The Biological Organic Fertilizer Market size is estimated at USD 11.94 billion in 2023, and is expected to reach USD 15.90 billion by 2028, growing at a CAGR of 5.90% during the forecast period (2023-2028).
The rising popularity of organic products and consumption has forced the expansion of organic farming across the globe. Subsequently, the market for biological organic fertilizers has grown dramatically in response to the recent surge in interest in regenerative agriculture, organic farming, and soil health. Natural organic fertilizers contain specific levels of microorganisms (such as nitrogen-fixing bacteria); organic fertilizers similarly contain microorganisms and typically come from animals and plants, such as livestock manure and crop residues, which are highly suitable for Organic Farming.
According to the Research Institute of Organic Agriculture, the area under organic farming increased by 4.1% in 2020. In addition, the regional statistics of both developed and developing countries have depicted the growth of organic agriculture in the country. For instance, according to the statistics by the government of India, the area under the organic farming certification process in India has almost doubled in 2021-2022, indicating the increasing initiatives and adoption of organic farming, with the full production accounting for 20,540.63 metric tons. Thus, owing to the rising organic area under cultivation and the increasing demand for good-quality crops, cultivators are anticipated to use biological organic fertilizers instead of excessive synthetic fertilizers, driving the market.
The organic fertilizer market in Asia-Pacific is the fastest-growing among all the other regions. The consumption of organic fertilizers in Asia-Pacific is anticipated to increase with rising awareness among farmers about the benefits of bio-based and organic residue-based fertilizers. The regional demand is concentrated among major agriculture-based countries like China, India, Thailand, Indonesia, and Vietnam while China and India are leading the market developments.
In addition, not only do different countries in the region have their own regulations for fertilizers in general, but they also often have specific requirements and rules for biological and organic fertilizers. For instance, the Regulation of the MOA No. 1/2019 concerning the Registration of Organic Fertilizers, Biological Fertilizers, and Soil Improvement in Indonesia aims to ensure the quality of fertilizer products circulating in the market by requiring them to pass a quality test by an MOA-approved institution.
Further, the growing organic farming in different countries under the region and the increasing demand for organic products drive the market in the region. Moreover, there have been major policy developments related to the organic sector in some Asian countries. In Japan, there was a major development in the Basic Plan for Agriculture and Management, aiming to triple the number of organic farmers and organic land by 2030, in turn boosting the growth of the market.
The Biological organic fertilizer market is fragmented due to prominent international and regional players. Collaborations with government organizations and expansion in the market, along with product innovation, are some of the strategies adopted by the companies. Rizobacter Argentina S.A, Lallemand, and National Fertilizers Limited are some of the leading market players in the biological organic fertilizer market. The unregulated scenario in the market has sustained the small companies, making the market fragmented, which could be converted to a consolidated one with the proper regulations shortly.
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