What Has Been the Growth Trajectory of the Formic Acid Market?
The formic acid market has seen considerable growth due to a variety of factors.
•The market size for formic acid has seen robust growth in the past few years. From a valuation of $1.79 billion in 2024, it is expected to expand to $1.89 billion in 2025, presenting a Compound Annual Growth Rate (CAGR) of 5.4%.
The significant growth during the earlier period can be ascribed to various sectors such as textile and leather, agriculture, chemical production, the rubber industry, and laboratory research.
What Does the Future Hold for the Formic Acid Market?
The formic acid market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the formic acid market is projected to experience robust growth, with its value expected to increase to $2.37 billion by 2029, growing at a compound annual growth rate (CAGR) of 5.9%.
The anticipated growth in the forecast period is largely due to factors such as renewable energy storage, biofuel production, biodegradable polymers, hydrogen storage, and formate salts for oil recovery. Key trends during the forecast period will include the use of formic acid in waste management, growth in biotechnology, carbon-neutral chemical manufacturing, the role of formate salts in the oil industry, and formic acid fuel cells.
What Main Forces Are Fueling Expansion In The Formic Acid Market?
The expansion of the formic acid marketplace is anticipated to be driven by the increasing requirement for animal feed. The term "animal feed" pertains to the cultivated or prepared nourishment for domesticated animals and poultry. It is a consumable material that animals ingest to augment their diets with energy and minerals or either of them. Formic acid is typically employed as an additive in animal feed to enhance preservation, nutritional content, and overall health of the animal. This acid serves as a preservative and an antibacterial substance in feed for livestock. To illustrate, as per the Malaysian Investment Development Authority, which is a governmental organization based in Malaysia, farmers were reported to be paying up to RM 80 for a bag of 50kg cattle feed in July 2023, reflecting a substantial surge from RM 45 in January 2022. This increase exemplifies the escalating costs related to the import of feed materials for livestock. Hence, the escalating requirement for animal feed is stimulating the expansion of the formic acid market.
What Are The Primary Segments In The Global Formic Acid Market?
The formic acid market covered in this report is segmented –
1) By Purity: Less Than 80% To 89.5%, 89.6% To 90.5%, 91.6% To 99%, More Than 99%
2) By Application: Animal Feed, Silage, Leather Tanning, Textile Dyeing
3) By End-Use Industry: Agriculture, Leather, Textiles And Apparel, Healthcare, Rubber, Chemical, Paper, Other End-Use Industries
Subsegments:
1) By Less Than 80% To 89.5%: Technical Grade Formic Acid, Industrial Grade Formic Acid
2) By 89.6% To 90.5%: Food Grade Formic Acid, Pharmaceutical Grade Formic Acid
3) By 91.6% To 99%: High Purity Formic Acid, Laboratory Grade Formic Acid
4) By More Than 99%: Ultra-Pure Formic Acid, Research Grade Formic Acid
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Which Key Trends Are Driving Changes In The Formic Acid Market?
The advent of novel technologies stands as a significant trend in the formic acid market, gaining increased traction. The focus of major businesses within this market has shifted towards introducing contemporary technologies to cater to special requirements and maintain their engagement in this market. A case in point is the University of Science and Technology of China, with its research team, which presented a ground-breaking system in January 2022. This system takes advantage of renewable electricity to convert carbon dioxide into unadulterated formic acid directly. It incorporates a catalyst that based on copper-based single-atom alloy and an innovative electrochemical device that leverages solid-state electrolytes. The end product is fine formic acid liquid fuels, using carbon dioxide and water as the fundamental feedstocks. Such a venture is poised to bolster the industrialization of carbon dioxide recycling powered by renewable energy, opening a myriad of practical applications.
Who Are the Key Players in the Formic Acid Market?
Major companies operating in the formic acid market include:
• BASF SE
• Honeywell International Inc.
• Evonik Industries AG
• Eastman Chemical Company
• Luxi Chemical Group Co. Ltd.
• Kemira Oyj
• HELM AG
• Perstorp Holdings AB
• GMM Pfaudler Ltd.
• Gujarat Narmada Valley Fertilizers & Chemicals Limited
• Alfa Aesar
• Wuhan Rui Sunny Chemical Co. Ltd.
• Fleurchem Inc.
• Noah Chemicals
• Polioli S.p.A.
• Shandong Feicheng Acid Chemicals Co.Ltd.
• Anhui Asahikasei Chemical Co. Ltd.
• Chongqing Chuandong Chemical (Group) Co. Ltd.
• Hubei Yihua Group Co. Ltd.
• Zibo Xinglu Chemical Factory
• Shandong Haili Chemical Industry Co. Ltd.
• Vigon International
What Is The Most Dominant Region In The Formic Acid Market?
Asia-Pacific was the largest region in the formic acid market in 2024, and is expected to be the fastest-growing region in the forecast period. The regions covered in the formic acid market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
