The analysts of Persistence Market Research have recently come up with a new publication titled “Organic Fertilizer Market: Global Industry Analysis and Forecast, 2017-2025.” The expert team of analysts have observed that the global organic fertilizer market is highly fragmented and the market players are focused on the expansion of production capacities and strengthening partnerships with distributors to enhance their global footprint. The analysts have further observed that Europe is projected to hold a significant market share in the global organic fertilizer market and will continue to exhibit its dominance throughout the assessed period. APAC is projected to exhibit higher growth as compared to other regions over the forecast period. While examining the strategies of the key players in this market, importance has been given to studying market trends and consumer demand patterns to continuously evolve in product offerings and ensure uninterrupted revenue generation and expansion of the distribution channel.
Current scenario of the global organic fertilizer market
The impending market change for organic fertilizers is supported by the demands for sustainable methods of agriculture in addition to further government initiatives via workshops and subsidies for encouraging the use of organic fertilizers. With significant shortages and a lower number of competitors in the market as compared to the broader fertilizer market, the global organic fertilizer market is poised to undergo significant changes with respect to product innovation, competitive landscape, and production.
Forecast factors and their relevance and impact on the global organic fertilizer market
There is a double-digit growth in the organic food and drink market, which is anticipated to create a heavy impact on the global organic fertilizer market. Organic agricultural land has shown an increase of about 30% in the last 10 years. This has a huge impact on the demand for organic fertilizers. The contribution of the agricultural sector to the GDP is an important factor that shows the region wise impact.
The report begins with the market definition, followed by definitions of the different organic fertilizers in the market. The market dynamics section includes Persistence Market Research’s analysis of key trends, drivers, restraints, opportunities and macro-economic factors influencing the development of the global organic fertilizer market. Also, the pricing analysis of different products in the segment is mentioned for upcoming products of organic fertilizers. The report analyzes the global organic fertilizer market on the basis of source, form, application and region and presents a forecast by value for the next eight years. The global organic fertilizer market has also been analyzed in terms of basis point share (BPS) to understand individual segments’ relative contributions to market growth. This detailed level of information is important for identifying various key trends in the global organic fertilizer market.
Finally, a competitive landscape has been included in this report to provide report audiences with a dashboard view. Detailed profiles of the providers are included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the global organic fertilizer market. Various barriers to entry in the industry are analyzed and rated on the basis of their impact on the competition level in the market.
The report focuses on highlighting consumption of primary organic fertilizers across the globe. Macro-economic indicators such as GDP and industrial production index have been considered while forecasting market numbers. The analysts have used the top-down approach to assess market numbers for each category, while the bottom-up approach has been used to counter validate the market estimations. The sources that the analysts have used while examining the global organic fertilizer market are World Bank, IMF, company annual and financial reports and industry association publications. While doing primary research, the analysts have identified key opinion leaders, designed questionnaires and have conducted in-depth interviews. The company analysis comprises detailed information on business strategies, product offerings, key strengths and key focus segments. In-depth secondary research has been used to ascertain overall market size, top industry players, top products and industry associations.
Animal based organic fertilizers will continue to dominate the global market through 2025
Among sources, animal sources like blood meal, bone meal, fish meal and chicken litter are estimated to account for a large market share of more than 50% and be valued at more than 3,300 Mn by the end of 2017. This segment is expected to remain a dominant segment throughout the forecast period, expanding at a CAGR of 7.1% over the period of assessment. The plant source segment is estimated to account for more than 40% market share by 2017 end but is expected to lose 10 BPS in the overall market share by the end of the forecast period. The common sources of plant based organic fertilizers are peat, cotton seed meal, alfalfa meal, etc. These fertilizers are lower in nitrogen content and hence, they need to be applied in larger amounts as compared to animal based organic fertilizers. The plant based organic fertilizers segment is expected to witness significant growth post 2020. This is due to pollution of ground water and overgrowth of algae caused due to animal based organic fertilizers.
Government initiatives and subsidies promoting the use of organic fertilizers drive the growth of the animal and plant source segment over the forecast period
With the utilization of chemical composts and pesticides, there has been a significant reduction in the quality of soil around the world. To meet the rising demand for sustainable methods of agriculture, governments across the globe are supporting farmers to convert their lands into organic. However, there are some challenges here such as certification prices, premium prices of organic substitutes and less production. Hence the governments of both highly developed and developing economies have shaped various strong government projects and strategies like targeted subsidies, market investments, capacity expansion and research support for organic agriculture. Such government initiatives and subsidies promoting the use of plant and animal based fertilizers are fueling the growth of these two segments.
In the recent years, there has been a growing awareness about health and environmental issues. The demand for organic food has grown robustly, especially in the U.S. and EU in the last decade. Consumers are becoming more aware of the quality and safety of the food they eat. People are concerned about the negative effects of pesticides, fertilizers, and drugs on their health. Organic agriculture is a viable solution to all these concerns. There has been a change in customer attitude and purchasing behavior over the past few years. To meet the growing demand for organic products, a large amount of organic fertilizers derived from plant and animal sources is required. This particular factor is creating a positive impact on the animal and plant source segment.
Environmental benefits in animal and plant source segments are more than conventional fertilizers. The use of animal and plant based fertilizers have numerous benefits such as enhancing soil structure and conserving water by preventing the flow of harmful fertilizers and pesticides into water that promotes the growth of algae (eutrophication). Moreover, the chemicals used in conventional farming are also harmful for human consumption. Increasing use of synthetic fertilizers and pesticides results in environmental deterioration and several heath related issues. The growing use of animal and plant based organic fertilizers promotes the growth of earthworms and also helps in other microbiological activities that are essential for plant growth.
The use of animal waste products as organic fertilizers continues to remain lucrative in the Europe organic fertilizer market
The animal based organic fertilizers segment in the North America organic fertilizer market is projected to gain 170 BPS over the forecast period. The animal based organic fertilizers segment is inclined towards high growth-high value over the forecast period in the North America organic fertilizer market and this segment is expected to expand at a CAGR of 7.4% over the forecast period. The plant based organic fertilizers segment in the Latin America organic fertilizer market is projected to lose 30 BPS over the forecast period. Animal based organic fertilizers are likely to create 1.6x incremental opportunity as compared to plant based organic fertilizers in the Europe organic fertilizer market. In APAC, the plant based organic fertilizers segment is projected to expand at a CAGR of 8.5% to reach a market valuation in excess of US$ 1,500 Mn by the end of 2025.