India Organic Fertilizer Market Projected to Achieve US$935 Mn Valuation by 2031 - Persistence Market Research

Overview of the Market

India's organic fertilizer market is poised for significant growth, with projections indicating a steady increase from US$581 million in 2024 to US$935 million by 2031. This growth represents a robust CAGR of 7% during the forecast period. Organic farming in India has been gaining traction, driven by a combination of consumer preference for organic products and governmental initiatives aimed at promoting sustainable agricultural practices. The market's expansion is further fueled by heightened awareness regarding environmental concerns and the health benefits of organic produce. As the demand for organic products continues to rise, the adoption of organic fertilizers is expected to follow suit.

Several factors contribute to the growth of this sector. The increasing adoption of organic farming techniques, especially in regions like North India, plays a crucial role in this market's expansion. States such as Punjab, Uttar Pradesh, and Haryana have taken proactive steps to increase organic farming practices, contributing significantly to the demand for organic fertilizers. Additionally, the growing emphasis on reducing chemical usage in agriculture due to the harmful impact on soil and water quality has led to a shift toward organic alternatives. The segment's steady growth is also supported by strong government incentives aimed at encouraging sustainable agricultural practices and improving soil health.

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Market Statistics & Growth Drivers

The Indian organic fertilizer market is expected to achieve impressive growth over the next several years. By 2031, the market is projected to be worth US$935 million, driven by several key growth factors, including increasing consumer awareness of health and environmental issues, the government's push for sustainable farming, and growing demand for organic food. North India is forecasted to dominate the market, accounting for 44% of the total share by 2031. This is largely due to the proliferation of organic farming in states like Punjab and Uttar Pradesh, which are at the forefront of India's organic farming revolution.

Moreover, the increasing demand for organic food, coupled with the need to ensure sustainable agricultural practices, is spurring the organic fertilizer industry. In 2024, the farming sector is projected to hold 68% of the total market share, making it the largest application area. Organic fertilizers, which include plant-based and animal-based products, are becoming essential in these regions, as they are crucial for maintaining soil fertility while avoiding the detrimental effects of chemical fertilizers.

Key Highlights of the Market

➤ The India organic fertilizer market is projected to grow from US$581 million in 2024 to US$935 million by 2031.
➤ The market is anticipated to record a CAGR of 7% from 2024 to 2031, driven by increasing demand for organic farming.
➤ North India is expected to dominate the market with a share of 44% by 2031, driven by organic farming initiatives in states like Punjab and Uttar Pradesh.
➤ Plant-based organic fertilizers are expected to witness a CAGR of 7.1% from 2024 to 2031.
➤ The farming segment is the largest application area, expected to account for 68% of the market share in 2024.
➤ Growing awareness of environmental and health concerns is a significant driver of the shift toward organic fertilizers.

Market Segmentation

The India organic fertilizer market can be segmented into several categories based on product type, end-user, and application. In terms of product types, organic fertilizers can be broadly classified into plant-based and animal-based fertilizers. Plant-based organic fertilizers are derived from plant materials like compost, green manure, and crop residues, while animal-based fertilizers come from animal waste, such as manure, bone meal, and fish emulsions. Plant-based fertilizers are currently dominating the market and are expected to continue capturing a significant share due to their easy availability and eco-friendly properties.

From an end-user perspective, the largest demand for organic fertilizers comes from the agriculture sector, especially crop cultivation. The farming segment is expected to remain the dominant application area, driven by the growing adoption of organic farming practices in states like Punjab, Uttar Pradesh, and Haryana. The demand for organic fertilizers in these regions is anticipated to continue to grow as more farmers seek environmentally sustainable alternatives to chemical fertilizers. Other significant end-users include horticulture and landscaping, but the agriculture sector remains the largest contributor to the market.

Regional Insights

In India, North India stands out as the leading region for organic fertilizer adoption. This region is set to dominate the market due to the widespread popularity of organic farming practices in states such as Punjab, Uttar Pradesh, and Haryana. Government-backed initiatives, such as the National Mission on Sustainable Agriculture (NMSA) and the Paramparagat Krishi Vikas Yojana (PKVY), are driving the adoption of organic farming in these areas. These programs provide subsidies, technical assistance, and incentives for farmers to transition to organic farming methods, thereby boosting the demand for organic fertilizers.

The demand for organic fertilizers is also gaining momentum in South India, particularly in states like Tamil Nadu and Karnataka, where organic farming practices are becoming increasingly popular. However, North India remains the dominant region due to the larger number of organic farming initiatives and a stronger consumer base for organic products. As awareness of the benefits of organic farming spreads across the country, it is likely that the demand for organic fertilizers will continue to expand beyond the key northern states.

Market Drivers

Several key factors are propelling the growth of the organic fertilizer market in India. First and foremost, the increasing awareness among consumers about the health and environmental impacts of chemical fertilizers is significantly driving the demand for organic alternatives. With more consumers prioritizing organic food due to its perceived health benefits, farmers are under pressure to adopt organic farming practices, which directly boosts the need for organic fertilizers.

Second, government support plays a crucial role in accelerating market growth. Initiatives such as the National Organic Farming Research Institute (NOFRI) and various subsidies for organic farmers are promoting the adoption of organic fertilizers. Furthermore, as agricultural land becomes increasingly depleted by conventional farming practices, organic fertilizers are seen as a viable solution to restore soil fertility and improve the overall sustainability of farming practices.

Market Restraints

Despite its growth potential, the India organic fertilizer market faces several challenges. One of the primary restraints is the high cost associated with organic fertilizers compared to traditional chemical fertilizers. Organic fertilizers are often more expensive to produce and transport, which can discourage farmers from making the switch, especially those in economically constrained areas. Additionally, there is a lack of awareness and proper education on the benefits and proper usage of organic fertilizers, particularly in rural regions where traditional practices are still prevalent.

Another constraint is the limited availability of organic fertilizers in certain parts of the country. The supply chain for organic fertilizers is often less established compared to chemical fertilizers, making it harder for farmers to access them. This uneven distribution can create barriers to widespread adoption, particularly in remote areas.

Market Opportunities

The India organic fertilizer market presents several opportunities for growth. The expansion of organic farming in the country offers a significant opportunity for the organic fertilizer industry to grow. With the increasing number of farmers turning to organic practices, the demand for organic fertilizers is expected to rise steadily in the coming years.

In addition, the government's role in promoting organic farming through subsidies, training programs, and incentives presents a strong opportunity for businesses in the organic fertilizer sector. As more states adopt policies that support sustainable agriculture, the market for organic fertilizers is likely to expand. Additionally, increasing consumer demand for organic food products is expected to drive further growth in the market, creating a ripple effect in the demand for organic farming inputs, including fertilizers.

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Frequently Asked Questions

➤ How Big is the India Organic Fertilizer Market?
➤ Who are the Key Players in the India Organic Fertilizer Market?
➤ What is the Projected Growth Rate of the India Organic Fertilizer Market?
➤ What is the Market Forecast for the India Organic Fertilizer Market in 2031?
➤ Which Region is Estimated to Dominate the India Organic Fertilizer Market through the Forecast Period?

Company Insights

✦ National Organic Fertilizers Ltd.
✦ Biocare Manufacturing India Pvt Ltd.
✦ Krebs Organic Pvt Ltd.
✦ Omnia Specialities India Pvt Ltd.
✦ Tata Chemicals Ltd.

■ National Organic Fertilizers Ltd. has recently expanded its product portfolio to include plant-based organic fertilizers, catering to the growing demand in the market.

■ Biocare Manufacturing India Pvt Ltd. has opened new production facilities in Northern India to better serve the expanding demand for organic fertilizers in states like Punjab and Uttar Pradesh.

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This release was published on openPR.