Formic Acid Market

Formic Acid Market Outlook (2023-2033)

The global formic acid market is set to estimate a valuation of US$ 1.8 billion in 2023 and it is anticipated to grow at a CAGR of 4.6% to reach US$ 2.8 billion by the end of 2033.

The potential of formic acids to speed up the corrosion rate of different materials, their ability to transmit electricity, and their fungicidal and bactericidal capabilities have all caught the attention of manufacturers across a variety of industries.

Report Attributes	Details
Formic Acid Market Size (2022A)	US$ 1.7 Billion
Estimated Market Value (2023E)	US$ 1.8 Billion
Forecasted Market Value (2033F)	US$ 2.8 Billion
Global Market Growth Rate (2023-2033)	4.6%
Key Companies Profiled	Anhui Asahi Kasei Chemical Co. Ltd BASF SE Beijing Chemical Industry Group Co. Ltd Eastman Chemical Company Feicheng Acid Chemicals Co. Ltd GNFC Limited Luxi Chemical Group Co. Ltd Perstorp Polioli SpA Rashtriya Chemicals and Fertilizers Limited

Market Buoyancy Analysis

Formic acid is identified as the simplest carboxylic acid, held together by a single carbon atom, yet used in a heap of applications including its usage as an intermediary to produce other chemicals. Furthermore, formic acid is an efficient alternative to other organic and inorganic acids. This makes formic acid a suitable substitute for cleaning and de-scaling application and increases its consumption across a broad range of products.

Lower concentration and reduced cost increase the demand across several applications (leather processing, cleaning, etc.), and are anticipated to escalate the growth of the formic acid market in near future.

• Short Term (2023-2026): Burgeoning demand from the agriculture sector, feed industry, and processed food industries is driving the market for formic acid.
• Medium Term (2026-2029): Increasing livestock production to meet the growing demand and growing leather industry, especially in India and China will boost the demand for formic acid.
• Long Term (2029-2033): Use of green technology in the manufacture of formic acid and the growing pharmaceutical industry is predicted to drive the market in the long term.

Over the 2018-2022 historical period, the global formic acid market registered a CAGR of 2.5%, according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.6% CAGR between 2023 and 2033.

Market Dynamics Overview

“Growing Packaged Food Consumption to Assist the Market Growth”

Carboxylic acids are very commonly used in the food industry and formic acid is used for food preservation. E236 is an additive that is included on the labels of goods such as pickled fish, pickled fruits and vegetables, juices, jelly sweets, and purees. E236 is an acronym for formic acid.

HCOOH preservation makes food storage and transportation easier, especially for products that are perishables with short shelf lives.

Formic acid helps food resist the attacks of pathogenic fungi, molds, and bacteria and keeps it fresher for longer. HCOOH preservation makes food storage and transportation easier, especially for products that are perishables with short shelf lives.

Packaged food accounts for around 35% of total food consumed globally. This number is expected to increase in the coming years due to rising disposable income and changing lifestyles.

The growing food industry and rising demand for processed and ultra-processed food are expected to boost the demand for formic acid during the forecast period.

“Factors Affecting the Market Growth”

Formic acid has replaced many of its various alternatives, but the biggest challenge facing formic acid producers is producing the chemical in a more environmentally friendly way.

Depending on its concentration, formic acid can either be barely perceptible or extremely harmful. Due to this substance's extreme corrosiveness, it is crucial to exercise caution when working with it because it occasionally causes serious damage when inhaled, contacted directly, or ingested.

Formic acid can irritate the eyes, nose, throat, upper respiratory tract, and skin after short exposures. These frequently come with coughing, nasal discharge, and watering in the eye. Contact with concentrated liquids on the skin results in intense stinging and blistering.

Formic acid exposure over an extended period of time poses many health risks. It can lead to chronic kidney damage and skin allergies that manifest after repeated exposure. This is anticipated to hinder the market's progress.

Country-wise Insights

What is the Market Scenario for Formic Acid in US?

Formic acid is a suitable substitute for cleaning and de-scaling applications vis-à-vis other acids, such as acetic acid, citric acid, and other such chemicals. Moreover, increasing livestock production for sustainable food supply is anticipated to create lucrative opportunities for formic acid producers.

Formic acid has achieved very high use as both a pesticide and antibacterial preservative. Approval of the Environmental Protection Agency (EPA) for the use of formic acid as an active ingredient in pesticide production increased its consumption in the agriculture sector.

The United States formic acid market will expand at a CAGR of 5.0% over the projected period.

Why is China Dominating the Global Formic Acid Market?

China is one of the world's biggest producers of meat. The top three categories are beef, pork, and chicken. The National Bureau of Statistics of China estimates that 6.98 million metric tons of beef and veal were produced in China in 2021.

The rapidly expanding Chinese market, combined with lower labor and capital costs, is anticipated to attract significant investment from producers of formic acid.

Due to such favorable factors, China’s market for formic acid is expected to register a CAGR of 5.3% over the forecast.

Category-wise Insights

Why is the Demand for Formic Acid of 85% Concentration Increasing?

The formic acid market is dominated by the 85% grade segment with a market share of 43.2%. It has several applications and is widely used. Over the years, the adoption of formic acid has gained momentum in several applications such as agricultural, leather, textile, rubber manufacturing, chemical intermediates production, and pharmaceutical drugs.

Since formic acid is less dangerous to the environment and human life at low concentrations, there is a huge demand for it at 85% concentration. 85% formic acid content is regarded as the standard concentration for many applications.

Due to all of these factors, the demand for formic acid of 85% concentration is anticipated to grow at a CAGR of 4.9% over the forecast period.

Will the Market Be Driven by Bolstering Livestock Industry?

Formic acid is added as a commercial animal feed additive as a preservative in order to make the animal diet more acidic. It is utilized as an additive to animal feed for fisheries, livestock, and poultry. The rise of livestock and poultry is higher in developing economies. Fresh hay is sprinkled with formic acid to prevent or delay deterioration and extend the feed's shelf life.

Formic acid is sprinkled on fresh hay to prevent or delay the deterioration of fresh hay, thus extending its shelf life. The preservation of winter cow feed is a major consideration for this technique. Formic acid is added to the feed of poultry to kill salmonella species bacteria.

Owing to the above-mentioned facts and the ban on the use of antibiotics in animal feed in some countries will propel the market. The demand for formic acid as a silage and feed additive is expected to expand at a CAGR of 5.1% in the upcoming period.

Competitive Landscape

Prominent formic acid manufacturers are Anhui Asahi Kasei Chemical Co. Ltd, BASF SE, Beijing Chemical Industry Group Co. Ltd, Rashtriya Chemicals and Fertilizers Limited, and Shandong Baoyuan Chemical Co.

Green manufacturing is being embraced by manufacturers as a way to lower total operating costs through the use of energy-efficient methods that can significantly lower energy and electricity expenses. All end-user industries, including aerospace, automotive, building & construction, and others, have kept green production as a top priority.

Formic acid producers intend to relocate their operations to regions with inexpensive labor and raw materials. The competitive landscape would be improved by the increased emphasis on R&D initiatives and business expansion.

Fact.MR has provided detailed information about the price points of key manufacturers of formic acid positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Formic Acid Industry Research

• Formic Acid Market by Concentration :

  • 85%
  • 90%
  • 94%
  • 99%

• Formic Acid Market by Application :

  • Silage and Animal Feed
  • Leather Tanning
  • Textile Dyeing and Finishing
  • Pharmaceuticals/Food Chemicals
  • Rubber Products
  • Coatings
  • Others (Deicing Agents, Drilling Fluids, etc.)

• Formic Acid Market by Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA