Formic Acid Market Size, Share, Trends, Growth and Forecast 2032

Formic Acid Industry Prospective:

The global formic acid market size was worth around USD 1,060 million in 2023 and is predicted to grow to around USD 1,700 million by 2032, with a compound annual growth rate (CAGR) of roughly 5.4% between 2024 and 2032.

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Formic Acid Market: Overview

The simplest carboxylic acid is formic acid, also known as methanoic acid. Its structure is H−C(=O)−O−H, and its chemical formula is HCOOH. It is found naturally, most notably in some ants, and is a crucial step in chemical synthesis. Formates are salts, esters, and anions that come from formic acid. Methanol is used in the industrial production of formic acid. Fruits, vegetables, weeds, insects, and forest emissions all naturally contain formic acid. It is found in the majority of ants and Oxytrigona stingless bees. Formica wood ants can defend their nest or spray formic acid on their prey.

Key Insights

• As per the analysis shared by our research analyst, the global formic acid market is estimated to grow annually at a CAGR of around 5.4% over the forecast period (2024-2032).
• In terms of revenue, the global formic acid market size was valued at around USD 1,060 million in 2023 and is projected to reach USD 1,700 million by 2032.
• The increasing trend of sustainable farming is expected to drive the formic acid market over the forecast period.
• Based on the type, the grade 85% segment is expected to dominate the market over the forecast period.
• Based on the application, the textile dyeing and finishing segment is expected to hold the largest market share over the forecast period.
• Based on the end use, the agriculture segment is expected to hold the largest market share over the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

Formic Acid Market: Growth Drivers

Rising textiles and leather industry drives market growth

Formic acid finds usage in leather tanning, textile dying, and finishing techniques. Tanning leather needs to preserve animal hides and eliminate hair and epidermis that can be used to create leather goods. Formic acid is applied in printing and dyeing operations in the textile sector to help fix colors in fabrics and encourage color fastness. The fashion business's growth and consumers' rising taste for leather and textile products have driven the demand for formic acid higher.

With a 10% CAGR, the India Brand Equity Foundation study forecasts that, by 2030, the nation's textile and clothing industry will generate USD 350 billion. Two growing countries, China and India, have seen notable increases in the leather and textile industries, which has allowed the formic acid industry to flourish.

Formic Acid Market: Restraints

The presence of substitutes hinders market growth

One main obstacle influencing the expansion of the industry is the availability of reasonably priced substitutes. Serving many sectors, including petrochemicals, performance materials, monomers, performance chemicals, dispersions and pigments, catalysts, coatings, care chemicals, industrial solutions, surface technologies, agricultural solutions, and more, formic acid is a major participant in the worldwide chemicals market.

However, the high cost of formic acid has created opportunities for reasonably priced substitutes that are becoming more and more popular and can thus impede the growth of the formic acid market. Among these substitutes are amino acids, peptides, microflowers, potassium and sodium sorbates, and acetic acid. The popular alternative for formic acid in the food preservation sector is potassium sorbate, a salt of sorbic acid. Though formic acid is a better preservative, many producers use potassium sorbate because of its economy.

Another replacement for formic acid, especially in the cosmetics and pharmaceutical sectors, is citric acid's pH-adjusting properties. Although formic acid has several benefits, these substitutes save money and, occasionally show equivalent performance. Other sectors where formic acid is applied heavily are coal, salt, fluoro silicone, and polycarbonate. These substitutes, however, may affect the need for formic acid in several industries.

Formic Acid Market: Opportunities

Rising initiatives to produce biomass-derived formic acid offer a lucrative opportunity for market growth

The growing initiatives to produce biomass-derived formic acid are expected to offer a lucrative opportunity for the formic acid market over the forecast period. For instance, in December 2023, an initiative was started by Nitto Denko Corporation and Air Water Inc. to employ Nitto's CO2 chemical conversion technology to create formic acid, which is required to protect grass from CO2 obtained from livestock dung biomass.

