Organic Fertilizers Market Trends

Growth Drivers

• Escalation in customer demand for organic food: The international organic food sector is continuing to outpace traditional food development, leading to a strong pull-through effect that needs the overall supply chain, such as fertilizers, to be certified organic. For instance, as per an article published by Invest India in October 2023, 187 countries in the country practice organic agriculture, and organic food in the overall country is cultivated within 2.6 million hectares. In addition, the share of land utilized for organic farming in the country is 1.5%, and over the past 10 years, there has been an increase in organic agriculture by 145.1%, further comprising 4.4 million organic farmers. Moreover, the country produced 2.9 million certified organic products, including vegetables, dry fruits, pulses, cotton, cereals and millets, fiber, oil seeds, and sugarcane, thus suitable for boosting the organic fertilizers market.
• Soil health degradation and climatic changes: The demand for climate-resilient agriculture, loss of organic carbon, and widespread soil degradation are pressuring reevaluation of farming practices. Based on this, the organic fertilizers market is significantly recognized as essential for restoring soil structure, long-lasting productivity, and water retention. As stated in an article published by the UNESCO Organization in August 2024, 90% of the planet’s land surface is projected to be degraded by the end of 2050. Besides, 75% of healthy soils are already degraded, which directly impacted 3.2 billion. Meanwhile, as per an article published by Earth Organization in June 2024, scientists have warned that 24 billion tons of fertile soil are being steadily lost, majorly due to unsustainability, which has further increased the market’s demand.
• Input cost volatility and economic viability: The volatile and rising cost of synthetic fertilizers, along with increasing evidence of the long-lasting yield stability and cost advantages of organic soil management, are significantly making the organic fertilizers market extremely economically attractive for farmers. As stated in an article published by NLM in October 2024, the mineral fertilizer utilization and a sudden shift to diversified crop rotations can diminish energy consumption by an estimated 21,000 MJ/ha for more than 6 years. Likewise, the adoption of no-tilled systems instead of ploughing has decreased energy utilization by 12,000 MJ/ha. Besides, organic farming provides €4000/ha increased contribution margin in comparison to traditional methods in tillage and fertilization.

Challenges

• Lack of standardization and variable product efficiency: A fundamental challenge in the organic fertilizers market is the inconsistent performance and lack of universal quality standards. Besides, the nutrient content in organic products can also vary dramatically between manufacturers and batches, since these are derived from biological sources subject to natural variation. This particular contrasts sharply with synthetic fertilizers, which provide guaranteed and precise nutrient profiles. In addition, the slow-release nature of nutrients in different organic products, while advantageous for soil health, results in unpredictable nutrient availability, which potentially impacts crop yields. Moreover, the administrative certification and framework differ across different regions, which has resulted in market confusion, thus negatively impacting the overall organic fertilizers market.
• Technical knowledge barrier and limited farmer awareness: The shift from traditional to organic nutrient management needs a systematic and in-depth shift in agronomic practices, along with a significant knowledge gap. Besides, many farmers are experts in applying synthetic fertilizer, but there is an absence of technical training to effectively utilize organic alternative options. Moreover, organic fertilizers are not only a one-to-one substitution; instead, they demand various timing, placement, and frequent complementary practices, such as cover cropping. Without generous expansion services, clear data and hands-on training demonstrate local success and return on investment (ROI). Therefore, farmers are significantly reluctant to integrate their perseverance as a complicated and risky practice.