Organic Fertilizer Market to Record 8.9% CAGR Through 2032, Reaching US$ 13.8 Bn - Persistence Market Research

The global organic fertilizer market is witnessing remarkable growth, with a projected rise from US$ 7.6 billion in 2025 to US$ 13.8 billion by 2032. This signifies an impressive compound annual growth rate (CAGR) of 8.9% during the forecast period. The driving force behind this surge in demand is the expanding scope of organic farming practices across the globe. As the demand for sustainable farming solutions increases, the adoption of organic fertilizers is on the rise. This article delves into the factors influencing the organic fertilizer market, its segmentation, regional dynamics, and the key players shaping the future of this rapidly evolving industry.

Overview of the Organic Fertilizer Market

The organic fertilizer market has gained significant traction as global awareness around sustainability and environmentally friendly farming practices continues to grow. Organic farming, which now spans 72.3 million hectares across 187 countries, has become a leading trend in agricultural sectors worldwide. The global transition towards organic farming practices is one of the primary growth drivers for organic fertilizers. The growing demand for organic food and beverages, which exceeded 106 billion euros in 2019, further underscores the market's potential.

The shift toward organic farming is particularly evident in regions like Australia, Argentina, and Spain, where organic agricultural practices are thriving. These regions are fostering a demand for fertilizers that enhance soil health while promoting high crop yields without resorting to chemical-based solutions. For instance, India's organic farming, accounting for 2% of the nation's total agricultural land, is witnessing robust growth in states like Madhya Pradesh, Rajasthan, and Maharashtra, driving the organic fertilizer market. As more agricultural land is dedicated to organic practices globally, the need for sustainable inputs such as organic fertilizers is intensifying.

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Key Growth Drivers

Several key growth drivers contribute to the organic fertilizer market's expansion:

• Increase in Organic Farming: The global shift towards organic farming is one of the most significant factors propelling market growth. Countries are recognizing the environmental and health benefits of organic products, resulting in an increase in organic farming acreage.
• Government Initiatives: Various government programs, such as India's PM-PRANAM and the EU's Organic Action Plan, incentivize organic farming, driving demand for eco-friendly fertilizers.
• Rising Demand for Organic Products: The growing consumer preference for organic food and beverages is directly influencing the demand for organic farming inputs, including fertilizers.

Leading Segment and Geographical Region

Among the various organic fertilizers, plant-based fertilizers are expected to dominate the market with a projected share of 47.8% in 2025. This segment is gaining popularity due to its eco-friendly, nutrient-rich properties, which support sustainable farming practices. These fertilizers enhance soil health and promote the natural growth of crops, making them the preferred choice for organic farmers.

Regionally, North America is projected to lead the global organic fertilizer market, with an anticipated share of 33.4% by 2025. The United States and Canada are leading the charge in organic farming, with over 3.5 million hectares of organic farmland between them in 2022. The rise in organic food consumption, particularly in the U.S. market, which surpassed US$ 60 billion in 2022, is also a significant contributor to the region's dominance in the organic fertilizer market.

Key Highlights from the Organic Fertilizer Market

➤ The global market size for organic fertilizers is projected to grow from US$ 7.6 billion in 2025 to US$ 13.8 billion by 2032.
➤ Germany recorded a 1.6% growth in organic land area in 2023, with over 36,680 farms dedicated to organic practices.
➤ Cereals and grains are expected to account for 30.4% of the organic fertilizer market share in 2025.
➤ The EU's Organic Action Plan aims to increase organic farmland to 25% by 2030, driving market growth.
➤ North America is projected to hold a 33.4% share of the global organic fertilizer market in 2025.
➤ The U.S. organic food market surpassed US$ 60 billion in 2022, with organic produce leading as the top category.

Market Segmentation

The global organic fertilizer market can be segmented based on product type, end-use, and crop type. Each of these categories plays a critical role in determining market dynamics.

