Formic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The formic acid market was valued at around 600 kiloton in 2020, and the market is projected to register a CAGR of over 3% during the forecast period (2021-2026).

Due to COVID-19, lockdown regulations, and a deficient number of workers, the production in various chemical and other industries has decreased, and the supply of raw materials to the industries decreased. The animal feed industry, which is the major end-user industry of formic acid, has also been badly affected by the closure of restaurants around the world. The coronavirus crisis has severely harmed the supply of animal feed, despite the fact that demand has remained relatively stable world. Owing to all these factors, the formic acid market is negatively impacted by COVID-19.

• Over the medium term, the major factors driving the growth of formic acid are the increasing demand for preservatives and feed additives and the increasing consumption of meat and poultry.
• On the flipside, regulations regarding the usage of formic acid and COVID-19 impact on formic acid are expected to hinder the market growth.
• 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

The simplest carboxylic acid is formic acid, systematically named methanoic acid, and has the chemical formula HCOOH. In chemical synthesis, it is an important intermediate and occurs naturally, most notably in some ants. Formic acid is produced industrially from methanol. The formic acid market is segmented by grade type, applications, and geography. By grade type, the market is segmented into 75%, 80%, 85%, 94%, and 99%. By application, the market is segmented into animal feed, leather tanning, textile dyeing, and finishing. 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 (kiloton) and value (USD million).

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Key Market Trends

Animal Feed has a Huge Market Potential

• Formic acid, as a commercial animal feed additive, is added to the animal diet for feed acidification.
• It is used as an animal feed additive for fisheries, cattle, poultry, etc. The growth of cattle and poultry is higher in countries, such as the United States, China, India, etc., and these are the countries where the demand for formic acid increased at a moderately high rate.
• Formic acid is also used as an antibacterial agent and preservative in livestock feed.
• Formic acid is sprayed on fresh hay, in order to delay or halt decay, thereby allowing the feed a longer survival period. This process is of particular importance in the preservation of winter cattle feed.
• In poultry farming, formic acid is applied to feed, in order to kill salmonella bacteria. These practices are widespread in Europe but are not as common in the United States due to the generally low commercial availability of formic acid.
• In addition, the use of formic acid on hay feed may reduce the total milk fat when given to milch cows.
• According to a survey by Alltech(animal nutrition, feed, and supplements company), the global animal feed production increased by 1% in 2020 to 1,187.7 million metric ton compared to 2019.
• These applications of formic acid are on the rise due to the increase in demand for animal feed. This trend is expected to contribute to the demand for formic acid over the forecast period.

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