Organic Fertilizers Market Size, Share and Trends 2024 to 2034

Organic Fertilizers Market Size and Forecast 2024 to 2034

The global organic fertilizers market size is projected to be worth around USD 21.93 billion by 2034 from USD 12.34 billion in 2024, at a CAGR of 5.92% from 2024 to 2034.

Organic Fertilizers Market Key Takeaways

• Asia Pacific region dominated the organic fertilizers market with market share of 42% in 2023.
• North America is observed to expand at a rapid pace in the market during the forecast period.
• By source, the animal contributed more than 57% of market share in 2023.
• By source, the plant segment will experience considerable growth in the global market over the forecast period.
• By crop type, the cereals & grains segment generated the biggest market share of 43% in 2023.
• By crop type, the fruits & vegetables segment is expected to grow significantly during the forecast period. 
• By form, the dry segment has held a major market share of 69% in 2023. 
• By form, the liquid segment is expected to grow at a notable rate in the market over the forecast period.

Asia Pacific Organic Fertilizers Market Size and Growth 2024 to 2034

The Asia Pacific organic fertilizers market size was exhibited at USD 4.89 billion in 2023 and is projected to be worth around USD 9.32 billion by 2034, poised to grow at a CAGR of 6.03% from 2024 to 2034.

Asia Pacific dominated the organic fertilizers market in 2023. China and India are the leading contributors to the market. China and India have a long history of farming, and a huge rural population works in crop cultivation. China is a largely agricultural country, followed by India, endowed with rich agricultural resources. India and China are among the world's top producers of rice, wheat, corn, cotton pulses, and maize. These countries also specialize in the cultivation of a variety of fruits, vegetables, and particular crops such as tea, cotton, and tobacco. The Chinese and Indian governments have always placed a high priority on the development of agriculture. India and China’s agricultural productivity has significantly improved with enhanced product supply capacity.

Agriculture plays an integral part in the preservation of the ecosystem. The organic fertilizers market has witnessed the significant popularity of organic foods. Consumers are also willing to pay more for them, which is expected to boost the adoption of organic fertilizers. The rapid development of agricultural infrastructure enhanced the efficiency of grain production. The increasing use of organic fertilizers has positively influenced their notable environmental benefits. Therefore, the agriculture sector is anticipated to witness rapid expansion owing to the growing demand for organic food, particularly across North America and Europe, which heavily import food from the region.

• China’s agriculture has successfully met the challenge of feeding 1.4 billion people with 95% food self-sufficiency. China is also currently the top agricultural importer in the world. India is one of the key players in the global agriculture sector, and it is the primary source of livelihood for 55% of India’s population. 
• In December 2023, NITI Aayog and IFPRI signed a Statement of Intent to strengthen policy frameworks for agricultural transformation and rural development.

According to the data published by the India Brand Equity Foundation in May 2024,

• The organic food segment in India is expected to grow at a CAGR of 10% during 2015-¬25 and is estimated to reach Rs. 75,000 crores by 2025 from Rs. 2,700 crores in 2015. 
• Foodgrain production in India touched 330.5 million metric tonnes (MT) in 2022-23 (3rd Advance Estimate). India is the world’s 2nd largest producer of food grains, fruits, and vegetables and the 2nd largest exporter of sugar. A total of 521.27 LMT rice has been anticipated for procurement for the upcoming KMS 2023-24, up from 496 LMT produced during the previous KMS 2022-23.
• In the Union Budget 2023-24, Rs. 1.24 lakh crore has been allocated to the Department of Agriculture, Cooperation and Farmers’ Welfare. Rs. 8,514 crores have been allocated to the Department of Agricultural Research and Education.

North America is observed to expand at a rapid pace in the organic fertilizers market during the forecast period, owing to increasing demand for organic products, rising agricultural expenses, favorable climatic conditions, rising usage of environmentally friendly farming techniques, and availability of abundant land for farming. Consumer demand for sustainable and chemical-free agricultural products led to an escalating demand for organic fertilizers, propelling the market’s growth in North America.

In the organic fertilizers market, the United States is the largest producer of agricultural products after China and India. The presence of advanced agricultural infrastructure and rapid technological innovations is expected to bolster the adoption of organic fertilizers among farmers. Moreover, partnerships or collaborations between prominent market players and research institutions to develop organic fertilizers tailored to North American soil and climate conditions. Therefore, these factors are important for market expansion in the region.

