Global Market Study on Organic Fertilizer: Preference for ‘Organic’ over ‘Synthetic’ is Underway


Organic Fertilizer  Market
  • Published On : Jul-2019 |
  • Pages : 210 Pages |
  • Format : PPT PDF Excel Word

The push towards organic farming methods - no chemicals, better soil management and more biodynamic methods - isn't new. Organic farming began long back, and is more of a resurgence of how things used to be, although with advanced equipment, streamlined supply chains, and the benefit of modern marketing strategies and retailing techniques. Organic produce’s public profile become significant in the early 2000s when consumers started realizing the connection between diet, health and the environment.

As consumers today are inclined towards clean labels and seeking transparency in everything they consume, organic has emerged as a promising approach to address these concerns. In light of these beneficial aspects of organic approaches and after gauging the futuristic opportunistic value of organic fertilizers, Persistence Market Research (PMR), in its latest business intelligence, assesses how eco-friendly fertilizers are altering the big picture of farming, thereby shaping the gain prospects of organic fertilizer market.

organic fertilizer market winning imperatives

Beginning from Deep Down Inside – The Evolution

Farmers in the ancient times added manure to land but, eventually the organic fertilizer supply began to dwindle. The advent of organic farming concept has been in place for over 1,000 years when ancient agriculture practitioners began cultivation near the river belt and relied solely on natural resources. However, the high demand for food overshadowed the demand for organic fertilizer over time. In the 1950s synthetic fertilizer witnessed an unwavering adoption, fueled by claims and promises of higher yields and potential role in ending the grave volatility that farmers face in parallel with the uncertain forces of nature.

As synthetic fertilizers gained traction, organic fertilizers fell out of fashion, which looked more like swapping real food for supplements. The time bounced back once again in the favor of organic fertilizer when synthetic variants began to lose a part of their lucrativeness due to trade-offs, and expenses that followed those undeniable gains. Agricultural runoff from synthetic fertilizer contributed significantly to excess nitrogen in the air and water over the years, leading to myriad environmental and human health concerns, thereby highlighting the dire need for shifting to organic fertilizers. This upside-down journey of organic fertilizer coupled with the recent and steady rise in its adoption is even recognized by PMR, which estimated that the value of organic fertilizer market reached ~US$ 6,179.6 Mn in 2018. PMR opines that organic fertilizer market is marching at a steady pace, and is envisaged to grow at 1.8X during 2019-2029.

Compelling Trends that are Shaping the Market Growth

Eco-Aspect: A Vital Revenue Pocket for Organic Fertilizer Manufacturers

Organic farming, composed of organic fertilizers as an integral virtue, continues to remain a lucrative bet for the expanding agricultural industry, in line with growing organic food appeal to consumers as a healthy and ethical choice. Beyond ethics, organic fertilizers are gaining significant traction on account of numerous environmental benefits, such as enhanced soil structure and water conservation. Growing awareness among farmers about the nutritional benefits of plant based and animal based fertilizers and their role in promoting growth of earthworm and other microbiological activities vital for plant growth are fueling adoption of organic fertilizers. Animal based organic fertilizers are garnering significant traction over plant based variants owing to their good aeration and water retention capabilities that enhance the soil fertility.

Organic Fertilizers – Laying the Base for Healthier Food Production

Growing health and wellness trend has been laying a strong foundation for organic foods, with an increased number of health-minded consumers seeking better food quality and safety. This goes in line with the growing consumer awareness about the harmful effects of foods that are grown using synthetic fertilizers, thereby, propelling farmers to look out for equal substitutes in organic fertilization.

Favorable Government Initiatives & Subsidies Uplifting Adoption

In view of the increasing demand for sustainable method of agriculture, various governments of both developed and developing countries have been taking initiatives to propel farmers to convert land into organic. For instance, the European government under its CAP policy, rural development program has set out 30% budget for supporting organic farming. Targeted subsidies, market investments, capacity expansion and research support for organic agriculture are the key governmental initiatives that are likely to favor the sales of the organic fertilizers in the years to come.

