According to the Market Statsville Group (MSG), the global organic fertilizers market size is expected to grow from USD 10244.86 million in 2022 to USD 32610.76 million by 2033, at a CAGR of 11.1% from 2023 to 2033. Population growth on a global scale is 1.05% every year. The need for food increases as the population expands. Due to the restricted supply of arable land, crop yield management and land management have gained significance. To fulfil the demand, the agriculture sector is under pressure to grow more food crops. Fertilizers are crucial to the agriculture sector because they boost soil production. To increase agricultural productivity, synthetic or chemical fertilizers are mostly employed. Nonetheless, there has been a movement towards using organic fertilizers as a result of increased awareness of the negative impact chemical fertilizers have on both people and the environment. The demand for organic fertilizers is anticipated to increase as a result of people choosing to buy organic food items and being prepared to pay a little bit more for them.
Organic fertilizers are organically produced carbon-based fertilizers. Fertilizers are chemicals that may be added to the soil or applied to plants in order to provide nutrients that will aid in their growth. Common organic fertilizers include mineral supplies, including animal waste, including byproducts of the meat industry, manure, slurry, and guano, as well as plant-based fertilizers like compost and bios liners. The Organic Agriculture Principles, which govern whether a fertilizer may be used for commercial organic agriculture, are followed by various biotic, non-chemical fertilizer systems. Among the organic fertilizers are peat, animal wastes, sewage sludge that has been treated, and waste from agricultural plants. A substance consisting of partially decayed plant materials is turf or peat.
Rich in organic matter, soil is less likely to compress, improving soil aeration, water drainage, and microbial life. It is the most frequently organic amendment by volume and is frequently referred to as the most extensively utilized organic fertilizer. Animal-sourced items include things like animal manure and residues from animal slaughter. Manure is produced by animals kept for milk production, egg production, meat and hide production, sport and recreation, and egg laying.
During the inception of the COVID-19 pandemic, the demand for the organic fertilizer market is significantly reduced due to the reduced investments by government and private companies in fertilizer manufacturing, which leads to cutbacks in such business lines. Thus, it can be defined as the recent outbreak of the novel COVID-19 diseases has considerably dropped the consumption of organic fertilizer, thereby hampering the market growth considering the regional scenario. Besides, the epidemic has abandoned an unprecedented crisis for the nations and manufacturing businesses. This has frequently led to lockdowns and company closures in several nations throughout the world, forcing employees and other people to stay at home to stop the pandemic from spreading. Also, the present crisis has highlighted the potential dangers and vulnerabilities of the current agricultural value chain, putting the fertilizer industry's corporations under pressure to think about changing their supply chain model. Combined with the shutdowns and disruptions in fertilizer, the public, and private companies delayed their investment or spending for expanding fertilizers manufacturing plants. This, in turn, is expected to limit the growth of the Southeast Asia organic fertilizer market.
However, the effective policies from the government and implementation of suitable practices can help companies to gain profits post the immediate effects of the pandemic. Additionally, the growing demand for organic food and the rise in the number of people concerned for health has significantly influenced the market growth positively in the upcoming years. The people are more aware of the fact which they consume and about to consume which results in increasing the demand for organic food, thus, augmenting the growth of the organic fertilizers in the forthcoming years.
With the growing population the need to increase agricultural production has also arisen to fulfil the food requirements of the growing population have tremendously drive the growth of fertilizer sector. To increase the agriculture production has, various farmers practice the use of chemical fertilizers. However, the increasing use of such chemical and agrochemical inputs lean an adverse effect on plant physiology, soil quality, animals, and human beings. Additionally, the overuse of chemical fertilizers has a direct effect on the environment causes soil pollution (soil erosion) and water pollution as chemical residues from fertilizers may remain in the soil and cause soil pollution, contaminate the surface or groundwater, or be released into the atmosphere through vitalization. The leftover residues in the soil emit ammonia, methane, nitrous oxide, and elemental nitrogen into the environment.
Whereas organic fertilizers can increase fertility of soil especially acidic soils and can also play a major role in increasing agricultural productivity. It also provides protection against some foliar and soil-borne diseases. It further has the potential to improve soil physical properties, increase nutrient uptake, and reduce loss of leaching nutrients. Increasing demand for organic foods is one of the prominent factors contributing towards the market growth. Hence, governments of different nations are incorporating supportive policies and grants to boost the adoption of organic farming in different end use sectors including the agricultural sector.
Organic fertilizer seems to be high end consumption and production. The need of high capital for the bulk production of organic fertilizer is likely to obstruct market growth. Organic fertilizers can be practicable in a small-scale industry, such as in forest communities, places in which woody biomass waste is readily accessible. Whereas large-scale production of organic fertilizer can be achieved through crop cultivation, it needs sufficient land for cultivation. Hence, a potential financial obstacle to technology development and transfer could be the high costs of large-scale plants, the necessary investments in feedstock's for biomass, infrastructure and upfront capital access. For instance: the overall cost of processing biochar ranges from $194- $424 per ton of feedstock. This cost of manufacturing organic fertilizer would result in higher capital costs for large scale production. Further, transporting and collection of feedstock material is likely to form an important component of organic fertilizer cost where the creation facilities are fixed, and transportation of feedstock is from distant location. Which could also result in capital intensive manufacturing. Thus, cost is the important factor for production facilities and the such large investments may create significant barrier in the market growth.
The increasing size of potential consumer base, in terms of organic food consumption will create a lucrative growth opportunity for the organic fertilizers market in the forecasting period. The consumer purchase of environmentally friendly products like organic food puts immense pressure in agricultural industry to cultivate organic based products via organic fertilizers. Additionally, the health-concerned consumers who seeks for rich nutrients, vitamins, proteins, and many more in their daily food habits, are likely to purchase organic food more often. Also, consumers’ suspicions and fears about foods produced by new technology such as gene modi?cation, is another factor which motivates them to choose natural food products like organic food.
According to Rakuten Insight, approximately 62.7% of the Vietnam population stated to buy organic food products often. Moreover, the increasing spending income of consumer further derives the consumer to opt for organic products, which thereby propelling the growth of the market. Moreover, with the sudden outbreak of COVID-19, the people are more health concerned and opt for organic food which results in increasing the demand for organic farming.
The study categorizes the organic fertilizers market based on source, form, crop type and nutrient content area at the regional and global levels.
Based on the product type, the market is bifurcated into cereals & grains, oilseed & pulses, fruits & vegetables and others. The cereals & grains segment is expected to dominate the market share in 2022 in the global organic fertilizers market. According to the Food and Agricultural Organization, cereals are one of the globe’s most essential staple crops. Organic fertilizers aid in the efficient absorption of nutrients by cereal crops. They are the most important aspects of nutrient management since they are renewable and less expensive than synthetic fertilizers. These fertilizers boost plant growth and yield while also improving the soil’s health and fertility. They also aid in strengthening disease resistance in crops, lowering crop protection chemical costs.
Based on the regions, the global organic fertilizers market has been segmented across North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Asia Pacific is projected to account for the highest market share in 2022. The demand for organic food increases along with per capita income, which fuels this region's organic fertilizer industry. Also, improvements in communication technology have made it possible for customers to learn more about growth and wellness dynamics, which has boosted this market internationally, especially in emerging nations like Brazil and India. One of the main crops cultivated in these nations is fruit and vegetable production, along with cereal and grain production. Australia, China, and India are some of the most significant agricultural nations. The most popular agricultural exports from these nations include cotton, sugarcane, fruits, vegetables, and cereals.
The organic fertilizers market is extremely cutthroat, and significant competitors in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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