The global green fertilizer industry value reached USD 2145.7 million in 2023. Over the forecast period, the value is anticipated to rise at 4.5% CAGR. The market is predicted to increase from USD 2223 million in 2024 to USD 3442.6 million in 2034.
Green fertilizers, made from natural and renewable resources, are in high demand due to environmental concerns and climate change mitigation. These are being used by farmers and policymakers to minimize nutrient runoff, reduce greenhouse gas emissions, and maintain soil health and biodiversity.
Regulatory support for sustainable agriculture is provided by government programs, subsidies, and laws that support organic agricultural methods and low chemical inputs. Growing demand for organic and natural products is driving the use of green fertilizers to meet certification standards and cater to sustainable crop production preferences.
| Attributes | Description |
|---|---|
| Estimated Global Green Fertilizer Market Size (2024E) | USD 2223 million |
| Projected Global Green Fertilizer Market Value (2034F) | USD 3442.6 million |
| Value-based CAGR (2024 to 2034) | 4.5% |
Green fertilizers are cost-effective and have long-term benefits, as these improve crop yields, low input costs, increase soil fertility, and gradually reduce environmental impact. Technological innovations in green fertilizers, such as bio-based fertilizers, microbial inoculants, nutrient recycling technologies, and precision agriculture tools, are improving efficacy and usability in various agroecosystems.
The growing global population and increasing demand for organic food are significantly driving demand for green fertilizers, as farmers aim to produce high-quality organic crops. The market for biological organic fertilizers has grown significantly due to the recent surge in interest in regenerative agriculture, organic farming, and soil health.
Natural organic fertilizers contain specific levels of microorganisms, while organic fertilizers, typically from animals and plants, are highly suitable for organic farming.
The area under organic farming increased by 4.1% in 2020, and regional statistics show growth in both developed and developing countries. For instance, India's organic farming certification process almost doubled in 2021, indicating the increasing initiatives and adoption of organic farming.
As a result, cultivators are expected to use biological organic fertilizers instead of excessive synthetic fertilizers, driving growth. The trend of home gardening is also increasing, with organic fertilizers becoming more popular among home gardeners as they provide a natural and safe way to grow plants.
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Organic Fertilizer Applications in Sustainable Agriculture
Organic farming is growing globally due to consumer demand and environmental concerns. This growth is projected to impact the demand for green fertilizers. Agricultural companies and food retailers are embracing sustainability by sourcing organic products, promoting sustainable practices, influencing supply chain dynamics, and promoting eco-friendly fertilizer use.
Market Penetration of Advanced Green Fertilizer Technologies
Developments in biotechnology and microbiology have led to the development of eco-friendly fertilizers, such as microbial inoculants and biofertilizers, to improve soil health and crop productivity.
Developing countries are adopting these fertilizers to enhance soil fertility, reduce chemical dependency, and promote sustainable agriculture. Governments are also promoting organic farming through subsidies, incentives, and regulations, while certification programs ensure product quality and compliance with organic standards.
Rising Demand for Organic and Eco-friendly Fertilizers
Consumers are increasingly aware of the environmental and health benefits of organic products, leading to augmented demand for organic food. Farmers are using green fertilizers to meet market expectations, contributing to the circular economy by using organic waste and by-products to produce nutrient-rich fertilizers.
Research and innovation in green fertilizers continue to fuel product development, optimizing nutrient delivery systems and compatibility with crops and soils.
High Cost Compared to Synthetic Fertilizers to Hamper Growth
The green fertilizer market is expected to experience healthy growth, but the high cost compared to chemical or synthetic fertilizers is a significant barrier to its development. Furthermore, farmers are turning to inorganic methods for quick crop cultivation, which is expected to hinder the green fertilizer industry's potential in the forecast period.
The green fertilizer sector grew at a CAGR of 3.1% from 2019 and 2023. The industry reached USD 2145.7 million in 2023. A global shift towards organic farming due to environmental sustainability and health concerns has bolstered the green fertilizer sector, offering natural alternatives to synthetic fertilizers.
Governments worldwide have played a pivotal role by promoting organic agriculture through subsidies, incentives, and regulations that encourage sustainable farming practices. These initiatives have effectively accelerated the adoption of green fertilizers among farmers.
Improvements in microbiology and biotechnology have transformed the field of green fertilizers, adopting the development of microbial inoculants, biofertilizers, and organic composts.
These innovations improve soil fertility naturally, offering environmentally friendly alternatives that align with consumer preferences for organic produce. Consumer awareness of the environmental and health impacts of conventional farming has increased demand for organic products, thereby boosting growth.