• In October 2023, Dairy Dreams LLC in Casco received a USD 2.5 million grant for the production of organic fertilizers. The Fertilizer Production Expansion Program is funded by the U.S. Department of Agriculture’s Commodity Credit Corporation. The investment comes as the low supply and increased expense of fertilizer across the world are contributing to rising food prices and increased hunger.
• In October 2023, U.S. Department of Agriculture Secretary Tom Vilsack highlighted the progress made in partnering with farmers and American businesses to increase innovative domestic fertilizer production and in making it easier for U.S. farmers to grow food through the practice of double cropping. 

According to the data published by the U.S. Department of Agriculture

• Expenditures on food accounted for 12.8 percent of U.S. households’ spending in 2022, an increase from 12.4 percent in 2021. 
• In 2022, 22.1 million full- and part-time jobs were related to the agricultural and food sectors, 10.4% of total U.S. employment. 
• Mexico and Canada are two of the United States' three largest suppliers of agricultural products, USD 45.4 billion and USD 40.1 billion, respectively, in 2023.
• China was the largest market for U.S. agricultural exports in 2023, comprising 17 % of the total. China is closely followed by Canada and Mexico which each received USD 28.4 billion of U.S. agricultural goods, together totalling 33 percent of U.S. exports.

Market Overview

Soil fertility is considered an economical and efficient crop production. Soil assists in continuously supplying necessary nutrients, water, and other crucial factors that are needed for the growth and development of crops. The agriculture sector relies on fertilizers to boost soil production for better crop yields. Organic fertilizers are natural materials that are extensively used to provide nutrients to plants and improve soil fertility. There has been a paradigm shift towards the usage of organic fertilizers in the agriculture sector as people are increasingly becoming more aware of the adverse impacts of chemical fertilizers on both the environment and people to increase crop production.

Organic Fertilizers Market Growth Factors

• The increasing awareness about the health benefits associated with organic products is estimated to accelerate the organic fertilizers market growth rate during the forecast period. 
• There is a rise in awareness programs, financial assistance given to farmers, the presence of adequate post-harvest infrastructure, and premium prices for organic products. Such factors would motivate farmers towards organic farming and enhance the increase in organic coverage.
• The rising population, coupled with the rise in disposable income, is expected to contribute towards the overall growth of the organic fertilizers market.
• The rise in chronic illness is likely to increase the consumption of organic products.
• The growing demand for plant-based organic fertilizers, owing to the rising awareness about the benefits of plant-based fertilizers, such as wider availability, cost-effectiveness, and sustainable nature, is expected to boost the market’s growth. 
• The rising trend for innovations in microorganism-based fertilizers is expected to boost the market’s revenue during the forecast period. Microorganisms help to increase soil fertility.

What is the role of AI in the Organic Farming Industry?

The integration of artificial intelligence into organic farming has significant potential for optimizing sustainable agriculture practices. Application of AI-based technologies enhances resource efficiency by optimizing the use of water, fertilizers and pesticides. AI is also being used in crop monitoring, yield prediction, and mitigation of pests for data-driven decision making that contributes to higher yields. The technology is also being deployed to optimize organic farming supply chains by predicting harvest times and optimizing logistics.

• In February 2024, biotechnology firm BIOR developed an AI-power bioreactor that aims to solve issues related to soil quality and vitality degradation. The makers say that the reactor offers a 25-75% reduction in synthetic fertilizer use, and provides additional benefits such as enhanced soil biodiversity, reduced soil compaction, and enhanced water management.

Market Scope 

Market Dynamics

Driver

Rising popularity of organic products

The rising demand for organic products is expected to accelerate the growth of the organic fertilizers market. The increasing consumption of organic products has expanded the area of organic farming globally. Organic fertilizers are a critical agricultural approach. Farmers opt for organic farming to cultivate healthier foods while minimizing environmental pollution. Organic farming is increasingly becoming popular globally as the best substitute for farming methods like chemical fertilizers and other approaches. 

The overuse of chemical fertilizers adversely affects the soil, leading to soil acidification and soil crust. Chemical fertilizers often contribute to land degradation and environmental pollution. The use of organic fertilizers enhances the nutritional quality of crops and maintains soil health. The acceptance of organic fertilizers aligns with the goal of eco-friendly and sustainable agricultural practices. Thus, it contributes to the organic fertilizers market expansion during the forecast period.

