Organic Fertilizer Market on a Growth Trajectory to Hit US$ 13.8 Bn by 2032 - Persistence Market Research

Organic Fertilizer Market Overview

The global organic fertilizer market is experiencing a significant growth trajectory, with its size expected to expand from USD 7.6 billion in 2025 to USD 13.8 billion by 2032, reflecting a compound annual growth rate (CAGR) of 8.9% during the forecast period. This rapid growth is largely driven by the increasing adoption of organic farming practices around the world. Organic farming covers more than 72.3 million hectares across 187 countries, with nations like Australia, Argentina, and Spain leading the way in organic agricultural methods. The demand for organic fertilizers has risen in parallel, as these fertilizers are essential in maintaining soil health and promoting sustainable farming practices. Moreover, organic food and beverage sales have crossed EUR 106 billion, further underscoring the growth potential of the organic agriculture sector and its related markets.

The leading segment in the organic fertilizer market is expected to be plant-based fertilizers, which are projected to account for 47.8% of the market share by 2025. These fertilizers are popular because they provide essential nutrients without harmful chemicals, making them a preferred choice for organic farming. Geographically, North America is set to lead the market, with the United States and Canada managing over 3.5 million hectares of organic farmland as of 2022. The region's adoption of eco-friendly farming practices, coupled with the strong consumer demand for organic products, positions North America as a key player in the global organic fertilizer market.

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Key Highlights from the Report

➤ The global organic fertilizer market is expected to reach USD 13.8 billion by 2032.
➤ The CAGR from 2025 to 2032 is projected at 8.9%.
➤ North America will hold a 33.4% market share in 2025, led by the U.S. and Canada.
➤ Germany has seen a 1.6% growth in organic land area in 2023, contributing significantly to Europe's market share.
➤ Plant-based fertilizers are expected to dominate, holding a 47.8% share by 2025.
➤ Government programs like PM-PRANAM in India are promoting organic farming adoption.

Market Segmentation

The organic fertilizer market can be segmented in various ways, but two of the most important categories are product type and end-user. Product-wise, the market is divided into plant-based, animal-based, and mineral-based organic fertilizers. Plant-based fertilizers, such as compost, manure, and seaweed extracts, are projected to dominate the market in the coming years due to their rich nutrient profile and eco-friendly characteristics. Animal-based fertilizers, including poultry manure and cow dung, are also widely used but may face limitations in supply and processing efficiency.

On the other hand, the end-user segmentation divides the market based on agricultural applications and non-agricultural uses. The agricultural segment holds the largest share, primarily driven by crop cultivation, including cereals, grains, vegetables, and fruits. Organic fertilizers are in high demand for crops like rice, wheat, corn, and soybeans due to the rising trend of organic farming. Additionally, the non-agricultural use of organic fertilizers in landscaping, gardening, and lawn care is also contributing to market growth, albeit at a slower pace compared to agricultural applications.

Regional Insights

In North America, organic farming has gained substantial traction, particularly in the United States and Canada. The U.S. organic food market surpassed USD 60 billion in 2022, showcasing a growing demand for organic products and, consequently, for organic fertilizers. North America is poised to hold 33.4% of the global organic fertilizer market in 2025. The government's supportive policies and subsidies aimed at promoting organic farming practices further contribute to this growth, making it a key region for market players.

In Europe, Germany plays a pivotal role in the organic fertilizer market. With over 36,680 farms dedicated to organic farming, Germany has experienced a 1.6% increase in organic land area in 2023. This growth is part of a broader trend in the European Union (EU), where the EU's Organic Action Plan aims to increase organic farmland to 25% by 2030. The EU's commitment to sustainable agricultural practices and their ambitious growth targets are likely to push organic fertilizer demand to new heights in the coming years.

Market Drivers

The organic fertilizer market is primarily driven by the growth in organic farming practices worldwide. With concerns over environmental sustainability and the increasing consumer preference for organic food, more farmers are turning to organic alternatives for their agricultural needs. The shift towards organic farming is being supported by government initiatives and policies, such as the EU's Farm to Fork strategy and India's PM-PRANAM program, which offer subsidies and incentives to promote organic farming. Additionally, as soil health becomes a growing concern, the demand for organic fertilizers that can rejuvenate and improve soil quality continues to rise, further accelerating market growth.

Another key driver is the rising awareness among consumers about the harmful effects of synthetic chemicals in food and agriculture. The push for chemical-free produce has led to a rise in the popularity of organic food, which, in turn, is boosting the demand for organic fertilizers. Furthermore, innovations in bio-fertilizers, including liquid bio-fertilizers and phosphor-nitro composts, are improving crop yields while maintaining environmental sustainability, adding another layer of growth to the market.

Market Restraints

Despite the promising growth of the organic fertilizer market, there are several factors that could hinder its expansion. One major challenge is the relatively higher cost of organic fertilizers compared to synthetic alternatives. Organic fertilizers often have lower nutrient concentrations and require more labor-intensive processes for production, leading to increased costs for farmers. This price differential could make organic fertilizers less appealing, especially in regions where farmers are highly price-sensitive or face financial constraints.

Additionally, there is a lack of awareness and education about the benefits of organic fertilizers in some regions, particularly in developing countries. Farmers in these regions may prefer the quick results offered by synthetic fertilizers, which can yield faster returns. Furthermore, the production of organic fertilizers often relies on organic waste materials that can be inconsistent in quality and availability, leading to supply chain disruptions and market volatility. These challenges pose significant barriers to the widespread adoption of organic fertilizers, particularly in cost-sensitive markets.

Market Opportunities

The global shift toward sustainability presents a huge opportunity for the organic fertilizer market. As more consumers demand organic food and eco-friendly products, the agricultural sector is evolving to meet these expectations. The growing recognition of organic farming as a viable and necessary solution for improving soil health, reducing environmental impact, and promoting biodiversity creates opportunities for market players to innovate and introduce new organic fertilizers that cater to diverse agricultural needs.

In addition, emerging markets such as India, China, and Latin American countries offer substantial growth potential due to their increasing adoption of organic farming practices. India, in particular, with its PM-PRANAM and PKVY schemes, is investing heavily in promoting organic agriculture. As these countries expand their organic farming sectors, the demand for organic fertilizers will continue to rise, presenting both market and investment opportunities for companies operating in the organic fertilizer space.

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Frequently Asked Questions (FAQs)

➤ How Big is the Organic Fertilizer Market?
➤ Who are the Key Players in the Global Market for Organic Fertilizers?
➤ 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

✦ ICL Group Ltd.
✦ BASF SE
✦ Fertoz Ltd.
✦ Tata Chemicals Limited
✦ The Scotts Miracle-Gro Company

■ ICL Group acquired Nitro 1000 in Brazil to expand its portfolio of sustainable fertilizers.

■ Tata Chemicals partnered with the Indian government to promote organic farming practices under PM-PRANAM.

The organic fertilizer market continues to expand rapidly, driven by the global push towards sustainable agricultural practices, organic farming, and eco-friendly food production. With growing demand for organic products, both in the agricultural and non-agricultural sectors, the future of organic fertilizers looks promising. While challenges related to cost and awareness persist, there are substantial opportunities for market players to innovate and grow in emerging markets worldwide.

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