Report : Organic Fertilizers Market Report: Size, Share and Outlook by 2031
The organic fertilizers market size is projected to reach US$ 19.40 billion by 2031 from US$ 11.95 billion in 024. The market is expected to register a CAGR of 7.2% during 2024-2031.
Governments are implementing regulations and policies to promote organic farming as a part of their broader sustainability and food security strategies. These policies focus on financial incentives, certification standards, and research support to aid in overall market development to encourage the transition from conventional to organic agriculture. Almost all EU member states support organic farming through EU-wide legal definition, agri-environmental conversion and maintenance payments, rural development marketing and processing grants, promotion funding initiatives, and public procurement and research & information initiatives. In 2020, the European Commission introduced the Farm to Fork Strategy, which set out a series of targets to enhance sustainability in food production in the EU. These targets include a 50% reduction in pesticide use and a 20% decrease in fertilizer use; it also aims to boost the share of organic farming to 25% of the total agricultural land. In 2022, the US Department of Agriculture launched the Organic Transition Initiative with a US$ 300 million investment, which offers a suite of programs and resources to help existing organic farmers and those transitioning to organic production and processing in the US.
Many governments provide subsidies, grants, and low-interest loans to farmers transitioning to organic agriculture. For instance, in 2023, the Government of India approved several schemes to boost the well-being of farmers, rejuvenate soil health, and ensure environmental sustainability. The Cabinet Committee on Economic Affairs (India) approved a unique package of innovative schemes for farmers with a total outlay of US$ 42.44 billion. The approved package also consists of a Market Development Assistance (MDA) scheme in the form of INR 1,500 per metric ton to support the marketing of organic fertilizers, namely, fermented organic manures (FOM), liquid FOM, or phosphate-rich organic manures produced as by-products from biogas plants/compressed biogas plants set up under the umbrella GOBARdhan initiative. Such programs help cover the costs of organic certification, training, and infrastructure development. Therefore, supportive government regulations and policies are expected to create lucrative opportunities in the organic fertilizers market in the near future.
Organic food producers, retailers, agribusiness firms, etc., play a crucial role in shaping the organic farming ecosystem. Organic fertilizer companies are investing in agricultural research and biotechnology to address the challenges of organic farming, including yield limitations and pest control. For instance, Bayer AG and Syngenta, two well-known synthetic fertilizer producers, are exploring organic-friendly fertilizers and soil health solutions. In March 2023, Windfall Bio raised US$ 9 million in seed funding to launch a methane-to-organic fertilizer solution. The company planned to develop the first-ever solution for capturing and transforming methane emissions into living organic fertilizers.
Organic fertilizers contribute to the continuous improvement of soil structure and microbiota. With its ability to monitor these changes at the micro-level, precision agriculture allows maximizing the benefits of organic fertilizers, ensuring their long-term effectiveness. A case study published by Hefe Fertilizers in 2024 revealed that a corn farmer in the Midwest implemented organic fertilizers from Hefe Fertilizer along with a precision farming platform. The farmer achieved a 20% increase in crop yield while reducing synthetic fertilizer use by 30% by monitoring nutrient levels and adjusting fertilizer applications in real time. This approach improves profitability and promotes healthy and sustainable soil. Thus, the adoption of precision agriculture is expected to bring new growth trends in the organic fertilizers market by creating a potential business during the forecast period.
Based on crop type, the market is segmented into fruits and vegetables, cereals and grains, turf and ornamental, flowers and nursery, tree crop, legumes, herbs and spices, oilseeds, tubers and root crops, and others. The oilseeds segment held the largest share in the organic fertilizers market in 2024. Oilseed crops such as ground nuts, soybean, sunflower, mustard, sesame, and flax require balanced nutrition for optimal oil content build-up and seed development. Fertilizers rich in phosphorus and potassium, such as rock phosphate and wood ash, enhance seed formation and oil accumulation. Composts improve soil aeration and microbial activity, supporting robust root systems. Moreover, intercropping with nitrogen-fixing legumes can naturally enhance soil fertility for oilseed crops.
Based on form, the market is segmented into dry and liquid. The dry segment held the largest share in the organic fertilizers market in 2024. Dry organic fertilizers benefit users through long shelf-life; slow nutrient release; and broad-rang applications, including field crops, orchards, and horticulture. The dry form of organic fertilizers enhances soil structure and microbial activity. These fertilizers are suitable for large-scale farming operations. Compost, manure, bone meal, and rock phosphates are widely used in cereals, pulses, oilseeds, and fruit crops. Pelletized and granular organic fertilizers aid further ease of handling and controlled release of nutrients.
The report includes the segmentation of the global organic fertilizers market as follows:
The organic fertilizers market is segmented on the basis of source, form, crop type, and geography. Based on source, the market is segmented into plants, animals, and minerals. Based on form, the market is bifurcated into dry and liquid. Based on crop type, the market is divided into fruit and vegetables, cereals and grains, turf and ornamental, flowers and nursery, tree crops, legumes, herbs and spices, oilseeds, tubers and root crops, and others.
The geographic scope of the organic fertilizers market report focuses on North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The market in North America is further segmented into the US, Canada, and Mexico. The market in Europe is subsegmented into Germany, France, the UK, Italy, Spain, and the Rest of Europe. The Asia Pacific market is further segmented into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The organic fertilizers market in the Middle East & Africa is subsegmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The market in South & Central America is further subsegmented into Brazil, Argentina, and the Rest of South & Central America.
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