Materials and Chemicals - Humic Acid Market

Market Synopsis

The global humic acid market size was USD 616 Million in 2022 and is expected to reach USD 1708.22 Million in 2032, and register a rapid revenue CAGR of 12% during the forecast period. Rising demand for organic farming methods, increasing knowledge of humic acid's uses in agriculture and trend of sustainable agriculture methods globally are major factors driving market revenue growth.

Humic acid is a naturally occurring organic substance that is created when organic matter, such as dead plants and animal remains, breaks down. Humic acid is a complex mixture of different Organic Acids, humic materials, and minerals that can strengthen soil, improve agricultural yields, and encourage plant growth. Demand for humic acid is rising in agriculture due to its capacity to increase soil fertility and nutrient availability, lessen soil erosion, and enhance plant growth and output.

In addition, increasing worries about food safety, human health, and environmental sustainability, there is rising demand for organic food items. Organic food products developed with natural agricultural methods are becoming more popular with consumers. Humic acid is a crucial component of organic agricultural practices since it may improve soil health and stimulate plant development without the use of synthetic fertilizers and pesticides. Moreover, increasing use of humic acid in agriculture is becoming more popular, which is expected to drive market revenue growth. Humic acid application can improve nutrient availability, stimulate plant development, and increase crop output. Humic acid is therefore being used by farmers and producers more frequently to increase crop yields and advance sustainable agricultural methods.

Demand for humic acid in the agricultural sector is rising by increasing global trend towards sustainable agricultural techniques. Using natural and organic agricultural methods, sustainable agriculture techniques emphasize on soil health and fostering environmental sustainability. Humic acid can enhance soil health, lessen soil erosion, and stimulate plant growth without the use of artificial fertilizers and pesticides, making it a crucial part of sustainable agricultural operations. Furthermore, increasing use of humic acid in other sectors such as animal feed, pharmaceuticals, and cosmetics is driving market revenue growth. Humic acid is a common feed ingredient used in the animal feed business. As a natural treatment for various medical diseases, including immune system issues, skin conditions, and digestive disorders, it is also employed in the pharmaceutical sector. However, high cost of humic acid products and lack of knowledge about their advantages in some areas are major factors, which could restrain market revenue growth. In addition, scarce supply of raw materials needed to produce humic acid is another factor, which could restrain market revenue growth.

Government Regulations:

• The U.S. Environmental Protection Agency (EPA) regulates the use of humic acid as a fertilizer ingredient under Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).
• EPA has established labeling requirements for products containing humic acid that must include information on product composition and directions for proper use and storage.
• EPA also requires manufacturers of fertilizers containing humic acid to obtain registration before distribution of the product in commerce.
• The European Commission has established limits on maximum levels of heavy metals, such as cadmium, copper and lead, allowed in humic acid products used for agricultural applications.
• State governments may also have their own laws and regulations related to the use of humic acid products in agriculture and lawn & garden applications. For example, California requires that all fertilizers be labeled in accordance with state regulations.

Key Takeaways

Type outlook: 

Because humic acid is easily soluble in water, its powdered form is a great choice for foliar sprays, root drenches, and liquid fertilizers. Moreover, it is highly concentrated, making it an affordable option for widespread applications. The demand for organic farming methods is predicted to rise during the forecast period, and consumers' understanding of the advantages of humic acid for soil health is expected to rise along with it.

Humic acid in granular form works best as soil conditioners, soil additives, and slow-release fertilizers. Better plant growth and yield are produced as a result of improved soil structure, water-holding capacity, and nutrient availability. The need for sustainable farming methods and the rising knowledge of humic acid's advantages for soil health are likely to drive significant revenue growth for the granular form of humic acid during the forecast period.

Humic acid is available in liquid form, which can be applied as a foliar spray, a soil amendment, and a seed treatment. As it is simple to apply through irrigation systems, it is a great choice for crops that require frequent irrigation. The demand for high-value crops such fruits, vegetables, and decorative plants is likely to rise throughout the forecast period, as is knowledge of the advantages of humic acid in crop production. These factors are also expected to generate significant revenue growth for humic acid in its liquid form.

Application outlook: 

Because of its advantageous qualities, humic acid, an organic compound that occurs naturally, is frequently used in many different applications. Agriculture, animal feed, and environmental applications make up the three segments of the worldwide humic acid market.

The main application category for humic acid, accounting for a sizeable portion of market income, is agriculture. Humic acid's potential to increase soil fertility, crop output, and plant development has led to a rise in its use in agriculture over time. Humic acid aids in the retention of nutrients and moisture in the soil, which is crucial for plant growth. Moreover, it strengthens the soil's structure, which makes it easier for plant roots to grow and absorb nutrients. Humic acid also encourages the development of advantageous soil microbes, which aids in reducing soil-borne illnesses and enhancing plant health. The humic acid market in the agriculture sector is anticipated to increase as a result of the rising demand for food brought on by the expanding population and the requirement for sustainable agricultural techniques.

The market for humic acid has a sizable application area for animal feed. Animal feed contains humic acid as an ingredient to promote the health, growth, and productivity of the animals. Humic acid facilitates the feed's nutritional absorption, which is crucial for animal growth and health. Moreover, it aids in strengthening animals' immune systems and increases their illness resistance. The need to boost animal health and productivity as well as the rising demand for high-quality animal products will likely lead to an increase in the usage of humic acid in animal feed.

