February 25, 2024
Organic Fertilizer Market

Sustainable Agricultural Practices Projected To Boost The Growth Of The Global Organic Fertilizer Market

Organic fertilizer refers to fertilizers derived from animal matter, animal by-products, plant matter or mineral sources that nourish plants without the use of synthetic chemical compounds or fertilizers. Organic fertilizers contain nutrients required by plants for healthy growth and productivity. They improve soil structure by increasing the water holding capacity and promotes better microbial activity. The use of organic fertilizers in agriculture is gaining prominence owing to growing awareness about the negative impacts of extensive use of chemical fertilizers and need for environmentally sustainable farming practices.

The global Organic Fertilizer Market is estimated to be valued at US$ 12.64 Bn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The rising focus of farmers and consumers towards sustainable agricultural practices is a major trend driving the demand for organic fertilizers. There is a growing consensus that long term use of chemical fertilizers not only depletes soil nutrients but also adversely impacts soil quality and biodiversity. Many farmers are now switching to organic fertilizers to enhance soil fertility in a natural way. Furthermore, consumer inclination towards organic food produced without the use of synthetic chemicals is augmenting the sales of organic fertilizers. The implementation of stringent regulations regarding the use of chemical fertilizers in several countries is also fueling the adoption of organic alternatives. Rapidly growing organic agriculture sector globally provides huge opportunities for organic fertilizer producers.

Porter’s Analysis
Threat of new entrants: The organic fertilizer market is moderately concentrated with a few large players dominating the market, making it difficult for new players to enter.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products like conventional fertilizers. However, rising demand for organic food is increasing buyer bargaining power.
Bargaining power of suppliers: A few large players dominate supply, giving them higher bargaining power versus buyers. However, availability of raw materials curbs excessive pricing behavior.
Threat of new substitutes: Threat of substitution is moderate as organic fertilizers have distinct benefits over conventional fertilizers for organic and sustainable farming. However, technological advances may lead to new substitutes.
Competitive rivalry: Competition in the market is high and expected to intensify further with large players focusing on business expansion through new product launches and strategic partnerships.

Key Takeaways
Global Organic Fertilizer Market Size is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing preference for organic farming and sustainable agriculture practices. The market size for 2023 is estimated to be US$ $12.64 Bn.

Regional analysis: North America dominates the global organic fertilizer market currently owing to wide acceptance of organic farming practices. Asia Pacific is expected to witness fastest growth during the forecast period supported by growing population, rising food demand, and government initiatives for sustainable agriculture in countries like India and China.

Key players operating in the organic fertilizer market include Scotts Miracle-Gro Company, National Fertilizers Ltd., and Fertikal N.V. Key players are focusing on strategic partnerships and new product launches catering to diverse cultivation needs to gain competitive advantage.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it