Industry: Chemicals and Materials
Published Date: October-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 166
Report ID: PMRREP33022
India organic fertilizer market is estimated to increase from US$581 Mn in 2024 to US$935 Mn by 2031. The market is projected to record a CAGR of 7% during the forecast period from 2024 to 2031. The market is primarily driven by government support and increasing consumer demand for organic products. Notably, North India is expected to dominate the market, accounting for 44% of the share due to expanded organic farming initiatives.
Key Highlights of the Market
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Market Attributes |
Key Insights |
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India Organic Fertilizer Market Size (2024E) |
US$581 Bn |
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Projected Market Value (2031F) |
US$935 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
7% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
5.8% |
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Region |
Market Share in 2024 |
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North India |
44% |
North India is projected to account for nearly 44% of India market share. Increasing areas for organic farming in North Indian have resulted in high product consumption. States such as Madhya Pradesh, Uttar Pradesh, and Punjab are bolstering demand for organic fertilizers.
The abundant presence of raw materials and developed trade activities are key growth drivers for the market in the North Indian region. West India is projected to account for approximately 34% of the India organic fertilizer market share by 2031. In 2024, the market is expected to grow 5.7% year-on-year, reaching a valuation of US$ 585 Mn by the end of 2024.
The regional market is anticipated to grow substantially over the coming years Due to several key manufacturers' strategic approaches toward producing crop-specific organic fertilizers. Also, Maharashtra and Rajasthan are among the top states in the country that produce the most organic fertilizers for both consumption and export purposes.
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Category |
Market Share in 2024 |
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Raw Material - Plant-based Fertilizers |
54% |
The market is further segmented into plant-based fertilizers, and animal-based fertilizers based on raw material. where the plant-based fertilizers dominate the market. Sales of plant-based organic fertilizers are expected to increase at an impressive value CAGR of 7.1% over the forecast period of 2024 to 2031. More than 40% of organic fertilizers are produced using plants as raw materials.
Plant-based fertilizers such as cotton seed meal and green manure draw the most demand from end users. There has also been a growing preference for plant-based organic fertilizers for flowers and leafy vegetables in the country. Owing to these factors, sales of plant-sourced organic fertilizers are projected to increase over the forecast period.
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Category |
Market Share in 2024 |
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Application - Farming |
68% |
Based on application, the market is classified divided into farming and gardening. Among these the farming segment dominates the market. Among the two prominent applications, the farming segment is projected to create an absolute dollar opportunity of US$ 470.9 Mn during the period of 2024 to 2031 and account for close to 68% of share in the India organic fertilizer market.
Organic farming is a type of agriculture process gaining high attention due to growing awareness and demand for organic food products. An increase in organic farming will continue providing tailwinds to organic fertilizer sales over the assessment period. Also, as the country's population continues to grow, demand for healthy food and agricultural produce will increase, boosting market expansion.
Organic fertilizers are naturally occurring supplies from plants, animals, and minerals that provide moderate levels of vital nutrients for plants. Organic fertilizers are organic additives applied to the soil, including animal manure, sewage sludge, compost, rendering waste, guano, brewery waste, digestive waste, and other bio-wastes.
The Indian government has unveiled initiatives valued in crores to promote organic farming and the fertilizer business since India has the potential to become a global powerhouse for organic fertilizer manufacturing.
Organic fertilizer supplies nutrients to plants while promoting soil health. They are regarded as a more environmentally friendly alternative for sustainable agriculture. The most often utilized organic fertilizers comprise composted animal manure, compost, sewage sludge, food industry by-products, and municipal bio solids.
Several factors, including the rising consumer demand for organic food, favourable government policies, an increasing emphasis on sustainable agriculture, and the environmental advantages of organic fertilizers, such as water and soil conservation, primarily propel the Indian Organic Fertilizers industry.
Sales of organic fertilizers increased at 5.8% CAGR between 2019 and 2023, with states such as Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, Uttar Pradesh, and Orissa accounting for a substantial portion of the Indian market.
Sales in 2020 and 2021 were affected due to COVID-19, which hurt the demand for organic fertilizers from several application areas. Government initiatives and subsidies promoting organic fertilizer usage in India, along with increasing consumption of organic food in the country are set to drive the consumption of organic fertilizers across application areas.
Well-structured and efficient supply chain networks, expansion in production capacity, and crop-specific fertilizer production are expected to remain the key growth strategies of India organic fertilizer manufacturers. The agricultural industry is recovering, which is also expected to bode well for organic fertilizer sales nationwide. As a result, the organic fertilizers market in India is projected to expand at a 7% CAGR during the forecast period from 2024 to 2031.
