U.S. Residential Organic Compost Market Size, Share & Trends Analysis Report By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. residential organic compost market size was valued at USD 363.2 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2022 to 2030. The popularity of gardening as a hobby is increasing, especially among the younger generation is driving the demand for organic compost. The COVID-19 pandemic has positively impacted the demand from the households in the country. As the pandemic restricted people inside their homes during the lockdowns, a higher number of people engaged in gardening activities. Also, some families started growing vegetables and fruits for self-consumption as the pandemic increased the interest of consumers in healthier foods.

Even after the pandemic subsided and restrictions have been eased, the trend toward eating healthier, which had picked up during the pandemic, is continuing. Consumers have continued to be indulged in the consumption of self-grown organic vegetables and fruits, thereby generating demand for organic compost.

In addition, people in the U.S. are becoming more environmentally conscious and adopting environment-friendly production practices. An increasing number of people are becoming conscious of reducing the use of pesticides and fertilizers, owing to their harmful impacts on soil and produce. As a result, a rising number of people are replacing the use of harmful chemicals with organic compost, leading to increased market revenues.

The trend for landscaping has been seen increasing in the U.S., especially in the last few years. An increasing number of people are looking to transform residential outdoor spaces by accommodating areas such as lawns, outdoor kitchens, and party spots for entertainment and leisure. Furthermore, consumers living in urban areas are increasingly interested in being surrounded by greenery but continuing to live in urban spaces. Such trends have up-surged the demand for organic compost in the U.S.

The growing residential construction activities in the U.S. is another prominent factor contributing to the rising demand for organic compost. According to U.S. Census Bureau, the number of housing units in the U.S. increased from 135.3 million in July 2015 to 142.1 million in July 2020, witnessing a growth of around 5% during the period. The growth in housing construction is driving the demand for lawn & gardening consumables, including residential organic compost used in landscaping activities at newly constructed buildings.

Distribution Channel Insights

The offline segment accounted for the largest contribution in the U.S. market for residential organic compost of more than 55% in 2021. Most residential U.S. consumers still prefer buying organic compost from garden centers, topsoil suppliers, or other brick-and-mortar stores. Consumers like to have a look at and physically examine the products before buying as there is a lot of difference in the quality of organic compost provided by the manufacturers.

Some manufacturers in the U.S. use human sewage sludge, terming them biosolids, from hospitals and industrial plants which contain harmful chemicals and heavy metals. Due to the concerns regarding the usage of such stuff, consumers like to check the compost by themselves by smelling and feeling it in their hands, while also asking the seller a lot of questions about its ingredients and formation. This is one of the prominent reasons for the offline segment generating the major part of the revenue in the U.S. residential organic compost market.

The online distribution channel is projected to register a CAGR of 9.3% during the forecast period, significantly higher than the offline segment. The surge in internet penetration among the population has given rise to a large number of online shoppers in the U.S. Especially the COVID-19 pandemic has been a significant contributor to the rise in digitalization. Since the pandemic, many manufacturers focus on strengthening their sales from the online channel.

Manufacturers are providing discounts on online purchases, which are attracting new customers to the online channel. Amazon is a popular e-commerce platform in the U.S. from where residential consumers buy organic compost. Charlie’s Compost is one of the well-liked organic compost manufacturers in the U.S. which sells its products directly on Amazon. Its compost is certified organic by the state of Kentucky and sells its regular compost at USD 20 for 10lbs.

Key Companies & Market Share Insights

The market includes both international and domestic participants. Key market players focus on strategies such as innovation and new product launches in retail about organic compost to enhance their portfolio offering in the market.

• In January 2022, the U.S.-based Atlas Organics announced a transformational transaction with Generate Capital to expand its organic compost facilities nationwide.

• In December 2020, Atlas Organics announced the expansion of its operations in San Antonio, Texas. The new composting facility has residential food waste processing and composting management.

Some prominent players operating in the U.S. residential organic compost market include:

• Malibu Compost

• American Composting, Inc.

• Cedar Grove

• Atlas Organics

• Blue Ribbon Organics

• Garden-Ville

• Dairy Doo

• Vermont Compost Company

• The Compost Company

• Walt's Organic

U.S. Residential Organic Compost Market Report Scope

U.S. Residential Organic Compost Market Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the U.S. residential organic compost market report based on distribution channel:

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Online

  • Offline