ORGANIC FERTILIZER MARKET ANALYSIS

Organic Fertilizer Market Size and Trends

The organic fertilizer market is estimated to be valued at USD 12.31 Bn in 2024 and is expected to reach USD 18.63 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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The organic fertilizer market is expected to witness significant growth over the forecast period. The growing consumer preference for organic and environment-friendly products is one of the major factors driving the demand for organic fertilizers. There is an increasing demand from farmers for organic variants to maintain the fertility of soil and provide better yields in the long run. Additionally, bans on chemical fertilizers in several countries due to the negative environmental impact are further complimenting the market growth. However, high production costs and lack of awareness in some regions may hinder the organic fertilizer market expansion to some extent.

Growing Concerns About Impacts of Chemical Fertilizers

The extensive use of chemical fertilizers across the globe in both industrial, agriculture as well as household gardens has raised concerns about its impact on the environment and health over the years. Chemical fertilizers are made from synthetic ingredients and several studies have shown that they can have harmful effects on soil quality as well as water bodies if used extensively over long periods of time. Nitrogen-based chemical fertilizers are known to deteriorate the quality of soil by destroying microorganisms. They make the soil acidic and also deplete other vital nutrients from it over repeated use. This affects the sustainability of agricultural lands in the long run. The chemical run-offs from fertilizers have also seriously polluted water sources like rivers, lakes, and groundwater. The excess nitrogen gets dissolved in water and causes eutrophication, destroying aquatic life. It has led to widespread occurrence of red tides and dead zones in seas and oceans around the world. On the health front, nitrates from fertilizer residues in food crops have been linked to incidences of cancer, birth defects, and other serious diseases in many epidemiological studies. There are also concerns that continued reliance on mineral fertilizers will degrade soils to a point where they can no longer support sufficient crop yields to feed the growing global population. All these environmental and health hazards of intensive chemical fertilizer usage have triggered interest in safer and more sustainable fertilizing practices worldwide. There is a growing realization that soils need to be nourished in a balanced manner without compromising its nutrient balance and biodiversity in the long-run. This shift towards healthier soils and environment is expected to increase the demand for organic fertilizers made from natural or waste-based ingredients like compost manure, food waste, and crop residues in the coming years.

Government Support and Subsidies for Organic Farming

Many national and local governments are also promoting organic and sustainable agricultural practices through financial incentives and policy support. They offer subsidies on organic inputs, aid for certification, and provide price support programs for organic produce in their aim to reduce agriculture's ecological footprint. In Europe and North America especially, strong government backing through dedicated schemes have encouraged thousands of farmers to transition to certified organic cultivation over the last decade. Recent data shows that the area under organic farming worldwide has more than doubled during the same time period.