Formic Acid Market Research Report- Forecast to 2027

Global Formic Acid Market: Information By Production Method (Oxalic Acid, Carbonylation of Methanol) and By Application (Rubber and Leather Production, Cleaning Agent, Finishing Textile, Preservatives, Dyeing, Animal Feed, Others) - Forecast till 2027

ID: MRFR/CnM/0626-CR | September 2018 | Region: Global | 109 pages

Please note that the assessment period of report has been updated from (2017-2027) to 2020-2027. Cordially fill the sample form for updated data.

Market Overview


According to MRFR, the Global Formic Acid Market is projected to exhibit a 4.94% CAGR and acquire more than USD 878.7 Million from 2017 to 2027 (forecast period). It is expected that the focus on crop production and farmers to satisfy the burgeoning demand for food will raise market volume over the forecast period.


COVID-19 Analysis


Since the outbreak of the COVID-19 virus in December 2019, the disease has proliferated to almost 100 nations around the globe, with the World Health Organization declaring it a public health emergency. The global impact of coronavirus disease 2019 (COVID-19) is already beginning to be felt and will have a significant impact on the Formic Acid market in 2020. COVID-19 will impact the global economy in three major ways: by actively influencing production and demand, by causing supply chains and industry disruptions, and by having a financial effect on businesses and financial markets. The pandemic has triggered a major slowdown in the production chain and stock market instability.


Market Dynamics


Drivers


Growing Applications and Superior Properties of Formic Acid to Fuel Market Growth


Due to the growing scope of use in various end-use industries, including leather, textiles, rubber, chemical, pharmaceutical and agricultural industries, the global formic acid market is projected to expand significantly over the forecast period. Global development over the expected period is estimated to raise demand for preservatives and antibacterial agents in cattle feed. Due to rising demand for tyres and consumer products in the Asia Pacific, the rubber and leather industry is projected to be the fastest-growing application market. In the above listed applications, superior antibacterial properties further drive the market of the industry. Rising health and safety issues, the banning of the use of antibiotics in agricultural feedstock and increased demand of poultry and beef products are likely to fuel the demand over the next seven years.


Opportunities


Growing Awareness of the Sustainabilty Factor of Formic Acid to Improve Application Scope


In the feed acidifier sector, including coatings and encapsulations, product diversification and implementation of advanced technology is poised to provide growth avenues over the next seven years. In addition, over the next seven years, environmental acceptability, high quality, and favourable legislation & regulations are expected to have a positive impact on the market scenario. Increased investment in the development of formic acid across the value chain from suppliers to end-use industries is expected to have a positive effect on market growth over the forecast period. 


Restraints


Adverse Effects of Formic Acid May Pose a Challenge for Market Growth


On the flip side, formic acid can have a more adverse effect than helping the user when used in a higher concentration. The high product density shows a dangerous level of toxicity that has corrosive effects and can have malicious health effects. This can impose economic barriers on the market. However as long as the detrimental effects can be managed with effective hands that could bring out the market from prolonged loss, the market can not be plateaued.


Segmental Analysis


By Production Method


By production method, the worldwide market for formic acid is segmented into oxalic acid and methanol carbonylation. Due to its high nutrient substitutes, the growing popularity of methanol carbonylation in animal feed applications is the reason behind it taking over 70 percent of the market. In years to come, a steady CAGR of 4.97 percent is expected to confirm its market superiority.


By Application


Rubber and leather production, finishing textiles, animal feed, dyeing, cleaning agents, preservatives, and others are major market applications. Increasing use of formic acid in poultry and prohibition of antibiotics has propelled growth in the animal feed industry for the substance, which can increase further with a CAGR of 5.29 percent in the coming years. During the forecast period, its current market preeminence will stay the same. In order to meet the rising demand from various end-user industries, manufacturing companies, associations, and end-product manufacturers invest significantly in advancement and technology modifications of formic acid. This is projected during the forecast period to propel the market.


Regional Analysis


Global Market's geographical overview has been conducted in four major regions, including the Asia Pacific, North America, Europe, and the rest of the world.


