Feb 10, 2021
Organic fertilizer sales growth expected in lawn and garden markets
Through 2024, demand gains for fertilizers – the largest segment in the $9 billion U.S. lawn and garden consumable market – will be supported primarily by changes in product mix rather than from advances in volume demand due to market maturity, according to a recent report by The Freedonia Group, a division of MarketResearch.com.
Organics represent a key growth area, according to the report. Though expected to remain a relatively small portion of the fertilizer market, organics are expected to increase penetration as the selection of products continues to grow.
Through 2024, organic fertilizer sales are expected to outpace gains in conventional fertilizers and increase their share of the $3 billion U.S. fertilizer market to 7%, supported by:
- A growing interest in food gardening, as participants in this type of gardening are more likely to purchase organic fertilizers.
- An increasing share of millennials participating in gardening, as they are more likely than other demographics to use organic products.
- Increased availability and education about organic products, both in retail channels and via professional service firms.
- Rising public awareness of the potential effect of agricultural chemicals on user health and the broader environment.
However, the organics market will remain small for the foreseeable future due to consumers’ expectations for fertilizers:
- Consumers are accustomed to the quick greening and growth that can be achieved with synthetic fertilizers, which offer high concentrations of nitrogen, phosphorus, and potassium.
- They also expect fertilizer to be relatively low-cost and free from unpleasant smells, which organic fertilizers commonly have.
The full report, Lawn & Garden Fertilizers, a spinoff of Lawn & Garden Consumables, is now available at www.freedoniagroup.com.
Photo: USDA/Preston Keres