North America Organic Fertilizers Market Snapshot
The North America organic fertilizers market is expected to show impressive growth in the future, opines Future Market Insights (FMI) in its latest study. The market is expected to top a valuation of US$ 1.63 Bn, totalling 4,327.5 KT in 2021. Increasing adoption of organic farming methods in the U.S. and Canada are giving impetus to the sales of organic fertilizers.
As per FMI, Canada is expected to contribute over 31.2% of the market share in North America in 2021, while the U.S. organic fertilizers market will register growth at 7.1% CAGR through 2031.
Key Points Covered in North America Organic Fertilizers Market
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on North America Organic Fertilizers Market and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 North America Organic Fertilizers Market Outlook Compared to 2021-2031 Forecast
According to the latest FMI study, during 2016-2020 the North America organic fertilizers market grew at 6.3% CAGR. The study also states that the demand for the organic fertilizers is set to increase significantly during the forecast period due to growing health concerns among the consumers.
The North America organic fertilizers market has seen remarkable growth as consumers shifted towards eco-friendly products and the growing trend of sustainability among businesses. Various stringent regulations imposed by regional governments and environmental regulatory bodies are expected to increase the consumption of organic fertilizers at a very rapid pace.
While organic cultivation has provided numerous benefits both in terms of soil quality and human health, there are numerous challenges faced while using organic fertilizers. Organic fertilizers are usually priced much higher (mostly 2-4 times) than the conventional fertilizers.
Moreover, as organic fertilizers are lower in nutritional content (n-p-k) value, they need to be applied at higher application rates. In some cases, where the soil nutrient content is very low, organic fertilizers alone cannot meet the demand.
The initial yield during conversion of land from inorganic to organic is also quite lower. Also, there are additional costs required for the certification of organically cultivated products, thus restraining the growth of the market.
However, as demand for organic food products is increasing owing to the growing health consciousness among consumers, organic farming will continue gaining traction in North America.
As per the Future Market Insights, the North America organic fertilizers market will surpass US$ 3.17 Bn, reaching a shipment of 7,765.5 KT in 2031.
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How are Government Regulations Shaping Organic Fertilizers Market Growth in North America?
As per Future Market Insights, the North America organic fertilizers market will witness growth at 5.8% in terms of volume. The regional demand of the overall plant source segment is expected to register year-on-year (YoY) growth at 4.3% in 2021, to reach a total of 1,379.6 KT.
The cereals and crops segment is anticipated to grow at 5.5% to total 3,526.6 KT, while the liquid organic fertilizers segment is expected to be up by 5.4% to reach 1,132.5 KT in 2021.
Growing awareness among the consumers about the adverse effects of synthetic chemicals used in pesticides, fertilizers, and insecticides is a key factor driving demand for organic fertilizers.
Increasing demand for food and agriculture products which have been cultivated using organic farming methods is expected to increase at much faster rate over conventional food and agriculture products.
Despite the high price of organic foods and agricultural products, consumers are adopting organic products due increasing health consciousness, especially in urban areas.
Moreover, due to significant rise in population, use of synthetic chemicals in fertilizers and pesticides has increased over the years. With rising adoption of synthetic chemicals, quality of soil has been degraded extensively.
To increase the quality of soil and protect the environment, regional governments has imposed various regulations to promote organic farming in the region such as:
Certified organic foods are produced according to federal standards set by the U.S. Department of Agriculture (USDA) and National Organic Program (NOP). These regulations describe the specific standards required to use the word “organic” or the USDA organic seal.
Under the federal organic standards, agricultural products labeled “100% organic, "organic," and “made with organic (specified ingredient(s))” must be certified by a USDA accredited certifying agent and comply with the U.S. organic laws and regulations.
Another regulation states, Organic Foods Production Act (OFPA) created the U. S. National Organic Standards. The Act authorized a new USDA National Organic Program (NOP) to set national standards for the production, handling, and processing of organically grown agricultural products.
USDA NOP is authorized to enforce OFPA. In addition, the Program oversees mandatory certification of organic production. The Act also established the National Organic Standards Board (NOSB), which advises the Secretary of Agriculture in setting the standards upon which the NOP is based. Producers who meet NOP standards may label their products as “USDA Certified Organic.
Apart from this, regional governments are providing several favourable initiatives such as targeted subsidies, market investments, capacity expansion and research support for organic agriculture. These favourable initiatives are supporting the growth of organic fertilizers market.
Based on the aforementioned factors, the North America Organic Fertilizers market is poised to expand at a CAGR of 6.9% during the forecast period (2021-2031).
What are the Key Opportunities for North America Organic Fertilizers Manufacturers?
The food and beverage industry in the U.S. and Canada is expected to grow at a significant rate during the forecast period. Organic fertilizer are increasingly used in the sector for the cultivation of fruits & vegetables and cereals & crops among others. Organic fertilizer has been approved as a non-toxic additive and ingredient by several regional administrations.
Moreover, these fertilizers can be considered as best alternative to harmful agrochemicals which are extensively used for food protection. Sometimes organic fertilizers are used as non-biodegradable and non-renewable polymers used for coating some foods including fruits and vegetables.
Due to such a wide-range of benefits, manufacturers of agrochemicals are focusing on organic-based fertilizers for use in agriculture, which is expected to drive the organic fertilizer market in the region.
What Is the Impact of COVID-19 on the North America Organic Fertilizers Market?
The organic fertilizer market growth is projected to be affected by the COVID-19 pandemic in the long term as well as in short term. With the global shutdown, several industries in the U.S. and Canada had to suspend their production operations. Besides this, shortage in demand resulted in a significant drop in Y-O-Y growth of organic fertilizers market.