• According to the Research Institute of Organic Agriculture (FiBL), Organic agriculture is practiced in 191 countries, and more than 76 million hectares of agricultural land are managed organically by at least 3.7 million farmers. Global sales of organic food and drink reached almost 125 billion euros in 2021.

According to the data published by Eurostat

• The area used for organic agricultural production in the EU continues to increase, and in 2022 reached 16.9 million hectares (ha), up from 15.9 million ha in 2021 and 14.7 million ha in 2020. 
• In 2022, the area used for organic farming was equivalent to 10.5% of the total utilized agricultural area (UAA) in the EU.
• Between 2012 and 2022, the area used for organic farming increased in almost all EU countries. The sharpest rates of expansion in this period were in Croatia (+306%), Portugal (278%), and Bulgaria (182%).
• The highest shares of organic farming areas within the total UAA were in Austria (27%), Estonia (23%) and Sweden (20%).  

Restraint

High Cost

The high cost of organic fertilizers is anticipated to restrain the market's expansion during the forecast period. Organic fertilizers are more expensive than synthetic fertilizers. Organic fertilizers require higher production costs and have a limited supply, which often impacts their affordability and availability.  In addition, organic fertilizers comparatively have lower nutrient concentrations than synthetic fertilizers which results in lowering the yields and profitability of farmers. Such factors restrict the expansion of the global organic fertilizers market.

Opportunities

Supportive government regulations

The supportive role of government is projected to offer immense growth opportunities to the organic fertilizers market in the coming years. Over the years, the cultivable land area under organic farming has substantially increased owing to the constant efforts of the government. The overuse of chemical fertilizers harms the environment as they contaminate the soil. 

Governments around the world recognize the significance of safeguarding agricultural land. They are committed to implementing corrective measures to mitigate the adverse consequences of chemical fertilizers, prevent land degradation, and ensure the long-term sustainability of agricultural land. Several governments mandate certification for organic fertilizer manufacturers to guarantee that the products meet organic farming standards and prevent the circulation of fake or substandard organic fertilizers. Therefore, such stringent government regulations ensure the quality and authenticity of organic fertilizers and are expected to fuel the organic fertilizers market growth.

• The Policy on Promotion of Organic Fertilizers was approved by the Government of India in July 2023. The Market Development Assistance @ 1,500/MT will be provided to promote organic fertilizers and will be given for the manure produced at plants under the umbrella Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) initiative covering different Biogas/CBG support schemes/programs of stakeholder ministries/departments.
• Several schemes of the Indian Government assist in promoting organic farming across the country, including Paramparagat Krishi Vikas Yojana (PKVY), Mission Organic Value Chain Development for North Eastern Region (MOVCDNER), Capital Investment Subsidy Scheme (CISS), National Mission on Oilseeds and Oil Palm (NMOOP), and National Food Security Mission (NFSM).

Source Insights

The animal segment accounted for the dominating share of the organic fertilizers market in  2023 and is projected to continue its dominance over the forecast period. The use of animal-based organic fertilizers produces healthy and high yields. Animal-based organic fertilizers play an important role in the agriculture sector and are estimated to increase their market share due to the rising demand for animal manure-based organic fertilizers. The animal-based product is an excellent source of nitrogen and is well-suited for leafy plants. 

The plant segment will experience considerable growth in the global organic fertilizers market over the forecast period. Organic fertilizers are derived from plants such as crop residues, compost, seaweed, cottonseed meal, cover crops, green manure crops, and others. These resources are generally abundant and can meet the ongoing rising market demand. Plant-based organic fertilizers contain essential nutrients that are considered crucial for plant development. Thereby fueling the segment’s growth.

Crop Type Insights

The cereals & grains segment held the largest segment of the organic fertilizers market in 2023 and is expected to sustain its position throughout the forecast period, owing to the rising production of cereals & grains, which is anticipated to increase usage of organic fertilizers. The cereals & grains are largely produced by India, Russia, China, and the U.S.  The demand for products has increased due to the rising global consumption of cereal and grains like wheat, rye, oats, rice, barley, millet, rye, triticale, sorghum, and maize. They are the staple foods. Thus boosting the segment's growth.

• According to the FAO’s latest forecast, global cereal production in 2024 has been raised by 7.9 million tonnes (0.3 percent) in July and is now pegged at 2 854 million tonnes, up from 2023 and marking a new all-time high.