Lucrativeness of Europe Magnifying for Stakeholders

Government support coupled with growing awareness about the positive impact of using organic fertilizers on human health and soil quality have been driving the growth of the Europe organic fertilizer market. Moreover, the enforcement of stringent regulations on leveraging synthetic fertilizers are creating lucrative growth avenues for market players. The use of animal waste products as organic fertilizers continue to remain key source of choice in the European organic fertilizers market. Additionally, PMR analysis shows that Europe represents ~56% of the overall global organic land under cereal cultivation, thereby, continues to remain linchpin for sales of organic fertilizers for cereals and crops production.

organic fertilizer market 1

Winning Imperatives 

Stakeholders Banking on Robust Customer Relationships for Long-Term Gains 

In view of the increasing demand for organic fertilizers owing to the growing health and wellness trend in line with an increased number of health-minded consumers, companies are focusing on strengthening their customer relationships. As the market heads into a scenario that has a large number of companies at play, formation of long-term relationships with end users has become a key imperative for companies that are eying security of their organic fertilizers sales. Several market players have also strengthened their focus on retaining existing customers, while increasing their expanding their footprints across the regional markets through joint ventures with local players or distributors. 

Production Expansion: Key to Higher Gains 

The escalating demand for organic food products is likely to create a dire need for large scale development of organic fertilizers in the forthcoming years, which in turn will create a wide field of opportunities for stakeholders. Sensing the growing demand for organic fertilizers, market goliaths have shifted their focus on expanding their organic fertilizer produce to capitalize on the growing unmet demand from consumers. For instance, in February 2019, BioStar Organics, a waste-to-energy company opened a new organic fertilizer plant in Washington with an aim to produce up to 500,000 gallons of SuperSix organic liquid fertilizer annually. 

In Focus - Consumer Demand Trends & Latest Organic Farming Methods 

A large number of organic fertilizers market players are shifting their focus towards leveraging the latest approaches of farming to improve the quality of their products, in line with the increased demand for value-ensuring produce. Significant focus on analyzing market trends and consumer demand patterns has also become instrumental for manufacturers that are eying diversified product offerings to ensure uninterrupted revenue generation. 

Organic Fertilizer Market - Under High Degree of Fragmentation 

  • In March 2019, Italpollina SpA announced the acquisition of Horticultural Alliance, Inc., which specializes in plant health and maintenance with organic approach, and is based in Florida (USA). Apart from this, Italpollina SpA also established a new subsidiary in the U.S. for manufacturing and distributing organic fertilizers across the North America region.
  • In January 2019, ILSA S.p.A introduced a novel organic fertilizer named ETIXAMIN BIO-K, a hydrosoluble powder and an efficient potassium and nitrogen organic fertilizer for fertigation and foliar application. The combined action of sulphur, nitrogen, and potassium effectively accelerates the development and ripening of fruits, while allowing the farmers to boost their final organoleptic characteristics more than the products used in the conventional agriculture. 

The organic fertilizer market can be characterized by the presence of a large number of unorganized companies playing at different levels in the industry. The strengthening consumer shift from synthetic fertilizers to organic variants owing to the extensive benefits of the later is at play as a growth catalyst for stakeholders. 

Market forerunners, such as Italpollina spa, True Organic Products Inc., California Organic Fertilizers Inc., Sustane Natural Fertilizer Inc., Biostar Renewables, and ILSA S.p.A are marking their direct presence in local markets through mergers and collaborations with regional players. These frontrunners are fueling their march towards business expansion by emphasizing on acquisition of regional and local players to infiltrate into the untrodden market. Growing focus on adopting unique strategies, such as rapid product innovation and production expansion continues to fuel the competition in the organic fertilizer market.

global organic fertilizer market segmentation

Analyst’s Viewpoint 

Future Looks Bright for Organic Fertilizers’ Adoption 

As the organic fertilizer market showcases an uptick in adoption, analysts have an optimistic outlook of the market. The organic sector is changing at an unprecedented pace, with new definitions, policies, certifications, products, and even new consumers continually being added to the fold. The shift to organic fertilizer is inevitable given the support of the strengthening bottom line. Amid the large number of players operating in the market, companies that are focusing on manufacturing cost-effective variants to eliminate consumer reluctance pertaining to high costs of organic fertilizers are likely to strengthen their market standing. Modernized manufacturing facility that can create fertilizers capable of meeting the evolving as well as consumer specific demands will play an instrumental role in driving the position of stakeholders. 

Read More

1. The global organic fertilizer market value size in the base year 2018 was ~US$ 6.18 Bn.

2. The global organic fertilizer market is expected to witness a sound growth rate of 6% during 2019-2029, and is expected to reach a market value size of around ~US$ 11.8 Bn by the end of 2029.

