Australia organic fertilizers market is projected to witness a CAGR of 6.52% during the forecast period 2024-2031, growing from USD 0.16 billion in 2023 to USD 0.27 billion in 2031. The government has set strict guidelines and rules to be certified organic in Australia for the farms which include the use of organic fertilizers. The Australian Certified Organic (ACO) and National Association for Sustainable Agriculture Australia (NASAA) are two major certifying bodies that set standards for organic farming practices, including fertilizer usage.
The number of certified organic farms in Australia is rising as more farmers transition to organic practices. The country has a significant portion of its agricultural land under organic management, which is one of the largest area globally. According to The World of Organic Agriculture which has been jointly published by FiBL and IFOAM in February 2024, pointed that Australia remains to have the largest area of organic agriculture in the world at 53 million hectares. Moreover, the country’s organic farming area saw a tremendous increase of 17.3 million hectares.
As a part of the growing trend in Australia toward reduced-impact and low-ecological footprint agriculture, manure-based fertilizer is preferred by Australians, as these fertilizers help to reduce the greenhouse gas emissions related to both waste handling and chemical fertilizer production.
One of the major focus of Australia organic fertilizers market is the need to satisfy the demand of the market which ensures a continuous and affordable supply of quality organic manure in Australia, mainly to the large-scale farmers. This is going to lead to a rapid upsurge in innovations in the manufacture and distribution of organic fertilizers.
Preference for Organic Food Among the Consumers to Drive Market Growth
Most Australians perceive organic food to be healthier as they do not contain artificial pesticides, chemicals, and genetically engineered organisms, which makes it a safe and healthy food. This makes the customers choose organic food to keep them away from diseases that may be caused by food from traditional or conventional produce.
Noticeably, environmental concerns are at play as well. Australians are becoming aware of the impact that conventional farming is causing on the environment such as soil degradation, water pollution, and loss of biodiversity. Organic farming practices focus on sustainability, soil health, and reduced reliance on chemical use, which aligns with the growing eco-consciousness of consumers.
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Another reason that people prefer organic food is the awareness related to animal welfare and sustainability of farming communities. Indeed, many Australians prefer ethical treatment of animals and a positive impact on local communities through organic farming, which influences organic foods on their diet.
In January 2022, Yara Internation ASA and Lantmännen ek för are the first companies to sign a commercial agreement to bring fossil free fertilizers to market. Yara has a portfolio of green ammonia projects which is the key of producing green or organic fertilizers in Australia. These organic fertilizers are crucial for decarbonizing the food chain and offering consumers with more sustainable food choices.
Transformation Toward Cattle Manure to Manage Waste is Acting as a Catalyst
Australians are increasingly turning manure into organic fertilizers due to environmental sustainability, resource efficiency, and agricultural benefits associated with reducing wastes. Manure is one of the major by-products originated from livestock farming. When not properly managed, it can create problems related to disposal. By processing manure into organic fertilizers, Australians avoid pollution of the water bodies and degradation of soil fertility due to the runoffs from untreated manure.
This aligns with the larger commitment in Australia to reduce wastes and increase circular economy practices. Manure recycling for fertilizers reduces dumpsite-filling waste and returns valuable nutrients into the soil, improving fertility and structure. This supports sustainable agriculture by reducing the reliance on synthetic fertilizers, which have harmful effects on the environment.
In September 2023, Mort & Co, which is Australia’s largest feeding lot, has transformed cattle manure into valuable organic granular fertilizer. The company turned raw manure into the organic fertilizer which is suitable for the Australian weather conditions. Since most of the soil found in Australia is low in organic carbon, the organic granule solution by the company has 30% of organic carbon in them.
Expansion of the Retail Sector to Drive Market Growth
Large chains of retail stores and specialized organic stores have contributed to wider distribution networks for organic foodstuffs. These enable consumers all over the country to access them easily. Greater accessibility instigates consumer interest and thus generates demand for organically grown produce, stimulating more farmers to switch over to organic practices that require the application of organic fertilizers.
The awareness of consumers regarding the latest organic fertilizers increases by the in-store promotion, branding, and labeling by retailers. The increased awareness results in an increase in demand from consumers. This demand, in turn, attracts more farmers to start using organic fertilizers, which enables them to produce high-quality organic food that will meet the set standards by the retailers.
Many retailers establish close links with local organic farmers for continuous supply of organic produce. It would imply support to sustainable farming practices such as the use of organic fertilizers that would further increase their adoption.
In January 2024, Fernland Agencies Pty Ltd launched FloraTech to Rejuvenate in Australia, which helps in the soil health management across nurseries and agricultural lands. The product contains bio stimulants properties which are tailored to foster plant growth.
Future Market Scenario (2024 – 2031F)
Australia organic fertilizers market is witnessing expansion in the forecast period. Despite the growth, organic farming in Australia faces challenges due to higher production costs, limited supply of organic fertilizers, and the need for more extensive farmer education. Thus, the increase in the supply of organic fertilizers is due to the expansion of the productive facility of key players or the entrance of new players. Moreover, reduction in the production cost will make the organic fertilizers cheaper and accessible to a wider audience. Innovations in organic fertilizer technology, such as biofertilizers and customized soil amendments, are helping to overcome some of the challenges and improve productivity.
Report Scope
“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 Australia 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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