Formic Acid Market Size (2023-2028):

The Global Formic Acid Market was worth US$ 800.1 million in 2022, and it is estimated to reach a valuation of US$ 843.5 million by the end of 2028, expanding at a CAGR of 1.6% during 2023-2028

Formic acid, alternatively known as methanoic acid, occurs naturally in chemical synthesis and has a chemical formula of H2CO2. Methanol acts as a critical factor for the production of formic acid. At room temperature, formic acid is a colourless liquid with a penetrating and pungent odour compared to other acids. Formic acid is soluble in hydrocarbons and consists of hydrogen-bonded dimers in the vapour state. Formic acid is used as an animal feed additive for poultry, cattle, fisheries, etc. 

Market Trends:

Formic acids are widely used to fight slippery roads. In winter, countries including Canada, Austria, and Switzerland experience snow that makes roads slippery. To get rid of sneaky, formic acid is used since it effectively removes ice and makes streets safe for rides, thus reducing the chances of accidents. 

Market Drivers:

The increasing growth of the pharmaceutical industry, rising usage of formic acid in livestock, and growing demand for the thriving leather firm are the main factors that boost the formic acid market growth. Most of the pharmaceutical industries utilize formic acid for producing numerous pharmaceutical ingredients, thereby increasing the growth of the formic acid market. Based on the analysis of the Food and Agricultural Organization, almost 45% of the total revenue is produced by the agricultural sector. Formic acid is utilized as a preservative for animal feed as it helps in the prevention of bacteria. Therefore, increasing usage of formic acid for livestock tends to grow the market during the forecast period. In recent years, the leather industry has experienced significant growth due to the changing lifestyle of the people, which is creating a need for leather products. Despite this, leather is also used in the automotive sector and interior design. Considering the demand for leather to fulfil the request of numerous sectors led to an increase in the formic acid market and is yet to prosper in the upcoming years.

Market Opportunities:

The introduction of formic acid-based fuel cells acts as a significant opportunity for the formic acid market growth. GRT group has taken up a project named the introduction of formic acid-based fuels, i.e., HYFORM- PEMFC device that uses formic acid capable of storing hydrogen. This innovation gives rise to the renewable energy sector and creates new formic acid that tends to be the opportunity shortly.

Market Challenges:

Although formic acid is used for many applications, the main challenge experienced by the vendors is the greener production of the chemical. Future trends to adopt the latest nanotechnology, which can use atmospheric carbon to make formic acid. Generally, formic acid uses steam that comes from renewable resources, reducing non-renewable resources that also pose a significant challenge for the formic acid market.

FORMIC ACID MARKET REPORT COVERAGE:

Market Segmentation:

Formic Acid Market - By Grade Type:

• 75%
• 80%
• 85%
• 94% 
• 99%

The industry-standard acid is 85%, in which major applications require concentrations of formic acid in 99%, 94%, 90%, and 85% concentrations.

In the manufacture of acetic acid and hydrogenation of CO2, the byproduct formed in large amounts is formic acid. 

Formic Acid Market - By Application:

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

Animal feed plays a significant key role in dominating the formic acid market due to the increased revenue from the agricultural sector; Pharmaceuticals detail tends to project with the highest CAGR in the upcoming years due to the growing production of formic acid in numerous pharma ingredients.  

Market Regional Analysis:

 The Formic Acid Report includes the segmentation of Regions:

•  North America 
•  Europe 
•  Asia Pacific 
•  Latin America 
•  Middle East & Africa 

The Asia Pacific has become the largest region in the industrial sector across the globe. The Asia Pacific tends to dominate the market during the forecast period due to the increasing growth of the agricultural market, mainly in China and India. China dominates the market in APAC due to the continuous rise in the agricultural sector, followed by India. At the same time, North America aid to witnessed stable growth rates during the forecast period, and Europe is estimated to have a significant CAGR, respectively. 

Market Key Developments:

• On ten h November 2020, BASF announced increasing costs for formic acid since it is used in massive applications, including animal nutrition, leather processing, fighting for slippery roads, and many others.

Market Key Players:

The companies covered in the report include:

1. Feicheng Acid Chemicals Co. Ltd. 
2. BASF SE 
3. Gujarat Narmada Valley Fertilizers & Chemicals Ltd. 
4. Perstorp AB 
5. Taminco Corporation