However, the growth is projected to increase sharply as the economic activities are expected to resume to their pre-crisis levels. With the recommencement of activities across major sectors, thanks to the vaccination drive across the globe, operations across end-use industries of organic fertilizers have begun at near full capacities.
Once the economic activity returns to pre-crisis levels, industrial activities and economic growth is projected to follow the post 2008-crisis trend. With resumption in agricultural activities, the organic fertilizers market will gain momentum over the forecast.
Why is Demand for Organic Fertilizers High in the US?
In 2021, the U.S. organic fertilizers market is expected to witness 6.4% year-on-year growth owing to the surging demand for organic food products in the country. Demand for organic fertilizers in North America is expected to reach a total of 2,974.5 KT
The U.S. is expected to be the most lucrative country for organic fertilizers and is anticipated to hold dominance through the assessment period. Future Market Insights has forecast that high growth is one the cards for organic products in the country due to the growing awareness regarding harmful effects of using synthetic pesticides and fertilizers.
Moreover, the country has also witnessed substantial growth owing to the regulation imposed by government to promote organic farming in the country. Favourable government initiatives such as targeted subsidies and others are also promoting the adoption of organic fertilizers in the country.
What is the Demand Outlook for Organic Fertilizers in Canada?
Canada is a lucrative market for organic fertilizers owing to the good presence of manufacturers and distributors in the country. Canada’s organic fertilizers market is expected to expand at a notable growth rate of around 6.5% over the forecast period.
However, limited population in the country is limiting the demand for food and agricultural products in the country which in turn is hindering the growth of Organic Fertilizers over the forecast period.
Which is the Top Selling Source of Organic Fertilizers in North America?
Based on source type, North America organic fertilizers market is bifurcated into plant source and animal source. Plant source includes fertilizers originated from various plant sources such as alfalfa meal, cotton seed meal, soybean meal, humic acid, and various others.
Whereas, on the other hand animal source segment includes fertilizers that originated from various animal source such as fish meal, guano, bone meal, blood meal, feather meal, and various others.
According to Future Market insights, organic fertilizers originated from various animal source is anticipated to contribute almost 68% of the overall revenue generation for organic fertilizers market.
Which Application Type is dominating the Organic Fertilizers Market?
According to Future Market Insights, organic fertilizers used in production of fruits and vegetables are likely to gain traction over the forecast period. Due to rising awareness regarding harmful effects for using synthetic chemicals present in synthetic pesticides and fertilizers, organic fertilizers are gaining more popularity.
Fruits and vegetables segment is likely to expand at an impressive growth rate of 7.1% during the assessment period. As per FMI, fruits and vegetable segment is likely to gain 30 BPS points over the forecast period owing to shifting consumer base towards eco-friendly products.
Which is the Preferred Form for Organic Fertilizers?
According to the study on North America organic fertilizers market, solid organic fertilizers is the preferred form and is expected to grow at a CAGR of 6.7% over the forecast period. Solid organic fertilizers are expected to carry its dominance by the end of the forecast period.
As per Future Market Insights, the market is highly fragmented in nature. Leading players are expected to hold around 10-20% of market revenue during the forecast period.
Manufacturers operating in North America organic fertilizers market are focusing on establishing partnerships with numerous local and international distributors to expand their global and regional footprint. For instance,
- In late 2019, Fertoz Limited signed a distribution partnership with Soil Works LLC, based in South Dakota, to further strengthen its distribution network in multiple U.S. states.
Also, recent developments related to companies manufacturing organic fertilizers have been tracked by the team at Future Market Insights, which are available in the full report.
Scope of Report
Historical Data Available for
USD Million for Value and Kilo Tons for Volume
Key Regions Covered
Key Countries Covered
United States, Canada
Key Segments Covered
Source Type, Application, Form, and Country
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered In The Report:
What is Growth Outlook for Fruits and Vegetables?
According to Future Market Insights, fruits and vegetables segment is likely to expand at a growth rate of 7.1% during the assessment period of 2021-2031.
What is Expected Growth Rate of Solid Organic Fertilizers?
According to latest study on North America organic fertilizers market, solid form organic fertilizers are anticipated to hold leading share in the market and projected to grow at a CAGR of 6.7% over the forecast period.
Who are the Key Suppliers in North America Organic Fertilizers market?
Sustane Natural Fertilizer Inc, True Organic Products Inc, California Organic Fertilizers Inc., Purely Organics LLC, Fertoz Limited, Fertilizers USA LLC, The Scotts Miracle-Gro Company, Sigma AgriScience, LLC, Bio Green USA, Inc., American Plant Food Corporation and others are identified as key suppliers by FMI.
What is North America Organic Fertilizers Market Outlook by Segments?
Revenues in the plant source segment of the North America organic fertilizers are expected to witness 4.9% year-over-year growth in 2021. Demand for organic fertilizer in animal source segment is anticipated to increase at 6.6% between 2020 and 2021.
What is the Current Demand Outlook for North America Organic Fertilizers Market?
The demand for organic fertilizers in North America is expected to surpass US$ 1,631.9 Mn in 2021.
At What Rate did Organic Fertilizers Sales Increase in Last 5 Years across North America?
North America’s organic fertilizers market witnessed healthy growth at 6.3% CAGR during 2016 and 2020.
North America Organic Fertilizers Market by Category
By Source Type:
- Plant Source
- Animal Source
- Cereals and Crops
- Fruits and Vegetables
- Lawns, Turfs and Gardens