China organic fertilizers market is projected to witness a CAGR of 9.54% during the forecast period 2024–2031, growing from USD 1.42 billion in 2023 to USD 2.94 billion in 2031. The organic fertilizers market in China is expanding rapidly, with more farmers transitioning to organic farming to capitalize on the premium prices of organic products. This transition necessitates the use of organic fertilizers, driving the market growth.
The availability of high agricultural land area is augmenting growth of organic fertilizers. As per the estimates of Food and Agriculture Organization, the agricultural land in China is 55.5% of the total land area in the country. Large agricultural areas under cultivation in China offers a high degree of adoption of organic farming, thus, higher utilization of organic fertilizers. The large landholding farmers can easily adopt the practice of organic farming, which demands many organic fertilizers to maintain high soil fertility and crop health.
Cow manure, chicken manure, and pig manure are the commonly used organic fertilizers in China because of its richness in nutrients and ease in availability. Also, composting is a common practice in the country to raise the efficacy of such manures and lower their content of pathogens.
The government carries out extensive training programs to educate farmers about the benefits of organic fertilizers and proper techniques of application, which is driving growth of the organic fertilizers market in China. Consumers are made aware of organically grown produce through public awareness campaigns to foster its demand, which indirectly prompts the use of organic fertilizer, supporting the market growth in the country.
Furthermore, the adoption of artificial intelligence in organic farming is promoting growth of the organic fertilizers market. It is because artificial intelligence helps the farmers in providing the plants with the organic fertilizers which are specific to their requirements and help them grow in different environmental conditions. By providing the precise nutrients required, customized organic fertilizers improve crop health and yield, leading to increased profitability for farmers. It appeals to the consumers, supporting market growth.
Promotion of Green Agriculture to Drive Market Growth
The promotion of green agriculture in China facilitates the usage of organic fertilizers in the country as a major source of environmental conservation. Greater emphasis is placed on organic farming and increasing organic produce certification. This aids soil degradation reduction and the protection of biodiversity, attracting more farmers to make use of organic fertilizers. Agricultural waste recycling to create composts and fertilizers of animal manure are all circular economy practices that keep the chain of agriculture together.
The Chinese government has introduced several policies in support of green agriculture to drive the usage of organic fertilizers, including subsidies for green production practices and a regulatory framework for the use of fertilizers, with support for developing green technologies. Among the government-led initiatives put forward in pursuing sustainable farming practices are the Green Agriculture Pilot Program, the National Plan for Sustainable Agricultural Development, and the 14th Five-year plan. The 14th Five-Year plan (2021–2025) released by the Ministry of Agriculture and Rural Affairs of China, focuses on Green development of agriculture. Moreover, by 2025, the government aimed that the proportion of land which is being used with organic fertilizers will increase by more than 5% points.
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Smart Farming and Adoption of AI to Foster Market Growth
AI-driven precision agriculture is changing the usage patterns of organic fertilizers. AI algorithms, coupled with data analytics, can enable farmers to harness organic fertilizers optimally by offering products that deliver nutrients exactly where and when required. This reduces wastage, thus lowering costs and lessening the risks of over-fertilization. Drones fitted with sensors and AI can monitor crop health, soil conditions, and weather patterns, thereby allowing for real-time adjustments to be made in fertilizer application for better yields and quality.
Technological innovation is changing the way that organic fertilizers are produced in China. AI enables optimization in the blending of organic materials to guarantee the right mix of nutrients in each batch. In addition, machine learning models can predict the optimum fermentation conditions for organic waste materials that will improve the quality and effectiveness of the final product. In January 2024, Shanghai Sweet AI Technology introduced a fleet of over 60 AI-enabled robots which have been revolutionizing farming in Tinglin Township’s Diantian Farm. These robots can be controlled remotely by the users through a WeChat app. Furthermore, these robots have the ability to carry out various tasks such as ploughing and harvesting.
Initiatives by the Regulatory Bodies to Act as a Catalyst
The governmental and various regulatory bodies in China have been promoting the utilization of organic fertilizers through their initiatives and programs. The programs include subsidies to farmers for procuring organic fertilizers which make them affordable for farmers. Additionally, tax incentives are being offered to the manufacturers to encourage them to develop and supply the organic fertilizers.
Government finances the research and development activities in the technologies of organic fertilizers, soil health, and sustainable farming practices through its agricultural research institutes and universities. Various pilot projects are being run in different provinces of China for testing and promotion of the usage of organic fertilizers, which are models for large-scale implementation. In 2023, Agriculture Bank of China carries out various pilot projects of financing for the construction of high-standard farmland in 11 provinces in China, under which they funded more than 13 million mu of high standard farmland in total.
Future Market Scenario (2024–2031F)
The organic fertilizers market is expected to exhibit a rapid growth pace in the forecast period due to the development of customized formulation of organic fertilizers with the help of artificial intelligence to offer specific nutrients required by the plants.
Artificial intelligence helps in the creation of customized organic fertilizers to supply precisely what nutrients are required for specific crops and soil types. Therefore, these organic fertilizers are preferred by the farmers as they are perfect for the plant growth and productivity, fostering the market growth in the forecast period. The technology considers regional climatic conditions, crop variety, and local farming practices, hence the fertilizers were quite effective in different agricultural environments in China.
Report Scope
“China Organic Fertilizers Market Assessment, Opportunities and Forecast, 2017–2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of China organic fertilizers market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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