Another prominent application market area for humic acid is the environmental sector. Environmental uses for humic acid include waste management, water treatment, and soil remediation. Humic acid assists in purging impurities and pollutants from water and soil, preparing them for industrial and agricultural usage. Also, it aids in lowering trash production, making it more environmentally friendly. The necessity to reduce pollution and waste as well as the growing emphasis on environmental sustainability are anticipated to fuel the market expansion for humic acid in the environmental sector.

Regional Outlook:

In terms of revenue, North America led all other geographical markets for humic acid in the world in 2021. The market for humic acid in the area is expanding significantly thanks in large part to the United States. Its expansion can be ascribed to the adoption of sustainable agricultural practices and the rising demand for organic farming methods. Humic acid is also used to make soil conditioners and fertilizers, which are vital for increasing agricultural yields and soil fertility. The market for humic acid in North America is anticipated to develop due to the rising demand for organic food and the need to improve soil health.

Throughout the projected period, the humic acid market in Europe is anticipated to develop at a modest rate. The need to improve soil health and the rising demand for organic agricultural methods are the main factors driving the humic acid market in Europe. Humic acid is increasingly being used in agriculture in the area as it helps to increase crop yields, plant development, and soil fertility. The region's rising demand for organic food items is also anticipated to fuel the market for humic acid's expansion.

The humic acid market is expected to develop at the quickest rate during the projected period in Asia Pacific. The use of sustainable agricultural methods is increasing in the area, which is fueling the demand for humic acid there. Also, the region's humic acid market is expanding due to the rising need for boosting crop yields and soil health. Additionally, it is anticipated that the region's humic acid market will expand due to rising population levels and shifting dietary preferences in developing nations like China and India.

Major Companies and Competitive Landscape:

The global humic acid market is highly fragmented, with several large and small players accounting for a significant portion of the market revenue. Major players in the market are implementing various strategies, such as mergers and acquisitions, partnerships and collaborations, and product innovations to strengthen their market position. Some of the major companies operating in the global humic acid market are:

• Biolchim S.p.A.
• Humintech GmbH
• Novihum Technologies GmbH
• Arctech Inc.
• Fulvic India Pvt. Ltd.
• Mahafeed Specialty Fertilizers Pvt. Ltd.
• Most Probable Number Laboratories LLC
• Humic Growth Solutions Inc.
• Australian Humates Direct Pty Ltd
• Black Earth Humic LP

Strategic Development:

• In 2021, Biolchim S.p.A. signed a partnership agreement with AECOM, a leading infrastructure consulting firm, to develop solutions for sustainable agriculture. The collaboration aims to provide innovative and effective solutions to promote sustainable agriculture, including the use of humic acid-based products.
• In 2020, Humintech GmbH acquired leading Spanish humic acid producer, AGROSAF, to strengthen its position in the global humic acid market. The acquisition allowed Humintech to expand its product portfolio and provide its customers with a wider range of products and solutions.
• In 2020, Novihum Technologies GmbH signed a partnership agreement with BASF SE to develop humic acid-based products for the agriculture industry. The collaboration aims to provide innovative and sustainable solutions for soil health and crop productivity, leveraging BASF's expertise in agricultural chemistry and Novihum's technology in humic acid production.
• In 2020, Humic Growth Solutions Inc. launched a new line of humic acid-based products, including fertilizers, soil conditioners, and plant growth stimulants. These products are designed to enhance soil health, increase crop yields, and improve plant resistance to environmental stressors.
• In 2020, Black Earth Humic LP announced the expansion of its production capacity by 50% to meet the growing demand for humic acid-based products in the agriculture industry. The expansion includes the construction of a new production facility in Canada and the implementation of advanced technologies for humic acid extraction.

New Product Launches:

• Biolchim S.p.A.: In 2021, Biolchim S.p.A. launched a new line of humic acid-based fertilizers called the Nutri-Phite® range. These fertilizers combine humic and fulvic acids with phosphorus to provide a highly effective fertilizer for crop growth and productivity.
• Mahafeed Specialty Fertilizers Pvt. Ltd.: In 2020, Mahafeed Specialty Fertilizers Pvt. Ltd. launched a new line of humic acid-based fertilizers called the Mahahumic® range. These fertilizers are designed to improve soil health, enhance nutrient uptake, and increase crop yields.
• Most Probable Number Laboratories LLC: In 2020, Most Probable Number Laboratories LLC launched a new line of humic acid-based biostimulants called the Stimulizer® range. These biostimulants are designed to improve plant growth and productivity, enhance soil health, and increase nutrient uptake.
• Fulvic India Pvt. Ltd.: In 2020, Fulvic India Pvt. Ltd. launched a new line of humic acid-based products called the Fulvigrow® range. These products are designed to improve soil health, increase nutrient uptake, and enhance plant growth and productivity.

Segments Covered in the Report:

This report offers historical data and forecasts revenue growth at a global, regional, and country level, and provides analysis of market trends in each of segments and sub-segments from 2019 to 2032. For the purpose of this report, Reports and Data has segmented the global humic acid market based on product type, application, and region: