Organic Fertilizers Market Size, Share & Trends Analysis Report By Source (Animal-based, Plant-based), By Form (Dry, Liquid), By Crop Type (Cereals & Grains, Oilseeds & Pulses, Fruits & Vegetables), By Region, And Segment Forecasts, 2023 - 2030

Organic Fertilizers Market Size & Trends

The global organic fertilizers market size was estimated at USD 11.30 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030. The growth can be attributed to the increasing awareness and concern about the negative environmental impacts of synthetic fertilizers. Organic fertilizers are derived from natural sources and are environment-friendly. They promote sustainable agriculture practices by reducing soil and water pollution, preserving biodiversity, and improving soil health. The demand for organic food products has been on the rise. Consumers are becoming more conscious of the potential health risks associated with chemical residues in conventionally grown crops. Organic fertilizers are seen as a safer alternative, as they do not contain synthetic chemicals or genetically modified organisms (GMOs). This has led to a growing demand for organic produce, driving the growth of the market.

However, organic fertilizers tend to be more expensive than their synthetic counterparts. The production and sourcing of organic materials for these fertilizers can be costlier, which can deter farmers and gardeners, especially those with limited budgets, from using them. The production capacity may not be sufficient to meet the growing demand. Limited production capacity can result in supply shortages and higher prices, which may restrain the demand for the product.

The U.S. emerged as the largest consumer of organic fertilizers in North America in 2022, with a revenue share of over 75%. This is attributed to the fact that there has been a significant increase in consumer demand for chemical-free food & products in recent years. Consumers are becoming more conscious of their health and the environment, leading to a preference for organic produce. This increased demand for chemical-free products has a direct impact on the demand for the product, as farmers need to meet the organic certification requirements to produce chemical-free crops.

According to the USDA National Agricultural Statistics Service Surveys, the certified organic cropland acres in the U.S. increased by 79% from 2011 to 2021 accounting for 3.6 million acres. In a significant development, Agriculture Secretary Tom Vilsack announced in August 2022 that the U.S. Department of Agriculture (USDA) will be investing USD 300 million in a new "Organic Transition Initiative." This initiative aims to establish improved food markets and income sources for farmers and producers. The USDA's goal is to provide comprehensive support to farmers transitioning to organic practices, including a complete supply chain that caters to the daily demand for organic options from American consumers in their local supermarkets. Thus, the advancement in organic farming is anticipated to drive the demand for the product in the U.S. over the forecast period.

Source Insights

The plant-based fertilizer segment dominated the U.S. market with a revenue share of over 45% in 2022. These fertilizers are derived from natural sources such as agricultural waste, livestock manure, industrial waste, and municipal sludge. These materials contain essential nutrients that are beneficial for plant growth and enrich the soil with organic matter. Additionally, they do not contain harmful chemicals or synthetic additives that can have negative impacts on soil health and water quality. Furthermore, the use of plant-based fertilizers promotes soil fertility, improves soil structure, and enhances microbial activity, leading to healthier and more productive plants.

The synthetic-based segment is anticipated to witness decent growth over the forecast period. Synthetic-based fertilizers are manufactured using synthetic materials and are designed to provide specific nutrients to plants, promoting their growth and development. One of the key benefits of synthetic-based fertilizers is their precise nutrient composition. Unlike natural fertilizers, which may vary in nutrient content depending on the source, synthetic-based fertilizers can be formulated to contain precise amounts of nitrogen, phosphorus, potassium, and other essential elements. This allows farmers and gardeners to tailor the nutrient application to the specific needs of their plants, ensuring optimal growth and yield.

Form Insights

The dry fertilizers segmentdominated the global market with a revenue share of over 65% in 2022. Dry fertilizers do not contain harmful chemicals or synthetic additives that can have negative impacts on soil and water quality. They are derived from natural sources such as compost, manure, and plant-based materials and are rich in organic matter and essential nutrients. Another factor driving the demand for dry fertilizers is the rise in organic farming practices. These farmers are prohibited from using synthetic fertilizers, making dry organic fertilizers their preferred choice. They align with the principles of organic farming, which prioritize soil health, biodiversity, and environmental sustainability.

Crop Type Insights

Cereals & grains dominated the global market with a revenue share of 41% in 2022. This growth is attributed to the fact that consumers are concerned about the chemicals and synthetic fertilizers used in conventional agriculture. They seek healthier and environment-friendly food options, which are often associated with organic farming practices. Organic fertilizers are a crucial component of this approach, as they are considered environmentally sustainable and less harmful to human health and the ecosystem. They improve soil structure and enhance its long-term fertility. Cereals and grains depend on healthy soil for optimal growth, and organic fertilizers help maintain soil health and reduce the need for soil degradation practices, such as excessive tilling.

Fruits & vegetables is another segment anticipated to witness good growth over the forecast period. Consumers are becoming concerned about pesticide residues and synthetic chemicals in their fruits and vegetables. Organic fertilizers, being natural and chemical-free, are perceived as safer and healthier options, making organic produce more attractive to consumers. Moreover, they help to improve soil structure, nutrient content, and microbial activity, which are critical for growing healthy and flavorful fruits and vegetables.

Regional Insights

Asia Pacific dominated the market with a revenue share of over 34.0% in 2022. This growth is attributed to the advancing agricultural industry in the region. According to the Food and Agriculture Organization (FAO), the global population is projected to reach 9.8 billion by 2050, with more than half of that population residing in the Asia Pacific region. This highlights the urgent need to enhance agricultural productivity and sustainability to meet the increasing food demand in the region and the world.

Additionally, Asia Pacific plays a significant role in the global food chain, accounting for 19% of all food and agricultural exports. Leading the way in the production of crops such as wheat, rice, cotton, and tea are countries like China and India, while Vietnam and Indonesia rank among the top five largest producers of coffee beans. As a result, the expanding agricultural activities, coupled with the growing demand for chemical-free food, are expected to drive the demand for organic fertilizers in the region throughout the forecast period.

North America is another region anticipated to witness good growth over the forecast period. The rising demand for agricultural products such as cereals, fruits & vegetables, and oilseeds & pulses in the region offers a lucrative growth opportunity for the product market. According to the United States Department of Agriculture, grain production in North America has increased from 437,578 thousand metric tons in 2018-2019 to 454,922 thousand metric tons in 2021-2022. The increase in agricultural land coupled with the increasing production of chemical-free cereals and food crops in the region has resulted in propelling the demand for the product in the region.

Key Companies & Market Share Insights

The product market has experienced significant growth in recent years, driven by increasing consumer demand for sustainable and environment-friendly agricultural practices. Companies are continuously working on developing enhanced formulations to improve nutrient availability and plant uptake. Some companies are incorporating beneficial microbes and mycorrhizal fungi into their organic fertilizers to enhance nutrient absorption and promote plant growth. Thus, innovation plays a crucial role in the product market, as companies strive to develop new and improved products that meet the evolving needs of farmers and gardeners. Companies are also involved in partnerships and expansions to strengthen their position in the market. In May 2023, Pupuk Kaltim, Indonesia's leading fertilizer manufacturer, revealed its plans to expedite its expansion efforts in response to the global market gap created by Russia's invasion of Ukraine. The company aims to address the increased demand that is expected to persist in the foreseeable future.

Organic Fertilizers Market Report Scope

Global Organic Fertilizers Market Report Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global organic fertilizers market report based on source, form, crop type, and region:

• Source Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Plant-based

  • Animal-based

  • Synthetic-based

• Form Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Dry

  • Liquid

• Crop Type Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Cereals & Grains

  • Oilseeds & Pulses

  • Fruits & Vegetables

  • Other Crops

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa