The global formic acid market reached a volume of 879.9 Kilo Tons in 2022. Looking forward, IMARC Group expects the market to reach 1,126.24 Kilo Tons by 2028, exhibiting a growth rate (CAGR) of 3.60% during 2023-2028. The expanding pharmaceutical and biotechnological industry, the increasing environmental regulations, the globalization of markets and increased international trade, continual advancements in formic acid production technologies, and ongoing research and development efforts are some of the major factors propelling the market.
Market Size in 2022
|879.9 Kilo Tons
Market Forecast in 2028
|1,126.24 Kilo Tons
|Market Growth Rate (2023-2028)
Formic acid is a simple, colorless, and pungent organic acid that plays a crucial role in various aspects of chemistry, biology, and industry. It is the smallest carboxylic acid. Formic acid is naturally occurring in the secretions of certain ants and has a wide range of applications. In industry, it is primarily used as a preservative and antibacterial agent in livestock feed, as well as in the production of various chemicals, including leather, textiles, and pharmaceuticals. It is also utilized as a coagulant in rubber manufacturing and serves as a powerful reducing agent in some chemical processes.
The expanding pharmaceutical and biotechnological industry are driving the global market. Moreover, the increasing environmental regulations aimed at reducing the use of hazardous and environmentally harmful chemicals can encourage the adoption of formic acid as a safer and more eco-friendly alternative in various applications. Advances in formic acid production technologies, including the use of renewable feedstocks and more energy-efficient processes, can lead to cost reductions and increased availability, further impelling the market growth. Additionally, ongoing research and development efforts are uncovering new and innovative applications for formic acid in areas, such as energy storage, catalysis, and as a green reducing agent. These emerging applications have the potential to drive future demand for formic acid. Wide utilization of formic acid in mining in processes, including ore leaching and metal extraction. As the mining industry continues to expand, especially in emerging markets, the demand for formic acid as a leaching agent may increase. Also, the globalization of markets and increased international trade can create opportunities for formic acid producers to access new markets and expand their customer base.
Formic Acid Market Trends/Drivers:
Increasing Demand for Preservatives and Antibacterial Agents in Food Industry
Formic acid, with its natural antibacterial properties, has found extensive use as a preservative and antibacterial agent in various food products, such as processed meats, bakery items, and beverages. Consumers are becoming more health-conscious and seeking products with extended shelf life, free from spoilage and harmful pathogens. As a result, food manufacturers are turning to formic acid as an effective solution to extend the freshness and safety of their products. Furthermore, formic acid is considered a safer alternative to synthetic preservatives, such as sodium benzoate or potassium sorbate, as it is naturally occurring in certain plants and animals. This shift towards natural and sustainable preservatives is expected to drive the formic acid market's growth in the coming years. As the global population continues to grow, there is a greater need for animal protein production.
Expanding Leather and Textile Industries
Formic acid is utilized in leather tanning, textile dyeing, and finishing processes. In leather tanning, it plays a crucial role in the preservation of animal hides and the removal of hair and epidermis, making them suitable for manufacturing leather products. In the textile sector, formic acid is employed in dyeing and printing operations, helping to fix dyes to fabrics and enhance color fastness. The growth of the fashion industry, coupled with increasing consumer preferences for leather and textile products, has resulted in higher demand for formic acid. Emerging economies, such as India and China, have witnessed a rise in their leather and textile industries, contributing significantly to the formic acid market's expansion. Moreover, stringent environmental regulations in these regions have prompted the adoption of eco-friendly and sustainable tanning and dyeing processes.
Expanding Applications in Chemical Industry
Formic acid is a versatile chemical that serves as a critical building block in the production of various chemicals and materials. It is used in the manufacturing of dyes, pharmaceuticals, leather, and textiles. Furthermore, formic acid's role as a reducing agent and catalyst in several chemical reactions has led to its increased utilization in organic synthesis. The chemical industry's constant need for cost-effective and sustainable raw materials makes formic acid an attractive choice. Its eco-friendly properties, such as being readily biodegradable, make it appealing to industries aiming to reduce their environmental footprint. As a result, the formic acid market is witnessing growth driven by its expanding role in chemical processes and the shift towards more sustainable manufacturing practices.
Formic Acid Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global formic acid market report, along with forecasts at the global, regional and country levels from 2023-2028. Our report has categorized the market based on type, application and end use.
Breakup by Type:
- Grade 85%
- Grade 94%
- Grade 99%
Grade 85% dominates the market
The report has provided a detailed breakup and analysis of the market based on the type. This includes grade 85%, grade 94%, and grade 99% and others. According to the report, grade 85% represented the largest segment.
In various industries, such as agriculture, formic acid at an 85% concentration is often employed as a preservative in animal feed, effectively inhibiting the growth of harmful microorganisms and prolonging the shelf life of the feed. Additionally, it finds extensive use in the production of leather and textiles, where it serves as a crucial agent in the tanning and dyeing processes, ensuring the quality and durability of the final products. It can be further diluted or used as a starting material for the production of other formic acid derivatives, making it a cost-efficient choice for various applications. Moreover, this grade is compatible with numerous chemical processes across different industries, contributing to its widespread adoption. The 85% grade of formic acid also finds utility in the pharmaceutical and chemical sectors, where it serves as a key ingredient in the synthesis of various organic compounds. Its stability and purity make it an ideal choice for research and manufacturing processes, leading to a consistent demand within these industries.
Breakup by Application:
- Animal Feed and Silage Additives
- Leather Tanning
- Textile Dying and Finishing
- Intermediary in Pharmaceuticals
Animal feed and silage additives dominate the market
The report has provided a detailed breakup and analysis of the market based on the application. This includes animal feed and silage additives, leather tanning, textile dying and finishing, intermediary in pharmaceuticals, and others. According to the report, animal feed and silage additives represented the largest segment.
Formic acid’s preservation capability not only extends the shelf life of the feed but also ensures that animals are consuming a safe and nutritionally balanced diet. As a result, livestock farmers can mitigate the risk of mycotoxin contamination, improve feed quality, and enhance the overall health and growth rates of their animals. Moreover, formic acid's significance extends to silage production in agriculture. Silage is a valuable feed source, especially for ruminant animals, such as cattle. Formic acid acts as a silage additive by reducing the pH level of ensiled forage, which creates an acidic environment that inhibits spoilage-causing microorganisms. This preservation effect is crucial in ensuring that silage remains nutritious and palatable for livestock consumption, particularly during the winter months when fresh forage is scarce. By maintaining the quality of silage, formic acid enables farmers to provide their animals with consistent and high-quality nutrition year-round, thus contributing to the well-being and productivity of their herds.
Breakup by End Use:
- Leather and Textile
- Chemical and Pharmaceutical
- Animal Feed
Agriculture dominates the market
The report has provided a detailed breakup and analysis of the market based on the end use. This includes agriculture, leather and textile, rubber, chemical and pharmaceutical, dyeing, animal feed and others. According to the report, agriculture represented the largest segment.
Formic acid plays a critical role in the preservation of silage, which is a valuable source of feed for ruminant livestock, such as cattle. Silage preservation with formic acid helps maintain forage quality and nutritional value, ensuring that livestock have access to nutritious feed even during seasons when fresh forage is limited. This aspect is particularly significant in regions with seasonal variations or where access to pasture is restricted, as it aids in maintaining consistent animal nutrition and, consequently, optimal livestock health and productivity. Furthermore, formic acid is employed in crop protection. It is used as a pesticide and herbicide to control pests and weeds in agriculture. Its effectiveness as a natural, biodegradable substance makes it a preferable choice for environmentally conscious farmers who seek alternatives to more harmful chemical pesticides. This aligns with the growing trend towards sustainable and eco-friendly agricultural practices.
Breakup by Region:
- North America
- South Korea
- United Kingdom
- Latin America
- Middle East and Africa
Asia Pacific exhibits a clear dominance, accounting for the largest formic acid market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.
