Humic acids are brown-black polymeric acids derived from plants found all over the Earth's surface. Humic acids are a class of chemicals that bind to the root system and assist them in receiving water and nutrients, adding to soil fertility. High humic acid content can significantly boost yields. A lack of humic acid can prohibit farmers and gardeners from cultivating nutritious crops.
Furthermore, humic acids are critical as a medium for transferring nutrients from the soil to the plant because they can hold onto ionized nutrients, prohibiting them from draining away. Although humic acids bind firmly to soils, are prone to microbial decomposition, and have a long half-life in the soil profile, they are depleted from soils by wind and water erosion and leaching. As a result, it is critical to replenish them to maintain and improve soil fertility.
The world's growing population would continue to use more agricultural goods for food, feed, and industrial needs. Over the next decade, much of the extra food demand will come from rapidly growing populations in Sub-Saharan Africa, South Asia, the Middle East, and North Africa. The most crucial driver driving the anticipated increase in food use of staple products is population increase, which is estimated to be strongest in Sub-Saharan Africa and South Asia.
Furthermore, global food production must quadruple by 2050 to meet population growth and changing eating choices. Moreover, it must deal with the impacts of climate change on biodiversity, soil and water health, and global market needs. Consequently, the agriculture sector will consume a sizable portion of the humic acid market in the future years.
The continued growth of bio-stimulants and organic fertilizers would deliver an opportunity for the worldwide humic acid industry. Bio-stimulants are compounds that can reduce the demand for fertilizers by improving plant growth, tolerance to abiotic stressors, and water resistance. Humic acid is utilized to create natural biostimulants. The popularity of biostimulants in agriculture is linked to the ability to acquire larger yields without stopping producing ecological crops. Thus, as the need for sustainable farming techniques develops, so will the demand for humic acid-based biostimulants during the next decade.
The organic food industry's expansion is predicted to drive demand for organic fertilizers and bio-stimulants. The organic sector has expanded at a healthy rate, particularly in Europe and North America, which will benefit the market under consideration. Biostimulants are frequently employed in the production of cereals, fruits, and vegetables. Furthermore, demand in the North American region is being pushed by expanding organics networks in the country. Moreover, there is a growing awareness among farmers in the Asia-Pacific region, which will serve as another potential for the humic acid market. There is also policy assistance from various countries, which will benefit the market.
During the COVID-19 pandemic, the United States, Brazil, India, Russia, France, and South Africa were the most afflicted countries. Given the circumstances, COVID-19 has been designated a pandemic, and governments worldwide enacted complete lockdowns based on the scenario in their countries. According to the World Bank, farming provides a living for 80 percent of the world's impoverished who live in rural areas. Furthermore, at the local level, in markets, particularly in nations already impacted by hunger and other crises, some food product prices are rising, owing to local logistical issues or import challenges.
COVID-19 has hit when famine and malnutrition are on the rise. People who suffer from hunger or chronic malnutrition cannot fulfill their dietary needs - intake enough calories to live a day, active life for an extended period. This has long-term consequences for their development and continues to be a setback to worldwide attempts to achieve Zero Hunger.
The food and Agriculture Organization of the United Nations (FAO) is concerned about the medium and longer-term consequences of the pandemic. The impact of COVID-19 on businesses would cause a significant decline in all economies, particularly the most vulnerable ones, and make countries, particularly food import-dependent countries, suffer from having the obligatory resources to buy food. As a result, the above factors influenced the humic acid market's growth during the pandemic.
By region, the global market for humic acid is divided into Europe, Asia-Pacific, North America, South America, the Middle East, and Africa. Europe accounted for the largest share and was valued at USD 224 million in 2021, and it is forecast to reach USD 582 million by 2030, registering a CAGR of 11% during the forecast period. In Europe, Germany has the largest economy, and approximately half of the land in Germany is utilized for agriculture. It is the world's third-largest exporter of agricultural goods. Animal feed producers in Germany include Deutsche Tiernahrung Cremer GmbH & Co. KG, Worlée, and Kiwa, among others. As the number of animal feed firms in the country grows, so will the need for humic acid over the projection period.
The Asia-Pacific region is expected to witness the fastest growth over the forecast period and was valued at USD 95 million in 2021. It is forecast to reach USD 272 million by 2030, registering a CAGR of 12% during the forecast period. In the Asia-Pacific region, China has the world's largest economy. Furthermore, China has one of the world's major pharmaceutical industries. The Chinese Ministry of Agriculture and Rural Affairs estimates that the animal feed market was worth more than CYN 291.83 billion (USD 45 billion) in 2019. Such a large market size emphasizes the scale of the country's animal feed additives business, which might be linked to the country's significant prospective demand for humic acid. Because of the factors mentioned, the humic acid market in the country is expected to develop throughout the forecast period.