Favorable Government Regulations to Improve APAC Market Scope


The APAC is accumulating the maximum revenue with a market share of around 70 percent and can expect a CAGR of 5.97 percent to help the market sail through in the near future. Rapid industrialization and easy access to raw materials are the main reasons for Asia Pacific's higher market share. In the area, regulatory requirements are limited as well. This helps the demand for formic acid to grow at a fast rate. There are many countries in the region that are undergoing an economic boom and have a large population base that creates tremendous demand for animal feed additives, and government regulations are also supportive. At the same time, in countries such as India, China, South Korea, and Thailand, market purchasing potential is growing as well. In addition, a significant number of the chemical manufacturing industries in the area are projected to fuel demand growth in the forecast timeframe. 


EU's ban on antibiotics as growth promoters to Fuel Market Growth


The European market is in second position with a market share of 24.9 percent which could improve during the projected period with a CAGR of 5.31 percent. Across the European zone, the U.K. It reflects a favourable growth pattern and is predicted to have a healthy economy in the future. Business activity in this country has also begun to rise thanks to the good recovery of the economy in the UK. Demand for animal feed and the protection of silage is growing, in particular in Europe. The European Union's ban on antibiotics as growth promoters is the main driver for an increase in the use of formic acid in this application.


Growing Applications of Formic Acid in North American End-use Industries to Drive Market Growth


In the other hand, North America has begun to pick up momentum and 4.73 percent of CAGR is very remarkable in comparison to the current demand proliferation of formic acid. North America is pursuing this suit, too. The use of formic acid, which is commonly used in silage preservatives and animal feed to minimise the bacterial content, has given way to this. In addition, it tends to sustain the importance of nutrients for a prolonged period of time. Increased use of silage preservatives and animal feed in the North American agriculture industry in the coming years will safeguard a healthy formic acid supply.


Competitive Landscape


In order to satisfy the increasing demand for formic acid in various applications such as rubber, textiles, and dying, among others, industry players are concentrating on new product releases, product developments, acquisitions and joint ventures.


BASF SE is one of the biggest holders of capacity on the market for formic acid globally. As a deicing agent, the firm manufactures potassium formate, a biodegradable salt of formic acid, for use at airports. For deicing highways, cycle lanes, and sidewalks, Potassium Formate is often used. Because of this main improvement, companies in Europe and North America have seen growth in the selling of formic acid, particularly in the aviation applications. 



  • BASF SE (Germany)

  • Perstorp AB (Sweden)

  • Eastman Chemical Company (U.S.)

  • Gujarat Narmada Valley Fertilizers & Chemicals Limited (India)

  • Feicheng Acid Chemical (China)

  • Chongqing Chuandong Chemical (Group) Co., Ltd (China)

  • LUXI Group Co., Ltd (China)


Recent Development


November 2020: A strategy that transformed CO2 into formic acid was formulated by the Dutch student team RenewCO2 at TU/e. The greenhouse gas is turned into a CO2-neutral chemical using only energy and water.


September 2020: KAIST's metabolic engineering research group introduced a method solely for CO2 and formic acid to grow an E coli strain to greater cell density. Formic acid is a single carbon carboxylic acid which, using a number of techniques, can be readily derived from CO2. Since it is easier to store and transport than CO2, formic acid can be considered a good alternative to CO2 in liquid form, which uses CO2 and formic acid as sole carbon sources to expand up to 11 times greater cell density.


Report Overview


The report aims to analyse the global market's existing and future growth opportunities, untapped routes, forces driving its sales capacity, and production and usage habits by splitting them into region-wise evaluation. The research covers the current developments that impact the industry in order to include the most precise estimates and forecasts. Our analysts make exceedingly clever predictions about the reach of the industry and its potential outlook by correlating historical data with main market dynamics. A detailed review of the global demand for formic acid, segmented by production process, application and area, is included in the MRFR study. Trends and prospects, along with the market share of firms and their market value, are illustrated. It analyses potential sources of income for players and discusses the different tactics that players have adopted.


The study includes a detailed overview of the global demand for formic acid for the research scope.


