There is a growing demand for Humic acid in row crops, fruits and vegetables, and turfs and ornamentals, among several other crop types The growth management of the plants has become a necessity with the growing focus on efficiency and enhancing the productivity. Humic acid is being used in a variety of concentrations and physical forms for the usage in these applications, either directly by spraying, or by adding it to soil. These substances are increasingly being used in Europe and North America, owing to their advanced properties, superior performance, and their ability to provide superior nutrients to plants.
The global market was valued at $325.6 million in 2014, and it is expected to reach $674.2 million by 2020, growing with a CAGR of 12.9% during 2015 to 2020. The market revenues are expected to grow at a faster rate, when compared to the period 2011 to 2014, owing to increasing usage of Humic acid due to growing efficiency and benefits.
Based on application, the foliar segment held the largest market with $268.0 million in 2014, and it is expected to reach $543.1 million by 2020, growing with a CAGR of 12.4% during the period 2015-2020.
The growing population, scarcity of food, and degrading soil quality are the important factors driving the need for improved and efficient agricultural techniques. The agricultural science aims at increasing crop yield and quality. The use of Humic acid in agriculture areas have resulted in stimulated plant growth, consequently enhancing mechanisms involved, such as photosynthesis, enzyme activities, protein synthesis, cell respiration, water and nutrient uptake. This has resulted in high crop yield with enhanced quality of crops, thus leading to better productivity. With the increasing population and corresponding focus on increasing the volume of crops produced, the importance of enhancing the productivity along with quality has become even more indispensable. These factors are anticipated to increase the demand of HHumic acid from agriculture industry in the coming years.
Geographically, the European market accounted for the largest share in the global Humic acid market in 2014. The early adoption and penetration of organic farming in countries, such as Spain, Italy, France, the U.K., Germany, and Rest of Europe is one of the key drivers for the huge demand of Humic acid in Europe. The Rest of Europe was the largest Humic acid market in Europe in 2014, followed by Spain, France, and Germany. The dominance of Spain in the European Humic acid market is due to its lead in the organic farming in the region. Following Spain, are countries such as Italy and the U.K. with high density of organic farming, but these countries lag behind France and Germany, which have huge overall production of crops.
The Humic acid manufacturers include both small scale and large scale manufacturers of bio stimulants, with regional and global presence. The bigger manufacturers include participants, such as China Green Agriculture Inc., which has both strong global and regional presence. The company offers a broad spectrum of products across wide ranging industries. On the other hand, participants such as Double Dragon Humic acid Co. enjoy strong domestic presence in China.
The key companies operating in the global Humic acid market include Canadian Humalite International Inc., China Green Agriculture Inc., Double Dragons Humic acid Co. Ltd. Xinjiang, Grow More Inc., Humic Growth Solutions Inc., HUMINTECH GmbH, Nutri-Tech Solutions Pty Ltd., ODUS(UK) Ltd., Omnia Specialities Australia, and Vellsam Materias Bioactivas S.L.