The growth of the China organic fertilizer market is anticipated to register a CAGR of 11.6% during the forecast period (2020-2025). China accounted for 43.2% of the biofertilizers market share for the Asia-Pacific region in 2019. China's grasp over key technologies, increasing popularity for organic farming and government support for the biofertilizer industries are the key market drivers. Production processes of China organic fertilizer have continued for over five decades now, though practical utilization of the same has gained momentum only recently, prompted by a global shift towards the same.
Key Market Trends
Popularity for Organic Farming is Driving the Market
Popularity for organic food has been countinously increasing in china and this is noticed as the prime driver for the organic fertilizers market. The total market size for organic packaged food and beverages in China was recorded as USD 2.8 billion in 2017. The country ranks as the 4th largest market in the world by value. The country has 3.1 million hectares of agriculture land in 2018, which was 0.1 million hectares more than the previous year. Huge demand for organic food and increasing organic agriculture are fuling the organic fertilizers market in China.
China - Major Market for Organic Fertilizer in Asia Pacific
China is one of the major market for organic fertilizers in China. The Chinese economy is moving toward a green agriculture practice by encouraging the farmers to scale back the use of chemical fertilizers and switch to bio-based and organic alternatives. In this regard, in 2017, China’s Ministry of Agriculture released a pilot plan for fertilizer replacement in around 100 districts of China, which aimed at reducing chemical use fertilizer by at least 20% by 2020. 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 tons.
China's organic fertilizer market is fragmented in nature as there are many players with small shares in the market. Major companies operating in the region are Agrinos, China Bio Fertilizer, etc are adopting various strategies, such as product launches, partnerships, and acquisitions, to gain a larger share in the market. For instance, June 2018 – Kiwa Bio-Tech Products Group Corp has established a cooperative relationship with Postal Savings Bank of China Co. Ltd (“PSBC”), Shaanxi Branch, to provide financial support to its clients, including crop growers, family farms, farmers’ professional cooperatives, and others.
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