By Production Method



  • Oxalic Acid

  • Carbonylation of Methanol


By Application



  • Rubber and Leather Production

  • Cleaning Agent

  • Finishing Textile

  • Preservatives

  • Dyeing

  • Animal Feed

  • Others



Frequently Asked Questions (FAQ) :


The valuation of the global formic acid market is projected to reach approximately USD 878.7 MN by 2027, growing at 4.94% CAGR during 2017 to 2027.

Growing population which promotes the global food demand.

Asia Pacific holds the largest share in the global formic acid market followed by Europe and North America, respectively.

BASF SE, Perstorp AB, Eastman Chemical Company, Gujarat Narmada Valley Fertilizers& Chemicals Limited, Feicheng Acid Chemical, Chongqing Chuandong Chemical (Group) Co.Ltd., and LUXI Group Co., Ltd., are some of the major players operating in the global formic acid market.

Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global formic acid market adopt to gain a larger competitive advantage.

Formic Acid Market – Summary


Transforming lifestyle has given rise to the necessity of protecting livestock feed, enhancing its nutritional value and increasing its shelf life. The simplest of carboxylic acid, formic acid is an essential median in a chemical synthesis which can be obtained from ants or bees. The colorless element has a slightly pungent odor and is perfect for the feedstock industry, and its industrial production requires methanol. The global formic acid market is about to experience a steady growth where it can climb up to a market valuation of USD 878.7 million during the forecast period (2017-2027). Market Research Future’s (MRFR) report on the same market takes an intensive approach and covers all quarters to deliver a comprehensive analysis ensuring a near-perfect prediction fort he market.


Keeping livestock feed reserve for the winter season is essential to retain the same level of production standard. Antibiotics’ use as a growth promoter has been restricted by stringent government stipulations. Europe banned in 2006 the use of several antibiotics as growth promoters in animal feedstock. North America is also following the suit. This has given way to the use of formic acid which is extensively used in silage preservatives and animal feed to reduce bacterial content. Furthermore, it assists in maintaining the nutritional value for a longer span of time. Increasing use of silage preservatives and animal feed in the agriculture industry is safeguarding a robust market for formic acid in coming years.


The market is also gaining substantial traction from the rubber industry where its use as coagulating latex is increasing. Formic acid is a cost-efficient and environment-friendly substance, much-needed advantages to stay ahead of the rest in the industry. The sector is further getting recognition from the automotive industry. The burgeoning automotive industry is ensuring prosperous years ahead for the global market.


On the flip side, if it used in a higher concentration, formic acid can adversely affect more than assisting the user. The high density of the product shows hazardous level of toxicity which has corrosive impacts and can have mal-effects on health. This can enforce economic obstruction on the market. But, the market cannot be plateaued for as long as the detrimental effects can be handled with efficient hands which could bring out the market from prolonged loss.


Segmentation:


Production-based analysis of the market includes carbonylation of methanol and oxalic acid. The growing popularity of carbonylation of methanol in animal feed applications due to its high nutrient substitutes is the reason behind it taking over 70% of the market. A steady CAGR of 4.97% is expected to confirm its market superiority in coming years.


Application-wise the market can be segmented into animal feed, rubber and leather, finishing textile, dyeing, cleaning agents, and others. Increasing use of formic acid in poultries and ban of antibiotics has propelled growth for the substance in animal feed industry which can rise further in coming years with a CAGR of 5.29%. Its current market preeminence is going to remain the same during the forecast period.


Regional Analysis:


A detailed analysis of the global market reveals chiefly four segments in which the sector can be studied. The regions are namely Asia Pacific, Europe, North America, Latin America, and the Middle East & Africa (MEA).  


With a market share of around 70%, the APAC is fetching the maximum revenue and can expect a CAGR of 5.97% to assist the market sail through in the near future. The region has several countries that are witnessing an economic boom and have a huge population base which is generating significant demand for the animal feed additives, and government regulations are also supportive. At the same time, consumer buying capacity is also increasing in countries such as India, China, South Korea, and Thailand. The European market is in the second spot with a 24.9% market share and can rise with a CAGR of 5.31% during the forecast period. North America, on the other hand, has started picking up the pace and 4.73% CAGR is quite impressive in relation to formic acid’s present market proliferation.


