Formic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Formic Acid Market is segmented by Application (Animal Feed and Silage Additives, Leather Tanning, Textile Dyeing and Finishing, Intermediary in Pharmaceuticals, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and the Middle-East and Africa). The report offers market size and forecasts for all the above segments in volume (kilotons).

Market Snapshot

formic acid market
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: 3.87 %
 formic acid market size

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Market Overview

The Global Formic Acid Market stood at 870.03 kilotons in 2021 and is projected to register a CAGR of 3.87% in volume terms during the period 2022-2027.

Due to the COVID-19 pandemic-induced lockdown regulations and fewer workers, production in various chemical and other industries has reduced, resulting in a reduced supply of raw materials to industries. However, the market is expected to get better during the forecast period.

  • Over the medium term, the growing demand for animal feed and silage additives are driving the growth of the formic acid market​.
  • Sustainable Use of Formic Acid in Fuel Cell is likely to act as an opportunity for the formic acid market.
  • The Asia-Pacific region is expected to dominate the market and is estimated to witness the highest CAGR during the forecast period.

Scope of the Report

Animal feed and silage additive manufacturers use formic acid as an additive in solid or liquid forms, which are both considered safe for animal health. The Formic Acid Market is segmented by Application (Animal Feed and Silage Additives, Leather Tanning, Textile Dyeing and Finishing, Intermediary in Pharmaceuticals, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and the Middle-East and Africa).The report also covers the market size and forecasts for the formic acid market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (Kilotons).

Application
Animal Feed and Silage Additives
Leather Tanning
Textile Dying and Finishing
Intermediary in Pharmaceuticals
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Animal Feed and Silage Additives to Dominate the Market

  • Animal feed and silage additive manufacturers use formic acid as an additive in solid or liquid form which is also considered safe for animal health. With the growing population of animals, food security for them is an important issue that should be maintained.
  • Formic acid inhibits harmful bacteria in the feedthrough acidification, supports digestion of the feed with better feed conversion. Formic acid is also considered the second stronger organic acid which inhibits bacterial growth. It is used as an essential element for high-quality forage silage production to inhibit the proliferation of pathogens and has been found effective for the growth inhibition of silage microorganisms.
  • Additionally, the property of formic acid to preserve feed mixes makes it more unique, hence upsurging the demand for formic acid in the market over the period.
  • Countries of Asia and Europe are majorly shifting from the application of antibiotics and largely engaging themselves in feed acidulants. Moreover, the emerging economies such as China, India, Thailand, and Germany in these regions are escalating the demand for meat, milk, and egg which is propelling the demand for formic acid in the farms.
  • The UN Food and Agricultural Organization (FAO) estimates that the world will have to produce 60% more food by 2050, and it is believed that animal protein production will grow even more – meats (poultry/swine/beef) will double, as well as dairy, and fish production will almost triple by 2050 there increasing the feed consumption which in turn drives the market studied​.
  • These aforementioned factors are expected to boost the demand for formic acid in the global market over the forecast period.

 formic acid market share

Asia-Pacific Region to Dominate the Market

  • Asia-Pacific region dominated the global market share. The region is expected to continue dominating the market during the forecast period, owing to the demand for meat and poultry coupled with the demand from the textile sector in countries such as China and India.
  • Chicken meat output is expected to rise by 2% to 14.3 MMT in 2022, following a drop in 2021, as large-scale white feather ("broiler") manufacturers use new production facilities. In 2022, China's hog production is expected to fall by 5%, but Post anticipates a larger concentration in large-scale operations utilizing professional feed formulae.
  • China is the largest producer and exporter of textiles and clothing in the world. With enormous production capacity, China has an oversupply of textiles and clothing products. However, the increasing labor costs and rising global protectionism weakened its competitiveness. The labor costs in the country increased significantly in recent years and crossed many other countries in Asia.
  • India is the world’s largest producer of milk and buffalo meat. The country is also the second-largest producer of goat meat and the third-largest producer of poultry. In order to cater to such demand, the country holds world’s largest population of about 515 million. Such livestock farming scenario stands to be one of the factors driving animal feed demand in the country.
  • Moreover, Invest India estimates that by 2025, the animal feed market might be worth USD 6 billion. Compound cattle feed, on the other hand, has a market potential of USD 400-650 million dollars, with a 16% annual growth rate by 2025, with main growth drivers including low organic feed market penetration, growing formal offtake, and others. 
  • Hence, such trends in the animal feed industry are projected to drive the demand for formic acid, notably for animal feed and silage additives.
  • All the aforementioned factors, in turn, are expected to affect the demand for formic acid in the region during the forecast period.
formic acid market analysis

Competitive Landscape

The global formic acid market is consolidated in nature. The major players in the market (in no particular order) are BASF SE, Shandong Acid Technology Co. Ltd., LUXI Group, Eastman Chemical Company, and Perstorp, among others.

Recent Developments

  • In March 2021, BASF SE announced to increase prices for formic acid in North America for all grades, and the increase would be USD 0.05 per pound.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Demand for Animal Feed and Silage Additives

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Price Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Animal Feed and Silage Additives

      2. 5.1.2 Leather Tanning

      3. 5.1.3 Textile Dying and Finishing

      4. 5.1.4 Intermediary in Pharmaceuticals

      5. 5.1.5 Other Applications

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 BASF SE

      2. 6.4.2 Eastman Chemical Company

      3. 6.4.3 Shandong Baoyuan Chemical Co. Ltd

      4. 6.4.4 Gujarat Narmada Valley Fertilizers & Chemicals Limited

      5. 6.4.5 LUXI GROUP

      6. 6.4.6 Perstorp Holdings AB

      7. 6.4.7 POLIOLI SpA

      8. 6.4.8 PT PUPUK KUJANG

      9. 6.4.9 Rashtriya Chemicals and Fertilizers Limited

      10. 6.4.10 Wuhan Ruisunny Chemical Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Sustainable Use of Formic Acid in Fuel Cell

**Subject to Availability

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Frequently Asked Questions

The Formic Acid Market market is studied from 2017 - 2027.

The Formic Acid Market is growing at a CAGR of 3.87% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

BASF SE , Perstorp , Eastman Chemical Company , LUXI GROUP, Shandong Acid Technology Co. Ltd. are the major companies operating in Formic Acid Market.

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