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North America Organic Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

·4-min read

The North American organic fertilizer market was valued at USD 1,116. 6 million in 2020, and it is projected to reach a value of USD 2,456. 0 million by 2026, registering a CAGR of 13. 4%, during the forecast period, 2021-2026.

New York, Aug. 18, 2021 (GLOBE NEWSWIRE) -- announces the release of the report "North America Organic Fertilizers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" -

The COVID-19 pandemic had a direct and negative impact on the value chain of the organic fertilizer market in the North American region. The lockdown in different countries, including the United States, Canada, and Mexico, affected the export-import scenario and the distribution system adversely. The restricted movement all over the region created a shortage of raw materials required to produce fertilizers. This led to the use of the emergency stock of raw materials for continuing production.

The United States and Canada are the major markets for organic fertilizers in North America. The accomplishment of the objectives of rural development and sustainable growth, by improving soil management, preserving biodiversity, and promoting resource efficiency, are contributing to developing a favorable environment for organic fertilizers and biofertilizers.

The government polices and the easier registration processes in North American countries, such as the United States and Canada, are favoring the organic fertilizer industry. For example, in the United States, the registration process is done at the state level, and biofertilizers are registered under soil amendments, as they contain organic components. The favorable governmental polices for organic farming are also directly aiding the organic fertilizer market.

Key Market Trends

Increased Demand for Quality and High Crop Yields

The growing population in North America is leading to a decline in the proportion of arable land, which is primarily used to produce food. This is necessitating cultivation in poor soils. The application of biological organic fertilizers helps in enhancing the yield and the quality of the soil. Therefore, the application of biological organic fertilizers improve the availability of all kinds of nutrients. This, in turn, is anticipated to contribute to the productivity, nutrient content, and profitability.

Moreover, biological and organic fertilizers are less reactive to soil conditions and can significantly enhance nutrient uptake and utilization efficiencies. This is anticipated to improve the quality of the crop.When organic fertilizers are properly used to replenish nutrients removed in the previous crop cycles, they improve the productivity of farms. An increase in farm productivity is beneficial to the environment, primarily due to the lower requirement of land, labor, and energy per unit of output.

According to the Research Institute of Organic Agriculture (FiBL), the area under organic cultivation in North Americaincreased from 31,30,331 ha in 2016 to 38,38,393 ha in 2020. Owing to the increasing popularity of organic food, the growing area under organic cultivation, and the increasing demand for good-quality crops, farmers are anticipated to use organic fertilizers instead of synthetic fertilizers.

Increasing Organic Food Consumption in United States

Organic foods are foods that are manufactured using organic farming standards. Those agricultural standards are regulated by the governmental department responsible for them and contain regulations for the cultivation of food and the welfare of animals. In particular, the use of chemical fertilizers, synthetic pesticides, growth hormones, and antibiotics is not allowed, or only partly permitted.

In the United States, the sales of organic foods have experienced a tremendous growth in the last decade. For this reason, not only specialized retailers sell organic foods, but traditional supermarkets and discounters also do so. The widely-known specialized organic retailers in the United States include Whole Foods Market and Sprouts Farmers Market. Whole Foods Market is the largest specialized organic retailer in the United States, with its headquarters in Austin, Texas.

Owing to the fact that organic foods are healthier and more nutritious compared to conventionally-farmed produce, there is a rise witnessed in the consumption of clean products produced organically, which resulted in a rise in the sales of organic food products in the United States. According to the Organic Trade Association, in 2020, the sales of organic foods in the United States amounted to about USD 56.4 billion, which rose from USD 43 billion in 2016. Thus, with the rising awareness among the US population regarding the consumption of organic food, there is an expansion in organic cultivation witnessed by the country, which is likely to drive the organic fertilizer market of North America during the forecast period.

Competitive Landscape

The North American organic fertilizers market is highly fragmented market, with major companies accounting for a minor share in the market. Agrinos Inc., Kiwa Bio-Tech, Nutrien Ltd, Rizobacter Argentina SA, and California Organic Fertilizers are some of the major players in the North American organic fertilizers market.The players in the market are undertaking distribution agreements with the local retail distributors to expand their presence in the region.

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