AMR Market Report Suggests Organic Fertilizers Are Poised for Explosive Growth

A recent market report by Allied Market Research indicates that the organic fertilizer segment is poised for explosive growth. Surging prices and dwindling supplies have plagued the global fertilizer market since early 2022. That was the year when war broke out between Russia and Ukraine, hampering supplies from the two major fertilizer-exporting nations and plunging the worldwide fertilizer market into chaos.

Fertilizer prices were struggling before Russia’s invasion of Ukraine due to the global disruptions caused by the coronavirus pandemic. Lockdowns in large fertilizer-consuming nations such as China disrupted the production and transportation of phosphate and phosphoric acid to other countries, causing shortages that endure today. However, fertilizer prices surged in the wake of the invasion, partly thanks to a rise in natural gas prices and increased fears of food insecurity in regions such as Africa, which rely on fertilizer imports. By March 2022, global fertilizer prices were at all-time highs, thanks to the confluence of limiting factors caused by the COVID-19 pandemic and Russia’s invasion of Ukraine.

AMR’s Market Report suggests that a constant increase in the already large demand for fruits and vegetables could have a major impact on the organic fertilizer segment in the near future. Regions such as North America and Asia Pacific that are largely reliant on agriculture accounted for close to three-fifths of the worldwide organic fertilizer market, the report found. These regions are predicted to see a compound annual growth rate (CAGR) of 6.1% from 2021–2030, increasing the demand for “organic gold” in turn.

The recent AMR report estimates that the global organic fertilizers market will have a CAGR of 5.9% and grow from $8.3 billion to around $15.9 billion by the end of the decade. Organic fertilizers have steadily replaced chemical fertilizers as the de facto agricultural fertilizer amid a rise in global awareness of the harmful human and environmental effects of chemical fertilizer use.

Chemical fertilizers harm microorganisms that naturally occur in the soil, reducing organic matter in the soil and limiting its fertility. Nitrogen from ammonia fertilizers can also pollute the waters via eutrophication and cause a rise in atmospheric greenhouse gases.

As cleaner and often more effective alternatives, organic fertilizers have gained incredible market share in recent years, especially as the majority of the world moves away from leveraging environmentally harmful resources to cleaner alternatives.  Organic fertilizers also minimize the need for pesticides and fertilizers because they provide the entire profile of nutrient needs.

Given that organic fertilizers are still costlier in many markets when compared to artificial fertilizers, many farmers are likely to prefer the inorganic versions sold by entities such as Compass Minerals International Inc. (NYSE: CMP) in order to remain competitive on the market for agricultural commodities.

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