Organic Food Sales to Spearhead in the US, so is the Demand for Organic Fertilizers
United States has been witnessing increasing consumption of organic food since past 2 years. In 2018, sales of organic food in the US grew by 4.6%, according to OTA (Organic Trade Association). This number has been surpassed as sales of organic food reached US$ 56.4 Bn in 2020, with a 12.8% increase in growth rate, says OTA. Moreover, COVID-19 scenario expedited this as consumer view shifted from restaurants towards home-cooked healthy organic food, in turn giving an unprecedented impetus to the use of organic fertilizers. Against this backdrop, organic fertilizers in the US are expected to witness a growth pathway in the following years.
Promotion of Environment Friendly Strategies and R&D to Influence Sales of Organic Fertilizers
Lucrative growth opportunities are in the offing as regulatory authorities are focusing on environment friendly measures in the agriculture domain. For instance, March 2021 witnessed a key move made by The Agriculture, Forestry and Fisheries Ministry of Japan. The strategic move was to promote eco-friendly approaches in Japan’s agriculture industry that covered reduction in usage of pesticides and other chemicals by half by end of 2050.
Additionally, research and development in the organic fertilizer domain is likely to present prospective opportunities for manufacturers. For instance, an agreement was signed between JK Lake & Waterways Authority and CEF Group, an organic fertilizer manufacturer along with National Agricultural Cooperative Marketing Federation of India to use weeds from Dal Lake to produce organic fertilizers for 25 years. Such initiatives are likely to induce a swell in sales of organic fertilizers in the years to follow.
Europe to Go Green with Organic Fertilizers – A Commendable Stance from EU to make Farming Sustainable
Recently, the European Union has restructured rules on use of fertilizers that are mined and made from chemicals. These have a slow yet an inverse impact on soil and environment. Moreover, with rising population, the demand for food has pervasive making it imperative for governments to boost production. Trend of going green has been observed as farmers are opting to use organic fertilizers to make agriculture more productive. Aspects such as upsurge in organic farms and growing awareness around sustainable agriculture coupled with favorable government initiatives are fuelling the sales of organic fertilizers.
Initially, EU fertilizer regulation allowed free movement of traditional fertilizers and the ones produced organically (organic fertilizers) would stay in the country where they were developed. However, considering the on-going awareness trend, EU has changed the rules and organic fertilizers will have CE marking, allowing them to move freely, marketed and sold across all EU states. Such initiatives are proving healthy for increasing the demand for organic fertilizers in turn contributing to overall market scenario of organic fertilizers in Europe.
Indian Market for Organic Fertilizers Likely to Witness Boost in the Years to Follow
Developing countries such as India have always been the focus of companies across various industries, and organic fertilizers are no exception. Agriculture being the backbone of Indian economy, sales of organic fertilizers across several states are likely to soar in the coming years. This can be attributed towards growing concerns regarding use of traditional fertilizers and their greenhouse emissions. Moreover, the trend of going organic has proliferated globally. The Indian government is urging farmers to switch to organic farming by providing them incentives and carrying out favorable initiatives. For instance, organic farming policy will be implemented in Andhra Pradesh. This will be supported by providing economical machinery via CHS (Community Hiring Centers).
In addition, export scenario of organic fertilizers from India are likely to strengthen. Recently, Sri Lanka was importing organic fertilizers from China, which was stopped owing to the discovery that Chinese organic fertilizers have harmful bacteria. India will be supporting Sri Lanka by providing organic fertilizers in the coming years and this handshake is expected to boost moral for manufacturers of organic fertilizers in the country.
Players in the organic fertilizers market have been focusing on entering into strategic alliances and M&A. for instance in 2019, Perdue Farms and Bioenergy DevCo entered into a partnership to acquire organic fertilizers processing facility in a bid to supply organic fertilizers. Biostar Renewables, Sustane Natural Fertilizer Inc., True Organic Products LLC, Coromandel International Limited, Nature Safe, NationalFertilizers Limited and Italpollina SpA, are few of the companies operating in the organic fertilizers market.
Please Note: The above mentioned segmentation/companies/countries are likely to differ in the actual report as they are based on preliminary research.