Formic Acid Market Research Report- Forecast to 2030

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 2030

ID: MRFR/CnM/0626-CR | February 2021 | Region: Global | 109 Pages         

Formic Acid Market

By 2027 (forecast period), the Formic Acid Market share is expected to increase by 4.94% CAGR and surpass the formic acid market value of USD 878.7 Million in volume.

Segmentation

By Production Method Oxalic Acid Carbonylation of Methanol
By Application Rubber Leather Production Cleaning Agent Finishing Textile Preservatives Dyeing Animal Feed Others

Key Players

  • 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)

Drivers

  • Applications
  • Properties of formic acid to drive market growth
Speak to Analyst Request a Free Sample

Formic Acid Market Overview


By 2027 (forecast period), the Formic Acid Market share is expected to increase by 4.94% CAGR and surpass the formic acid market value of USD 878.7 Million in volume. The market volume for the forecast period is expected to increase because farmers are focusing on crop production to meet the burgeoning demand for food.


COVID-19 Analysis


In the weeks following the December 2019 outbreak of COVID-19, nearly 100 countries have contracted the disease, which the WHO has declared a public health emergency. A significant impact of Coronavirus disease 2019 (COVID-19) is already being felt around the globe and will be felt in 2020 on the Formic Acid market. The COVID-19 will have a threefold impact on the global economy: it will influence production and demand, it will disrupt supply chains and industries, and it will affect businesses and the financial markets. Stock markets have been unstable and production chains have slowed down significantly as a result of the pandemic.


Competitive Landscape


To meet the rising demand for formic acid in various applications such as rubber, textiles, and dyeing, among others, industry players are developing new products, making acquisitions, and forming joint ventures.


BASF SE holds a large amount of capacity for formic acid on the global market. This company manufactures potassium formate, a biodegradable salt of formic acid, for use at airports as a deicing agent. Potassium Formate is commonly used for deicing highways, cycle lanes, and sidewalks. The main reason for the growth in sales of formic acid in Europe and North America is because of this improvement.



  • 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)


Market Dynamics


Drivers


Applications and properties of formic acid to drive market growth


Over the forecast period, the global formic acid market is projected to grow significantly due to its expanding scope of use in various end-use industries, such as leather, textiles, rubber, chemical, pharmaceutical, and agricultural ones. It is estimated that global development will drive an increase in the demand for antibacterials and preservatives in cattle feed over the forecast period. Rubber and leather are projected to be the fastest-growing application markets in the Asia Pacific due to the increasing demand for tires and consumer products. The antibacterial properties present in the above-mentioned applications further drive the market of this industry. Several factors are likely to drive the demand over the next seven years, including heightened health and safety concerns, the cessation of antibiotic use in feedstock, and an increase in poultry and beef consumption.


Opportunities


Enhancing the Application Potential of Formic Acid by Increasing Awareness of its Sustainability Factor


Feed acidifiers, including coatings and encapsulations, are positioned to grow as a sector over the next seven years through product diversification and advanced technology. Environmental acceptability, high quality, and favorable legislation & regulations will also positively impact the market over the next seven years. Formic acid is expected to grow at a positive rate over the forecast period due to increased investment across the value chain from suppliers to end-user industries.


Restraints


Market Growth May Be Challenged by the Adverse Effects of Formic Acid


The use of formic acid at a higher concentration, however, can have a detrimental effect rather than a beneficial effect on the user. There is a high concentration of toxic material in this high-density product, which has corrosive effects and can be harmful to health. This may limit its marketability. The market cannot plateau, however, as long as the adverse effects can be mitigated in a way that could bring the market back from a prolonged loss.


Technology Analysis


Feed acidifiers, including coatings and encapsulations, are expected to grow over the next seven years as product diversification and technological advances are implemented.


Market Segmentation


By Production Method


Formic acid is segmented globally by production method into oxalic acid and methanol carbonylation. In part, methanol carbonylation's popularity among animal feed applications is due to its high nutritional value. It is expected that its market supremacy will be confirmed by a steady CAGR of 4.97 percent.


By application,


Some applications of rubber and leather include rubber and leather production, textile finishing, animal feed, dyeing, cleaning agents, and preservatives. In conjunction with the prohibition of antibiotics, poultry producers are using increasing amounts of formic acid in their feed, driving growth in the industry, which is predicted to increase even further with a CAGR of 5.29 percent. During this time, we can expect the market to remain dominant.


Various end-user industries and associations are investing heavily in the development and advancement of formic acid technology. The market is expected to benefit from this growth in the coming years.


Regional Analysis


We have analyzed the global market from four major perspectives, including Asia Pacific, North America, Europe, and the rest of the world.


