Humic acid is a yellow-brown colored material found in soil and has several benefits in agriculture such as improving crop yield and plant growth. Humic acid helps retains moisture in soil, enhances nutrient availability to plants, maintains pH balance and improves overall fertility and texture of soil. The increasing organic and sustainable farming practices globally has boosted demand for humic acid to support agricultural production without use of chemical fertilizers.

The global Humic Acid Market is estimated to be valued at US$ 1318.24 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity to boost agricultural yield through use of Global Humic Acid Market Size is a major factor driving growth of the market. Humic acid has been found to increase crop yield significantly by improving soil health and nutrient availability for uptake by plant roots. For instance, studies have showed yield increases ranging from 10% to over 30% for various crops including wheat, corn and soybeans with use of humic acid. The growing organic farming practices and need to sustainably increase agricultural output without depleting soil quality present a major market opportunity for widespread adoption of humic acid over the forecast period.

Porter's Analysis

Threat of new entrants: Low economies of scale and substantial capital requirements present barriers to entry in the humic acid market.

Bargaining power of buyers: Large buyers have significant bargaining power due to the bulk purchases.

Bargaining power of suppliers: Few global players control the supply, giving them significant bargaining power over prices.

Threat of new substitutes: Substitute products available but humic acid is irreplaceable for its soil improvement and plant growth promotion properties.

Competitive rivalry: Presence of numerous local and global players leads to high competitive rivalry.

SWOT Analysis

Strengths: Humic acid improves soil health and fertility. It enhances plant growth and crop yield.

Weaknesses: Production process is complex and humic acid products are expensive.

Opportunities: Increasing demand from agriculture and horticulture industries. Growing demand for organic fertilizers and soil conditioners.

Threats: Competition from low-cost substitutes. Stringent regulations regarding humic acid production.

Key Takeaways

The global humic acid market is expected to witness high growth over the forecast period driven by the increased demand from agricultural and horticultural industries. The global Humic Acid Market is estimated to be valued at US$ 1318.24 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.

North America dominated the market in 2024 due to high production and exports of humic acid from the US and Canada. Europe and Asia Pacific are also high growth regions due to increasing organic farming practices. Key regional growth drivers are rising adoption of organic agricultural practices in countries like Canada, Germany, China, and India. Supportive government policies promoting sustainable farming and soil health management in major countries is also boosting regional humic acid demand.

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