Asia-Pacific Biological Organic Fertilizers Market Size & Share Analysis - Growth Trends and Forecast (2027 - 2032)

Asia-Pacific Biological Organic Fertilizers Market Trends and Insights

Increased Adoption of Organic Farming

As food demand surges in Asia Pacific, growers are ramping up crop production. Yet, the rising reliance on synthetic fertilizers is harming soil health and affecting agricultural yields. Meanwhile, biofertilizers are gaining popularity in organic farming on a large scale. In response, Asian governments are championing organic farming and biofertilizers to safeguard soil health, curtail chemical use, and boost biological and organic inputs. For example, in 2023, India's Ministry of Agriculture and Farmers’ Welfare, in tandem with the Department of Biotechnology (DBT) and the Ministry of Science and Technology, spearheaded efforts to advance the research, development, and commercialization of biofertilizers and biopesticides. The Indian government is backing organic farming with subsidies for new biofertilizers and biopesticide units. They've allocated grants of USD 4.5 million for establishing biocontrol laboratories and another USD 2 million for equipment to produce biocontrol agents, including biofertilizers. Furthermore, NITI Aayog, a central government organization, is actively endorsing the use of biofertilizers and organic fertilizers.

China, too, has acknowledged the detrimental effects of chemical fertilizers and pesticides. The nation rolled out an action plan titled ‘Zero Growth on Chemical Fertilizer and Pesticide by 2020’ to curtail synthetic pesticide and fertilizer usage. Additionally, China has partnered with the U.S. EPA to tackle pollution challenges, leading to a significant outcome: modifying registration procedures to prioritize biofertilizers.

According to FiBL, in Asia Pacific, cereals have a major organic area under cultivation with 1,690,260.48 hectares in 2021 which is raised compared to the previous year with 1,807,066.73 hectares in 2022 in the Region. The rise in demand for organic products is booming, not only due to an increase in conscientious consumers but also due to increasing incomes, along with improved farming practices and favorable government policies that make organic yields more robust. Therefore, an increase in land under organic cultivation will drive the organic fertilizer market during the forecast period.

China Dominates the Market

In recent years biofertilizer production has increased significantly, fertilizer quality has been improved, and especially the impact for the protection of the ecological environment is increasingly recognized. At the same time, the government has also supported policies and funds, and formulated a series of industry standards to regulate and monitor production. The government has taken steps to establish domestic policies on agricultural environment protection and started designing an agricultural green subsidy policy. The primary goal of the new subsidy in its current stage is to guarantee food security, ensure self-efficiency of major agricultural products such as rice and wheat, and increase farmers’ incomes.

The Asia-Pacific region is majorly influenced by the Chinese market. The Chinese economy is moving toward a green agriculture practice by encouraging farmers to scale back the use of chemical fertilizers and switch to bio-based and organic alternatives. China focused more on expanding the use of organic fertilizers and cutting that of chemical fertilizers to promote green agriculture. According to the Ministry of Agriculture and Rural Affairs, in 2022, the proportion of land with the use of organic fertilizers will be increased by more than 5 percentage in the country. 

In addition, according to FiBL, China is the largest country in region that is occupied with 0.56% of organic land in the year 2022 followed by the India. At present, the number of organic fertilizer producers has been growing every year. Some larger fertilizer manufacturers have also stepped into the industry. China has over 300 organic producing enterprises with an annual product output of about half a million metric ton. Therefore, this market is likely to grow huge during the forecasting period.