Global Formic Acid Market Size Likely to Grow at a CAGR of 9.53% By 2033

As per the current market research conducted by the CMI Team, the global Formic Acid Market size is expected to record a CAGR of 9.53% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 2,310 Million. By 2033, the valuation is anticipated to reach USD 5,240 Million.

Formic Acid Market: Growth Factors and Dynamics

• Rising Demand from the Animal Feed Industry: Formic acid is widely utilized as a preservative and acidifier in animal feed to help prevent the formation of harmful microbes and bacteria. This is especially essential in the cattle business, where preserving feed quality and extending shelf life are critical. The rising global consumption of meat and protein, particularly in developing countries such as China and Brazil, is driving demand for high-quality animal feed, increasing the requirement for formic acid.

• Expansion of the Rubber Industry: Formic acid is used extensively in processing both natural and synthetic rubber. It is used to coagulate latex and in the final synthesis of numerous rubber types, specifically those used to make tires. With rising vehicle ownership and replacement tire demand, the rubber industry is expanding, increasing formic acid use.

• Increased Usage in Agriculture: Formic acid is used in agriculture as a silage preservative, which helps to preserve the nutritional value of livestock feed while also improving food safety. This is especially important in regions focused on high-value agricultural production and food security.

• Pharmaceutical and Chemical Industries: Formic acid is an important intermediary in producing several compounds and medications. It regulates pH levels in chemical reactions and acts as a catalyst in the manufacturing of certain chemicals. The continued development in these industries adds to the growing need for formic acid.

• Eco-Friendly Applications: Formic acid is known for its environmentally favourable characteristics. It is used for de-icing airport runways, providing a more environmentally friendly alternative to standard chemicals. This use is gaining popularity, particularly in regions with harsh winters.

Formic Acid Market: Partnership and Acquisitions

• In May 2023, Thermo Fisher Scientific announced a partnership with BRIN to improve research infrastructure and capabilities in Indonesia. The connection will include direct engagements between the two organisations, strengthening their partnership. Thermo Fisher will use its expertise and vast portfolio to assist BRIN in increasing its research competencies and capacity.

• In October 2022, PETRONAS Chemicals Group Berhad (PCG) announced that it had completed the acquisition of Perstorp Holding AB (Perstorp). The acquisition is part of PCG’s plan to increase its footprint in the specialty chemicals market. PCG aims to strengthen its position in Asia Pacific markets by preserving and growing Perstorp’s value, and leveraging its knowledge and staff. PCG also intends to support Perstorp’s expansion plans, including the introduction of Project Air, which aims to reduce carbon emissions through the manufacture of sustainable methanol.

• In June 2021, Incipio Group announced a strategic sustainability relationship with Eastman Chemical Company. This collaboration will allow Incipio Group to include recycled materials in its brand portfolio while also pursuing sustainable alternatives that preserve durability, clarity, and performance.

• In May 2022, The Nitto Group emphasizes ESG (Environment, Society, Governance) in its management, committing to carbon neutrality by May 2022. They focus on CO2 capture and storage technologies to reduce emissions. A key project involves producing carbon-negative formic acid from biomass-derived feedstock using CO2 and hydrogen. Nitto’s advanced catalyst enhances production efficiency and lowers costs. This formic acid, used in dairy farming silage, addresses social issues and generates economic value.

Report Scope

Formic Acid Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Formic Acid Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: Like many industries, the formic acid market faced supply chain disruptions during the pandemic. Restrictions on movement, reduced workforce availability, and logistical challenges affected the production and distribution of formic acid.

• Decreased Industrial Activity: Certain industries, such as leather processing and textile manufacturing, which use formic acid in their processes, experienced downturns during the pandemic due to reduced consumer demand and operational disruptions. This led to decreased demand for formic acid in these sectors.

• Impact on Export/Import: International trade was significantly affected by the pandemic, leading to fluctuations in the availability and pricing of raw materials required for formic acid production. This could have impacted the overall stability of the market.

• Increased Demand for Disinfectants: Formic acid is used in the production of disinfectants and sanitizers. During the pandemic, there was a surge in demand for these products, leading to increased demand for formic acid.

• Rising Demand in Pharmaceuticals: Formic acid is also used in pharmaceuticals, such as in the production of certain medications and treatments. The pandemic increased the need for pharmaceutical products, which likely boosted demand for formic acid in this sector.

• Growth in Animal Feed Preservation: Formic acid is used as a preservative in animal feed. With disruptions in supply chains and concerns about food security during the pandemic, there may have been increased usage of formic acid to preserve animal feed.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Formic Acid Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Formic Acid Market:

• BASF SE
• Celanese Corporation
• Chongqing Chuandong Chemical (Group) Co. Ltd.
• Eastman Chemical Company
• Feicheng Acid Chemicals Co. Ltd.
• Fleurchem Inc.
• Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC)
• Kemira Oyj
• LUXI Group Co. Ltd.
• Perstorp Holding AB
• Yara International ASA
• Perstorp
• Eastman Chemical Company
• Anhui Asahi Kasei Chemical
• Shandong Acid Technology Co.
• Others

The Formic Acid Market is segmented as follows:

By Grade Type

• Grade 85%
• Grade 94%
• Grade 99%
• Others

By Application

• Animal Feed
• Silage
• Leather tanning
• Textile dyeing

By End-Users

• Agriculture
• Pharmaceutical
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America