Formic Acid Market Overview
“The Formic Acid Market Predictable at $1.90 billion in 2022, is estimated to increase at a CAGR of 4.89% from $2.04375 billion in 2023 to $3.05 billion by 2030.”
Formic acid is the simplest carboxylic acid, bound together by a single carbon atom, although it is utilized in a variety of applications, including as an intermediary in the production of other compounds. Furthermore, formic acid is a good substitute for various organic and inorganic acids. As a result, formic acid is a good substitute for cleaning and de-scaling applications, and its consumption is increasing across a wide range of products.
Lower concentration and lower cost enhance demand across a variety of applications (leather processing, cleaning, etc.) and are expected to drive the formic acid market forward in the near future.
Increasing demand for formic acid as a preservative and anti-bacterial agent to keep animal fodder is expected to drive market expansion. It slows feedstock deterioration and allows fodder to retain its nutritional content for a longer period of time. The rising demand for dairy feedstock is expected to drive up demand for formic acid. Formic acid and its derivatives are widely employed in the chemical and industrial sectors for formylation, transfer hydrogenation, and other major activities, which will drive market expansion.
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Key Takeaways
The segment is expected to significantly increase in the animal feed segment during the projection period.
The pharmaceuticals industry dominated the market in 2022, accounting for the largest end-user size, with significant growth predicted throughout the forecast period.
Growth Factors
The formic acid market is expected to grow due to increased demand from various sectors, including medicines, rubber, leather, processed foods, and animal feed. Its antibacterial properties make it a popular food preservative in packaged foods, driven by the growing demand for processed foods. The market is expected to expand throughout the forecast period.
The rubber and textile industries are experiencing increased interest due to rising demand in tire manufacturing and consumer products, while rising fashion trends in the textile industry are also driving growth. The formic acid market is primarily driven by animal feed additives.
Formic acid's antibacterial properties have led to increased market demand in non-vegetarian and poultry products, making it an ideal animal feed additive. The global agricultural sector's growing demand for animal feed additives is expected to drive the expansion of the formic acid market.
Market Dynamics
Growth Drivers
Increasing agricultural sector demand
The formic acid market is growing due to expanding agricultural activities and increased demand for formic acid-based products. Formic acid is used in agriculture as an antibacterial feed and chemical defense, and is suitable for use in animal feed and silage. It is used on all animal species, consumers, and the environment. As demand rises, the market value of silage preservatives and antimicrobials for animal feed is expected to increase.
Formic acid is used in poultry farms and agriculture to destroy Salmonella germs in feed, slow deterioration in fresh hay, treat mite infestations on crops, and as an antimicrobial and preservative in cattle feed. It is toxic to mites and is used to prolong feed's shelf life.
Opportunities
The power industry has emerged as a promising future market for formic acid.
Formic acids, a natural and synthesized type of acid, have numerous applications in the pharmaceutical industry. Recent advancements have made them a viable hydrogen source in storage processes. Formic acid helps reduce global warming by reducing atmospheric carbon dioxide levels. It is also used as a long-term carbon monoxide source and can be directly used in the chemical value chain. As a liquid storage version of carbon monoxide, formic acid is a valuable resource in the chemical industry.
Trends
The demand for prescription drugs is increasing, leading to a rise in methanol usage in the pharmaceutical industry. It serves as a stimulant, vitamin B1, aminophylline, astringent, Analgin, aminopyrine, and raw material for insulin synthesis. Increasing investment in drug research and development could further boost the industry's growth. In 2020, Roche spent $11.3 billion on research and development.
The global rubber market is expected to experience growth due to increased output, which necessitates the use of formic acid for coagulation, thereby increasing demand in the global rubber industry.
Competitive Landscape of the Formic Acid Market
- BASF SE
- Celanese Corporation
- Chongqing Chuandong Chemical (Group) Co., Ltd.
- Eastman Chemical Company
- Feicheng Acid Chemicals Co., Ltd.
- Fleurchem, Inc.
- Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC)
- Kemira Oyj
Recent Developments in Formic Acid Market
In November 2020, BASF increased the prices for acetic acid and propionic acid in all the regions.
In November 2015, BASF produced formic acid at it new manufacturing facility in Geismar, Louisiana specifically for serving North and South American markets.
In July 2022, biotechnology company Ingenza stated that the company has formed a strategic partnership with Johnson Matthey to form a formic acid from the various industrial carbon dioxide emission for the use of several industries like pharmaceuticals and agriculture and as future prospects for the feedstock for bioprocess.
In May 2023, scientists at the Indian Institute of Technology (IIT) Guwahati, innovated a catalyst that can produce hydrogen gas for wood alcohol, without the production of carbon dioxide. With the environmentally safe process, it also produces formic acid which can be useful for various end users in industrial chemicals.
