Biological Organic Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The biological organic fertilizer market is projected to grow at a CAGR of 13.3% during the forecast year (2021-2026). The COVID-19 pandemic has impacted the biological organic fertilizer market, resulting in the slow growth of the market during the forecast period. With the effective policies from the government and implementation of suitable practices can help companies to gain profits post the immediate effects of the pandemic. The increased practice of organic farming is one of the major factors behind the growth of the biological organic fertilizer market. The emphasis on sustainable farming and government support to the manufacturers are two other factors that are augmenting the growth of the market. Asia-Pacific and Europe are the largest markets followed by North America. In middle-east and Africa, there has been a development of a new biofertilizer by Iranian researchers at the Agricultural Research, Education, and Extension Organization (AREEO), from the sulfur removed from refining oil and gas.
As per the report published by the Food and Agriculture Organization (FAO), the land equipped for irrigation is expected to expand by 32.0 million hectares (11.0%), while harvested irrigated land is expected to expand by 17.0% by 2050. These scenarios are expected to be witnessed in developing countries, which is leading to an insufficient nutrient supply to the crops. This, in turn, is resulting in a lower yield of crops, along with a decline in the quality of the final product. The growing population across the world is leading to a decline in the proportion of arable land, which is primarily used to produce food. This is necessitating cultivation in poor soils. The application of biological organic fertilizers helps in enhancing the yield and the quality of the soil. Therefore, the application of biological organic fertilizers is expected to improve the bioavailability of all kinds of nutrients. This, in turn, is expected to contribute to productivity, nutrient content, and profitability. Moreover, biological organic fertilizers are less reactive to soil conditions and can significantly enhance nutrient uptake and utilization efficiencies. This is expected to improve the quality of the crop. When biological organic fertilizers are properly used to replenish nutrients removed in previous crops, they are expected to improve the productivity of farms. An increase in farm productivity is beneficial to the environment, primarily due to the lower requirement of land, labor, and energy per unit of output. Owing to the increasing organic area under cultivation, coupled with the increasing demand for good-quality crop, the cultivators are expected to use biological organic fertilizers, instead of excessive synthetic fertilizers.
The Asia-Pacific organic fertilizers market is divided into two major segments namely organic residue-based fertilizers and microorganisms (biofertilizers) depending on the source of nutrients and raw materials. More than half of the market share is covered by microorganism-based organic fertilizers. The consumption of organic fertilizers in Asia-Pacific is expected to increase with rising awareness among the 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, and Vietnam while China and India are leading the market developments. According to the Australian Organic Limited, the growing consumer consciousness around health and wellbeing, as well as increasing demand from China for Australia's organic produce, is driving the organic market in the country. This is expected to boost the demand for organic fertilizer in the country. The organic fertilizer market in Asia-Pacific is the fastest-growing among all the other regions. The key players in the market are focused on new product launches to cater to a wider consumer base and expand market share in the local market.
The biological organic fertilizer market is fragmented owing to the presence of large international as well as regional players in the market. 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 biofertilizer market. The biofertilizer market being unregulated is the reason why there are many small companies in the market. Once proper regulations are put in place, it is highly likely that the market will be consolidated among a few companies in the coming years. Accleron BioAg is a major company, which is rapidly expanding its products and market presence. The company is expected to gain a major share in the market in the next few years.