PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1351071
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1351071
According to Stratistics MRC, the Global Green Fertilizers Market is accounted for $3.8 billion in 2023 and is expected to reach $6.8 billion by 2030 growing at a CAGR of 8.7% during the forecast period. Green fertilizers disintegrate quickly and have no negative effects on the surface or groundwater, making them safer for people, animals, and any other creatures that come into touch with them. These fertilizers improve soil and boost soil's capacity to hold onto nutrients and water. They also have a long shelf life. Since they are non-toxic, slow-releasing fertilizers that do not leave any residues in the food, they are chosen for producing agricultural output free of residues.
According to the Food and Agriculture Organization, total fertilizer consumption from 2021 to 2022 grew by 5.4% year-on-year.
Consumers' increasing preference for organic produce, driven by health and environmental concerns, directly influences agricultural practices. Green fertilizers, being in alignment with organic farming principles, provide a means to enhance soil fertility, plant nutrition, and crop yield without synthetic chemicals. As organic food gains popularity, farmers seek sustainable alternatives to conventional fertilizers, bolstering the adoption of eco-friendly options. This demand-driven shift towards organic agriculture contributes significantly to the market's growth as it underscores the importance of utilizing fertilizers that resonate with consumer values and regulatory standards.
Farmers switching from conventional to eco-friendly fertilizers often experience a period where crop yields might temporarily decrease as the soil adjusts to the new nutrients and microbial activity. This adjustment phase can lead to reduced profits and uncertainty, discouraging some farmers from embracing green fertilizers. Overcoming this constraint requires education, support, and a willingness to invest in long-term soil health improvements, which can pose challenges for farmers seeking immediate economic stability.
The need for food increases as the world's population rises, placing strain on agricultural systems. Crop yields and productivity may be significantly increased by using green fertilizers, which are intended to improve soil health and nutrient retention. These fertilizers aid in boosting food production and preventing possible shortages by encouraging more effective and sustainable farming methods. This is in line with the pressing need for resilient agriculture in the face of climate change and other difficulties, positioning green fertilizers as a crucial remedy to guarantee a consistent and secure food supply in the future.
Without proper knowledge of the benefits, application methods, and effectiveness of eco-friendly fertilizers, farmers might remain hesitant to adopt them. This lack of awareness can hinder market growth as potential customers opt for conventional alternatives they are more familiar with. Overcoming this threat requires extensive educational efforts, training programs, and the demonstration of tangible benefits to showcase how green fertilizers can enhance soil health, crop yield, and long-term sustainability, ultimately bridging the knowledge gap and driving adoption.
The COVID-19 pandemic significantly impacted the green fertilizer market. Supply chain disruptions, labor shortages, and restricted movement hindered production and distribution. The uncertainty led to reduced investments in sustainable agriculture. However, the crisis also heightened awareness about food security and sustainable practices, driving interest in eco-friendly fertilizers. Governments' emphasis on resilient food systems provided opportunities for market growth. Overall, while the pandemic initially challenged the green fertilizer market, the focus on sustainability and the need for resilient agriculture highlighted its potential for recovery and expansion in a post-pandemic world.
The alkaline water electrolysis segment is expected to have a lucrative growth. This process involves using renewable energy to split water into hydrogen and oxygen, creating a clean source of hydrogen gas. This hydrogen can be utilized to synthesize ammonia, a vital component of nitrogen-based fertilizers. Alkaline water electrolysis aligns with the sustainability goals of the agricultural sector, as it enables the production of nitrogen-rich fertilizers without relying on fossil fuels or emitting greenhouse gases. This innovative approach exemplifies the intersection of renewable energy and agricultural sustainability in shaping the future of green fertilizers.
The ammonium nitrate (AN) segment is anticipated to witness the fastest CAGR growth during the forecast period. While traditionally associated with explosives, AN's controlled use in fertilizers offers a controlled release of nitrogen, promoting plant growth while minimizing environmental harm. Its balanced nutrient composition and efficiency make it valuable for supporting crop productivity. However, careful management is essential to prevent environmental issues such as water pollution. As the agriculture industry seeks environmentally friendly solutions, the controlled application of ammonium nitrate holds promise as a component of green fertilizers, contributing to responsible and efficient nutrient management in modern farming practices.
During the forecast period, it is expected that the North American Green Fertilizers market will continue to hold a majority of the market share. With growing environmental awareness and consumer demand for organic produce, the adoption of green fertilizers is gaining traction. North American farmers are exploring alternatives like compost, manure, and bio-based fertilizers to reduce their reliance on synthetic chemicals. Government incentives and regulations supporting eco-friendly farming further drive this shift. As the region strives to enhance soil health, minimize runoff, and promote sustainable crop yields, North America's engagement with green fertilizers underscores its commitment to environmentally conscious agriculture and a more sustainable food production system.
Europe is projected to have the highest CAGR over the forecast period. With a growing emphasis on eco-friendly farming methods and reducing chemical inputs, the region's farmers are increasingly adopting green fertilizers like organic and bio-based alternatives. Stringent environmental regulations and consumer demand for responsibly sourced food are driving this shift. Europe's agricultural landscape benefits from these fertilizers, which enhance soil health, reduce environmental impact, and promote sustainable crop yields. As the region prioritizes a greener approach to farming, the adoption of green fertilizers stands as a key driver in shaping the future of European agriculture and ecological sustainability.
Some of the key players in Green Fertilizers market include: Hive Energy, HY2GEN AG, Fertiglobe, Fusion-Fuel, H2U Technologies, Inc., Haldor Topsor A/S, Enaex Energy, Ballance Agri-Nutrients, CF Industries Holdings, Inc., Dyno Nobel, Aker Clean Hydrogen, ACME Group, Air Products Inc., Yara International ASA, Iberdrola, S.A., Origin Energy Limited, Siemens Energy and Eneus Energy Limited.
In January 2023, Norwegian fertilizer giant Yara and leading agricultural cooperative Lantmannen signed a commercial agreement to bring a fossil fuel-free nitrate-based fertilizer to the market. Fertilizer is manufactured by Yara and sold by Lantmannen in its home country of Sweden.
In October 2022, Hive Hydrogen will open South Africa's first green ammonia plant, ushering in a new era of hydrogen development that will position the country as a net hydrogen exporter. BuiltAfrica and Hive Energy from the United Kingdom are the primary development partners. Companies joined together to establish Hive Hydrogen South Africa - the development firm.
In March 2022, ThyssenKrupp AG secured an engineering contract for the installation of an 88-megawatt (MW) water electrolysis plant for the Canadian energy company, Hydro-Quebec. It is identified that the water electrolysis plant is likely to produce 11,100 metric tons of green hydrogen annually.