Global Formic Acid Market- Market Overview:

The global formic acid market is expected to grow from USD 1.86 billion in 2022 to USD 2.54 billion by 2030, at a CAGR of 4% during the Projection period 2023-2030. The growth of the formic acid market is mainly driven by the rising demand for rubber.

Formic acid is also known as methanoic acid, it is the most basic carboxylic acid, with the chemical formula HCOOH and the structure HC(=O)OH. It is a naturally occurring intermediate in chemical synthesis, most notably in certain ants. Formates are esters, salts, and anions generated from formic acid. Methanol is used to make formic acid in several industries. Formic acid can be present in most ants and stingless bees of the species Oxytrigona. Formica wood ants can spray formic acid on their victim or to defend their colony. When challenged by predators, the puss moth caterpillar (Cerura vinula) will spray it as well. It's also present in stinging nettle trichomes (Urtica dioica).  Aside from that, this acid is found in many fruits and vegetables, including apples (2mg per 100g), kiwi (1mg per 100g), eggplant (1.34 mg per 100g), as well as onion (45mg per 100g), pineapple (0.21mg per 100g), and, at extremely low amounts, cucumber (0.11mg per 100g). Formic acid occurs naturally in the atmosphere, mostly as a result of forest emissions.

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Market Dynamics:

Drivers:                          

• Formic Acid is Used as a Preservative and Preservative Agent

Formic acid's excellent preservation properties make it a good silage preservative. Silage is green fodder or grass that has been kept for use as animal feed throughout the winter. The goal of silage production is to support the silage material with nil or minimal nutritional loss. Formic acid is widely used to aid this process. The high demand and consumption rates in the animal feed sector have accelerated the demand for formic acid, primarily as a preservative and antibacterial agent. This has aided the expansion of the formic acid market.

Restraints:                                             

• High Cost

Although formic acid is used in a wide range of applications, its high cost has led the way for less expensive replacements, which are endangering the worldwide formic acid market's growth. Peptides and microflora enhancers are two promising low-cost alternatives to formic acid. When employed as a preservative, sodium sorbate, potassium sorbate, and acetic acid all represent a significant hazard of substitution to formic acid.

Opportunities:

• Formic Acid Used in the Production of Rubber Products

The use of formic acid ensures high-quality rubber end products such as rubber sheets. Furthermore, formic acid is a low-cost ingredient for facilitating latex coagulation in the natural rubber sector. Formic acid is also used to provide consistency in natural rubber products, making it one of the greatest coagulants in dry rubber manufacture. Apart from benefits such as excellent performance and cost-effectiveness, formic acid is widely favored by the natural rubber industry due to its unchanged rubber elasticity and improved color in rubber goods, influencing the growth of the formic acid market.

Challenges:

• Presence of Alternatives

Because of its capacity to modify the pH of a variety of skin products, citric acid is used as a substitute for formic acid in a wide range of applications, particularly in the cosmetics and pharmaceutical industries. Although formic acid has a competitive advantage over its alternatives, the increasing number of substitutes and the breadth of their applications are likely to provide difficulties to the worldwide formic acid market and limit market expansion during the Projection period.

Segmentation Analysis:

The global formic acid market has been segmented based on the production method, application, and region.

By Production Method

The production method segment is oxalic acid and carbonylation of methanol. The carbonylation of methanol segment led the largest share of the formic acid market with a market share of around 55% in 2022. Carbon monoxide and methanol are reacted in the presence of a catalyst to make formic acid in this process. When compared to existing techniques of formic acid synthesis, such as oxidation of formaldehyde, this approach has various advantages, including cheaper production costs, higher yield, and being more environmentally friendly.

By Application

The application segment is leather tanning, animal feed & silage additives, textile dyeing & finishing, intermediary in pharmaceuticals, and others. The animal feed & silage additives segment led the largest share of the formic acid market with a market share of around 35.78% in 2022. Manufacturers of animal feed and silage additives utilize formic acid as a solid or liquid ingredient that is also acceptable for animal health. With an increasing animal population, food security is a significant issue that must be addressed. By acidification, formic acid prevents pathogenic microorganisms in feed and aids feed digestion by improving feed conversion. Formic acid is the second most important organic acid, as it inhibits bacterial development. It is a crucial component for high-quality forage silage production because it inhibits pathogen proliferation and has been shown to be effective for silage microorganism growth suppression.

Global Formic Acid Market - Sales Analysis.

The sale of the formic acid market expanded at a CAGR of 3.1% from 2016 to 2022.

The global formic acid market is expected to increase significantly during the Projection period due to expanding application scope in different end-use sectors such as leather, rubber, pharmaceutical, textile, chemical, and agriculture. Over the Projection period, rising demand for preservatives and antibacterial agents in cattle feed is likely to boost the market growth. Furthermore, Because of expanding demand for tires and consumer goods in Asia Pacific, the rubber and leather industry is expected to be the fastest-growing application segment. Nonetheless, the agriculture sector is predicted to have the highest demand due to the increased usage of animal feed additives. High antibacterial qualities drive industrial demand for the aforementioned applications.

Thus, owing to the aforementioned factors, the global formic acid market is expected to grow at a CAGR of 4% during the Projection period from 2023 to 2030.

