The incessantly
increasing global population has enticed the agricultural industry to improve
the food crops yield. The rising demand for high yield food crops to meet the global
food demand is inducing the growth of the organic fertilizers market. The perpetual
growth of the global population can be easily fathomed from the findings of the
U.S. Census Bureau, according to which the world population has increased from 2.5
billion in 1950 to 7.5 billion in 2019. The
growing population makes it inevitable to adopt cultivation methods that
increase crop production in order to satisfy the food demand of the increasing population
across the world. There are two ways to bolster crop production, either by ameliorating the
crop yield or by increasing land under cultivation. However, the potential to
increase cultivation land is highly challenging, as the land resources are
limited. Therefore, products such as fertilizers are used for enhancing plant
nutrient levels, and physical and chemical properties of soil, thereby
increasing the crop growth, yield, and quality. Thus, witnessing a surge in
demand to improve food crops yield is catapulting the organic fertilizers
market growth.
On the back of
urbanization, there is an increasing awareness among people about health and
environmental issues. Consumers are becoming more cautious about the quality and
safety of the food they consume. Thus, there is a considerable growth in consumer
demand for organically produced food products that are free from artificial
fertilizers and chemicals. The increasing organic agriculture is the prime
factor propelling the demand for organic fertilizers, as these fertilizers are
biodegradable and environment-friendly. According to the 18th edition of ‘The World of Organic Agriculture’, published
by FiBL and IFOAM-Organic International, in 2017, the organic agricultural land
was around 50.9 million hectares, which was 6.5 million hectares more than in
2014. Thus,
increasing organic agriculture is the key impetus to the growth of the organic
fertilizers market. The organic fertilizers market has attained a market value
of $6 billion in 2018. Furthermore, the organic fertilizers market is
anticipated to propel at a CAGR of 8%, during the forecast period 2019-2025.
Moreover, the global organic fertilizers market is gaining momentum in the recent past, owing to supportive schemes and subsidies deployed by the government. Reckoning the health and environmental issues caused by high usage of synthetic fertilizers, the governments of many countries are subsidizing the prices of eco-friendly organic fertilizers, making it easier for farmers to use it. For example, in India, under National Project on Organic Farming a ‘Capital Investment Subsidy Scheme for Commercial Production Units for organic/biological inputs’ has been implemented by the Department of Agriculture, Cooperation & Farmers’ Welfare through the National Centre of Organic Farming (NCOF) in collaboration with NABARD or National Cooperative Development Corporation (NCDC). The main objective of the scheme is to improve crop yield while maintaining soil health and environment safety. Thus, the government initiative, supportive schemes, and subsidies are fuelling the growth of the organic fertilizers market.
Organic Fertilizers
Market: Leading Segments--
Geographically, North America held 30% share in the organic fertilizers market, a major market share in 2018. Growing per capita income coupled with rising health awareness among people of this region is creating an unprecedented growth for organic food products. Moreover, rapidly increasing organic agricultural land in North America is propelling the usage of organic fertilizers. As per the findings by the Research Institute of Organic Agriculture (FiBL), in 2107, the total organic agricultural land in North America was 3.2 million hectares, which trebled from the million hectares in 2000. Additionally, the presence of major accredited associations particularly in the U.S., including United States Department of Agriculture (USDA) is augmenting the demand for organic fertilizers in this region. These aforementioned factors have rendered North America with the highest market share.
Organic fertilizers market is segmented on the basis of source as plant, animal, and mineral. Among these, animal-based fertilizers will fetch lucrative opportunities in the market, during the forecast period. Animal-based fertilizers are derived from fish emulsions, cow milk, earthworm castings, and manures of chicken, steer, dairy cow, horse, pig, sheep, rabbit, goat and others. Abundant availability of these sources is the key factor driving demand for the animal based fertilizers. Additionally, beneficial properties of animal-based fertilizers such as high nutrition value, quick action and response, and low quantity requirement is upheaving the sales for the same. Thus, the key applications segment is anticipated to grow at a CAGR of 7% through to 2025.
Major Forces Influencing
the Growth of Organic Fertilizers Market—
· Stringent Regulations by Government on the Use
of Synthetic Fertilizers:
Stringent governmental
regulations on the usage of synthetic fertilizers for the cultivation of crops is
paving way for increased adoption of organic fertilizers. Synthetic
fertilizers have long-term harmful effects on the environment and health. It hampers
the growth of beneficial microorganisms in the soil that converts dead remains into
nutrient-rich organic matter. Moreover, synthetic fertilizers leach into water
bodies such as streams, rivers, lakes, and groundwater, and increase its
toxicity, causing water pollution, thereby disrupting aquatic ecosystems. Owing
to the aforementioned harmful effects, the governments have implemented stringent
regulations to curb the usage of synthetic fertilizers. This consequently is
fuelling the growth of the organic fertilizers market.
· Technological Innovations in Organic
Fertilizers Manufacturing Process:
The advancements in
organic fertilizers manufacturing process is propelling the growth of the
organic fertilizer market. Traditional way of composting food wastes, rotten
vegetables, fruits, grass, and leaves take time to convert
in fertilizers. In recent times, Biomax Technologies from Singapore has
developed a breakthrough technology called ‘Rapid Thermophilic Digestion System’
that can convert organic wastes into organic fertilizers in a day. These types of innovations
in the production process of organic fertilizers is inducing the growth of the
organic fertilizer market.
Organic Fertilizers
Market: Major Market Players
The prominent players in
the organic fertilizers market have played an important role in increasing the
sales of these fertilizers, and now holding major market shares. Fertikal N.V.,
Uniflor, and Multiplex Group are some of the major players that are majorly focusing
on strategic acquisitions, mergers, new establishments, collaborations, and
partnerships to gain grounds in the market and meet rising demand of organic
fertilizers.
Multiplex Group, in
2017, opened a manufacturing unit at Ghaziabad (Uttar Pradesh). The new
manufacturing unit has been manufacturing all types of Organic Fertilizers, Specialty
Fertilizers, Soil Conditioners, and Bio Fertilizers to meet the requirements of
all northern states.
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Related Reports:
A. Fertilizers Market
https://www.industryarc.com/PressRelease/515/Fertilizers-Market-Research-Analysis.html
B. Specialty Fertilizers
Market
https://www.industryarc.com/Report/11725/specialty-fertilizers-market.html
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