The organic fertilizer market is fragmented due to prominent international and regional players. Collaborations with government organizations and expansion in the market, along with product innovation, are some of the strategies adopted by the companies. Also, products are undifferentiated due to the limited ability of variable composition and types, thereby creating intense competition among vendors. However, the growing nature of the market along with immense scope for innovation presents significant market opportunities for new players. Some of the key players in this market are Rallis India Ltd, Midwestern BioAg, Coromandel International Limited, Agrocare Canada, Italpollina S.P.A., The Scotts Miracle-Gro Compan, Al Yahar Furtilizers, and Emirates Bio Fertilizers Factory among others. These companies dominate the market due to their extensive product portfolio catering to each Crop Type and global brand presence. These companies dominate the global market with their extensive presence throughout the value chain.
The major companies are also focusing on signing partnership agreements with distributors, capacity expansions, and adopting different operational strategies to gain an edge in the competitive market space The market for Organic fertilizer has grown significantly due to their increasing consumption in numerous Crop Types. Market participants compete based on several parameters, such as product performance, quality, technical competence, price, and corporate reputation. New product launches, licensing agreements, distribution network expansion, technological investments, and mergers & acquisitions are some of the key strategies adopted by the companies to strengthen their market position and gain a larger market share.
The escalating demand for organic food products is likely to create a dire need for large scale development of organic fertilizers in the forthcoming years, which in turn will create a wide field of opportunities for stakeholders. Sensing the growing demand for organic fertilizers, market goliaths have shifted their focus on expanding their organic fertilizer produce to capitalize on the growing unmet demand from consumers. For instance, in February 2019, BioStar Organics, a waste-to-energy company opened a new organic fertilizer plant in Washington with an aim to produce up to 500,000 gallons of SuperSix organic liquid fertilizer annually. In Focus - Consumer Demand Trends & Latest Organic Farming Methods A large number of organic fertilizers market players are shifting their focus towards leveraging the latest approaches of farming to improve the quality of their products, in line with the increased demand for value-ensuring produce. Significant focus on analyzing market trends and consumer demand patterns has also become instrumental for manufacturers that are eying diversified product offerings to ensure uninterrupted revenue generation.
March 2019: Italpollina SpA signed a deal to acquire Florida-based Horticulture Alliance, a specialist in maintaining plant health through organic mechanisms. The takeover will allow Italpollina to strengthen its manufacturing and distribution of organic fertilizers in North America.
February 2019: The waste-to-energy company, BioStar Organics, inaugurated a new organic fertilizer plant in Washington. The aim behind the opening of this facility is to produce large amounts of the company’s flagship SuperSix organic liquid fertilizer annually.
In October 2020, for instance, the FAO teamed up with the Russia-based PhosAgro to start the Soil Doctors Program to develop farmer skills in sustainable soil management. Additionally, the program also aims at establishing soil laboratories in the Middle East, Latin America, and Africa. Organic fertilizers will be one of the most critical components in the advancement of sustainable agriculture across the globe as they not only improve soil health but can also boost farm yield, which will be essential in feeding the ever-increasing global population.
In April 2020, Lucent Plant BioSciences, a Vancouver-based company that makes fertilizers out of pea and lentil hull waste, received funding of CAD 1.3 million from Protein Industries Canada and additional funding of CAD 1.7 million from another consortium of companies.
In 2022, the Ministry of Food and Agriculture and the Charge Affairs of the Embassy of the United Arab Emirates Accra entered a joint venture in the agricultural sectors of both countries. The partnership would bring companies from the United Arab Emirates into Ghana to set up an organic fertilizer with new technology in liquid fertilizers.
In October 2021, Al Rawabi, a Dubai-based dairy company, announced that a large-scale biogas facility has become fully operational. According to the company, this is the first such facility in the Middle-Eastern region that also yields numerous benefits, including the production of highly concentrated organic fertilizers at about 10 ton/day.
In June 2021, Red Sea Farms, a Saudi Arabia-based organic farming-based start-up, received funding of USD 10 million from a group of Saudi and UAE investors. Such investments in the organic farming ecosystem directly impact the growth of organic fertilizers in the region.