The fruits & vegetables segment is expected to grow significantly in the organic fertilizers market during the forecast period. The market has witnessed a rise in consumer preference for organic fruits and vegetables among health-conscious people. Organic fruits and vegetables offer more nutrients and antioxidants than conventional cultivation. The consumption of organic fruits and vegetables could increase antioxidant intake by 20-40%. Over the years, consumers have recognized the importance of organic farming methods and are willing to pay premium prices for organic fruits and vegetables. Therefore, these factors underscore the expected rise in demand for organic fertilizers in the fruits and vegetables segment during the forecast period.

• According to the Ministry of Agriculture & Farmers Welfare in India, which released the data in October 2023, fruit production is estimated to be 108.34 million tonnes in the year 2022-23 as compared to 107.51 million tonnes in the year 2021-22. The production of vegetables is estimated to be 212.91 million tonnes in the year 2022-23 compared to 209.14 million tonnes in the year 2021-22.

Form Insights

The dry segment held the dominating share of the organic fertilizers market in 2023. Dry organic fertilizers have an immense market opportunity owing to the rising demand for organic foods and services.  Farmers prefer dry fertilizers as they offer several benefits, such as longer shelf life, ease of storage, cost-effectiveness, and convenience for application and transport. Dry organic fertilizers reduce the risk of spoilage and waste compared to their liquid form. Additionally, dry organic fertilizers encompass numerous products, including powders, granules, and pellets, catering to various crop types, improving the soil structure, and promoting best agricultural practices. Such factors are expected to increase the adoption of dry organic fertilizers during the forecast period. 

The liquid segment is expected to grow at a notable rate in the organic fertilizers market over the forecast period. The liquid fertilizers penetrate quickly in the soil and give faster access to nutrients. This form of organic fertilizers can be precisely applied through several methods, such as drip irrigation and foliar spraying, supporting precision farming practices. The integration of digital technologies is likely to enhance the efficiency and effectiveness of liquid organic fertilizer applications. Thereby driving the segment’s growth in the coming years.

Organic Fertilizers Market Companies

• Chemicals Limited
• The Scotts Miracle-Gro Company
• KRIBHCO
• Hello Nature International 
• Sustane Natural Fertilizer Inc. 
• True Organic Products Inc.
• California Organic Fertilizers Inc.
• Biostar Renewables
• ILSA S.p.A
• Coromandel International Limited
• PT Pupuk Kalimantan Timur
• Lallemand Inc.
• T Stanes & Company Limited
• Madras Fertilizers Limited
• Cropmate Fertilizers Sdn Bhd
• Midwestern BioAg
• Biostar Renewables, LLC
• NatureSafe
• Biolchim Spa
• Rizobacter Argentina S.A.
• National Fertilizers Limited
• Gujarat State Fertilizers & Chemicals Ltd.
• String Bio
• Rashtriya Chemicals & Fertilizers Ltd
• Agrinos
• Biomax Naturals
• Symborg (Corteva Agriscience)

Recent Developments

• In July 2024, in a significant step to review progress and gather feedback on the progress of the GOBARdhan Initiative, the Union Minister for Jal Shakti interacted with Compressed Biogas (CBG) producers and key stakeholders of the sector. The meeting signifies the importance the Government attaches to the GOBARdhan initiative, which is aimed at transforming organic waste into valuable resources such as CBG and organic manure. 
• In December 2023, a Chula researcher at Chulalongkorn University was successful in adding value to agricultural waste generated by industrial factories by transforming cassava waste and sewage sludge into organic fertilizer to replace the use of chemical fertilizers.  He has also come up with a special formula of microbial inoculum that increases nutrients needed by plants.
• In September 2023, Uterra Middle East Agro Industries announced its plan to invest USD 20 million over the next three years to construct and develop Ras Al Khaimah’s first organic fertilizer for soil project. The company, a unit of UniPax Investment Group, has acquired a land plot of 33,000 square meters in the Al Ghail Industrial Zone in Ras Al Khaimah to build a sustainable biosphere cluster.

Segments Covered in the Report

By source 

• Plant
• Animal
• Mineral

By form 

• Dry
• Liquid
• By crop Type 
• Cereals & Grains
• Oilseed & Pulses
• Fruits & Vegetables
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa