by The Formic Acid Market is estimated to be valued at US$ 1.76 Bn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Formic acid is a colorless liquid with a pungent, acidic odor. It is corrosive and is used in various applications such as animal feed, leather tanning, textile dyeing, ph adjustment, silicone rubber gels and preservatives. It has become an important ingredient in silage treatment. It plays an important role as an antimicrobial agent, preservative and acidulant in silage processes. It has applications in leather tanning industry and is used for pickling and tanning of leather.
Market Dynamics:
The increasing use of formic acid in agriculture and silage treatment is one of the major drivers fostering the growth of formic acid market. Formic acid is an effective preservative and antimicrobial agent used for silage treatment and promotes conversion of forages into high quality animal feed. Rising demand for animal protein and meat has propelled the use of formic acid in silage production. Further, growing leather industry has also augmented the consumption of formic acid. However, the high corrosiveness and toxic nature of formic acid hinders its widespread adoption. Stringent regulatory framework pertaining to the hazardous nature also acts as a barrier to the growth of formic acid market. Nonetheless, the potential of formic acid as an eco-friendly insecticide is anticipated to create new opportunities over the forecast period.
Segment Analysis
The formic acid market can be segmented into Grade and application. Based on grade, the market is divided into 85% concentration and above and below 85% concentration. The 85% concentration and above segment dominates the market as it is preferred for end-uses such as preservatives, animal feed, food additives, construction, textile industries among others due to its higher purity.
PEST Analysis
Political: The formic acid market is influenced by stringent government regulations regarding hazardous chemicals. Economic: The rising demand from end-use industries such as construction, food preservatives, chemicals etc. is driving the growth of the market. Social: Increasing health concerns related to preservatives used in food products is augmenting demand for natural preservatives like formic acid. Technological: Advancements in production technologies have improved purity levels and yields of formic acid.
Key Takeaways
The Global Formic Acid Market Growth is expected to witness high, exhibiting a CAGR of 4.9% over the forecast period, due to increasing demand from preservatives and animal feed applications. Regionally, Asia Pacific dominated the market in 2023 with a share of over 35%, driven by large production facilities and demand from countries like China, India.
The regional analysis of the Formic Acid market indicated that Asia Pacific dominated the market in 2023 with a share of over 35% owing to significant production bases in China and India. China especially is a major consumer and producer with a large number of manufacturers. Europe and North America are other major regions for Formic Acid, driven by demand for Rubber chemicals, Construction, and food preservatives in countries like U.S., Germany, and France.
Key players operating in the Formic Acid market are BASF SE, Eastman Chemical Company, Shandong Acid Technology Co. Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Limited, LUXI GROUP, Perstorp Holdings ABPOLIOLI SpA, PT Pupuk Kujang, Rashtriya Chemicals and Fertilizers Limited, and Wuhan Ruisunny Chemical Co. Ltd. Major players are focusing on regional expansion and strategic partnerships to gain market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
