• Yara
• The Scotts Company LLC
• Coromandel International Limited
• Fertoz Ltd.
• BioStar Renewables
• TerraLink Horticulture Inc.
• Darling Ingredients

Recent Developments

1. Yara's Acquisition of Agribios Italiana: In December 2023, Yara acquired Agribios Italiana's organic-based fertilizer business to strengthen its presence in the European market.

2. IFFCO Launches Nano DAP Liquid Fertilizer: In April 2023, IFFCO introduced the world's first Nano DAP Liquid Fertilizer, approved under the Fertilizer Control Order in India, marking a significant milestone in the organic fertilizer industry.

Conclusion

The organic fertilizer market is on the brink of significant expansion, driven by the increasing demand for sustainable agricultural practices, government initiatives, and technological advancements in bio-fertilizers. With a projected CAGR of 8.9% from 2025 to 2032, the market presents ample opportunities for growth, particularly in North America, Europe, and emerging markets. As global agricultural practices shift toward sustainability, organic fertilizers will play a central role in supporting eco-friendly farming practices, ensuring soil health, and meeting the growing demand for organic food products.

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About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

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