The Global Humic Acid Market size was estimated at over USD 503.03 million in 2020 and the market is projected to register a CAGR of 11.24% during the forecast period (2021-2026).
The market was negatively impacted by COVID-19 in 2020. COVID-19 has struck at a time when hunger or undernourishment keeps rising. According to the United Nations addition to the 690 million people going hungry now, and at the same time, 135 million people suffer from acute food insecurity and in need of urgent humanitarian assistance. The rising demand for agricultural output is expected to impact the market demand.
- Over the short term, the major driving factors of the market are its growing application in the agriculture sector, and increasing usage in making animal feed. Various chemical counterparts and unfavorable conditions arising due to the COVID-19 outbreak are the restraints that hinder the growth of the market. Growing need for bio-stimulants can provide opportunities for the future growth of the humic acid market.
- The demand from agriculture sector owing to drifting focus towards organic fertilizers is expected to drive the market over the forecast period.
- By application, agriculture segment is expected to dominate the market owing to increasing population and decreasing agricultural land due to rapid urbanization and industrialization is increasing the demand of fertilizers to achieve high yields of crops which will propel the demand of humic acid.
- Rising awareness about the harmful effects of chemical fertilizers and growing need for sustainable agriculture is expected to increase the demand of humic acid over the forecast period.
- Asia-Pacific holds the largest market share of humic acid with highest demands coming from China and India.
Key Market Trends
Agriculture Segment to Dominate the Market
Humic acid is widely used in agriculture 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 include enhancing the soil structure and preventing the high water and nutrient loss in sunlight and sand soils. It helps in converting the sand soils into fertile soils by decomposition. The use of humic acid prevents soil cracking, surface water runoff, and soil erosion. Humic acid helps loosen and crumble the soil, thereby increasing the aeration and workability of the soil. It also helps resist drought and darken the color of the soil which help in the absorption of solar energy. The chemical benefits include the neutralization of acid and alkaline salts and regulate pH value. The use of humic acid improves the absorption of both organic and mineral substances and retains water-soluble inorganic fertilizers. They considerably increase the uptake of nitrogen and nutrients. The high cation-exchange capacities of humic acid promote the conversion of nutrient elements such as Nitrogen, Phosphorous, Potassium, Ferrous, and Zinc, along with other trace elements. The use of humic acid stimulates the plant enzymes, organic catalysts, proliferation of desirable micro-organisms, root respiration, and root formation. The humic acid also improves the plants' natural resistance against disease and pest and enable better uptake of nutrients by 40%. It also promotes chlorophyll generation as well as sugars and amino acids in plants to support photosynthesis. The humic acid is available as humic acid fertilizer, humic acid-based fertilizer NPK, sodium humate, potassium humate, ammonium humate, macronutrients humic fertilization, and many others for agriculture applications.
Agriculture accounted for around 4% of the global GDP since 2000. The share of agriculture in global GDP in 2018 is 3.3% and is more than 25% in developing countries. Moreover, Agriculture contributed 1.3 % to the European Union-27 GDP in 2019. The European Union agricultural industry created (gross) value-added of EUR 181.5 billion in 2019. Even though the short-term outlook for world agriculture remains broadly unchanged, the agricultural production growth rates are steadily declining. Additionally, expectations to improve fertilizer use efficiency and the use of organic-based products are driving the market for humic acid during the forecast period. The outbreak of Covid-19 has affected the agriculture output coupled with extreme climatic conditions in various regions across the world. The demand for humic acid in agriculture is expected to grow at a staggering rate during the forecast period due to the shift to related organic substances.
India to Drive the Asia-Pacific Growth
India is a growing economy and holds great potential for future market opportunities. The country witnessed a decline in its GDP growth rate to around 5% in 2019, from 7.1% in 2018. The stagnation caused in the industrial output and greenfield investments, and the flattened demand have led to the decline in the growth rate in the country. In early 2020, the outbreak of COVID-19 further affected the domestic construction and manufacturing industries. This is expected to continue in first half of 2021, which, in turn, is expected to register a decline in the consumption of humic acid in the country in 2020. As per the IMF estimates, India's economy is projected to contract by 10.3% percent in 2020.
Agriculture is the major source of livelihood for approximately 58% of the population of India. According to the India Brand Equity Foundation (IBEF), the gross value added by agriculture (along with fishing and forestry) was estimated to be INR 20097.27 billion (USD 276.37 billion) in 2020. The country has the tenth-largest arable land resources in the world. The gross irrigated area under food grains was 64.8 million has in 2019, from 61.63 million ha in 2013. The growing investments in irrigation have enhanced the gross irrigated area, thus, creating a demand for pesticides and fertilizers, stimulating the demand for the market studied. In the 2019-2020 crop year, food grain production was estimated to reach a record 295.67 million ton (MT). In 2020-2021, the government of India is targeting a food grain production of 298 MT. Thus, these factors are expected to increase the demand of fertilizers, in turn, driving the market studied. Additionally, India is among the 15 leading exporters of agricultural products in the world. Agricultural exports from India reached INR 3854 Crore in FY 2019 and INR 2551.70 billion (USD 35.09 billion) in FY 2020. India's agricultural policy aims to increase country's agricultural export to INR 4363.12 billion (USD 60 billion) by 2022.
India is the largest provider of generic drugs globally. The Indian pharmaceutical sector caters to over 50% of the global demand for vaccines, 40% of the generic demand in the United States, and 25% of all the medicines in the United Kingdom. India plans to set up a fund of nearly INR 1 lakh crore (USD 1.3 billion) to provide a boost to companies to manufacture pharmaceutical ingredients domestically by 2023. Also, the Government of India is planning to set up an electronic platform to regulate online pharmacies under a new policy to stop any misuse due to easy availability. The Government of India unveiled its Pharma Vision 2020 plan to make India a global leader in end-to-end drug manufacturing. The approval time for new facilities in the country has also been reduced, so as to boost investments. Thus, owing to the aforementioned factors, the market studied is expected to grow at a rapid rate, after the economic recovery from the impact of COVID-19, during the forecast period.
The global humic market is partially consolidated, with the top five-six players account for a moderate share of the global market demand. Some of the key players in the market include Humic Growth Solutions Inc., Humintech, Desarrollo Agricola y Minero, S.A., Cifo SRL, and Black Earth Humic, among others.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Huge Demand from Agriculture Sector
- 4.2 Restraints
- 4.2.1 Lack of Awareness Among Farmers
- 4.2.2 Impact of the COVID-19 Outbreak
- 4.3 Industry Value Chain Analysis
- 4.4 Porters Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Form
- 5.1.1 Powdered
- 5.1.2 Granular
- 5.1.3 Liquid
- 5.2 Application
- 5.2.1 Agriculture
- 5.2.2 Animal Feed
- 5.2.3 Pharmaceuticals (Includes Dietary Supplements)
- 5.2.4 Horticulture (Gardening)
- 5.2.5 Other Applications
- 5.3 Geography
- 5.3.1 Asia-Pacific
- 188.8.131.52 China
- 184.108.40.206 India
- 220.127.116.11 Japan
- 18.104.22.168 South Korea
- 22.214.171.124 Rest of Asia-Pacific
- 5.3.2 North America
- 126.96.36.199 United States
- 188.8.131.52 Canada
- 184.108.40.206 Mexico
- 5.3.3 Europe
- 220.127.116.11 Germany
- 18.104.22.168 United Kingdom
- 22.214.171.124 Italy
- 126.96.36.199 France
- 188.8.131.52 Rest of Europe
- 5.3.4 South America
- 184.108.40.206 Brazil
- 220.127.116.11 Argentina
- 18.104.22.168 Rest of South America
- 5.3.5 Middle-East and Africa
- 22.214.171.124 Saudi Arabia
- 126.96.36.199 South Africa
- 188.8.131.52 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 AGBEST TECHNOLOGY CO. LIMITED
- 6.4.2 ARCTECH INC.
- 6.4.3 Black Earth Humic
- 6.4.4 Cifo Srl
- 6.4.5 Desarrollo Agricola y Minero, S.A.
- 6.4.6 Humic Growth Solutions Inc.
- 6.4.7 Humintech
- 6.4.8 JILOCA INDUSTRIAL SA
- 6.4.9 SAINT HUMIC ACID
- 6.4.10 The Anderson Inc.
- 6.4.11 XIAN SHAN YUAN
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Changing Demographics and Food Habits in Emerging Markets
- 7.2 Growing Need for Organic Fertilizers and Bio-stimulants