Government Support and Awareness of Environmental Issues Are Key Drivers for the Expanding Green Fertilisers Market
Large land cover under cultivation makes China the largest consumer of fertilisers. In recent times, it has started focusing on producing green fertilisers. It also has a major domestic market for green fertilisers. Technological advancements in China related to data-driven fertiliser management and green diet, along with government support, result in green fertiliser adoption. As per the state of the market report, in 2023, the green agriculture adoption rate in China was 83.51%.
The US Department of Agriculture’s mandatory budget in 2023 included an estimated US$7 billion dedicated to conservation and green agriculture. Likewise, in India, the budget 2023-24, a new scheme for the promotion of organic fertilisers as GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) initiatives has been introduced. It aims to convert agricultural residues into organic manure and biogas. The Government of India allocated US$1.18 billion for this scheme. These initiatives by the Governments, including the financial assistance, will further increase the adoption rate, which will fuel the growth of the green fertilisers market.
Growing Demand For Organic Food and Technological Advancements Create an Opportunity in the Green Fertilisers Market
Technologies such as nano-fertilisers and controlled-release fertilisers are helping in the efficient delivery of nutrients. All these innovations aim for the reduction of environmental impact, increasing crop yields, and addressing the problem of high cost. In slow-release fertilisers prepared from lignin alone or a blend of lignin and other polysaccharides, where lignin works as a bio-coating material, emerges as a promising solution for ensuring nutrient efficiency. Lignin absorbs heavy metal nutrients from solutions and fertilisers made from lignin show high biological activity, anti-leaching properties, and high stability when blended with other elements. Additionally, biofertilizers integrated with nanotechnology have high shelf life and overall effectiveness.
Nano-sensors in the fertilisers made with nanotechnology can detect pathogens, which will help manage diseases. Moreover, recent emerging concepts in biofertilizers, such as rhizosphere engineering, when integrated with nanotechnology, are expected to have better efficiency. A better understanding of the interaction of bio-fertilisers with plants and other microorganisms creates an opportunity for research and development in segments such as cereals, pulses, and fruits. It will unlock the opportunity for new product developments and will foster the growth of the market.
Recent Trends in the Green Fertilisers Market
- Consumer preferences are changing concerning organic food.
- Chemical fertiliser manufacturers are also shifting towards organic and green fertilisers.
- Countries that are bound to achieve their SDGs (Sustainable Development Goals)are being promoted by global bodies like the UN (United Nations) for the production and use of green fertilisers.
- Application of nanotechnology in green fertilisers enhances nutrient uptake and reduces environmental stress, leading to enhanced productivity.
- Green ammonia is a sustainable option and a key component in green fertilisers.
- Competition from cheaper synthetic alternatives is hampering the growth of the green fertilisers market.
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Lack of Strategy to Adopt the Green Fertilisers and Lower Yields are Major Challenges
Conversion of awareness about the green fertilisers into their significant adoption by the farmers becomes challenging for the governments and the green fertiliser manufacturers. Also, establishing a regular supply chain for the raw material and a distribution network for the organic produce or processed organic food is a major challenge. Government regulations regarding the authenticity of organic food products need to be more specific, and they need to develop a proper system to check the traces of chemical residues in the products that are branded as organic. It will create a stronger consumer trust that will eventually boost the organic food and green fertiliser market.
New Innovations Are Introducing a New Range of Products
Moreover, the green fertilisers market will see a rise because the manufacturing companies are focusing more on research and development regarding new products. Businesses are trying to make themselves stronger with new launches, collaborations, and strategies to increase their share in this evolving market. Use of the alkaline water electrolysis method for the production of green ammonia is a sustainable way to produce this essential ingredient in green fertilisers.
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Asia-Pacific and North America Hold a Substantial Share of the Market
In North America, growing demand and environmental consciousness are the key factors that foster the growth of organic farming. It is supported by the government initiatives and investments in organic farming. The USA and Canada are leading the share with over 2 million hectares and 12,000 hectares of land under organic farming, respectively. Agriculture in the Latin America region is rich in biodiversity and availability of bio resources that can be used for manure. It makes it one of the most significant regions in the organic agriculture and green fertilisers market. Here, Mexico has a considerable area under organic farming. Mexico's organic food production is mainly driven by the demand for organic tomatoes and avocados. It exports a significant volume of tomatoes and avocados to the US and Canada.
In Europe, for the growth of organic farming, health-conscious consumers are the main drivers. Along with government support, research and development also help the market growth. France, Spain, Italy, and Germany collectively comprise 60% of the European Union's organic agriculture land. France has 2.7 mha(Million Hectares), Spain has 2.5 mha, Italy 2.5 mha, Germany 1.7 mha, Greece 1 mha, and Austria 0.5 mha is the land under organic farming in Europe. Also, in the Middle East and Africa, traditional farming practices have elements of organic farming. Growing demand for organic foods due to health consciousness, as well as economic and environmental considerations, fosters the development of organic farming. It is creating an opportunity for the green fertiliser market. Concerning the MEA region in South Africa total area under organic agriculture is over 40,000 hectares, among which over 2.6 thousand hectares are under cereal farming. It is creating an opportunity for the green fertilisers market in the cereal segment.
The report provides a detailed overview of the green fertilisers market insights in regions including North America, Latin America, Europe, Asia-Pacific, and the country-specific assessment for the green fertilisers market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region to provide a detailed view of the green fertilisers market. These YoY projections on regional and country-level markets brighten the political, economic, and business environment outlook, which is anticipated to have a substantial impact on the growth of the green fertilisers market. Some key countries and regions included in the green fertilisers market report are as follows:
| North America | United States, Canada |
| Latin America | Argentina, Mexico, Brazil, Rest of Latin America |
| Europe | France, Spain, Italy, Germany, Greece, Portugal, Austria, United Kingdom, Russia, Poland, Netherlands, Denmark, Switzerland, Belgium, Sweden, Finland, Ireland, Rest of Europe |
| Asia Pacific | Australia, India, China, Japan, South Korea, Indonesia, Singapore, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| MEA | South Africa, Kenya, Turkey, Nigeria, Rest of MEA |
Green Fertilisers Market Research Report Covers In-depth Analysis on:
- Green fertilisers market detailed segments and segment-wise market breakdown
- Green fertilisers market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in the green fertilisers industry)
- Current, historical, and forthcoming 10-year market valuation in terms of green fertilisers market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, and CAGR (%) analysis
- Green fertilisers market demand analysis
- Green fertilisers market pricing analysis over the forecast period (by key segment and by region)
- Green fertilisers market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the green fertilisers market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the green fertilisers market
- Green fertilisers market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the green fertilisers market forecast by countries
- Mergers and acquisitions in the green fertilisers market
- Essential information to enhance market position
- Robust research methodology