By Regional Analysis:

The regions analyzed for the formic acid market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific region dominated the formic acid market and held a 38.7% share of the market revenue in 2022.

• The Asia Pacific region witnessed a major share. The region controls a sizable portion of the market, owing to factors such as expansion in the leather and textile sectors, the rising need for animal feed additives, and rising demand for formic acid in a variety of other applications. China is the world's largest producer and user of formic acid, accounting for a sizable portion of the Asia-Pacific market. The country's huge and growing population, together with rising demand for meat and other animal products, is propelling the animal feed sector and, as a result, the demand for formic acid as a preservative and antibacterial agent. Other nations in the area, including India, Japan, and South Korea, are also witnessing considerable market expansion, owing to factors such as rising industrialization.
• North America is anticipated to experience significant growth during the Projection period. Expansions and investments are important drivers of regional market growth. Furthermore, Increasing investments in formic acid development from suppliers to end-use industries are likely to boost market growth over the Projection period. BASF constructed a new formic acid production facility in Louisiana with an annual capacity of 50,000 tonnes to serve the North American markets. Taminco purchased Kemira Oyj's formic acid business unit in 2014 to promote niche business segment expansion.

Global Formic Acid Market - Country Analysis:

• Germany

Germany's formic acid market size was valued at USD 0.12 billion in 2022 and is expected to reach USD 0.16 billion by 2030, at a CAGR of 4.1% from 2023 to 2030. Product diversification and advanced technology implementation in the feed acidifier segment, including coatings and encapsulations, are expected to generate growth opportunities in the region over the Projection period. Furthermore, high quality, environmental acceptance, and favorable legislation and regulations are likely to have a positive impact on regional market growth.

• China

China’s formic acid market size was valued at USD 0.18 billion in 2022 and is expected to reach USD 0.25 billion by 2030, at a CAGR of 4.4% from 2023 to 2030. China produced 15.61 million tonnes of pork in the first three months of the year, a 14% increase over the same period last year, and plans to produce 45.64 million head by the end of Q2 2021. China is the world's top manufacturer and exporter of textiles and garments. China has an overstock of textiles and garments due to its massive manufacturing capacity. But, growing labor costs and worldwide protectionism harmed its competitiveness. Labor expenses in the country have risen dramatically in recent years, surpassing those of several other Asian countries.

• India

India's formic acid market size was valued at USD 0.14 billion in 2022 and is expected to reach USD 0.19 billion by 2030, at a CAGR of 4.3% from 2023 to 2030. India produces the most milk and buffalo meat in the world. The country has the highest goat population. The demand for meat, milk, and fiber is gradually increasing and is predicted to climb more in the future due to significant increases in per capita income and people's health consciousness. This type of livestock farming environment is one of the causes of increasing animal feed demand in the country. Furthermore, Invest India expects that the animal feed sector will be worth USD 6 billion by 2025. Compound cattle feed, on the other hand, has a market potential of USD 400-650 million dollars and is expected to increase at a 16% annual rate by 2025, with key growth drivers including low organic feed market penetration, growing formal offtake, and others.

Key Industry Players Analysis:

To increase their market position in the global formic acid market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.       

• BASF SE
• Gujarat Narmada Valley Fertilizers & Chemicals Limited
• Eastman Chemical Company
• Chongqing Chuandong Chemical Co
• Anhui Asahi Kasei Chemical
• Luxi Chemical Group Co. Ltd
• Perstorp
• Feicheng Acid Chemical

Latest Development:

• In March 2021, BASF SE announced a USD 0.05 per pound increase in formic acid prices in North America for all grades.

Report Metrics

Report Attribute	Details
Study Period	2022-2030
Base year	2022
CAGR (%)	4%
Market Size	1.86 billion in 2022
Projection period	2023-2030
Projection unit	Value (USD)
Segments covered	By Production Method, By Application, and By Region.
Report Scope	Revenue Projection, competitive landscape, company ranking, growth factors, and trends
Companies covered	BASF SE, Gujarat Narmada Valley Fertilizers & Chemicals Limited, Eastman Chemical Company, Chongqing Chuandong Chemical Co, Anhui Asahi Kasei Chemical, Luxi Chemical Group Co. Ltd, Perstorp, and Feicheng Acid Chemical.
By Production Method	Oxalic Acid Carbonylation of Methanol
By Application	Leather Tanning Animal Feed & Silage Additives Textile Dyeing & Finishing Intermediary in Pharmaceuticals Others
Regional scope	North America Europe Asia-Pacific South America Middle East and Africa

Scope of the Report

Global Formic Acid Market By Production Method:

• Oxalic Acid
• Carbonylation of Methanol

Global Formic Acid Market By Application:

• Leather Tanning
• Animal Feed & Silage Additives
• Textile Dyeing & Finishing
• Intermediary in Pharmaceuticals
• Others

Global Formic Acid Market By Region:

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Russia
• Asia-Pacific
  • Japan
  • China
  • India
  • Korea
  • Southeast Asia
• South America
  • Brazil
  • Peru
• Middle East and Africa
  • UAE
  • South Africa
  • Saudi Arabia