United States organic fertilizers market is projected to witness a CAGR of 8.05% during the forecast period 2024-2031, growing from USD 1.48 billion in 2023 to USD 2.75 billion in 2031.
Factors such as consumers’ increasing awareness about the health benefits from the consumption of organic and fresh produce which is free from chemical fertilizers, rising prevalence of chronic diseases, and degradation of food quality is driving demand for premium and healthier organic produce, which is supporting the growth of organic fertilizers.
Health-conscious consumers in the United States are increasingly preferring organic produce, which is driving the growth for organic fertilizers in the country. As per the estimates of USDA, the organic food sales in California rose by 12% from 2017 to 2022. The regulatory support by the government such as the Organic Certification Standards include the use of organic fertilizers in farming under certified organic farming practices.
Additionally, the advancement in organic farming practices and innovation in the formulation of organic fertilizers deliver the required nutrition to the plants and the soil, further augmenting the market growth.
The enhancement of soil fertility from the usage of organic fertilizers is further driving the market growth. Organic fertilizers often contain Beneficial fungi, such as mycorrhizae, and bacteria, including nitrogen-fixing bacteria, which are essential in promoting the availability of plant nutrients. Organic fertilizers may stabilize the soil pH at near-neutral conditions, which makes the nutrients available and more readily absorbed in the soil, improving the quality of the produce.
Improved Soil Fertility to Drive Market Growth
Organic fertilizers market is witnessing expansion due to the improvement in soil fertility. These fertilizers supply essential nutrients such as nitrogen, phosphorus, and potassium, as needed by the plants to grow. Unlike chemical fertilizers, that cause nutrient imbalances and leaches in the soil, organic fertilizers slowly release nutrition, catering to the requirements for plant growth. They offer a range of micronutrients such as iron, zinc, and magnesium which are crucial for the good health of plants found in a short supply of synthetic fertilizers.
Moreover, they help in the addition of organic matter to the soil and improve its structure. Improved soil structure leads to increased infiltration and retention of rainwater, which helps to reduce erosion and runoff. Incorporation of organic matter increases the porosity of the soil, which in turn improves root penetration and gaseous exchange, hence offering a favorable environment for plants to grow.
They stimulate activities and diversity of microorganisms present in the soil. These microorganisms promote nutrient cycling, decomposition of organic matter, and suppression of diseases that are living in the soil.
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In September 2023, Ferganix, LLC announced its latest distribution and manufacturing initiative in the United States, which aims to transform the organic fertilizers by completely replacing the synthetic and chemical products. The innovative technology offers high-quality organic solutions from renewable sources, improving the overall soil health by enhancing its fertility and biodiversity.
With long-term application, organic fertilizers would be quite effective in creating healthy and sustainable soil. The organic fertilizers enhance the soil’s resilience, making it less vulnerable to degradation and more likely to support healthy plant growth over time.
Government to Drive Market Growth
The United States government is taking various initiatives and programs to promote the usage of organic fertilizers which is leading to the market expansion.
Some of the programs for the provision of financial incentives and grants is Organic Cost Share Program which provides financial assistance to organic farmers for financial assistance associated with certification, motivating more farmers to shift towards organic practices and, consequently, organic fertilizers. Second is the Environmental Quality Incentives Program (EQIP), under which USDA provides financial and technical assistance to farmers to adopt recommended conservation practices in their operations. This relates to the use of organic fertilizers for improved soil health and low impact on the environment. In May 2024, the U.S. Department of Agriculture (USDA) Secretary, notified its investments in domestic fertilizers projects to strengthen the competition for the United States farmers and agricultural producers. The department is rewarding USD 83 million in 12 states for the projects through the Fertilizer Production Expansion Program (FPEP).
The government introduced the National Organic Program (NOP) in which the USDA sponsors research into the means of organic farming, including the development and efficiency assessment of organic fertilizers.
The government introduced some Outreach Programs under which the USDA, in conjunction with land-grant universities, offers extension services and educational programs, aimed at training farmers on the benefits and application of organic fertilizers.
Plant-based Organic Fertilizers to Dominate Market Share
Plant-based fertilizers are preferred for the usage in the country as fertilizers obtained from plants are less likely to spread pathogens than those obtained from animal products, hence they are believed to be relatively safer for human health and the environment. These fertilizers generally emit less carbon footprint and create greenhouse gases during manufacture and application, which appeals to the farmers. In February 2023, the USDA invested USD 9.4 million in Compost and Food Waste Reduction cooperative agreement projects to support innovative and scalable waste management plans to reduce and divert food waste from landfills, which have been under the implementation between 2023 and 2025.
The increasing trend of veganism and rising vegan and vegetarian population in the United States is promoting the adoption of plant-based fertilizers. Most organic farmers and consumers prefer plant-based inputs due to animal welfare concerns and sustainability.
These fertilizers improve the structure and organic matter content in the soil, hence enhancing the water-holding capacity and microbial activity.
Under the Fertilizer Production Expansion Program, in May 2024, the USDA will be helping 4420 Serrano Drive LLC uses through a USD 25 million grant to build and equip a food waste upcycling facility in Jurupa Valley. The facility uses insects to recycle food waste into an organic fertilizer. Through this funding by the United States government, the facility is expected to produce 11,400 tons of organic fertilizer annually.
Future Market Scenario (2024 – 2031F)
Global organic fertilizers market is expected to witness an increase in the forecast period due to the regulatory compliance of organic farming from governing bodies such as the USDA for certified organic farming which ensures the usage of organic fertilizers for the certified organic farmers. These certificate helps farmers in organic certification of the products indicating that it was produced under organic regulations, along with the usage of organic fertilizers. Consumers are more confident in buying such products, increasing their demand in the market. Various government and private certification agencies support and train farmers to follow organic standards effectively, which promote the usage of organic fertilizers. The standards induce the transition of the traditional farmers towards organic fertilizers as it guarantees premium markets for organic produces. Shifting towards organic farming requires the use of organic fertilizers, hence, driving the market growth.
Report Scope
“United States 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 United States 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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