Green fertilizers contribute to the circular economy by utilizing agricultural and food waste to produce organic fertilizers, thereby reducing waste and enhancing sustainability in agriculture. In developing countries, the adoption of organic fertilizers is seen as a strategy to improve soil health, increase crop yields sustainably, and reduce reliance on costly chemical inputs.
Educational initiatives and agricultural extension programs have been pivotal in promoting the benefits of organic fertilizers among farmers, providing technical support, and encouraging widespread adoption.
Furthermore, fertilizers play a role in mitigating climate change by lowering greenhouse gas emissions associated with chemical fertilizer production and promoting carbon sequestration in soils.
Growing global recognition of these benefits underscores the increasing opportunities and importance of green manures in sustainable agriculture practices worldwide. Over the forecast period, the sector is poised to exhibit healthy growth, reaching USD 3442.6 million by 2034.
Principal Consultant
Tier 1 companies, known for their stability and brand recognition, significantly contribute to the sector by utilizing modern technologies and developing vast production facilities across multiple locations. Prominent companies in Tier 1 include Nutrien Ltd., Yara International, BASF SE, Syngenta, and Bayer CropScience.
Tier 2 companies are local businesses with significant local economic impact, popular in international markets, and possess extensive industrial experience, operating in specific geographic locations.
Leading companies are extending their reach by forming strategic partnerships with suppliers, distributors, and end-users, prioritizing customer service, and offering personalized support. A few well-known companies in Tier 2 comprise ICL Group, CF Industries Holdings, OCI N.V., Haifa Group, and BioWorks, Inc.
Tier 3 comprises medium to small-sized regionally-based enterprises, catering to specific sectors and operating in a limited geographic area. These enterprises are less formalized and face less competition due to their limited presence. Notable companies in Tier 3 are Midwestern BioAg, The Scotts Miracle-Gro Company, Italpollina SpA, Coromandel International, and California Organic Fertilizers.
The section provides a detailed analysis of the share in terms of region, focusing on dynamics, trends, challenges, and opportunities specific to each country. It also provides future market predictions for fertilizers in specific countries. The analysis covers competitive scenarios, helping organizations make informed decisions.
India is expected to emerge as a dominating country in the sector during the forecast period with an estimated CAGR of 6.7%. China, Spain, and the United States are expected to follow closely to become the prominent countries with estimated CAGRs of 5%, 3.4%, and 2.5%, respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 2.5% |
| Spain | 3.4% |
| China | 5% |
| South Korea | 2% |
| India | 6.7% |
The United States organic farming industry is experiencing a steady rise due to consumer demand for organic produce and concerns about environmental sustainability and health. This trend supports the growth of the market, as organic farmers seek natural and environmentally friendly inputs.
The United States Department of Agriculture (USDA) oversees the National Organic Program (NOP), which sets standards for organic agricultural practices. Consumer preference for organic products is driven by concerns about pesticide residues, environmental impact, and health benefits.
Leading retailers, food chains, and agricultural corporations are implementing sustainability goals that include sourcing organic products and creating market incentives for farmers to adopt organic practices and use green fertilizers. State and local governments offer incentives, grants, and technical assistance programs to promote organic farming and sustainable agricultural practices.
Green fertilizers are playing a significant role in climate-smart agriculture by reducing greenhouse gas emissions and enhancing soil carbon sequestration. In India, their role in sustainable agriculture is growing due to climate change impacts.
The distribution network for green composts is growing, with increased availability through cooperatives, specialized retailers, and online platforms. Green fertilizers also align with sustainable farming practices like conservation tillage, cover cropping, and integrated pest management, enhancing soil health, biodiversity, and resilience to climate change.
In India, the industry is increasing due to improved distribution networks, agricultural infrastructure, and technology access. Agricultural extension services and educational programs are essential in the country to educate farmers about the benefits and proper use of green fertilizers, enhance technical skills and knowledge, and facilitate widespread adoption.
The government is promoting sustainable agricultural practices, including organic farming, through policies, subsidies, and incentives to gain a competitive edge. This encourages farmers to adopt green manures and environmentally friendly inputs.
China is investing in advanced agricultural technologies, such as biotechnology and microbiology, to enhance the effectiveness of green fertilizers. Environmental concerns, such as soil degradation and water pollution from chemical fertilizers, are driving the adoption of green fertilizers as a sustainable alternative.
Large agricultural corporations and food retailers are integrating sustainability goals into business strategies, promoting organic products, and supporting farmers in adopting organic fertilizers.