3. Rising per capita disposable income is increasing the purchasing power of consumers, which is allowing them to make enormous investments for organic food and drinks. Owing to these factors, the demand for organic food is increasing, which, in turn, is also increasing the demand for nutritious food to live a healthy life. Increasing organic agriculture demand is also expected to push the demand for organic fertilizers over the forecast period.

4. From a regional perception, Europe is probable to account for a substantial share in the global organic fertilizer market. This is because of the requirement for organic fertilizers across several end users such as agriculture industries and health industries, among others. This factor is expected to place a solid platform for the strong growth of the global organic fertilizer market.

5. In terms of the global organic fertilizer market growth opportunities, the demand for organic fertilizers is increasing in Australia and New Zealand to enhance the soil quality and fertility. These factors are expected to generate high demand for organic fertilizers.

6. On the basis of application, the cereals and crops segment is anticipated to be a very profitable segment during the forecast period in the global organic fertilizer market, with an estimated market size of ~70% in 2019. The rising agriculture and health sector is likely to speed up the progression of the organic fertilizer market in the upcoming years.

Top Three Factors Shaping the Organic Fertilizer Market

Increasing Government Initiatives in the Form of Subsidies, Workshops, and Capital Investments Driving the Revenue Growth of the Global Organic Fertilizer Market

Realizing the importance of organic agriculture for sustainable development, the government has taken several initiatives in the form of subsidies, workshops, and capital investments to encourage the use of organic fertilizers. Moreover, organic fertilizers provide several environmental benefits as compared to conventional fertilizers such as they enhance the soil fertility/quality by providing better water retention and aeration capabilities. In addition to this, organic fertilizers promote the growth of microorganisms such as earthworms, which are essential for the plant growth. As organic fertilizers are slow release fertilizers, they provide nutrition to plant for a longer duration of time and unlike conventional fertilizers, doesn’t require frequent reapplication. Organic fertilizers are pH neutral fertilizers and doesn’t burn the plant by releasing too much nitrogen on application. Several countries in Europe and North America have shown double digit growth in the organic food sales. The rising health consciousness among consumers is the major factor driving the market growth, which eventually is driving the global organic fertilizer market.

The Cereals and Crops Segment is Anticipated to Grow at a Fast Rate due to the High Application Rates and Consumption of Cereals Worldwide

On the basis of source, the global organic fertilizer market can be segmented into plant-based organic fertilizers (such as alfalfa meal, cotton seed meal, soybean meal, humic acid, etc.) and animal-based fertilizers such as fish meal, guano, bone meal, blood meal, feather meal, etc. The animal based fertilizer segment accounted for ~56% volume share in 2018.

On the basis of application, the global organic fertilizer market can be segmented into cereals and crops, fruits and vegetables, and lawns and turfs. The cereals and crops segment accounted for ~74% of the value share in 2018. High growth of the segment is mainly attributed to the use of organic fertilizers for major cereal cultivation such as wheat, rice, oats, barley, etc.

Europe is Expected to Remain as a Prominent Regional Market over the Forecast Period

On the basis of geography, the global organic fertilizer market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. The Europe organic fertilizer market accounted for a value share of ~38% in 2018 and is projected to retain its dominance in the global organic fertilizer market over the forecast period. The North America organic fertilizer market is expected to represent significantly high incremental $ opportunity between 2019 and 2029, while the Asia Pacific organic fertilizer market is projected to expand at a significant CAGR in terms of volume over the forecast period.

Global Organic Fertilizer Market: Structure Analysis

The global organic fertilizer market is a moderately fragmented market, in which, tier 1 companies hold ~20-30% of the revenue share of the global market.

  • Key market participants in the global organic fertilizer market includes
    • Sustane Natural Fertilizer Inc.
    • Biostar Renewables
    • Italpollina spa
    • Plantin
    • ILSA S.p.A
    • True Organic Products Inc.
    • California Organic Fertilizers Inc.
    • Camson Bio Technologies Limited
    • Purely organics LLC
    • Pupuk Kaltim
    • Qingdao Sonef Chemical Co.
    • Coromandel International Limited, among others.
  • As a part of their overall strategy, key market players have been focusing on expanding their production capacities in emerging organic fertilizer markets of Europe, as this region accounts for a prominent share in terms of volume for plant and animal organic fertilizers, and is thus observing a rise in the demand for organic fertilizers.
  • Some of the key market organic fertilizer players are focusing on expanding their geographical footprints in Latin America and Asia Pacific, with increasing consciousness towards healthy and organic food, which is projected to create significant growth opportunities for organic fertilizer manufacturers.
  • As a part of strategy, the organic fertilizer market participants are focusing on research and development to expand their production and introduce new techniques for the production of organic fertilizers.