Rising Consumption of Organic Food to Open Up New Channels for Organic Fertilizer Business
Organic food has become increasingly popular in recent years particularly during the COVID-19 epidemic, as people consider it healthy and better for immunity. Organic food such as fruits and vegetables is expected to be in high demand. Due to their high nutritional content, organic fruits and vegetables are in high demand in domestic and international markets.
Vitamins, minerals, fibre, carbs, and calcium are abundant in fruits and vegetables. As a result, to develop organic food and maintain its nutrients, farmers are turning to organic fertilizers, which increase the food's richness while maintaining the authenticity of the product.
Significant shifts to organic food, around 62% have been reported in metropolitan cities, especially in fruits and vegetables. This has increased 95% in the last five years in some cities such as Delhi-MCR, Mumbai, Cochin, Indore, Chandigarh, and Dehradun.
Growing Consumer Awareness & Health Concerns Positively Impacting Organic Fertilizer Consumption
Consumers are becoming more health-conscious. They prefer to invest more in organic items as awareness of the health benefits of organic food grows.
Consumers choose naturally developed items for healthy living to reduce the use of chemicals. The entire lifestyle pattern is shifting, and demand for natural and plant-based products is becoming fashionable in recent years.
Customers are migrating to organic food goods due to toxic chemicals and diseases, and the government is actively marketing these products. As a result, organic fertilizers are required to cultivate natural and organic foods, significantly raising the demand for organic fertilizers across India.
High Cost of Organic Fertilizers a Matter of Concern
Natural fertilizers are often more expensive than chemical fertilizers because chemical fertilizers have a high concentration of nutrients per the product's weight. Several pounds of organic fertilizers are required to achieve the same soil nutrient level as a single pound of chemical fertilizer. Thus, the high expense of organic fertilizers is one of the main reasons why organic products are more expensive than non-organic produce. Another primary reason is that typical organic yields are lower.
Organic fertilizers are lower in nutritional content (n-p-k) value, so they must be applied at higher application rates. In some cases, where the soil nutrient content could be higher, more than organic fertilizers is required. Although it is possible to create many organic fertilizers at home, homemade organic fertilizers are usually more expensive than store-bought chemical fertilizers after labour, time, and other resources are factored in, which makes organic fertilizer products relatively expensive.
Growing Demand for Organic Food Products
The growing awareness of health and environmental issues among consumers has significantly increased the demand for organic food products in India. With consumers becoming more conscious about what they eat, there is a clear shift towards organic produce perceived as safe and more nutritious. This trend reflects changing consumer preferences and indicates a broader societal shift towards sustainability.
Farmers will increasingly seek organic fertilizers to meet the demands of health-conscious consumers as organic food consumption rises. Organic fertilizer manufacturers can seize this opportunity by enhancing their product portfolios focusing on quality, and establishing solid relationships with farmers.
Brands can leverage marketing strategies highlighting the benefits of organic farming and its positive impact on health and the environment. This growing demand for organic food creates a promising avenue for growth in the organic fertilizer market.
Government Support and Policy Initiatives
The Indian government has recognized the importance of organic farming for sustainable development and food security, leading to various policy initiatives promoting organic agriculture. These include subsidies for organic fertilizers, financial assistance for farmers transitioning to organic practices, and initiatives like the Soil Health Card Scheme to monitor soil health and promote organic inputs.
Supportive measures can significantly boost the organic fertilizer market by making these inputs more affordable and accessible to farmers. Government programs that educate farmers about the benefits of organic fertilizers and practices can enhance market penetration.
Companies that align their strategies with government initiatives can capitalize on these opportunities by providing innovative products and solutions tailored to farmers' needs. This government backing creates a favourable environment for growth, making it an essential opportunity for stakeholders in the organic fertilizer sector.
A mix of established players and emerging startups characterizes the competitive landscape of the India organic fertilizer market. Key players like Krishak Bharati Cooperative Ltd. (KRIBHCO), National Fertilizers Limited, and Indian Organic Farmers Producer Company Ltd. dominate the market. These players also aim at leveraging extensive distribution networks and product diversification.
Emerging companies focus on innovative solutions, such as biofertilizers and vermicompost, catering to the increasing demand for sustainable options. Competition intensifies as firms invest in research and development to enhance product efficacy and sustainability.
Collaborations with agricultural cooperatives and government initiatives are becoming crucial for market penetration. Rising consumer awareness about organic farming practices presents opportunities for niche players to carve out their market segments leading to a dynamic and evolving competitive environment.
Recent Industry Developments in the India Organic Fertilizer Market
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Zones Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Raw Material
By Application
By Zone
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The market is estimated to be valued at US$935 Mn by 2031
The market is projected to exhibit a CAGR of 7% over the forecast period.
A few of the leaders in the market are Coromandel International, Madras Fertilizers Limited, Gujarat State Fertilizers.
North India dominates the market.
Plant-based fertilizers lead the market with significant market share.
