Market Trends
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There is an increase in the number of manufacturers in the market, offering products through collaboration, expansion and innovative supply channels. For instance, Coromandel International partnered with CFL Mauritius Ltd, Parry Chemicals, and Dare investment Ltd, which would expand the company’s services and business through new farming solutions.
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These collaborations will allow the ventures to extend the impact of its comprehensive R&D services — from providing a wide selection of product offerings to project collaboration, with new techniques for organic farming.
Introductory Overview
Organic manure are materials that are organic by nature and are capable of supplying plant nutrients by soil modification. These organic manures are produced from plant, animals, and other origins. The Nitrogen (N), Phosphorous (P), and Potassium (K) content in organic manures require a pre-requisite of 3% by weight of the fertilizer. The abundance of chemical fertilizers in the soil has eroded the fields and wiped away the nutrition of the soil, which are recharged by the application of organic manures.
Market Size and Forecast
Organic manure market is gaining momentum with the increasing organic farming practices and the growing demand for organic food products. The market is witnessing growth and demand owing to its attributed benefits. The market is addressed to showcase promising growth in the upcoming years on the back of the rising awareness and concerns for food and environment.
According to Research Institute of Organic Agriculture, around 6.1-million-hectare area was organic agricultural land in Asia in 2017. This is around 0.4% of the total agricultural area in the region. Approximately, 9% of the global organic agricultural land is in Asia. Growing adoption of organic manure that contributes to upgraded soil structure, resulting in enhanced water infiltration and larger water-holding capacity to reduce crop water stress, soil erosion, and improved nutrient preservation is anticipated to propel the growth of the market extensively across the region.
Rising demand for organic food and increasing government investments for maintaining the eco-friendly environment are further driving the demand for organic manure. Sustainable agriculture delivers many economic and non-economic benefits, such as contributing to local quality of life, providing fresh foods, and conserving the environment to allow for future productivity. Also, the use of organic manure can be directly related to the production of organic crops. According to the FIBL, Asia comprises 45% of organic farmland for arable crops.
Country-Wise Growth Highlights – 2018-2027
China had observed a 42% increase in organic farming land, with 0.67 million hectares, in 2016. India was the world’s largest producer of organic cotton accounting for almost two-thirds of total production, followed by China in the second position. In the overall market of organic agricultural products, China held a global share of 6% in 2016.
India is bestowed with potentials in agro-based climate and soil to produce a variety of crops, thus adding advantages to the traditional organic farming. The fact that India is an agro-based economy, it has aided the GDP growth to USD 2.7 billion in 2018. Asia had approximately 4.9 million hectares of organic agricultural land in 2016 with India having the highest number of producers in the world, lying at around 8, 35,000. Also, Oceania had 27.3 million hectares of agricultural land for organic farming in 2016. CLICK TO DOWNLOAD SAMPLE REPORT
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in Asia Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Australia and Rest of Asia-Pacific).
Market Segmentation Synopsis
By Source
The Asia Pacific Organic Manure market is bifurcated by source into plant based, animal based and others. For the source, animal based organic manures held the largest market share of 59.8% in 2018 and is expected to reach a CAGR of 5.83% over the forecast period 2020-2027. Animal based organic manure includes poultry waste, animal excreta, and other wastes. The poultry products are high in demand across Asia Pacific, offering good quality poultry manure to the organic manure sector. The rising demand from poultry farms for manure has resulted in the increased availability.
By Form
The Asia Pacific Organic Manure market is segmented on the lines of form into solid and liquid, out of which the solid segment held the largest market size by value in 2018. The solid form of the organic manure is highly used across the agricultural fields. The solid form is available in powdered and granular form.
By Nutrient Type
The Asia Pacific Organic Manure market on the basis of nutrient type is segmented into nitrogen-rich, phosphorous-rich and potassium-rich types. Among these segments, the nitrogen-rich segment held the highest market shares by value in 2018. The nitrogen-rich organic manure market is expected to grow at a CAGR of 6.33% by value (USD Million) and 5.40% by volume (Tons) over the forecast period. Nitrogen is often used for its high nutrient value and is also seen as the limiting nutrient in organic production. Nitrogen is the most commonly used nutrient and is highly beneficial for different types of plants. Most organic sources of nitrogen are in protein form and are not soluble in water. The rising demand for nitrogen rich organic manure is expected to boost the market growth in coming years.
Growth Drivers
Rising demand for ensuring the sustainability of global food systems, vulnerability to food security & reducing poverty, and establishment of risk management tools & systems, all of these factors are resulting in increased demand for modern-day farming techniques, such as, organic farming. Organic manure enhances soil quality, secures farm future, and provides greater environmental protection. The fertile soil helps in maintaining consistency in the output of produce and thereby helps significantly in the crop production cycle. Additional nutrients provided to the soil helps in the prevention of soil erosion and also promotes greater soil biodiversity, thereby improving food security in the long run.
Stringent government regulations & norms against the utilization of chemical fertilizers in the soil that promotes soil pollution have helped in raising the demand for the greater consumption of organic manure by the farmers. Government of India is promoting various schemes such as Pramparagat Krishi Vikas Yojana (PKVY), under the National Mission for Sustainable Agriculture for greater use of organic manure. Additionally, financial assistance is also provided by the government for producing the phosphate-rich organic manure so as to meet the phosphorous/zinc content requirements in soil. Moreover, government is also providing 100% financial assistance to state governments up to a limit of USD 280.27 per unit. These factors are projected to boost the market subsequently across the region over the forthcoming years.
Restraints
The major factor impacting the market growth includes shortage of labor. According to the International Crops Research Institute for Semi-arid Tropics (ICRISAT), the nominal wages of labor have increased by 3 to 4 times in the recent years. Also, the daily wages for numerous agricultural activities such as ploughing, sowing, and transplanting is increasing by 10%, every year. Besides, high cost of organic crops in the developing regions is a major factor hampering the market growth. Conventional farmers use all type of chemicals and synthetic pesticides to reduce the cost of production by getting the job done faster and more efficiently. Apart from these, organic farmers have to hire more workers for different tasks such as hand-weeding, cleaning up of polluted water, and for the remediation of pesticide contamination. These processes take time and which results in the increasing cost of the crops.
Competitive Landscape
Multiplex Group, National Fertilizers Limited, Coromandel International Limited, KRIBHCO, Revisoil, Qingdao Future Group, Jaipur Bio Fertilizers, Special Biochem Private Ltd., Rachna Guild Pvt Ltd., Asia Agrotech Co., Ltd., are some of the leading players in the Asia Pacific Organic Manure market.
Multiplex Group has over 40 years of experience and is among the key producers of organic manure in India. It also offers IMO Switzerland certified bio-fertilizers and bio-pesticides and have been at the forefront of science and cutting-edge agriculture technology. The company provides various other services such as farm management, laboratory, multiplex farmer club, and multiplex vahini.
Additionally, few players are increasingly adopting innovative ways to establish themselves in the fragmented and competitive market through introduction of advanced farming solutions. Concurrently, new players in the market are also adopting similar strategies in order to increase their product portfolio and gain a global prevalence in the market.
