The Global Humic Acid Market size was about 620 kiloton in 2021 and the market is projected to register a CAGR of over 6% during the forecast period (2022-2027).
The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
Key Highlights Over the short term, the major driving factors of the market are its huge demand from the agriculture sector. Lack of awareness among farmers is likely to slow down the market. Changing demographics and food habits in the emerging markets and growing need for organic fertilizers and bio-stimulants is expected to increase the demand of humic acid over the forecast period.
Key Market Trends
Organic Fertilizer Segment to Dominate the Market
Humic acid is widely used in fertilizers to improve nutrient uptake, water retention, microbial growth, and soil structure. It also helps in the reduction of toxins. Humic acid offers a wide range of physical, chemical, and biological benefits. Humic acid also improves the cation-exchange capacity (CEC) and the oxygen content. The improved average water holding capacity thereby improving the soil fertility and plant growth. The fertile soil may contain a maximum humic acid content of 3% and whereas in peat, the humic acid content varies falls in the range of 3 to 10%. The physical benefits offered by humic acid include enhancing the soil structure and preventing high water and nutrient loss in sunlight and sand soils. It helps in converting the sand soils into fertile soils by decomposition. The chemical benefits include the neutralization of acid and alkaline salts and regulating pH value. The use of humic acid improves the absorption of both organic and mineral substances and retains water-soluble inorganic fertilizers. According to the OECD-FAO Agricultural Outlook 2021-2030, Asia-Pacific is the largest producer of agricultural and fisheries commodities. The region is expected to account for 53% of the global agriculture and fish output by 2030. The total value of production is projected to expand by 20% by 2030 in comparison to the 2018-20 base level. According to the US Census Bureau, the current population of the United States is expected to increase by 0.7-0.9%, driven by a high level of immigration. With the increasing per capita income and growing population level, the demand for food crops and cash crops is also estimated to increase. For instance, as per the FAO, food demand in the United States is expected to increase by 50-90% by 2050.? Therefore, all the aforementioned factors are likely to drive humic acid consumption from organic fertilizer segment over the forecast period.
Asia-Pacific to Dominate the Market
Asia-Pacific was found to be the major market for the consumption of humic acid, owing to increasing consumption from countries such as China, India, and Japan. China accounts for approximately 7% of the overall agricultural acreage globally, thus feeding 22% of the world population. The country is the largest producer of various crops, including rice, cotton, potatoes, and others. Hence, the demand for humic acid fertilizer is rapidly increasing owing to the large-scale agricultural activities in the country. According to the National Bureau of Statistics, in 2021, the grain production totaled 682.9 million tons, registering a growth of 2%, compared to 650 million tons in the previous year. Corn acreage rose 5% from last year and output rose 4.6%. The growing use of fertilizers to increase productivity to keep up with the declining cultivated area is expected to drive the studied market in the country. India is one of the economies that are largely dependent on agriculture. Agriculture is still the primary source of livelihood for more than 55% of the population. According to The Economic Survey of India 2020-21 report, in FY20, the total food grain production in the country was recorded at 296.65 million tons, which increased by 11.44 million tons compared with 285.21 million tons in FY19. According to the Government of India, the Indian pharma industry’s market size is expected to reach USD 130 billion by 2030. Furthermore, India has provided pharmaceutical products to more than 200 countries and may continue to do so in the future. Additionally, India is among the 15 leading exporters of agricultural products in the world. Agricultural exports from India reached USD 38.54 billion in FY 2019 and USD 35.09 billion in FY 2020. India’s agricultural policy aims to increase the country’s agricultural export to USD 60 billion by 2022. In Japan, the Ministry of Agriculture, Forestry, and Fisheries (MAFF) has initiated the FAS/Tokyo project to increase cattle stock in 2022. Hence, the growing cattle population to meet the rising meat demand has been driving demand for animal feed in the country. The above-mentioned factors are likely to ascend the demand for humic acid across the application industries in Asia-Pacific.
The global humic market is partially consolidated in nature. Some of the key players in the market (not in any particular order) include Humic Growth Solutions Inc., Zhengzhou Shengda Khumic Biotechnology Co. Ltd, Humintech, Cifo Srl, and Mineral Technologies Inc, among others.
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