In August 2021, Fertoz and Progressive Planet, a Canada-based mineral exploration company, a new business relationship. This deal focuses on grinding soft rock phosphate into fine powder, in order to be used as organic fertilizer.
In 2020, American Vanguard acquired biological crop input leader Agrinos Inc. as a strategic opportunity to capitalize on the growing demand for sustainable crop nutrition.
In February 2019, Nutrien acquired Actagro for a disclosed amount of USD 340 million. The acquisition included Actagro’s strong research and development team and its world-class research and development facility located in California. It would support the continued development of soil and plant health technologies.
In Oct 2020 American Vanguard, through its subsidiary AMVAC Chemical, acquired Agrinos for an undisclosed amount. Through this acquisition AMVAC has bought the products of Agrinos in the United States and sell it in the market under AMVAC.
In April 2019 Sigma Agriscience partnered with Heliae Agriculture to offer performance-based fertilizer blends, offering for both organic and conventional options. This new portfolio of products will assist with root growth, yield, and many other benefits.
In march 2021, Haifa Group signed an agreement with AgrIOT. According to the agreement with AgriOT, Haifa will invest in AgrIOT for around $2M against nearly 30% of the company and also in global exclusive distribution rights.
In January 2020, ChemChina and Sinochem have announced a mega-merger of their agricultural assets into a new holding company to be called Syngenta Group. Syngenta Group will acquire major agricultural assets from Sinochem according to the announcement.
In 2019, Biostar Organics, part of BioStar Renewables, announced the commissioning of its first OMRI-listed, SuperSix organic liquid fertilizer plant, located in Othello, WA. In collaboration with Sheboygan Falls.
Threat Of New Entrants
The threat of new entrants in the organic fertilizers market is moderate, owing to the moderate capital investment required. The organic fertilizers industry includes a large number of domestic and international participants, thereby limiting the profitability of the industry. This may limit the entry of new participants in the industry. Additionally, the government promotes farming and provides subsidies for manufacturing high quality organic fertilizers, which will further lower the barriers for the new market entrants. Hence, the threat of new entrants in the global Organic fertilizer market is expected to be moderate during the forecast period.
Bargaining Power of Suppliers
Numerous suppliers in the market offer raw materials required for manufacturing organic fertilizers. Thus, the organic fertilizers manufacturers have the liberty to shift between suppliers as they are not dependent on a single supplier, which reduces their operational risks. However, manufacturers tend to prefer certain suppliers as they require an uninterrupted supply of assured quality products. These factors result in the moderate bargaining power of the suppliers operating in the global organic fertilizers market. Hence, the bargaining power of suppliers in the global Organic fertilizers market is expected to be moderate.
Bargaining Power of Buyers
The bargaining power includes the pressure consumers exert on manufacturers to offer high-quality products at low prices. Owing to the presence of multiple players offering water-soluble fertilizers in the market, the buyers have several choices, which also reduces switching costs, thus, increasing the bargaining power of buyers. Moreover, brand loyalty is moderate among consumers.
Hence, the bargaining power of buyers in the global Organic fertilizer market is expected to be moderate during the forecast period.
Threat of Substitutes
The threat of substitutes in the global Organic fertilizers market is high. There are various substitutes available for Organic fertilizers. Additionally, many local companies’ manufactures different types of fertilizers products that are of low cost and of lower quality. Some small companies are providing their products at moderate prices to sustain in this highly competitive market. The availability of such substitute product may hamper the market to some extent.
Hence, the threat of substitutes in the global Organic fertilizer market is expected to be high during the forecast period.
Intensity of Rivalry
The global Organic fertilizers market is highly competitive, marked with fierce rivalry among the players in terms of product quality, and pricing. Manufacturers are highly emphasizing their product portfolio to meet the changing consumer needs and preferences. Also, manufacturers are focusing on reducing production costs to compete in the cut-throat market. They are also engaged in strategic expansions to strengthen their businesses worldwide and survive in the market. The major players are inclined toward enhancing their production capacities in emerging economies to meet the high demand in these regions.
Hence, the intensity of rivalry in the global Organic fertilizer market is expected to be high during the forecast period.
