The Southeast Asia organic fertiliser market held a market value of US$722.1mn in 2020 and is forecasted to reach US$1,265.3mn by the year 2027 according to Report Ocean, a market research and forecast company
Report Ocean said that the market is expected to grow at a CAGR of 5.4% over the forecast period. Approximately 3,143.1 kilotonnes of organic fertiliser were sold in 2020.
Organic fertiliser is derived from organic sources, such as domestic sewage, organic compost, poultry droppings, and cattle manures. The market is anticipated to be driven by the growing awareness regarding environmental safety and increasing land area under organic cultivation. However, comparatively unfavourable costs and higher reliance on inorganic means of cultivation are expected to hinder market growth.
Growing awareness regarding environmental sustainability
The use of chemical fertilisers is widespread. However, growing awareness regarding the adverse effects of chemical fertilisers has led to the growth in the demand for organic fertilisers as they offer better environmental sustainability. Extensive use of chemical fertilisers leads to water and soil pollution. Awareness regarding the benefits of organic fertilisers for maintaining environmental sustainability is expected to fuel market growth.
Segments overview
The South-East Asia organic Fertiliser market is classified into source, for#m, nutrient content and crop type.
By source, it is further classified into plant, animal and mineral.
The plant segment is anticipated to hold the largest market share of about 65% owing to the high demand for plants and plant parts for the production of organic fertilisers, as they break down easily as compared to other sources. The animal segment is estimated to surpass a volume size of about 1,000 tonnes by 2025.
By form, it is segmented between dry and liquid. The dry segment is expected to account for the largest market share, as they can be easily packaged. The liquid segment is estimated to witness the fastest growth rate of about 8.8% owing to the growing demand for products.
Based on nutrient content, organic fertilisers with the presence of the organic substance of up to 60% is anticipated to surpass a market volume of around 1,628.2 kilo tonnes by 2027 owing to their increasing adoption.
The cereals and grains segment is estimated to hold the largest market share of about 40% owing to the high demand for organic fertilisers for cereals and rains production. The fruits and vegetable segment is expected to witness a growth rate of 7.7% owing to the high use of organic fertilisers in kitchen gardens which majorly produce fruits and vegetables.
Regional Overview
On a regional basis, the market is divided into Myanmar, Cambodia, Indonesia, Malaysia, The Philippines, Singapore, Thailand, Vietnam, Laos, Timor Leste and Brunei. Indonesia is anticipated to hold the largest market share of about 28% owing to the high demand for organic food. Malaysia is expected to grow at a CAGR of 7.1% owing to rising government as well as subsidies on organic fertiliser in the country. Thailand is estimated to surpass a market volume of 834.7 kilo tonnes by 2027.
Competitive Landscape
Key players operating in the South East Asia organic fertiliser market include Agroxon Pte Ltd., Alpha BioGreen, Baconco Co., Ltd., Bio-Flora (Singapore) PTE Ltd., Biomax Green, CropAgro, Cropmate Fertilizers Sdn Bhd, Liberco International (S) Pte Ltd, PT Pupuk Kaltim, PT. Jadi Mas – Fertilizers Factory, Revisoil, SongGianh Corporation, Stamford Resources Pte Ltd and Thai Central Chemical Public Company Limited.
The approximate market share of the eleven major players is close to 20%. These market players are also involved in partnerships, mergers and acquisitions, new product launches, to strengthen their market presence.
