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Emerging Organic Agriculture Market Induces the Demand for Organic Fertilizers Market

Published By : IndustryARC | Published On : 2016-08-16
Fertilizers are the materials that can supply nutrients to the plants which are necessary for their growth. They are applied to soil or to the plant tissues. Fertilizers change water retention and aeration of soil thus affecting the growth of plant. Organic fertilizers, inorganic fertilizers and bio fertilizers are different types of fertilizers available in the market. Wheat, rice and corn are the three crops which consume almost half of the fertilizers used globally.

Nitrogen, phosphorus and potassium are the key nutrients supplied to plants through fertilizers. Organic fertilizers are plant or animal derived whereas inorganic fertilizers are manufactured through several chemical treatments. Bio-fertilizers have microorganisms which boosts the growth of plants by supplying required nutrients when in contact with soil or plant surfaces. Urea, DAP and MOP, which are the primary products among all the nitrogen, phosphorus and potassium fertilizers, hold significant demand in the market.

Rising global population is set to drive the demand for fertilizers as the demand for food is increasing with the growing population. Fertilizer consumption has been increased to meet the growing food demand. Grain price is one of significant factors impacting the fertilizer prices globally. Natural gas supply costs affect the inorganic fertilizer market especially nitrogen fertilizers, as it is the raw material for the production of nitrogen fertilizers. Organic fertilizers increase organic content of soil and also help in the growth of bacteria on plant roots. These bacteria break down the organic content and supply them as nutrients to the plants. Chemical fertilizers are used by farmers worldwide on a large scale; however the growing ill effects of chemical fertilizers coupled with rising popularity of organic fertilizers are driving the organic fertilizer market.

Globally, there were a total of 43.1 million hectare land allotted for organic farming in 2015, which has now grown multifold with a double digit CAGR. Accordingly, the total sale of organic foods in 2015 had reached $72 billion in 2015 and is estimated to grow further. Low capital investment and increased organic farming are driving the organic fertilizer market. But productivity through organic fertilizers is low compared to inorganic fertilizers as the quality and quantity of nutrients supplied is not stable. Benefits of organic fertilizers like free from harmful chemicals, easily bio-degradable, less cost of production, pollution-free are boosting the market growth.


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