Regional Insights
The Asia Pacific region is projected to become the largest market for formic acid due to its significant role in agricultural operations, presenting profitable opportunities for expansion in the region, particularly in countries like the region.
The formic acid industry is driving the growth of the textile, rubber, leather, and pharmaceutical sectors in India and China, with major market companies seeking investment due to China's low labor and capital costs and rapidly growing market, creating a significant growth opportunity throughout the forecast period.
The formic acid market in North America is expanding due to large-scale producers like BASF and Geismar. The growth of end consumers and increased spending in new manufacturing plants is expected to further expand the market during the projection period.
Europe's formic acid market growth is driven by rising demand for preservatives in livestock feed and the growth of the leather-based products industry in the region.
Segments Covered in the Formic Acid Market Report
Formic Acid Market By Application
- Leather tanning
- Textile dyeing
- Animal Feed
- Silage
Formic Acid Market By End-User
- Agriculture
- Pharmaceutical
- Others
Formic Acid Market By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East and Africa
Frequently Asked Questions
Which are the driving factors of the formic acid market?
The driving factors of the formic acid market are the rising demand from agricultural sector and rising focus on the production of renewable energy.
What is the formic acid market size?
The Formic Acid Market Predictable at $1.90 billion in 2022, is estimated to increase at a CAGR of 4.89% from $2.04375 billion in 2023 to $3.05 billion by 2030.
Which region will lead the global formic acid market?
Asia Pacific region will lead the global formic acid market during the forecast period 2023 to 2030.
Who are the prominent players operating in the formic acid market?
The major players operating in the formic acid market are BASF Intermediate Division, BASF SE, Celanese Corporation, Chongqing Chuandong Chemical (Group) Co., Ltd., Eastman Chemical Company, Feicheng Acid Chemicals Co., Ltd., Fleurchem, Inc., Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC), Kemira Oyj, LUXI Group Co., Ltd., Perstorp Holding AB, Yara International ASA, and Others.
- Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
- Research Methodology (Premium Insights)
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Executive Summary
3.1. Market Snapshot
- Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
- COVID 19 Impact on Formic Acid Market
5.1. COVID-19 Landscape: Formic Acid Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
- Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
- Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
- Global Formic Acid Market, By Application
8.1. Formic Acid Market Revenue and Volume, by Application, 2023-2030
8.1.1. Animal Feed
8.1.1.1. Market Revenue and Volume Forecast
8.1.2. Silage
8.1.2.1. Market Revenue and Volume Forecast
8.1.3. Leather tanning
8.1.3.1. Market Revenue and Volume Forecast
8.1.4. Textile dyeing
8.1.4.1. Market Revenue and Volume Forecast
- Global Formic Acid Market, By End-User
9.1. Formic Acid Market Revenue and Volume, by End-User, 2023-2030
9.1.1. Agriculture
9.1.1.1. Market Revenue and Volume Forecast
9.1.2. Pharmaceutical
9.1.2.1. Market Revenue and Volume Forecast
9.1.3. Others
9.1.3.1. Market Revenue and Volume Forecast
- Global Formic Acid Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Volume Forecast, by Application
10.1.2. Market Revenue and Volume Forecast, by End-User
10.1.3. U.S.
10.1.3.1. Market Revenue and Volume Forecast, by Application
10.1.3.2. Market Revenue and Volume Forecast, by End-User
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Volume Forecast, by Application
10.1.4.2. Market Revenue and Volume Forecast, by End-User
10.2. Europe
10.2.1. Market Revenue and Volume Forecast, by Application
10.2.2. Market Revenue and Volume Forecast, by End-User
10.3. APAC
10.3.1. Market Revenue and Volume Forecast, by Application
10.3.2. Market Revenue and Volume Forecast, by End-User
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Volume Forecast, by Application
10.3.6.2. Market Revenue and Volume Forecast, by End-User
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Volume Forecast, by Application
10.4.6.2. Market Revenue and Volume Forecast, by End-User
10.5. Latin America
10.5.1. Market Revenue and Volume Forecast, by Application
10.5.2. Market Revenue and Volume Forecast, by End-User
- Company Profiles
11.1. BASF Intermediate Division
11.2. BASF SE
11.3. Celanese Corporation
11.4. Chongqing Chuandong Chemical (Group) Co., Ltd.
11.5. Eastman Chemical Company
11.6. Feicheng Acid Chemicals Co., Ltd.
11.7. Fleurchem, Inc.
11.8. Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC)
11.9. Kemira Oyj
11.10. LUXI Group Co., Ltd.
- Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
- Appendix
13.1. About Us
13.2. Glossary of Terms
