The global formic acid market, by volume, is expected to be 708.15 kilotons in 2017. It is likely to reach 879.93 kilotons by 2023, at an estimated CAGR of 3.74%, over 2018-2023 (henceforth referred to as the forecast period).
Increasing Consumption of Meat and Poultry
Formic acid helps to preserve and acidify feeds. The acid has anti-microbial properties, which help reduce food-borne infections in poultry. It is generally mixed with propionic acid, in order to ensure microbiologically safe feed. In poultry, it is also added to the drinking water, in order to inhibit the growth of microorganisms and algae. The strongest bactericidal and bacteriostatic effects have been observed for formic acid. It is found to be effective against the most serious bacterial threats to poultry and pig productivity. This MIC (minimal inhibitory concentration) shows the efficiency of this acid in reducing the pH level, which, in turn, minimizes the growth of bacteria, algae, and fungus in the poultry and farms. An increase in the demand for meat worldwide, has led to the increase in demand for formic acid. The growth is highly influenced in Asia-Pacific and Western Europe by the consumption practices in the regions with respect to meat, broiler, and poultry. Thus, the increased consumption has lead to the rise in production of meat, which has further increased the demand for formic acid in order to decontaminate meat and other meat products, and for meat processing.
Animal Feed a Huge Market Potential
Formic acid, as a commercial animal feed additive, is added to animal diet for feed acidification. It is used as animal feed additive for fisheries, cattle, poultry, etc. 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 has increased at a moderately high rate. Formic acid also is 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, 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. 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.
Asia-Pacific Region to Dominate the Market
In 2017, Asia-Pacific region dominated the global market share. The region is expected to dominate the market during the forecast period owing to the demand for meat and poultry coupled with the demand from textile industry in the countries such as China and India. China is among the largest meat producers in the world. The top three categories include pork, chicken, and beef. Pork production in the country increased by 0.8% in 2017, to 53.4 million metric ton. Beef production also increased by 1.3% in 2017, to 7.26 million metric ton. Poultry output increased by 0.5%, to 18.97 million metric ton, while lamb production went up 1.8%, to 4.68 million metric ton. China currently has about 560 large and medium-sized tanneries. The leather tanning industry in the country shows signs of decline. The exports decreased by 8.2% in the first half of 2017. This downturn is likely to be due to the renewal process of laboriously adapting to the new environmental standards. The country’s textile market share in the global textile and clothing industry fell from 38.6%, in 2015, to 35.8%, in 2016. The downward trend is seen in major apparel importing regions such as the United States, European Union, and Japan. All the aforementioned factors, in turn, expected to increase the demand for formic acid in the region during the forecast period.
Key Developments
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March 2017: BASF and Balchem Corp. received the US FDA approval to launch Amasil formic acid in poultry diets, in the United States.
Major Players: BASF SE, Eastman Chemical Company, Perstorp, Luxi Chemical Group, and Feicheng Acid Chemical Co. Ltd, among others.
Formic Acid Market Report Summary
|
Metrics |
Details |
|
Industry |
Formic Acid Market |
|
Study Period |
(2016 – 2023) |
| CAGR | 3.74% |
|
Key Developments |
BASF and Balchem Corp. received the US FDA approval to launch Amasil formic acid in poultry diets, in the United States. |
|
Regions Covered |
Asia-Pacific, North America, South America, Europe, and Middle East & Africa |
|
Companies Covered |
Anhui Asahi Kasei Chemical, BASF SE, Beijing Chemical Industry Group, Gujarat Narmada Valley Fertilizers & Chemicals Limited, Luxi Chemical Group Co. LTD, and Perstorp, among others. |
|
Report Coverage |
Revenue forecast, market share analysis, and market dynamics |
Reasons to Purchase this Report
- Market analysis for the global formic acid market, with region-specific assessments and competition analysis on a global and regional scale
- Analyze various perspectives of the market with the help of Porter’s five forces analysis
- Identify the type and application expected to dominate the market
- Identify the country expected to witness the fastest growth rate during the forecast period
- Identify the latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet in excel
Customization of the Report
- This report can be customized to meet your requirements. Please connect with our analyst, who will ensure you get a report that suits your needs.
1. Introduction
1.1 Scope of the Report
1.2 Study Assumptions
1.3 Study Deliverables
1.4 Research Phases
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Price Analysis
3.3 Industry Attractiveness - Porter’s Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Buyers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products
3.2.5 Degree of Competition
4. Market Dynamics
4.1 Drivers
4.1.1 Growing Demand for Preservatives and Feed Additives
4.1.2 Increasing Consumption of Meat and Poultry
4.2 Restraints
4.2.1 Emerging Cost-effective Substitutes
4.2.2 Other Restraints
4.3 Opportunities
4.3.1 Organic Acid as a Substitute for Antibiotics in Animal Feed
4.3.2 Other Opportunities
5. Market Segmentation and Analysis (Market Size, Growth and Forecast)
5.1 By Grade Type
5.1.1 75%
5.1.2 80%
5.1.3 85%
5.1.4 94%
5.1.5 99%
5.2 By Application
5.2.1 Animal Feed
5.2.1.1 Silage Additive
5.2.1.2 Preservative
5.2.2 Leather Tanning
5.2.3 Textile Dyeing and Finishing
5.2.4 Intermediary in Pharmaceuticals
5.2.5 Others
6. Regional Market Analysis (Market Size, Growth and Forecast)
6.1 Asia-Pacific
6.1.1 China
6.1.2 India
6.1.3 Japan
6.1.4 South Korea
6.1.5 ASEAN Countries
6.1.6 Rest of APAC
6.2 North America
6.2.1 United States
6.2.2 Canada
6.2.3 Mexico
6.2.4 Rest of North America
6.3 Europe
6.3.1 Germany
6.3.2 United Kingdom
6.3.3 Italy
6.3.4 France
6.3.5 Rest of Europe
6.4 South America
6.4.1 Brazil
6.4.2 Argentina
6.4.3 Rest of South America
6.5 Middle East & Africa
6.5.1 Saudi Arabia
6.5.2 South Africa
6.5.3 Rest of Middle East & Africa
7. Policies and Regulations
8. Competitive Landscape
8.1 Mergers & Acquisitions, Joint Ventures Collaborations and Agreements
8.2 Market Share Analysis**
8.3 Strategies Adopted by Leading Players
9. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
9.1 Anhui Asahi Kasei Chemical
9.2 BASF SE
9.3 Beijing Chemical Industry Group
9.4 Feicheng Acid Chemical
9.5 Gujarat Narmada Valley Fertilizers & Chemicals Limited
9.6 Luxi Chemical Group Co. LTD
9.7 Perstorp
9.8 Polioli SpA
9.9 Rashtriya Chemicals and Fertilizers Limited
9.10 Shandong Baoyuan Chemical Co. Ltd
9.11 Shanxi Province Yuanping Chemicals Co. Ltd
9.12 Wuhan Rui Fuyang Chemical Co. Ltd
9.13 Eastman Chemical Company
10. Disclaimer
**Subject to Availability on Public Domain
