Chemical Makers Have Their Eyes On Investments and Expansions in the Formic Acid Industry
The latest study by Fact.MR foretells the global formic acid market to record an expansion rate of around 5%. The increasing demand for formic acid in food processing and pharmaceutical industries are essential factors expected to boost the development of the worldwide market for formic acid.
In addition, the use of formic acid, in leather tanning, rubber manufacturing, and food preservatives will also boost the growth of the market for formic acid over the forecast period. For example, formic acid is used as coagulant.
Formic acid is used extensively as a catalyst in the manufacturing of different chemicals. Formic acid is an environment-friendly de-icing agent that is widely used to make the airport runway permanently ice-free. China and India lead the formic acid market among all countries in the region, with the largest share of global volumetric consumption in 2019
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Animal Feed Additives and Silage Preservatives Are Anticipated to Increase the Global Demand for Formic Acid
Due to its biodegradable properties, the demand for formic acid & formate salts in different regions is increasing in an array of applications. Animal feed and silage preservation in the agricultural sector, leather and textile industry are the largest consumers of formic acid due to its anti-bacterial nature and highly acidic properties.
Formic acid is used for coagulating latex in the production of natural rubber, as an important chemical block, in regulating the pH value of chemical processes, and in pharmaceuticals, dyes, and perfume industries.
Imposed regulations on the proper use of formic acid is expected to slow the market growth. These are intended to safeguard natural resources against future adverse effects on the environment. While formic acid has taken the place of many of its alternatives in the marketplace, the biggest challenge facing the vendors is greener chemical processing.
In the modus operandi, though, there will soon be a change with new nanotechnology, which uses atmospheric carbon to generate chemicals like formic acid. Another problem is that the formic acid manufacturing process uses steam that may come from a renewable source to reduce non-renewable resource usage.
While the vendors are slowly overcoming these technical challenges, there are no concrete barriers that diminish the size of the formic acid market.
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APAC Leads with More Than 50% of the Market Share in the Global Formic Acid Market
APAC is expected to dominate the global formic acid market over the forecast period mainly due to the high growth potential of China and India's agricultural sector and growing demand of applications in leather and textiles. Furthermore, a vast number of the chemical manufacturing industries in this region are expected to augment the growth of the market in the forecast period.
APAC is followed closely by Europe. In the entire European region, U.K. shows a positive growth trend and is gradually expected to have a strong economy in the future. Due to the strong recovery of the economy in U.K, business investments in this country have also started increasing.
The demand for animal feed and silage preservation is increasing, especially in Europe. The ban of antibiotics as growth promoters by the European Union is the key driver for the increasing consumption of formic acid in this application. As per industry standards, formic acid of 85% concentration is widely used in most of the industrial applications due to low toxicity levels which make it less hazardous to health.
Imposed regulations on the proper use of formic acid is expected to slow market growth. These are intended to safeguard natural resources against future adverse effects of formic acid on the environment. While formic acid has taken the place of many of its alternatives in the marketplace, the biggest challenge faced by vendors is greener chemical processing.
In the modus operandi, though, there will soon be a change with new nanotechnology, which uses atmospheric carbon to generate chemicals like formic acid.
Another problem is that the formic acid manufacturing process uses steam that may come from a renewable source to reduce non-renewable resource usage. While the vendors are slowly overcoming these technical challenges, there are no concrete barriers that diminish the size of the formic acid market.
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Improving Production Capacity to Act as a Growth Lever
The global formic acid market is moderately consolidated with a few chemical industry giants capturing a large part of the market share. BASF SE and Feicheng Acid Chemical are the two major players within the global formic acid market accounting for over 40% of the market share.
Other prominent producers include Shandong Liaocheng Luxi Chemical and Taminco. Foremost strategies for expanding the formic acid industry are product launches, mergers & acquisitions, and contracts & collaborations. These strategies would deliver effective goods and high-performance goods, supporting market laws and, lastly, better client satisfaction.
Manufacturers of formic acid are planning to move their companies to locations offering cheap raw materials and labor. The growing emphasis on R&D activities and business expansion would improve the competitive environment between manufacturers of formic acid.
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Global Formic Acid Market: In-Depth Assessment on Key Segments
The global formic acid market is segmented on the basis of concentration, application, and region.
Country-specific assessment on demand for formic acid has been provided for each regional market, along with the market size valuation and forecast price point assessment, price index and impact analysis of key regional and country-wise dynamics, which were obtained through quotes from numerous formic acid manufacturers, experts, and suppliers.
Y-o-Y growth projections have also been offered on all regional markets incorporated in the report. Moreover, future trends, growth prospects, and other possibilities related to the market have been answered in the report.
Global Formic Acid Market – Scope of the Report
The following report provides forecast and analysis of the global formic acid market along with the historical data of 2013, estimated data 2019 and forecast data up to 2027 in terms of revenue (US$ Mn) and volume (Tons), according to a Fact.MR study.
The research propounds critical trends that are currently influencing growth within the global formic acid market along with several macro-economic indicators. This newly published and insightful report on formic acid sheds light on key dynamics, and their impact on the overall value chain from suppliers to end-users, which is expected to transform the future of the global formic acid market.
The report also comprises the study of current issues with end users and opportunities for formic acid. It also contains value chain analysis, including the key market participants.
To provide users of this report with a comprehensive view of the market, we have included a detailed competitive analysis about the key players involved in the market and strategic overviews.
The dashboard included in the report provides a detailed comparison of formic acid manufacturers on parameters such as total revenue, product offerings, and key strategies. A list of key companies operating in the formic acid market provided in the report adds to the credibility of this exhaustive research study.
The report provides company-level market share analysis, which has been derived on the basis of the company’s annual sales and segmental revenue in all the target end-use industries. The market has been forecasted based on constant currency rates.
The report provides detailed competitive and company profiles of key participants operating in the global market. Some of the major competitors operating in the formic acid market are BASF SE, Feicheng Acid Chemical, Shandong Liaocheng Luxi Chemical, Taminco, Perstorp and others
Global Formic Acid Market: Research Methodology
A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, Morningstar and Hoovers, and company annual reports and publications. Comprehensive interviews have been conducted by our analysts, and the intelligence and insights obtained have been used for validating the information gained through secondary research.
The report also includes a description of assumptions and acronyms utilized for research purposes. Data gathered has been validated using the triangulation method to offer useful quantitative and qualitative insights into the formic acid market.
A short market viewpoint offered in the report elucidates the macro-economic aspects that influence the growth of the formic acid market, which includes global GDP growth rate, various industries growth rate, such as leather and textile, coatings, pharmaceuticals and others.
This report serves as an authentic resource of intelligence on the formic acid market, enabling the readers to take fact-based decisions on the future direction of their businesses.
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Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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