Product Type Segmentation

Organic fertilizers can be classified into plant-based, animal-based, and mineral-based fertilizers. Plant-based fertilizers are poised to lead the market due to their natural composition and eco-friendly properties. These fertilizers are derived from plant matter, such as compost, manure, and green manure, which enrich the soil with essential nutrients. Animal-based fertilizers, on the other hand, are derived from animal waste and are commonly used in organic farming due to their nutrient-dense properties. Mineral-based fertilizers contain naturally occurring minerals and are favored for their quick nutrient release, offering an alternative to synthetic fertilizers.

End-User and Crop Type Segmentation

In terms of end-users, organic fertilizers are used in agriculture, horticulture, and gardening. Agriculture accounts for the largest share, with organic farming practices growing at an exponential rate worldwide. The demand for organic fertilizers is particularly strong in cereals and grains, which are expected to hold a 30.4% market share in 2025. Other crops such as fruits and vegetables, legumes, and tobacco are also significant contributors to the demand for organic fertilizers.

Regional Insights

North America

North America remains a dominant player in the organic fertilizer market, primarily driven by the United States and Canada. Both countries have seen significant growth in organic farmland, with more than 3.5 million hectares dedicated to organic farming in 2022. The U.S. organic food market, worth over US$ 60 billion in 2022, continues to drive demand for organic fertilizers. The EU's Farm to Fork Strategy further boosts North America's position, as more sustainable farming practices are adopted across the continent.

Europe

Europe is another key market for organic fertilizers, with countries like Germany, France, and Italy leading the charge. Germany, for example, saw a 1.6% growth in organic farming in 2023, with over 36,680 farms dedicated to organic practices. The EU's Organic Action Plan, aiming to expand organic farmland to 25% by 2030, is expected to further stimulate growth in this region. The rising preference for organic food among European consumers supports the increased demand for organic fertilizers.

Market Drivers

Several factors contribute to the growth of the organic fertilizer market, with the shift towards sustainable farming being the most prominent. The increasing awareness of environmental degradation and soil health is pushing farmers to adopt organic farming practices. The rise in consumer demand for organic products, particularly in developed regions like North America and Europe, is fueling the need for fertilizers that support organic crop production. Additionally, government policies and initiatives to promote sustainable farming practices provide financial incentives, further accelerating the market growth.

Market Restraints

While the organic fertilizer market is expanding, it faces several challenges. The high cost of production is a significant restraint, as organic fertilizers tend to be more expensive than their synthetic counterparts. Additionally, the slow nutrient release and lower immediate efficacy of organic fertilizers can deter farmers, especially in regions where high yields are critical. There is also a lack of awareness and technical knowledge in some regions, limiting the adoption of organic farming practices.

Market Opportunities

The market presents several opportunities for growth. Technological advancements in bio-fertilizers, including the development of phosphor-nitro composts and liquid bio-fertilizers, offer enhanced crop yields and better soil health. Additionally, as organic farming continues to expand in emerging markets like India, there is a significant opportunity for growth in these regions. Governments around the world are also introducing subsidy programs to encourage organic farming, further boosting market adoption.

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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 Organic Fertilizers by 2032?
➤ Which Region is Estimated to Dominate the Organic Fertilizer Industry through the Forecast Period?

Company Insights

The organic fertilizer market is home to several leading companies that are helping to shape the industry. Below is a list of key players in the market:

✦ BASF SE
✦ The Scotts Miracle-Gro Company
✦ Compo Expert GmbH
✦ EuroChem Group
✦ Cargill, Inc.

Recent Developments

■ ICL Group acquired Nitro 1000 in Brazil to enhance its sustainable fertilizer offerings.

■ BASF launched a new range of bio-based fertilizers aimed at improving soil health and crop yields.

Conclusion

The organic fertilizer market is poised for substantial growth in the coming years, driven by the expansion of organic farming, increasing consumer demand for organic products, and government initiatives supporting sustainable agriculture. With innovative solutions in the pipeline and continued advancements in farming technologies, the organic fertilizer market is set to thrive in the foreseeable future.

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