GCC Organic Fertilizer Market Size

GCC Organic Fertilizer Market Analysis

The GCC organic fertilizer market is projected to register a CAGR of 13.5% during the forecast period.

• The increasing focus on organic farming practices and the high availability of raw materials for fertilizer production are the two major factors driving the GCC organic fertilizer market. Following the pandemic, there is a greater awareness of healthy food among the region's consumers, resulting in an increase in demand for organic food.This, in turn, increased organic food sales in the major countries. According to the Dubai Chamber of Commerce and Industry, organic food sales reached USD 34 million in the United Arab Emirates in 2020, 8.7% higher than in 2019.
• Along with this, the availability of raw materials and increasing interest in organic farming practices are boosting the organic fertilizer sector. Additionally, the ongoing state-led programs for the development of organic fertilizers implemented by the central and state governments and the huge expansions of harvest areas for organic agriculture are also boosting the market studied. For instance, according to the FiBL statistics, the organic agriculture land in the UAE was 5,419 hectares in 2020, which showed an increase from 4,642 hectares in 2019.

Moreover, the increased investments in organic farming startups in the major countries are also supporting the increased use of organic fertilizers in the GCC region. For instance, in June 2021, Red Sea Farms, a Saudi Arabia-based organic farming start-up, received funding of USD 10 million from a group of Saudi and UAE investors. Such investments in the organic farming ecosystem directly impact the growth of organic fertilizers in the region. Therefore, the increase in health consciousness coupled with the increased area under farming are the factors driving the growth of the organic fertilizer markets in the GCC countries.