The global humic acid market was valued at $325.6 million in 2014, and it is expected to grow with a CAGR of 12.9% during 2015 – 2020. On the basis of crop type, the global market is segmented into row crops, fruits & vegetables, turf & ornamentals, and others. The market was dominated by the row crop segment in 2014.
Humic acids are black to dark brown colored substances, and are extracted from soil or coal sediments by reacting them with various reagents and chemicals. These substances are not soluble in water under acidic conditions. There is a growing demand for humic acid in row crops, fruits and vegetables, and turfs and ornamentals, among several other crop types. The growth management of the plants has become a necessity, with the increasing focus on efficiency, and enhancing the productivity. Humic acid is being used in a variety of concentrations and physical forms for usage in these applications, either directly by spraying, or by adding it to soil. These substances are increasingly being used in Europe and North America, owing to their advanced properties, superior performance, and their ability to provide superior nutrients to the plants.
Geographically, the European market accounted for the largest share in the global humic acid market in 2014. However, Asia-Pacific is a highly attractive market and presents a huge growth opportunity for the market players, owing to the increasing demand for food crops, amidst rapid industrialization in the major economies of the region, especially China, India, and South Korea. Along with the focus on increasing food production, the end users are also focusing on increasing the production efficiency, by not only increasing the yield but also preventing crops from diseases. This is a major reason for the shifting attention of the bio stimulants manufacturers towards this region. The local and regional players are also ramping up production capacities, in order to gain from the rapidly increasing demand from agricultural sectors. Such developments in turn will have a significant effect on the Asia-Pacific market.
Organic farming has been a hot topic globally for quite some time now. In regions, such as Europe, the promotion of organic farming and related food products has been incorporated in European Greens’ core value since 1984. The end users in such regions are adopting more sustainable agricultural practices, focusing on producing crops, along with preservation of soil quality. Hence, organic farming is being preferred over traditional agricultural practices, which include the usage of chemical fertilizers, pesticides, and insecticides. This creates high growth opportunity for humic acid and other bio stimulant products, which can help the end users to resolve all the issues ranging from enhancing crop productivity to preserving soil quality.
The key companies operating in the global Humic acid market include Canadian Humalite International Inc., China Green Agriculture Inc., Double Dragons Humic Acid Co. Ltd. Xinjiang, Grow More Inc., Humic Growth Solutions Inc., HUMINTECH GmbH, Nutri-Tech Solutions Pty Ltd., ODUS(UK) Ltd., Omnia Specialities Australia, and Vellsam Materias Bioactivas S.L.
News Courtesy: P&S Market Research