Market Trends of Humic Acid Industry
The Organic Fertilizer Segment to Dominate the Market
- Humic acid is widely used in fertilizers to improve nutrient uptake, water retention, microbial growth, and soil structure. It also helps reduce toxins.
- Humic acid offers a wide range of physical, chemical, and biological benefits. It also improves the plant's cation-exchange capacity (CEC) and average water-holding capacity, improving soil fertility and plant growth. Fertile soil may contain a maximum humic acid content of 3%, whereas in peat, the humic acid content varies and falls in the range of 3 to 10%.
- The physical benefits offered by humic acid include enhancing the soil structure and preventing high water and nutrient loss. It helps convert unproductive soils into fertile soils by decomposition.
- The chemical benefits include neutralizing acid and alkaline salts and regulating pH value. The use of humic acid improves the absorption of both organic and mineral substances and retains water-soluble inorganic fertilizers.
- According to the OECD-FAO Agricultural Outlook 2021-2030, Asia-Pacific is the largest producer of agricultural and aquatic commodities. The region is expected to account for 53% of the global agriculture and fish output by 2030. The total value of production is projected to expand by 20% by 2030 compared to the 2018-20 base level.
- According to the US Census Bureau, the current population of the United States is expected to increase by 0.7-0.9%, driven by a high level of immigration. With the increasing per capita income and growing population, the demand for food and cash crops is also estimated to increase. For instance, as per the FAO, food demand in the United States is expected to increase by 50-90% by 2050.
- Therefore, all the aforementioned factors are likely to drive humic acid consumption from the organic fertilizer segment over the forecast period.
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Europe to Dominate the Market
- Europe is a major consumer of humic acid, owing to increasing consumption from countries such as France, Germany, Russia, and the United Kingdom.
- France is home to the largest agriculture sector in Europe. It is among the top producers in the global agricultural scenario and produces sugar beets, wine, milk, beef and veal, cereals, and oilseeds.
- According to the European Commission, France’s agricultural land is approximately 28 million hectares, and there are about 456,000 farms in France with an average size of 69 hectares.
- Furthermore, according to the Organisation for Economic Co-operation and Development (OECD), the export volume of wheat in Russia is estimated to continuously increase between 2023 and 2032 by a total of 8.2 billion tonnes, marking a 20.53% growth.
- In Germany, about half of the land is used for agriculture. It is the third largest exporter of agricultural goods in the world. Grain is majorly cultivated on about one-third of the agricultural land of Germany, where wheat is the leading crop, followed by barley and rye. This is increasing the demand for fertilizers, thereby boosting the market for humic acid, as it is a rich source of plant nutrients.
- According to the Federal Statistical Office, the gross domestic product (GDP) from agriculture in Germany increased from EUR 7.391 billion (~USD 8.02 billion) in the second quarter of 2023 to EUR 8.131 billion (~USD 8.82 billion) in the third quarter of 2023.
- In the United Kingdom, the Office for National Statistics stated that GDP contribution from agriculture increased from -6.8% in 2021 to 1.5% in 2022, thereby supporting the growth of the market studied.
- The above-mentioned factors are likely to increase the demand for humic acid across industries in Europe.
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