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The Formic Acid (HCOOH) Market size is estimated to increase by USD 485.04 million between 2022 and 2027. The market size is forecast to grow at a CAGR of 4.88%. The growth of the market depends on several factors such as the rising demand for formic acid as a preservative, the silage preservation and ban on antibiotics bolstering market demand, and the rising demand for natural rubber.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers 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. Its excellent preservation characteristics make this chemical an ideal silage preservative. Silage refers to green fodder or grass that is stored to be used as animal feed during winter months. The silage production shall be aimed at supporting the material with no or minimal loss of nutrients.
However, it is a common practice to use molasses to provide energy for the fermentation of lactic acid and to assist the silage-making process. However, the acid's addition to silage material will significantly influence the fermentation process. Few 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. The acid is used traditionally in end-user industries that include animal feed, leather, rubber, and textiles. However, recent applications have broadened the scope of the HCOOH market in focus. This is backed by new-age research and development activities to test the suitability across different fields.
This chemical is also finding its applications in hydrogen fuel cells. In order to maintain the required temperatures, the acid helps reduce greenhouse gas emissions, which are generally released due to methane used in hydrogen fuel cells. 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. Although formic acid has an extensive range of uses, its high cost has paved the way for cost-effective substitutes, which are threatening the growth of the market. Peptide and microflora enhancers are some of the emerging cost-effective alternatives to fampic acid.
However, potassium sorbate, sodium sorbate, and acetic acid also pose a considerable threat of substitution when used as a preservative. The existence of cost-effective substitutes will adversely affect the growth of the global market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BASF SE - The company offers formic acid in Europe under the Protectol FM brand.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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 offline segment is estimated to witness significant growth during the forecast period. When it comes to distribution via offline channels, the acid is available through chemical suppliers, distributors, or manufacturers who deal with industrial chemicals. This chemical is commonly supplied to various industries by companies specialized in the distribution of chemicals, such as agriculture, leather, and textile, that require the acid for their processes of production.
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The offline segment was the largest segment and was valued at USD 1,332.13 million in 2017. The offline distribution requires close coordination between manufacturers, wholesalers, retailers, and end-users to ensure the seamless supply of chemicals while adhering to safety standards and regulations. Increasing demand for phosphoric acid from end users and easy availability of phosphoric acid in offline stores will drive the growth of the segment and propel the growth of the global market during the forecast period.
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APAC is estimated to contribute 57% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is anticipated to grow at a fast pace during the forecast period, mainly owing to the increasing demand from rubber, agriculture, leather, and textile industries in China and India. Low initial capital and labor costs, along with the rapidly booming market in China, are expected to draw an increasing rate of investments from major players.
Moreover, APAC offers to be a lucrative market for both animal feed and leather industries. More projects are expected for the development of buildings and infrastructure in countries such as China and Japan. These developments will propel the demand for leather products, which, in turn, will lead to healthy prospects for the regional market in focus during the forecast period.
The Market experiences growth driven by industrialization and the manufacturing sector, particularly in the livestock, rubber, leather, and pharmaceutical industries. Global manufacturers offer various grades, including 85%, 94%, and 99%, catering to end-users like silage additives, textile dyeing, rubber chemicals, and pharmaceutical intermediates. This chemical, also known as methanoic acid, finds applications in agriculture, dairy, and livestock sectors for its antibacterial and preservative properties.
Environmental concerns drive interest in its production from carbon dioxide and biomass oxidation. However, health risks associated with its corrosive nature and stringent regulations pose restraints, despite growing applications across industries worldwide. Regional segmentation analysis highlights the significance of the Asia Pacific region due to rapid urbanization and rising disposable incomes.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Formic Acid Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.88% |
Market growth 2023-2027 |
USD 485.04 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.69 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 57% |
Key countries |
US, Canada, China, India, and Germany |
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 forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
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