Humic acid market is projected to experience an upward growth trend, owing to the wide product usage in horticulture, residential gardening, agriculture, bioremediation, medicines, dietary supplements, and vertical farms. Disproportionate use of synthetic fertilizers to increase the crop yield adversely affects the quality of underground water and dampens the land arability & output. This has compelled the governments to introduce legislations such as the common agricultural policy of the EU encouraging widespread application of bio-based fertilizers in the farming activities, resulting in escalated product demand. Rising consumer inclination towards the consumption of organic food will provide a boost to overall humic acid market. According to the Organic Trade Association based in the U.S., the revenue generated from the sale of the organic foods was nearly USD 40 billion in 2015, and is projected to increase substantially over the years ahead. Global Market Insights, Inc., states that humic acid industry revenue, worth USD 400 million in 2016, is slated to surpass USD 1 billion by 2024.
Agricultural applications, which contributed for over 50% of humic acid market share in 2016, is projected to register notable gains of 12.5% over the period of 2017-2024. Favorable government policies to stimulate organic food production coupled with the rising popularity of organic agricultural activities across developed countries will accelerate the growth of humic acid industry.
U.S. Humic Acid Market Size, By Application, 2013 – 2024 (USD Million)
Humic acid industry value in the dietary supplements sector, which was evaluated at over USD 50 million in 2016, is forecast to surpass USD 100 million by 2024. Growing consumer consciousness about medicinal & health benefits provided by dietary products will accelerate humic acid market development.
Widespread awareness about health risks and ecological degradation caused due to chemical fertilizers will favorably impact humic acid market size in the horticulture sector, which is expected to exceed a revenue margin of USD 200 million by 2024.
Taking into consideration the regional trends, North America humic acid industry, which collected a revenue of over USD 150 million in 2016, is predicted to hit the targeted revenue margin of over USD 400 million by 2024. The mounting popularity of organic diets in Canada and the U.S. is likely to drive the regional revenue. Currently, over 80% of U.S. households purchase organic foodstuff - this figure is going to multiply over the coming years with the rise in the consumer spending capacity & health awareness.
Europe humic acid market is expected to hit a revenue of USD 300 million by 2024, driven by high government funding of agricultural activities along with the rapidly expanding organic farming sector. Humic acid industry in Asia Pacific is predicted to grow at a CAGR of 13.5% during the period of 2017 to 2024, owing to the rise in the per capita incomes and the region’s GDP. An increase in the number of middle income and higher income groups will constructively leverage the development of the organic food sector across the region, thereby generating luminous business growth opportunities for the industry players. The growing preference for cultivating organic crops in countries such as India and China will further drive the regional share.
Market players will try to increase their product portfolio through strategic collaborations and high R & D investments. The Andersons Incorporation, Nutri-Tech Solutions Private Limited, Humic Growth Solutions, Humintech GmbH, Black Earth Humic LP, Manidharma Biotech Private Limited, National Pesticides & Chemicals, Faust Bio-Agricultural Services Incorporation, Biolchim S.p.A., Changsha Xian Shan Yuan Agriculture and Technology Company Limited, Agriculture Solutions LLC, Saint Humic Acid Company Limited, Grow More Incorporation, Wilbur-Ellis Company, Everwood Farm, WinField Solutions LLC, Organic Approach LLC, Jiloca Industrial S.A., Sikko Industries Limited, Tagrow Company Limited, NPK Industries, and Nature's Lawn & Garden Incorporation are the major participants of humic acid industry.