The GCC Organic Fertilizer Market is projected to grow at a CAGR of 13.5% during the forecast period (2020-2025). The increasing focus on organic farming practices and the high availability of raw materials for fertilizer production are the two important factors that are driving the GCC organic fertilizer market. The ongoing state-led programs regarding the development of organic fertilizers implemented by the central and state governments coupled with the huge expansions of harvest areas are also responsible for the growth of the market studied.
Key Market Trends
Increasing focus on organic farming practices
The rise in demand for organic products is booming, not only due to the increase in awareness among consumers, but also due to rising incomes, along with improved farming practices that make organic yields more robust. As a result, the increasing demand for organic food, worldwide, has increased the area under organic farming. GCC nations recognize the potential of organic agriculture and have been taking steps to support a more environment-friendly farming system boosting the demand for organic fertilizers. Saudi Arabia has a functioning organic sector. Sufficient production, innovative marketing strategies, and institutional and legal framework further support the development of the sector.
Saudi Arabia dominates the market
Saudi Arabia has the highest arable land among all the countries in the GCC region, although the arable land is only 1.63% of the total land area. There are significant developments taking place in Saudi Arabia, which on the supply side are expected to boost the demand for organic fertilizers, increase the adoption rate of hydroponics, encourage attempts to convert desert land into arable farmland. On the demand side, growth in the demand for organic fruits and vegetables in the country is expected. The country is planning to reduce import burden on food, and the subsequent need for enhancing the productivity of the existing land is expected to necessitate the use of chemical fertilizers, thereby restraining the market for organic fertilizers.
The GCC organic fertilizer market is concentrated, with a few players, like RNZ International FZCO0 and Abu Dhabi Fertilizer Industries Co. WLL, among others, accounting for the majority of the market share in the region. Some of the other major industry participants are Emirates Bio-Fertilizers Factory, Arab Qatari Agricultural Production Company, Polytan, Al-Akhawain, etc. Furthermore, these players have been active in the market for the past five years. Companies have been collaborating, with technology and other firms, to ensure sustainable product innovation in the near future. Companies operating in this region are primarily focusing on improving their production facilities and distribution network.
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