U.S. Humate Market Size, Share & Trends Analysis Report By Application (Ecological Bioremediation, Horticulture, Agriculture), By Distribution Channel, And Segment Forecasts, 2019 - 2025

Report Overview

The U.S. humate market size was estimated at USD 139.9 million in 2018 and is expected to expand at a CAGR of 10.7% over the forecast period. The growing popularity of organic farming in the country is expected to drive growth. Organic farming, which makes up a small part of the overall agriculture in the U.S., has been witnessing more than 50% rise on a year-on-year basis. The country is home to more than 5 million organic farmers. California, Wisconsin, and New York are some of the major states witnessing high adoption of organic farming. The rise in federal spending on agriculture and easy approval for organic products has promoted organic farming in the U.S.

Horticulture and agriculture are the major application areas for humate. The availability of several humate-containing products in the plant nutrition category is expected to augment market growth in the near future. Potassium humate is the most widely used humate derivative in the U.S. and is commonly used with urea, Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP), and Monopotassium Phosphate (MKP).

Humate is in the introductory phase of the product lifecycle in the U.S. However, the product is expected to witness increased adoption in the forthcoming years due to the rise in new farming systems and the proliferation of substitutes to conventional inorganic fertilizers. Rising awareness about the benefits of the product is expected to promote its utilization in the country.

The overuse of synthetic agrochemicals causes health and environmental hazards, which is likely to fuel the utilization of humate in the forthcoming years. Moreover, stringent regulations by the U.S. Environmental Protection Agency (EPA) and the Food and Drug Administration (FDA) on the use of synthetic fertilizers is expected to further fuel the demand. The humate formulations are made up of necessary polyphenol, hormones, ketones, natural sterols, and fatty acids, making them highly efficient.

However, the organic products available in the U.S. as well as the global market lack consistency and standardization which can result in the usage of inappropriate ingredients. The U.S. government thus needs to focus on standardizing organic products. Some products have been listed under its National Organic Program, which offers certifications and labeling on the presence of organic content. Humate is yet to be considered under this program, which restraints its growth in the country.

Application Insights

Agriculture is a major application segment in the U.S. humate market and accounted for 72% of the total revenue share in 2018. Rising impetus on organic agriculture and the use of naturally derived products are boosting the demand for humate in the agriculture sector. In addition, a rise in the cultivation of hemp and cannabis across the country is likely to bode well for the growth.

The usage of humate for the production of hemp and cannabis is expected to witness a CAGR of 13.4% from 2019 to 2025. According to Meister Media Worldwide, hemp production by land area in the U.S. grew from 25,713 acres in 2017 to 78,176 acres in 2018. Montana and Colorado were the leading states in hemp cultivation in 2018. Hemp and cannabis have a high demand in the medical industry, which requires a high nutrient value in these crops. The addition of humate in the soil helps in carrying plant nutrients, thus resulting in healthy growth of the crop.

Ecological bioremediation is the fastest-growing segment owing to rising demand in niche applications. The U.S. EPA has established Preliminary Remediation Goals, which help establish the standards for soil remediation. This segment is expected to witness a CAGR of 3.4%, in terms of volume, from 2019 to 2025.

Distribution Channel Insights

The distribution channels for the sales of humate products are small format and large format retail stores, online retail, and company-owned distribution channels. Small format and large format retail stores segment are expected to hold a majority market share in the forthcoming years as they attract a large number of consumers with improved product visibility.

Humate manufacturers tend to prefer the same distribution channel as preferred by the fertilizer and agrochemical companies. These products are largely sold in local stores due to the reduced storage and transportation costs. Some of the major agriculture retailers in the U.S. include Central Farm Service, Home Oil Company, Pinnacle Agriculture Holdings, Reynolds United Co-Op., and Helena Chemicals.

The online retail sales channel is anticipated to register the highest CAGR of 11.3% from 2019 to 2025. The advent of online retail helps manufacturers formulate products according to different soil types and nutrient requirements. The absence of customization in the store distribution channel is compensated by online retail. The effective implementation of marketing communication programs by humate manufacturers through online distribution channels is further expected to boost the sales of humate products.

Key Companies & Market Share Insights

The market competition is highly defined by the product quality and compatibility with soil types and crops. The market structure is highly fragmented with a large number of small-scale players. The major problem faced by manufacturers is the lack of awareness about the benefits of humate.

Companies are targeting specific states with a high area under cultivation. Some of the key manufacturers in the U.S. are Humic Growth Solutions; Italpollina USA, Inc.; Actagro LLC.; and Faust bio-agricultural services (BIO AG). The major global players with a significant presence in the country include Cosmocel, CIFO SRL, Aglukon, and Humintench GmbH.

U.S. Humate Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. humate market report on the basis of application and distribution channel:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Agriculture

    • Hemp & Cannabis

    • Others

  • Ecological Bioremediation

  • Horticulture

  • Dietary Supplements

    • Poultry

    • Others

  • Others

• Distribution Channel Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Store (Small Format & Large Format)

  • Online Retail

  • Company Owned Dealership

  • Others