Humic Acid Market: Historical Size and Share Analysis, Future Growth Potential, Key Regions, Forecast till 2030

Market Overview

The humic acid market revenue will stand at an estimated USD 757.0 million in 2023. Moreover, from 2024 to 2030, it will grow at a CAGR of 11.9% and reach USD 1,632.9 million by 2030. This can be ascribed to the growing use of humic acid in agriculture and other industries, rising awareness of the harms of chemical fertilizers, and rising focus on sustainable agriculture and organic farming.

Humic acid is an organic substance that comes from coal, soils containing lignite, and a few other sources. It is utilized in organic fertilizers and animal feed in the form of powder, grains, and liquid. For example, sandy soils are unable to retain water due to low humus content. Humic acid can yield ionized nutrients, which are produced by the retention of water and humus biomolecules.

In this regard, the major factor driving the global humic acid industry is the growing preference for organic fertilizers over chemical ones. The government programs to promote organic agricultural practices, in order to attain environmental sustainability, have significantly increased the demand for humic acid worldwide. In addition, the negative impact chemical fertilizers have on the environment and human health will better the future prospects for the market.

Rising Requirement in Agriculture Sector

As per the World Bank, development of the agriculture sector is one of the most-successful approaches to alleviating severe poverty, promoting shared prosperity, and providing food for the expected 10 billion people by 2050. Compared to other industries, the agriculture sector's growth has the potential to increase the earnings of the poorest people by a factor of two to four. Contributing 4% of the world's gross domestic product (GDP) and up to 25% of the GDP in the least-developed nations, agriculture is also essential to economic growth.

Over the years, this sector has seen drastic changes in production levels and technological advancements. Humic acid is required for farming as it helps in improving soil structure, enabling beneficial microbial activity, boosting nutrient absorption, and promoting sustainability.

Shift toward Organic Products Is Key Trend

The world is now demanding organic fertilizers and biostimulants, which is a key driver for the worldwide humic acid industry. The use of biostimulants containing humic acid in agriculture has been associated with the potential to raise yields without sacrificing the production of ecological crops. Therefore, during the forecast period, the demand for these products would rise in response to the growing adoption of sustainable farming techniques.

As per industry experts, sales of organic food globally generated over USD 132 billion in 2021. Organic farming uses only natural products and refrains from using chemical-based ones. Thus, as the demand for organic food rises, so will the requirement for humic acid for producing biostimulants and other natural agrochemicals.

Sustainable agriculture, another key trend, means providing adequate resources as per existing human needs, without negatively impacting the planet. Though chemical fertilizers boost plant growth, those plants might not develop good root systems or have the necessary mix of nutrients for humans. They also decrease the quality of the soil with time, and the toxic chemicals further affect groundwater and consumers’ health. Humic acid helps in soil retention and erosion prevention and ensures optimum plant growth by promoting root system development.

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Increasing Usage of Humic Acid beyond Agriculture

In the pharmaceutical industry, the effectiveness of a drug plays a pivotal role in its success. Many research studies have shown that humic acid can help in increasing the effectiveness of antiviral agents. Usually, synthetic polymers are used for targeted drug delivery, but the use of humic acid has opened the gate for more natural substances.

Additionally, in wastewater treatment, the chemical helps in the removal of toxic and heavy metals, such as lead, mercury, cadmium, and copper and oil, grease, and suspended matter.

Similarly, animal feed with humic substances display high nutrient absorption rates and immunity boosting, anti-inflammatory, and antimicrobial properties. This results in the proper growth and better health of animals. Humic substances are excellent sources of minerals, such as calcium and phosphorous, which are needed for bone formation in animals.

APAC Has Significant Market Share

APAC is a significant revenue contributor to the market as Asia has the largest agricultural land, at over 1.4 billion hectares, with China itself possessing 527 million hectares. The large population and the heavy dependence on the agriculture sector are the main reasons for the market growth in the region. Further, the rising awareness of sustainable agriculture would be a key driving factor for future growth. Additionally, the government of many countries is taking initiatives to boost agricultural production, for fulfilling the needs of citizens, as well as boosting exports.

China also has one of the most-productive and highly valued pharmaceutical industries in the world. Generics, active pharmaceutical ingredients, therapeutic drugs, and traditional Chinese medicine are all produced in the nation. More than 90% of the nation's legally registered pharmaceuticals are generic. In the coming years, it is anticipated that China's pharmaceutical business will grow to RMB 3 trillion.

Europe is another large humic acid market, as approximately half the land in the continent is used for agricultural purposes, according to the European Commission. Moreover, Germany is the world's third-biggest exporter of agricultural products. The primary crop in Germany, grains, is grown on around one-third of the agricultural area, with barley and rye coming in second and third, respectively.

Additionally, animal feed is a crucial link in the system of food production. Therefore, over the forecast period, the demand for humic acid will increase due to the region's growing number of animal feed makers. As per the European Commission, the EU has around 279 million livestock animals, which reflects a significant demand for nutritious animal feed.

Additionally, after the U.S., Europe is home to the most-significant pharmaceutical industry in the world, because many multinational pharmaceutical companies actively. Thus, the demand for humic acid has increased in the region due to the abundance of pharmaceutical businesses and the continuous research to produce new bio-based drugs.

Key Players in Humic Acid Market:

• Black Earth Humic LP
• Humic Growth Solution Inc.
• Agbest Technologies Co. Ltd.
• Arctech Inc.
• Jiloca Industrial SA
• Saint Humic Acid
• The Anderson Inc.
• Grow More Inc.
• Humintech
• Xian Shan Yuan Agriculture & Technology Co. Ltd.
• Zhengzhou Shengda Khumic Biotechnology Co. Ltd.
• Mineral Technologies Inc.
• Faust Bio-Agricultural Services Inc.
• Black Earth Humic
• Nature's Lawn & Garden