The agricultural sector in Asia Pacific is substantial and diverse, making it a significant driver of formic acid demand. As many countries in the region have large populations and robust agricultural industries, there is a consistent need for high-quality animal feed and efficient silage preservation methods. Formic acid's role as a preservative, acidifier, and pesticide aligns perfectly with the agricultural practices of this region, thereby fueling its widespread usage. Furthermore, Asia Pacific is home to some of the world's largest and fastest-growing economies, including China and India. These countries, in particular, have witnessed rapid industrialization and urbanization, leading to increased demand for formic acid in various applications, such as the leather and textile industries, chemical manufacturing, and automotive sectors. Moreover, the presence of a well-established chemical industry infrastructure in several countries has enabled efficient formic acid production and export.
Numerous companies in the formic acid market invest significantly in research and development to improve production processes, enhance product quality, and discover new applications for formic acid. R&D efforts focus on developing more efficient and environmentally friendly production methods, as well as finding innovative ways to utilize formic acid in different industries. Formic acid manufacturers constantly work to optimize their production processes to increase efficiency, reduce costs, and minimize environmental impact. This includes upgrading facilities, adopting advanced technologies, and improving supply chain management. Companies often seek to expand their market reach by targeting new geographic regions or industries. This may involve establishing partnerships, distribution agreements, or opening new production facilities in areas with growing demand for formic acid. Companies also invest in market research to understand emerging trends, consumer preferences, and competitive landscapes. This information helps them make informed decisions about product development, marketing strategies, and pricing.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- BASF SE
- Chongqing Chuandong Chemical Group Co. Ltd.
- Eastman Chemical Company
- Gujarat Narmada Valley Fertilizers & Chemicals
- Luxi Group Co. Ltd.
- Perstorp Holding AB (PETRONAS Chemicals International B.V.)
- Shandong Acid Chemicals Co. Ltd.
- Thermo Fisher Scientific.
- In May 2023, Thermo Fisher Scientific announces partnership with BRIN to Strengthen Research Infrastructure and Capabilities in Indonesia. The collaboration will involve direct engagements between the two organizations and strengthen their partnership. Thermo Fisher will leverage its expertise and extensive portfolio to support BRIN in improving research competencies and capacities.
- In October 2022, PETRONAS Chemicals Group Berhad (PCG) today announced the completion of its acquisition of Perstorp Holding AB (Perstorp). This acquisition is part of PCG's strategy to expand its presence in the specialty chemicals industry. PCG plans to preserve and grow the value of Perstorp and leverage its expertise and workforce to strengthen its position in the Asia Pacific markets. PCG also aims to support Perstorp's growth projects, including the launch of Project Air, which aims to reduce carbon emissions through the production of sustainable methanol.
- In June 2021, Incipio group announces strategic sustainability partnership with Eastman chemical company. This partnership will enable Incipio Group to integrate recycled materials into its portfolio of brands and this also aims to find sustainable alternatives while maintaining durability, clarity, and performance.
Formic Acid Market Report Scope:
|Base Year of the Analysis
||US$ Billion, Kilo Tons
|Scope of the Report
||Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
- End Use
||Grade 85%, Grade 94%, And Grade 99%, Others
||Animal Feed and Silage Additives, Leather Tanning, Textile Dying and Finishing, Intermediary in Pharmaceuticals, Others
|End Uses Covered
||Agriculture, Leather and Textile, Rubber, Chemical and Pharmaceutical, Dyeing, Animal Feed, Others
||Asia Pacific, Europe, North America, Latin America, Middle East and Africa
||United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
||BASF SE, Chongqing Chuandong Chemical Group Co. Ltd., Eastman Chemical Company, Gujarat Narmada Valley Fertilizers & Chemicals, Luxi Group Co. Ltd., Perstorp Holding AB (PETRONAS Chemicals International B.V.), Shandong Acid Chemicals Co. Ltd., Thermo Fisher Scientific., etc.
||10% Free Customization
|Report Price and Purchase Option
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Key Benefits for Stakeholders:
- IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the formic acid market from 2017-2028.
- The research report provides the latest information on the market drivers, challenges, and opportunities in the global formic acid market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the formic acid industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.