HUMIC ACID MARKET ANALYSIS

Humic acid is an ingredient obtained from the biodegradation of organic substances such as soil, humus, peat, and coal. It is a complex mixture of various acids from phenolate and carboxyl groups that can be widely used to provide required nourishment to crops or plants as well as human beings. Thus, humic acid is being widely used for a variety of applications in the agricultural and pharmaceutical sectors.

Global humic acid market was valued at US$ 1,144.3 Billion in 2023, in terms of revenue, exhibiting a CAGR of 7.7% during the forecast period (2023 to 2030).

Market Drivers

Increasing adoption of sustainable agriculture across the globe

The adoption of eco-friendly fertilizers and chemicals for sustainable farming is expected to boost the demand for humic acid in the coming years. Furthermore, stringent rules and regulations imposed by statutory governing organizations such as the U.S. Environmental Protection Agency (EPA) against the usage of chemical-based fertilizers are further estimated to fuel the humic acid market growth worldwide.

Moreover, the increasing need for ecological remediation of soil to reduce the carbon footprint and protect the soil and groundwater from contamination are boosting the demand for humic acid. Furthermore, the properties of humic acid such as higher ion exchange and absorption capacity are expected to propel the demand for humic acid over the forecast period.

Figure 1. Global Humic Acid Market Value Share (%), By Region, 2022

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Market Restraints

Lack of awareness of uses of humic acid

Limited awareness about the health benefits associated with humic acid in emerging economies, such as a majority of African countries, is expected to hamper the market growth over the forecast period. Moreover, lack of consistency in crop yield quality over the application of humic acid is further expected to hinder the market growth to some extent.

Market Trends

On account of shifting inclination towards sustainable farming, the adoption of humic acids is gaining traction across the agricultural sector. Thus, the players operating in this market are adopting advanced chemicals with varied properties for the production of humic acid, depending upon its end application.

On the basis of application, in 2022, the agriculture segment accounted for 53% of the revenue share in the global humic acid market. The increasing need to achieve more yield per area of land for catering to the rising demand for food is expected to support growth of this segment.

 Figure 2. Global Humic Acid Market Value Share (%), By Application, 2022

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Impact of COVID-19

The global market for humic acid has been impacted due to the ongoing COVID-19 pandemic. Several governments across the globe have imposed nationwide lockdowns to limit the spread of the virus, which resulted in the shutting down of businesses and ceasing of several economic activities. For instance, according to International Monetary Fund’s 2020 report, the global economy contracted sharply by 3.0% in 2020, which is worse than the 2008-09 financial crisis. Moreover, the reduced demand for fertilizers and pesticides indirectly led to low demand for the humic sector across the agricultural sector. However, the increasing demand for medicines and a variety of acids and chemicals to conduct trials of vaccines is expected to increase the demand for humic acid across the pharmaceuticals sector.

Key Developments

• In September 2020, Black Earth Humic LP, an agriculture horticulture company, introduced the humiZen product line. The humiZen product line helped make farmlands fertile and productive by promoting nutrient uptake, improving water retention, and providing available carbon to regenerate healthy soil.
• In February 2020, Humic Growth Solutions Inc., the world's leading manufacturer of extracted humate products, started a new plant in Shelby, Montana, the U.S. Through this move, the company was able to enhance the humic acid production.

Competitive Section

The major players operating in the global humic acid market include Faust Bio-Agricultural Services, Humic Growth Solutions, Inc., Italpoliina S.p.A., LaboratoiresGoemar SAS, Koppert B.V., Sikko Industries, Black Earth Humic, Changsha Xian Shan Yuan Agriculture, Agbest Technology, Nature's Lawn & Garden, Humintech, Everwood Farm, Daymsa, and WinField Solutions.