This year, global agriculture is undergoing a profound transformation from "fertilizer dependence" to "green and sustainable". As a major agricultural country, Chinas excessive use of fertilizers has led to increasingly severe problems such as soil compaction and non-point source pollution. Organic fertilizers, with their advantages in improving soil and enhancing the quality of agricultural products, have become a dual focus of policy and market. According to the "Consulting Report on the Development Trends and Investment Strategies of Chinas Organic Fertilizer Industry from 2025 to 2030" released by China Research Institute Puhua Industry Research Institute, by 2030, the size of Chinas organic fertilizer market will exceed 150 billion yuan, with a compound annual growth rate of 18%. An industrial revolution from "chemical agriculture" to "ecological agriculture" is accelerating.

1、 Market situation: policy driven and demand upgrading resonance

1. Market size: the leap from "edge" to "mainstream"

The 14th Five Year Plan clearly proposes the goal of "reducing and increasing efficiency of chemical fertilizers", and the pilot program of replacing chemical fertilizers with organic fertilizers covers over 80% of agricultural counties in China; At the same time, the demand for green agricultural products from consumers has surged, with the organic food market growing by 25% annually, forcing the upstream fertilizer industry to transform towards greenness.

2. Regional differences: The eastern region leads the way, while the central and western regions unleash their potential

Relying on the advantages of developed economy and strong environmental awareness, the East and South China regions have become the main force in the consumption of organic fertilizers, with a market share of over 40%; Although the central and western regions started relatively late, they have become a new growth pole in the industry with policy preferences (such as agricultural subsidies for the Western Development) and the demand for large-scale agricultural development, with a growth rate of up to 22%.

3. Competitive landscape: from "scattered and small" to "scale and specialization"

In the past, Chinas organic fertilizer industry was mainly dominated by small and medium-sized enterprises, with outdated technology and serious homogenization. By 2025, the industry concentration will significantly increase, with top companies expanding their market share through mergers and acquisitions, technological upgrades, and other means. The top ten companies will have a market share exceeding 30%. At the same time, specialized division of labor is accelerating, and a group of enterprises specializing in sub fields such as livestock and poultry manure treatment, straw resource utilization, and biological fermentation have emerged.

2、 Technological Revolution: From "Traditional Composting" to "Intelligent Biomanufacturing"

1. Core technological breakthroughs: biological fermentation, nano coating, precise proportioning

Biological fermentation technology: Through the development of composite microbial agents, the cycle of converting organic waste into efficient fertilizers has been shortened to 7 days, which is 50% more efficient than traditional processes.

Nano coating technology: solves the pain point of slow nutrient release in organic fertilizers, achieving a dual effect of "slow-release+controlled release", and increasing fertilizer efficiency utilization to 60%.

Precision proportioning technology: Combining soil big data and crop demand, develop customized formula fertilizers to meet differentiated planting needs.

2. Technological trends: intelligence, functionality, and low carbonization

Intelligence: IoT technology is applied to organic fertilizer production to achieve real-time monitoring and automatic adjustment of fermentation temperature, humidity, and pH value.

Functionalization: Extending from single nutrient supplementation to "soil remediation+stress resistance enhancement", such as adding microbial agents to improve soil microecology.

Low carbonization: Utilizing technologies such as biomass energy and biogas power generation to achieve the coordinated development of organic fertilizer production and clean energy.

3、 Policy empowerment: from "top-level design" to "implementation details"

1. Incorporate organic fertilizers into the "dual carbon" and rural revitalization plan

In 2025, the Ministry of Agriculture and Rural Affairs and the Ministry of Ecology and Environment jointly released the "Action Plan for High Quality Development of Organic Fertilizer Industry", which clearly states that by 2030, the proportion of organic fertilizer replacing chemical fertilizers will reach 30%, 500 organic fertilizer industry demonstration bases will be built, and 100 leading enterprises with an annual output value exceeding 1 billion yuan will be cultivated.

2. Local innovation: a three pronged approach of subsidies, taxation, and finance

Subsidy policy: Provide 30% -50% financial subsidies for the purchase of organic fertilizer production equipment and technology research and development.

Tax incentives: Organic fertilizer enterprises that meet the conditions are exempt from value-added tax, and corporate income tax is levied at a reduced rate of 15%.

Financial support: Establish a green agriculture fund to provide diversified financing channels such as low interest loans and equity investments for organic fertilizer projects.