China's green fertilizer sector innovates with research, universities, and companies to enhance agricultural efficacy with tailored solutions. Agricultural extension services, universities, and non-profit organizations provide educational resources and technical support to farmers interested in adopting organic practices and using organic fertilizers.
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The section below provides organizations with industry overviews in terms of the two leading segments. Segmentation of these categories helps organizations better understand the dynamics and regulatory landscape of the sector and make informed decisions for investing.
In terms of technology, the alkaline water electrolysis segment is likely to dominate the sector with a value share of 33.5% in 2024. Based on fertilizer, the ammonium nitrate segment is expected to hold a value share of 36.2% in the same year.
| Segment | Alkaline Water Electrolysis (Technology) |
|---|---|
| Value Share (2024) | 33.5% |
Increasing demand for green fertilizers is driving the trend towards boosting alkaline water electrolysis (AWE) production capacities, utilizing large electrolysis systems for commercial or industrial hydrogen production. AWE systems are integrating with renewable energy sources like solar and wind power, reducing carbon footprint and ensuring sustainable and environmentally friendly hydrogen production.
Technological innovations in electrolyzer technology, such as more durable membranes, catalysts, and stack designs, are driving improvements in the reliability and longevity of AWE systems. Governments and regulatory bodies offer incentives for green fertilizers and sustainable hydrogen production methods, such as subsidies, tax breaks, and regulatory frameworks, augmenting sales.
| Segment | Ammonium Nitrate (Fertilizer) |
|---|---|
| Value Share (2024) | 36.2% |
Precision agriculture technologies are being used to apply ammonium nitrate (AN) fertilizers based on real-time data, reducing over-application and optimizing nutrient uptake. Environmental regulations and sustainability standards are influencing the production and use of AN fertilizers, requiring manufacturers to reduce greenhouse gas emissions and ensure responsible sourcing of raw materials.
Biological nitrogen fixation (BNF) technologies are being researched to reduce reliance on synthetic fertilizers. Digital farming technologies, such as IoT sensors and drones, are enhancing fertilizer use efficiency. Consumer demand for sustainable agriculture is driving agricultural practices towards more sustainable AN fertilizer use, including certifications and labels indicating environmentally friendly practices.
Yara International ASA, Siemens Energy, Origin Energy Limited, Iberdrola, S.A., Hy2gen AG, Hive Energy, and Haldor Topsor A/S are the key players in the green fertilizer industry. Leading companies in the green fertilizer industry are focusing on partnerships with distributors, capacity expansions, and operational strategies to gain a competitive edge.
The market is growing due to increased consumption of various crop types. Companies are competing based on product performance, quality, technical competence, price, and corporate reputation. Competitive strategies of leading green fertilizer companies include new product launches, licensing agreements, distribution network growth, technological investments, and mergers and acquisitions.
Growing demand for organic food products is set to necessitate large-scale development of green fertilizers, creating opportunities for stakeholders. Market giants are growing organic fertilizer produce to capitalize on unmet consumer demand.
Industry Updates
As per technology, the industry has been categorized into alkaline water electrolysis, proton exchange membrane, and solid oxide electrolysis.
Based on fertilizers, the sector has been segmented into ammonium nitrate (AN) and calcium ammonium nitrate (CAN).
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia, East Asia, and the Middle East and Africa.
The sector is set to witness a CAGR of 4.5% by 2034.
The sector witnessed a CAGR of 3.1% from 2019 to 2023.
In 2034, the sector is anticipated to reach USD 3442.6 million.
Yara International ASA, Siemens Energy, and Origin Energy Limited.
The sector is set to reach USD 2223 million by 2024.
Alkaline water electrolysis segment is set to lead in 2024.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Technology 7.1. Alkaline Water Electrolysis 7.2. Proton Exchange Membrane 7.3. Solid Oxide Electrolysis 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Fertilizer 8.1. Ammonium Nitrate (AN) 8.2. Calcium Ammonium Nitrate (CAN) 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. South Asia 9.5. East Asia 9.6. Eastern Europe 9.7. Middle East and Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Technology, Fertilizer, and Technology for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Yara International ASA 19.2. Siemens Energy 19.3. Origin Energy Limited 19.4. Iberdrola, S.A. 19.5. Hy2gen AG 19.6. Hive Energy 19.7. Haldor Topsor A/S 19.8. H2U Technologies, Inc. 19.9. Fusion-Fuel 19.10. Fertiglobe 19.11. Eneus Energy Limited
Chemicals & Materials
September 2018
REP-GB-1559
196 pages
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Green Fertilizer Market
