The global seaweed fertilizer market is expected to reach USD 17.1 million by 2025. The growth of this market is derived from the growing awareness towards organic farming using products such as seaweed fertilizers. The market is also benefited from the ban on several chemical fertilizers in countries such as the U.S., Germany, France, and U.K. The ban is largely on account of chemical fertilizers' impact on human health and environment.
Seaweed extract is an important source of nutrients which are essential for plant growth and is available in both powder and liquid form. It is a cost-effective alternative to chemical fertilizers and enhances fertilizer effectiveness when applied with NPK (Nitrogen, Phosphorus, and Potassium) fertilizers. Seaweed fertilizer is also effective against pests including aphids, red spider, and slugs.
Over the past ten years, Europe has implemented regulations related to organic labeling and has witnessed an increase in organic food consumption. The growth in demand for organic food has pushed demand for organic fertilizers as well. As an organic fertilizer, seaweed fertilizer also has witnessed growth in demand in the region.
Organic fertilizer is used in around 14-million-hectare farmland of Europe. As of 2017, Spain accounted for the largest organic farmland, followed by Italy and France. Besides, the Common Agricultural Policy (CAP) by the European Commission, which encouraged the usage of organic fertilizers makes for a considerable growth prospect for seaweed fertilizers in the coming years.
In North America, the sales of organic products have increased significantly since 2004. The U.S. and Canada have witnessed a remarkable increase in the demand for organic foods. The U.S. government is promoting the use of organic fertilizer by enacting supportive regulations and increasing its spending towards incorporation of organic fertilizer as an agrochemical in the domestic farming sector.
In 2017, Asia Pacific commanded well over 15.0% of the global seaweed fertilizer market revenue. The strong foothold of agro-farming land in countries such as China, India, and Indonesia is expected to remain a favorable factor in the near future. Also, China and Japan are the major producers of seaweed in the world. Though the region has relatively low demand for seaweeds, the rising emphasis on organic farming and the cost-effectiveness of seaweed fertilizers is expected to strengthen the demand in the coming years.
Some of the key companies in the seaweed fertilizer market include Dr. Earth, Inc, Kelpak, FoxFarm Soil & Fertilizer Company, Espoma, Grow More, Hydrofarm LLC, Maxicrop USA, Inc., MAXSEA, and Technaflora Plant Products Ltd. Over the coming years, the competition prevailing amongst various players is expected to increase with the growing demand for seaweed fertilizers. As the majority of seaweed is sourced from Asia Pacific region, companies are expected to consolidate their presence in the region through geographical expansion or strategic partnerships.