A recent research study compiled and published by Persistence Market Research (PMR) analyzes the historical as well as current scenario of ‘Global Organic Fertilizer Market’ to precisely evaluate its futuristic development. It covers detailed information related to drivers, restraints, and key trends that are impacting the growth of the Organic fertilizer market to identify the opportunistic business potential for stakeholders. The report also presents detailed information about how the Organic fertilizer market will accelerate during the study period, 2019-2029.

The report provides valuable insights about the various aspects and nuances of the organic fertilizer market to assist the market enthusiasts make the awarding decisions. PMR’s report also provides information about the vital trends that are highly likely to impact the growth of the organic fertilizer market during the foreseeable period. The report includes a key indicator assessment to underline the different growth prospects of the organic fertilizer market and projection statistics related to the progress of the market in the terms of value (US$ Mn) and volume (‘000) tons.

The report offers a crystal clear segmentation of the organic fertilizer market and valuable insights on competitive landscape. The report includes the company profiles of the players operating in the organic fertilizer market, wherein, different development and unique strategies formulated and adopted by the market forerunners have been mentioned in detail.

Organic Fertilizer Market - Segmentation

PMR’s study analysis the organic fertilizer market based on the form, source, application and region. The report sheds light on the market dynamics and rapidly altering trends related to the different segments, and how they are shaping the growth of the organic fertilizer market.

Form

Source

Application

Region

Solid

Plant Origin

Cereals & Crops

North America

Liquid

Animal Origin

Fruits & Vegetables

Latin America

 

 

Lawns & Turfs

Europe

 

 

 

APAC

 

 

 

MEA

What are the Key Questions Answered in PMR’s Report on Organic Fertilizer Market?

The report mentions exclusive information about the organic fertilizer market based on exhaustive research related to the macro as well as microeconomic determinants that are playing a significant role in shaping the progress of the organic fertilizer market. The information given in the report answers to the salient queries for the existing market players and the companies that are in the pursuit of entering into the organic fertilizer market, to aid them formulate rewarding strategies and make business-driving moves.

  • What are the winning strategies of goliaths in the organic fertilizer market?
  • Which form of the organic fertilizer will account for highest market revenues in 2022?
  • How market forerunners are successfully turning changes in their favor to achieve gains in the organic fertilizer?
  • What will be the Y-o-Y growth of organic fertilizer market between 2019 and 2021?
  • Which source of organic fertilizer witnessed highest traction in 2018?
  • What rate of ROI can organic fertilizer’ producers can expect from its application in lawns and turfs in the next couple of years?

Research Methodology – Organic Fertilizer Market

The research methodology followed by the PMR analysts for making organic fertilizer market report covers an in-depth research based on primary and secondary resources. By delving in the market-validated information collected and verified by relevant resources, analysts have provided incisive insights and accurate forecast of the organic fertilizer market.

As a part of the primary research phase, analysts interviewed C-level executives, vice presidents, sales and marketing managers, regional managers, raw material suppliers, brand manager, and industry players and investors. On the basis of information accumulated through the interviews of authentic resources, analysts have highlighted the development outlook of organic fertilizer market.

For secondary research, analysts conducted an in-depth study of multiple annual report publications, while papers, research publications, industry association publications, case studies, and company website to acquire necessary understanding of the organic fertilizer market.

Company Profiles 

  • Italpollina SpA 
  • ILSA S.p.A 
  • BioSTAR Renewables 
  • Sustane Natural Fertilizer Inc. 
  • Plantin 
  • True Organic Products Inc. 
  • California Organic Fertilizers Inc. 
  • Purely Organics LLC 
  • Qingdao Sonef Chemical Co.Ltd 
  • Multiplex Group 
  • Coromandel International Limited 
  • Camson Bio Technologies Limited 

 

Back To Top