3. Standard System: From "Disorderly Competition" to "Standardized Development"

In 2025, the industry standard for organic fertilizers will be revised to include 12 new testing indicators such as heavy metals and antibiotic residues, forcing companies to improve product quality. At the same time, establish a traceability system for organic fertilizer products to achieve full chain supervision from raw materials to terminals.

4、 Investment prospects: Focus on the four core tracks

Track 1: Resource utilization of livestock and poultry manure

Logic: China produces over 3 billion tons of livestock and poultry manure annually, with a resource utilization rate of less than 40% and a potential market space of over 50 billion yuan.

Opportunity: Invest in the construction of large-scale biogas projects and organic fertilizer co production projects to achieve dual benefits of "energy+fertilizer".

Track 2: Comprehensive Utilization of Straw

Logic: Chinas annual straw production exceeds 900 million tons, with a comprehensive utilization rate of only 86%, and there is still room for improvement.

Opportunity: Develop high value-added products such as straw charcoal based fertilizers and bio organic fertilizers to solve the problem of straw incineration.

3. Track 3: Bio organic fertilizers and microbial agents

Logic: Problems such as soil compaction and continuous cropping obstacles have forced an outbreak of demand for microbial fertilizers.

Opportunity: Develop functional bacterial strains that are resistant to high temperatures and salt alkali, and develop bio organic fertilizers that are resistant to repeated cropping and promote rooting.

4. Track Four: Organic Inorganic Compound Fertilizer

Logic: Traditional fertilizer enterprises have an urgent need for transformation, and organic-inorganic compound fertilizers have both quick acting and long-term advantages.

Opportunity: Through technical cooperation, help fertilizer companies upgrade their production lines and seize the replacement market share of compound fertilizers.

5、 Risk Warning: Triple Challenges of Technology, Market, and Policy

1. Technical risks: unstable fermentation process, degradation of bacterial strains

Pain point: Organic fertilizer production is greatly affected by environmental factors such as temperature and humidity, and some enterprises have unstable fermentation processes, resulting in uneven product quality.

Response: Strengthen cooperation with research institutes, introduce automated fermentation equipment, and establish standardized production processes.

2. Market risk: Insufficient awareness among farmers and lagging channel construction

Pain point: Farmers awareness of the slow efficiency and high price of organic fertilizers still exists, and traditional agricultural channels lack motivation to promote organic fertilizers.

Response: Enhance farmers awareness through government subsidies, demonstration field construction, and other means, while laying out new channels such as e-commerce and cooperatives.

3. Policy risks: subsidy reduction, stricter standards

Pain point: Some companies rely on policy subsidies for survival, and once the subsidy is reduced or the standard is raised, they may face a survival crisis.

Response: Advance layout of segmented fields with high technological barriers and strong market competitiveness, reducing dependence on policies.

6、 Trend Outlook: Three Certainties for 2025-2030

1. Market size explosion: from "policy driven" to "market driven"

From 2025 to 2030, the "Consulting Report on the Development Trends and Investment Strategies of Chinas Organic Fertilizer Industry from 2025 to 2030" by Zhongyan Puhua stated that with the continuous growth of consumer demand for green food and the increase in the proportion of organic fertilizers replacing chemical fertilizers, the market size will maintain double-digit growth, and the industry will shift from "policy subsidy dependence" to "market demand driven".

2. Technological iteration acceleration: from "traditional composting" to "bio intelligent manufacturing"

Biotechnology, artificial intelligence, and the Internet of Things will be deeply integrated into organic fertilizer production to achieve precise control of fermentation processes and intelligent regulation of nutrient release, promoting the industrys transition from "low added value" to "high-tech barriers".

3. Industrial ecological reconstruction: from "single product" to "comprehensive service"

In the future, organic fertilizer enterprises will transform from simple product suppliers to comprehensive service providers of "soil improvement+planting guidance+agricultural product recycling", and enhance profitability by extending the industrial chain.

Conclusion: Organic fertilizer, the "green chip" of agriculture

From 2025 to 2030, Chinas organic fertilizer industry will experience a triple resonance of policy, technology, and market. Zhongyan Puhua Industry Research Institute suggests that investors should focus on core areas such as livestock and poultry manure resource utilization, bio organic fertilizers, and organic-inorganic compound fertilizers, and lay out leading enterprises with technological barriers, scale advantages, and channel capabilities.