Humic Acid Market

Market Overview:

The global humic acid market size reached US$ 603.8 Million in 2022. Looking forward, IMARC Group expects the market to reach US$ 1,063.8 Million by 2028, exhibiting a growth rate (CAGR) of 9.1% during 2023-2028. The increasing concerns about climate change are driving the adoption of sustainable farming practices, rising reliance on organic farming practices, and the growing demand for agriculture-based products are some of the major factors propelling the market.

Humic acid is an organic substance found in soil, sediment, and aquatic environments. It is a key component of humus, the dark, organic material that arises from the decomposition of plant and animal matter. It is generally naturally occurring in peat and lignite and can be commercially extracted from these natural sources using alkaline solutions. It is a complex molecule, which consists of a variety of functional groups, including carboxyl and phenol groups. It enables the formation of complexes with minerals and nutrients in the soil, which makes them more accessible to plants.

Increasing concerns about drastic climate change are driving the adoption of sustainable farming practices like humic acid to help farmers transition from chemical fertilizers, which reduces the overall carbon footprint of agriculture around the world. Moreover, the rising adoption of organic farming practices on account of the growing food security concerns among the masses and the surging prevalence of seed and soil-borne diseases is influencing the market positively. In addition, the escalating demand for agriculture-based products and increasing focus on enhancing crop protection are contributing to the market growth. Apart from this, the rising need for self-gardening on account of improving lifestyles and the growing focus on maintaining the aesthetics of outdoor spaces is creating a positive outlook for the market. Furthermore, the increasing use of humic acid in the pharmaceutical industry as an active ingredient in formulations to treat skin conditions and gastrointestinal issues is propelling the market growth.

Humic Acid Market Trends/Drivers:

Increasing use in agricultural industry

One of the primary factors driving the demand for humic acid is its widespread use in agriculture. Humic acid is known to improve soil structure, water retention, and nutrient uptake in crops. As global food demand continues to rise, farmers are looking for sustainable ways to increase crop yields. Humic acid offers a more environment friendly alternative to traditional chemical fertilizers. Its organic nature makes it safe for both plants and soil ecosystems, which makes it an increasingly popular choice among farmers. Governments and agricultural bodies are also promoting the use of organic farming methods, further boosting the demand for humic acid in the agricultural sector.

Rise in environmental reclamation

Another significant factor is the role of humic acid in environmental reclamation projects. Sites contaminated by industrial activity often have depleted soil that lacks the essential nutrients needed for vegetation to grow. Humic acid helps in the restoration of such lands by enhancing the soil’s ability to hold water and nutrients. This is particularly beneficial in areas affected by desertification or heavy pollution. As concerns about environmental degradation continue to mount, the application of humic acid in land reclamation becomes ever more critical, thereby increasing its market demand.

Growing concerns about livestock and aquaculture health

The third key driver for the rising demand for humic acid is its application in livestock and aquaculture. Humic acid is known to improve the overall health and growth rates of animals. It serves as a natural supplement that enhances nutrient absorption and boosts the immune system. As the global population grows, so does the demand for meat and fish, putting pressure on producers to increase output. Humic acid provides a non-chemical, organic method to achieve this goal, gaining traction among livestock and aquaculture farmers for its sustainability and efficiency benefits.

Humic Acid Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global humic acid market report, along with forecasts at the global, regional, and country levels for 2023-2028. Our report has categorized the market based on form, sales channel, and application.

Breakup by Form:

• Powdered
• Granular
• Liquid
   

The report has provided a detailed breakup and analysis of the market based on the form. This includes powdered, granular, and liquid.

Powdered humic acid is a dry, fine-grained form of this organic material. It is highly concentrated and can be easily stored and transported. It is highly soluble, which makes it quicker for the soil and plants to absorb the essential nutrients. This form is often preferred for its ease of application and high potency.

Granular humic acid is similar to the powdered form but is processed into small, uniform granules. The granular form is easier to handle and less prone to wind drift during application. This form releases more slowly into the soil, which provides a sustained benefit over a more extended period. It is excellent for improving soil structure and water retention over time.

Breakup by Sales Channel:

• Direct
• Indirect
   

A detailed breakup and analysis of the market based on the sales channel has also been provided in the report. This includes direct and indirect.