By working together, they will expedite their attempts to lower atmospheric CO2 emissions by introducing negative emission technology into society. By using a conversion method that effectively generates formic acid from CO2 and hydrogen, the project seeks to manufacture carbon-negative formic acid from biomass-derived feedstock, thereby aiding in the decarbonization of the cattle sector.

Formic Acid Market: Challenges

Volatility in raw material prices poses a major challenge to market expansion

The dynamics of formic acid manufacture and pricing are largely influenced by the availability and cost of raw materials, notably methanol and carbon monoxide. For the formic acid industry, changes in the prices of these raw materials create major challenges. For the production of formic acid, for instance, methanol—often derived from coal or natural gas—is a vital feedstock. The price of methanol can be influenced by natural gas supply, global crude oil price fluctuations, geopolitical events, and geographical location. Rising methanol prices affect formic acid producers' manufacturing costs, influencing their pricing and profitability policies.

Formic Acid Market: Report Scope

Formic Acid Market: Segmentation

The global formic acid industry is segmented based on type, application, end-use, and region.

Based on the type, the global formic acid market is segmented into Grade 85%, Grade 94%, Grade 99%, and Others. The Grade 85% segment is expected to dominate the market over the forecast period. 85% concentrated formic acid is frequently used as a preservative in animal feed in industries like agriculture, effectively preventing the growth of dangerous microbes and prolonging the feed's shelf life. Widely used in the leather and textile sectors, it is essential to the tanning and dyeing processes that guarantee the lifespan and quality of the final goods.

Based on the application, the global formic acid industry is bifurcated into animal feed and silage additives, leather tanning, textile dyeing and finishing, intermediary in pharmaceuticals, and others. The textile dyeing and finishing segment is expected to hold the largest market share over the forecast period. The growing consumer demand for affordable and trendy clothing drives the need for efficient dyeing and finishing chemicals like formic acid.

Based on the end use, the global formic acid market is bifurcated into agriculture, leather and textile, rubber, chemical and pharmaceutical, dyeing, animal feed, and others. The agriculture segment is expected to dominate the market during the forecast period. Since formic acid is widely used in crop protection, silage production, and animal feed preservation, agriculture is the major end-use industry for the market. In silage, formic acid works as an efficient antibacterial agent to keep nutrients fresh and avoid spoiling, promoting the productivity and well-being of livestock. In crop protection, its usage as a supplement to pesticides and herbicides guarantees higher agricultural yields along with improved insect resistance and reduced chemical requirements. Formic acid's environmental friendliness and biodegradability fit very nicely with the growing focus on sustainable agricultural practices.

Formic Acid Market: Regional Analysis

The Asia Pacific dominates the market over the projected period

The Asia Pacific is expected to dominate the global formic acid market during the forecast period. Asia Pacific's agricultural industry is a major market driver due to its size and diversity. High-quality animal feed and effective silage preservation techniques are constantly needed because many of the countries in the region have sizable populations and strong agricultural sectors.

Formic acid is widely used since it works well as a pesticide, acidifier, and preservative in this area's agricultural methods. China and India, two of the biggest and fastest-growing economies in the world, are located in the Asia Pacific region. The effective manufacturing and export of formic acid has been made possible by the existence of a strong chemical industry infrastructure in several nations. Production costs, the state of the economy in important manufacturing countries, and worldwide demand-supply dynamics all have an impact on the price of formic acid.

Formic Acid Market: Competitive Analysis

The global formic acid market is dominated by players like:

• 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.
• Vizag Chemical International

The global formic acid market is segmented as follows:

By Type

• Grade 85%
• Grade 94%
• Grade 99%
• Others

By Application

• Animal Feed and Silage Additives
• Leather Tanning
• Textile Dyeing and Finishing
• Intermediary in Pharmaceuticals
• Others

By End Use

• Agriculture
• Leather and Textile
• Rubber
• Chemical and Pharmaceutical
• Dyeing
• Animal Feed
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa