A recent market research report titled “Humic Acid Market Size-2023-2028” predicts that the market for humic acid will grow at a compound annual growth rate (CAGR) of over 6%. In the short term, the agriculture sector’s high demand for humic acid is expected to be the primary driving factor behind this growth. However, over the forecast period, factors such as changing demographics, food habits in emerging markets, and the growing need for organic fertilizers and bio-stimulants are expected to increase the demand for humic acid.
Europe currently holds the dominant position in the global humic acid market, with the highest consumption coming from countries such as France, Germany, and the United Kingdom.
Humic acid provides numerous physical, chemical, and biological advantages. It can enhance the cation-exchange capacity (CEC) and oxygen levels, resulting in improved water retention capacity, soil fertility, and plant growth. The maximum beneficial humic acid content in soil is generally around 3%, whereas in peat, it can range from 3% to 10%. Overall, the presence of humic acid in soil can greatly improve its quality and promote healthy plant growth.
Based on research conducted by our experts, several market trends are shaping the analysis of the Humic Acid market, including:
- Humic acid is commonly used in fertilizers to improve nutrient uptake, water retention, microbial growth, and soil structure while also reducing toxins.
- Humic acid offers a range of physical, chemical, and biological benefits, including improving the cation-exchange capacity (CEC) and oxygen content of soil.
- Improved water holding capacity due to humic acid leads to better soil fertility and plant growth.
- Fertile soil typically contains a maximum of 3% humic acid, while peat may have a range of 3-10%.
- Physical benefits of humic acid include enhancing soil structure and preventing water and nutrient loss in sunlight and sandy soils. It can also help convert sandy soils into fertile ones via decomposition.
- Chemical benefits of humic acid include neutralizing acid and alkaline salts and regulating pH levels.
- According to the OECD-FAO Agricultural Outlook 2021-2030, the Asia-Pacific region is the largest producer of agricultural and fisheries commodities, accounting for 53% of the global output in this sector by 2030.
- The total value of production in the Asia-Pacific region is expected to expand by 20% by 2030 compared to the 2018-20 base level.
Based on data from the US Census Bureau, it is anticipated that the current population of the United States will experience a growth rate of 0.7-0.9% due to high levels of immigration. This growth, coupled with increasing per capita income, is expected to drive up demand for food crops and cash crops. For example, the Food and Agriculture Organization (FAO) predicts that food demand in the United States will rise by 50-90% by the year 2050.
Several factors are expected to drive the demand for humic acid in Europe across various application industries. In France, for example, the total agricultural land accounted for 9,647 thousand hectares in 2020-21 and is expected to increase further in response to the rising demand for food in the country. The GDP from agriculture in France also increased from EUR 8,033 million in Q3 2021 to EUR 8,076 million in Q4 2021, which bodes well for the demand for the humic acid market in the country.
In Germany, the Gross Domestic Product (GDP) from agriculture increased from EUR 7.41 billion in Q3 2021 to EUR 7.64 billion in Q4 2021, indicating potential growth opportunities for the humic acid market.
Similarly, in the United Kingdom, the GDP from agriculture increased from GBP 3,146 million in Q3 2021 to GBP 3,157 million in Q4 2021, which is expected to support the growth of the humic acid market in the country.
The global humic acid market is partially consolidated, with a few major players dominating the market share. Some of the key players in the market include Humic Growth Solutions Inc., Zhengzhou Shengda Khumic Biotechnology Co. Ltd, Humintech, Mineral Technologies Inc., Cifo Srl, Desarrollo Agrícola y Minero SA, Jiloca Industrial SA, Saint Humic Acid, The Andersons Inc., Xian Shan Yuan, and Grow More Inc.
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