In the direct sales channel, manufacturers or producers sell humic acid products directly to the end-users, which could be farmers, horticulturists, or environmental agencies. This method cuts out the middleman, enabling better communication between the producer and the consumer. It allows for more personalized customer service, quicker response to specific needs, and often lower prices due to the absence of markup added by intermediaries. Direct sales are often facilitated through online platforms, factory outlets, or direct orders from field representatives.

In the indirect sales channel, humic acid products go through one or more intermediaries before reaching the end-user. These intermediaries can be distributors, wholesalers, or retailers. Indirect sales channels are beneficial when the producer lacks the infrastructure or resources to reach end-users directly. Distributors can offer products in smaller quantities suitable for smaller-scale farmers or gardeners who do not require bulk amounts.

Breakup by Application:

• Agriculture
• Animal Feed
• Pharmaceuticals
• Horticulture
• Others
   

Agriculture dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes agriculture, animal feed, pharmaceuticals, horticulture, and others. According to the report, agriculture represented the largest segment. Humic acid has gained significant attention in the agricultural sector for its role in enhancing soil quality and plant growth. It serves as a soil conditioner, which improves the water-holding capacity of the soil and makes it more porous. This is particularly beneficial in regions with poor soil quality or wherein water is a scarce resource. Humic acid also promotes the chelation of nutrients in the soil, which makes them more easily absorbable by plant roots. It helps in the regulation of pH levels, enhancing the overall fertility of the soil. Additionally, humic acid stimulates root development, thereby facilitating better nutrients and water uptake. Its use has been shown to increase crop yields, which makes it an essential component in sustainable agriculture.

The application of humic acid in animal feed is an emerging area of interest. Preliminary studies suggest that humic acid can serve as a natural additive in animal diets, particularly for livestock like cattle, poultry, and swine. It has been shown to improve gut health by aiding in nutrient absorption and promoting healthy intestinal flora. As a result, animals often display better growth rates and higher feed efficiency.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest humic acid market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The increasing adoption of humic acid as a sustainable soil conditioner to meet food demands represents one of the primary factors bolstering the market growth in the Asia Pacific region. Moreover, the rising use of humic acid as a natural supplement to promote aquatic health and growth is contributing to the market growth in the region. Besides this, the growing adoption of organic food farming due to the increasing health consciousness of consumers is influencing the market positively.

North America is estimated to witness stable growth, owing to technological advancement, government measures, extensive research and development (R&D) activities, etc.

Competitive Landscape:

The leading companies are integrating advanced technologies, such as drones, a global positioning system (GPS), data analytics, machine learning (ML), and the internet of things (IoT) in precision agriculture to apply humic acid more accurately over large crop areas. These advancements also analyze the effects of humic acid on soil and crop yield and can offer insights into the ideal conditions and quantities for humic acid application and automate the process. Moreover, key players are using nanotechnology to increase the efficiency of nutrient uptake in plants. These nano-sized particles can penetrate plant cells more easily, which provides immediate nourishment.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Agbest Technology Co. Limited
• Arctech Inc.
• Black Earth Humic
• Cifo Srl
• Desarrollo Agrícola y Minero S.A.
• Humic Growth Solutions Inc.
• Humintech GmbH
• Jiangxi Pingxiang Anhua Biotechnology Co. Ltd.
• Jiloca Industrial S.A. (JISA)
• Saint Humic Acid
• The Andersons Inc.
• Xian Shan Yuan Agriculture & Technology Co. Ltd

Recent Developments:

• In 2022, The Andersons Inc. acquired Bridge Agri Partners Inc. to expand their pet food ingredient portfolio. 
• In 2020 , Black Earth Humic introduced the humiZen product line, which helped make farmlands fertile and productive by promoting nutrient uptake, improving water retention, and providing available carbon to regenerate healthy soil.
   

Humic Acid Market Report Scope:

Key Questions Answered in This Report:

• How has the global humic acid market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global humic acid market?
• What is the impact of each driver, restraint, and opportunity on the global humic acid market?
• What are the key regional markets?
• Which countries represent the most attractive humic acid market?
• What is the breakup of the market based on the form?
• Which is the most attractive form in the humic acid market?
• What is the breakup of the market based on the sales channel?
• Which is the most attractive sales channel in the humic acid market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the humic acid market?
• What is the competitive structure of the global humic acid market?
• Who are the key players/companies in the global humic acid market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the humic acid market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global humic acid market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the humic acid industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.