An Improved Regulatory Environment for the APAC Market


The APAC region has the highest revenue share with almost 70 percent, and its growth rate is expected to reach 5.97 percent in the future. Asia Pacific's higher market share is mainly due to rapid industrialization and easy access to raw materials. Regulations in the region are also relatively lax. Formic acid's popularity is on the rise as a result. As the region undergoes an economic boom and has a large population, animal feed additives are in high demand, and government regulations support it. Market purchasing potential is also growing in countries such as India, China, South Korea, and Thailand. Additionally, there are numerous chemical manufacturing industries in the area which are expected to fuel demand growth during the forecast period.


European Union Ban on Antibiotics Fuels Market Growth


Europe ranks second with a share of 24.9% and is projected to grow at a rate of 5.31 percent during the projected period. It is predicted that the UK will continue to have a healthy economy in the coming years as it reflects a favorable growth pattern in the European zone. The recovery in the economy of the UK has also boosted business activity in this country. In particular, in Europe, there is an increasing demand for animal feeds and silage protection. A major reason for the increase in the EU's ban on antibiotics as growth promoters.


Formic Acid Market Growth Is Being Driven by Growing Applications in North American End-Use Industries


As compared to today's growing demand for formic acid, the 4.73 percent CAGR seen in North America is very significant. This suit is also being pursued in North America. This has replaced the use of formic acid, which was commonly used to prevent bacteria from growing in silage and animal feed. Furthermore, it tends to retain its nutritional value for an extended period.


In the coming years, the North American agriculture industry will use silage preservatives and animal feed to ensure a steady supply of formic acid.


Recent Developments


May 2021 - A researchers’ team headed by Forschungszentrum Jülich (Germany) joined hands with a scientists’ group from the National Center for Atmospheric Research (NCAR) to carry out a study to decipher the dominant mechanism within the development of formic acid in the atmosphere. This study will allow the scientists to further assess the atmospheric models and bolster their understanding of the climate and the weather.
In this study, researchers reviewed the chemical processes that result in majority of the atmospheric formic acid. The team confirmed their assessment via computer models as well as observations.

November 2020
: A Dutch student team named RenewCO2 at TU/e formed the transformational strategy that converted CO2 into formic acid. Only energy and water are used to convert the Greenhouse gases into CO2 neutral.


September 2020: The procedure to grow an E Coli strain from CO2 and formic acid at a higher cell density was introduced by KAIST’s metabolic engineering research group. CO2 can be quickly obtained from CO2 using several techniques of the formic acid which is a carboxylic acid. Formic acid acts as a useful substitute for liquid CO2 because it is easy to carry and store. Formic acid utilizes CO2 as an individual carbon source to extend a high cell density more than 11 times.


A formic acid enterprise in Kemira is being acquired by Taminco at $190 million.


Taminco signed a $190 million contract to acquire the formic acid enterprise in Kemira.   The company Allentown, Taminco, which is a company of Pa. according to the paragraph, acquired a Finnish company with a retail value of $190 million and plans to use the facility to produce alkylamines.  Taminco CEO Laurent Lenoir said that formic acid and its compounds have already been sold to industries like animal feed, water processing, and energy.  Kemira says that sales will only rely on water purifiers.  Kemira believes sales will increase.


Report Overview


The report plans to dissect the worldwide market's current and future development openings, undiscovered courses, powers driving its business limit, and creation and utilization propensities by parting them into locale savvy assessment. The exploration covers the current improvements that sway the business to incorporate the most exact gauges and estimates. Our experts make incredibly smart expectations about the scope of the business and its possible standpoint by corresponding authentic information with primary market elements. A point-by-point survey of the worldwide interest for formic acid, fragmented by the creation cycle, application, and region, is remembered for the MRFR study. Patterns and prospects, alongside the piece of the pie of firms and their fairly estimated worth, are shown. It investigates possible kinds of revenue for players and talks about the various strategies that players have taken on.


The review incorporates a nitty-gritty outline of the worldwide interest for formic acid for the exploration scope.



Report Scope:

Report Attribute/Metric Details
  Market Size

  • 2027: USD 878.7 Million
  • 2030: Significant Value
  •   CAGR   4.94% (2022-2030)
      Base Year   2021
      Forecast Period   2022-2030
      Historical Data   2019 & 2020
      Forecast Units   Value (USD Million)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   Production Method, Application
      Geographies Covered   Asia Pacific, North America, Europe, and the rest of the world.
      Key Vendors   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)
      Key Market Opportunities   Growing Awareness of the Sustainabilty Factor of Formic Acid to Improve Application Scope
      Key Market Drivers   Growing Applications and Superior Properties of Formic Acid to Fuel Market Growth


    Speak to Analyst Ask for Customization

    Frequently Asked Questions (FAQ) :

    The valuation of the worldwide formic acid market is projected to reach around USD 878.7 MN by 2027, developing at 4.94% CAGR from 2017 to 2027.

    The Asia Pacific holds the biggest offer in the worldwide formic acid market, trailed by Europe and North America, separately.

    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 a portion of the key part working in the worldwide 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.

    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.