Competitive Market Analysis:


BASF SE, Feicheng Acid Chemical, LUXI Group Co. Ltd, Perstorp Holding A.B, and Eastman Chemical Company collectively hold the majority share of the formic acid market. The market players are focused on new product launches, product innovations, acquisitions, and joint ventures, to meet the growing demand for formic acid in various applications such as rubber, textile, and dying among others.


For instance, in September 2014, Eastman Chemical Company entered into a definitive agreement to acquire Taminco Corporation, a leading specialty chemical company in a USD 2.8 billion transaction. SynaTek is now manufacturing a deicing and anti-icing fluid based on potassium formate, a salt of BASF’s formic acid that is marketed under ‘SynaTek’s Entry and can be considered exemplary. BASF opened a new formic acid production plant in Geismar, Louisiana with annual capacity of 50,000 tons to increase their hold over North and South America market. Perstorp is a producer of raw materials, glycerol, and valeric acid, and is the world leader in the organic acid production.


The prominent players in the global formic acid market are BASF SE (Germany), Perstorp AB (Sweden), Eastman Chemical Company (US), Gujarat Narmada Valley Fertilizers & Chemicals Limited (India), Feicheng Acid Chemical (China), Chongqing Chuandong Chemical (Group) Co., Ltd (China), LUXI Group Co., Ltd (China), and others.

Global Formic Acid Market: Competitive Landscape


The prominent players in the global formic acid market are BASF SE (Germany), Perstorp AB (Sweden), Eastman Chemical Company (U.S.), Gujarat Narmada Valley Fertilizers & Chemicals Limited (India), Feicheng Acid Chemical (China), Chongqing Chuandong Chemical (Group) Co., Ltd (China), and LUXI Group Co., Ltd (China).


BASF SE, Feicheng Acid Chemical, LUXI Group Co. Ltd, Perstorp Holding A.B, and Eastman Chemical Company collectively hold the majority share of the formic acid market. The market players are focused on new product launches, product innovations, acquisitions, and joint ventures, to meet the growing demand for formic acid in various applications such as rubber, textile, and dying among others.


BASF SE is one of the largest capacity holders in the global formic acid market. The company supplies potassium formate, a biodegradable salt of formic acid as a deicing agent for use at airports. Potassium Formate is also used to deice roads, bikeways, and sidewalks. Due to this key development, companies in Europe and North America have witnessed growth in the sale of formic acid, especially in airways application. Further, in June 2017, SynaTek, one of the largest manufacturers of ice melt products in the US, developed a deicing and anti-icing fluid based on potassium formate, a salt of BASF’s formic acid that is marketed under ‘SynaTek’s Entry’.


Perstorp AB was established in 1881. Its headquarter is located in Malmom and the company operates in three business segments, namely, Specialties & Solutions, Advanced Chemicals & Derivatives and Bio-Products. The group launched new feed materials in the poultry segment with the brand name PropPhorce Valerins. These are based on glycerol esters of valeric acid to boost the animal performance. In order to increase the efficiency and performance of antibiotics, the company launched products which took place at the European Symposium on Poultry Nutrition (ESPN) in Spain. Perstorp is also a producer of raw materials, glycerol, and valeric acid. Overall, there are only two producers of valeric acid in the world. Perstorp being the world leader in organic acid producer found the global need for the use of antibiotics in animal feedstock as it fuels the performance.


Eastman Chemical Company, established in 1920, is a globally renowned chemical manufacturer, that operates through four business segments, namely, Additives & Functional Products, Advanced Materials, Chemical Intermediates, and Fibers. To strengthen the profile over the market, it leads the development approach in acquisitions. In September 2014, Eastman Chemical Company entered into a definitive agreement to acquire Taminco Corporation, a leading specialty chemical company in a USD 2.8 billion transaction. The key products produced in this facility include formic acid and derivatives and formamide. This acquisition was in line with the company’s strategy to strengthen its presence in the niche market segments such as food, feed, and agriculture.


Feicheng Acid Chemical established in 1994 and headquartered in Mountain Tai, (Mainland) China, is among the top 500 chemical industries that have established research station of national class and provincial new product exploitation center. The company produces mainly formic acid, methylamine, and methanol. With the brand, Chung Wang, the product of formic acid has been awarded as Shandong Famous Brand and High-Tech Quality Product.