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The formic acid market size is forecast to increase by USD 543.9 million and is estimated to grow at a CAGR of 5.2% between 2023 and 2028. The market's growth rate is driven by several key factors, including the increasing demand for formic acid as a preservative and its crucial role in silage preservation. The ban on antibiotics in livestock feed is further bolstering the demand for it as an alternative. Additionally, the rising demand for natural rubber, which utilizes it in its production process, is contributing significantly to market expansion. These factors collectively enhance the market's growth prospects, with it becoming an essential component across various industries seeking effective preservation methods and sustainable production practices. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
Formic acid is the simplest form of carboxylic acid. It is systemically referred to as methanoic acid. It plays an important role in chemical synthesis and acts as an intermediate. Formic acid occurs naturally, most famously associated with the venom of ant and bee stings.
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Formic acid, with the chemical formula HCOOH, is a colorless, pungent, and highly corrosive organic acid. It is the simplest carboxylic acid and is naturally found in the venom of ants. It plays a significant role in various industries, including agriculture and the dairy sector. In agriculture, it is used in the production of Methanol and Silage as an antibacterial agent. In the dairy sector, it is employed in the transfer hydrogenation process and formylation. It also finds applications in the fuel cells industry as a carbon source and in climate change mitigation by reducing carbon emissions from fossil fuels. The processed food and livestock sectors use it as a preservative and antibacterial agent. In the processed food market, it is used to preserve and enhance the flavor of certain foods. In the leather industry, formic acid is used as a preservative in leather tanning. The agriculture market and livestock sectors are the primary consumers of formic acid. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for formic acid as a preservative is driving growth in the market. Formic acid, a significant carboxylic acid, plays a pivotal role in various industries, including bee-keeping, silage additives, textile dyeing, rubber chemicals, pharmaceutical intermediates, leather and tanning, oil and gas, metallurgy, and the power application sector. In bee-keeping, it is utilized as a pesticide to control Varroa mites.
Moreover, in the market, it is employed as a silage additive to enhance the fermentation process of lactic acid, thereby reducing nutrient loss and ensuring optimal feed quality for dairy animals. In the pharmaceutical industry, formic acid serves as a crucial intermediate in the production of antibiotics and leather preservatives. The processed food market also utilizes it as a food additive, particularly in the production of meat and poultry products. In the leather industry, it is employed for transfer hydrogenation and formylation processes. Hence such factors will significantly contribute to the growth of the global market during the forecast period.
The new applications backed by innovations are a key trend in the market. Formic acid, a significant carboxylic acid, occupies a pivotal role in various industries, including bee-keeping, agriculture, food processing, and chemical manufacturing. The market is segmented based on grade type, with applications ranging from silage additives and textile dyeing to rubber chemicals, pharmaceutical intermediates, and leather and tanning. In the oil and gas industry, it is utilized in the hydrogen storage process and as a power application.
Moreover, in metallurgy, it serves as a crucial component in the production of Formica and other household cleaning products. Formic acid is also integral to the livestock sectors, particularly in the dairy and livestock industries, where it is employed as a feed additive and in the production of antibiotics and leather preservatives. In the processed food market, it is used as a preservative and in the fermentation process. Owing to the growing innovations and applications, the market in focus is expected to grow significantly during the forecast period
The presence of cost-effective substitutes is a major challenge faced by the market. Formic acid, a carboxylic acid naturally produced by bees in the honey production process, holds a significant market share in various industries. The global market is segmented into several applications, including silage additives, textile dyeing, rubber chemicals, pharmaceutical intermediates, leather and tanning, oil and gas, metallurgy, and power applications. In the agriculture sector, it is used as a livestock feed additive and in the production of livestock products.
Moreover, in the food industry, it is used as a preservative in processed food and household cleaning products. In the dairy industry, it is used in the formulation and transfer hydrogenation processes. In the pharmaceutical industry, formic acid is used as an intermediate in the production of antibiotics and leather preservatives. Despite its wide applications, the high cost of it has led to the emergence of cost-effective substitutes. Peptides and microflora enhancers are some of the emerging substitutes in the market. The existence of cost-effective substitutes will adversely affect the growth of the global market during the forecast period.
The offline segment is estimated to witness significant growth during the forecast period. Formic acid, a colorless, pungent-smelling organic compound, plays a significant role in various industries, including coatings, care chemicals, and Industrial Solutions. This chemical, derived from coal and salt, is utilized in Surface Technologies for the production of fluoro silicone and polycarbonate resins. In Materials science, it functions as a catalyst in the polymerization process of caprolactam, a key raw material for nylon production. Hydrogen peroxide, another industrial chemical, is employed in the environmentally safe production of it through an oxidation process, generating hydrogen gas and carbon dioxide as by-products.
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The offline segment was the largest segment and valued at USD 1.38 billion in 2018. Formic acid is also a crucial feedstock in the manufacturing of acetic acid, methanol, and other chemicals. In the Agricultural Solutions sector, formic acid is used as an antibacterial agent in the dairy industry to improve the shelf-life of milk and other dairy products. It is also employed in the Livestock industry as a feed additive to enhance animal health and productivity. In the Pharmaceuticals sector, formic acid serves as an essential intermediate in the synthesis of various drugs. Formic acid is increasingly being used in Finishing Textile processes due to its ability to improve the quality and durability of textiles. In the Energy sector, formic acid is used as a fuel cell feedstock, contributing to the reduction of greenhouse gas emissions and carbon emissions. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
Based on the end-user, the market has been segmented into agriculture and animal feed, leather, textile, chemicals and pharmaceuticals, and others. The agriculture and animal feed segment will account for the largest share of this segment. Formic acid, a crucial carboxylic acid, plays a significant role in various industries, including bee-keeping, agriculture, food processing, and chemical manufacturing. In bee-keeping, formic acid is utilized as a feed additive to enhance the health and productivity of dairy animals. In the agriculture market, it serves as a silage additive to preserve fodder for livestock. The grade type segment of formic acid is extensively used in diverse applications. In the textile dyeing industry, it functions as a mordant, enhancing the dyeing process's efficiency. In the rubber industry, formic acid is employed as a chemical intermediate for the production of rubber chemicals. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
APAC is estimated to contribute 59% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Formic acid, a colorless, pungent-smelling organic compound, plays a significant role in various industries, including coatings, care chemicals, and Industrial Solutions. This chemical, derived from coal and salt, is utilized in Surface Technologies for the production of fluoro silicone and polycarbonate resins. In Materials science, formic acid functions as a catalyst in the polymerization process of caprolactam, a key raw material for nylon production. Hydrogen peroxide, another industrial chemical, is employed in the environmentally safe production of formic acid through an oxidation process, generating hydrogen gas and carbon dioxide as by-products. Formic acid is also a crucial feedstock in the manufacturing of acetic acid, methanol, and other chemicals. In the Agricultural Solutions sector, formic acid is used as an antibacterial agent in the dairy industry to improve the shelf-life of milk and other dairy products. It is also employed in the Livestock industry as a feed additive to enhance animal health and productivity. In the Pharmaceuticals sector, formic acid serves as an essential intermediate in the synthesis of various drugs. Hence, such factors are driving the market in APAC during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
GNFC Ltd: The company offers a wide range of chemicals and petrochemicals, such as methanol, formic acid, nitric acid, and acetic acid.
The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
BASF SE, Eastman Chemical Co. Joshi Agrochem Pharma Pvt. Ltd., Kakdiya Chemicals, Kemira Oyj, Luxi Chemical Group Co. Ltd., Merck KGaA, MERU CHEM PVT. LTD., NuGenTec, PETRONAS Chemicals Group Berhad, Pon Pure Chemicals Group, ProChem Inc., RXChemicals, Shandong Acid Technology Co. Ltd., Shandong Jiuan Chemical Industry Co. Ltd., Shijiazhuang Taihe Chemical Co. Ltd., Thermo Fisher Scientific Inc., Tokyo Chemical Industry Co. Ltd., and Vizag Chemical International
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Formic acid, an organic compound, plays a significant role in various industries. This colorless, pungent liquid is primarily used as a preservative and antibacterial agent in the food industry. In the chemical industry, formic acid is employed in the production of methanol and acetic anhydride. The healthcare sector utilizes formic acid in the manufacturing of certain medications. The demand for formic acid is driven by its wide application base. The market for formic acid is expected to grow due to the increasing demand from end-use industries. The production technology for formic acid involves several steps, including the oxidation of methanol. The market for formic acid is anticipated to experience growth due to the rising demand from various sectors. The market dynamics for formic acid are influenced by several factors, including the price trend of raw materials and the availability of substitutes. The market for formic acid is expected to witness significant growth in the forecast period.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.2% |
Market growth 2024-2028 |
USD 543.9 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.85 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 59% |
Key countries |
China, US, India, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Eastman Chemical Co., GNFC Ltd., Joshi Agrochem Pharma Pvt. Ltd., Kakdiya Chemicals, Kemira Oyj, Luxi Chemical Group Co. Ltd., Merck KGaA, MERU CHEM PVT. LTD., NuGenTec, PETRONAS Chemicals Group Berhad, Pon Pure Chemicals Group, ProChem Inc., RXChemicals, Shandong Acid Technology Co. Ltd., Shandong Jiuan Chemical Industry Co. Ltd., Shijiazhuang Taihe Chemical Co. Ltd., Thermo Fisher Scientific Inc., Tokyo Chemical Industry Co. Ltd., and Vizag Chemical International |
Market dynamics |
Parent market analysis, market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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