Formic Acid Market Report Scope & Overview:

The Formic Acid Market size was USD 2.12 Billion in 2023 and is expected to reach USD 3.42 Billion by 2032 and grow at a CAGR of 5.47 % over the forecast period of 2024-2032.

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The formic acid market report provides a detailed analysis of production capacity and utilization rates across key manufacturing countries, along with feedstock price trends affecting production costs. It examines the regulatory landscape and trade policies shaping market dynamics while assessing environmental metrics, including carbon footprint and sustainability initiatives. The report highlights innovation and R&D investments, particularly in bio-based formic acid and high-purity applications. Additionally, it explores market demand trends across industries such as agriculture, leather & textile, rubber, and chemicals & pharmaceuticals, offering a comprehensive outlook on growth drivers and emerging opportunities.

Formic Acid Market Dynamics

Drivers

• Rising adoption in the leather & textile industry which drives market growth. 

One of the most influential factors driving the growth of this market is the increasing use of formic acid as a pH regulator, tanning agent, and dye-fixing agent in the leather and textile industries. It further finds a common application for dyeing and finishing processes in textiles as it enhances color absorption and fabric strength. The high demand among end-use industries, internationally, for superior leather products and environmentally friendly textiles is driving the consumption of formic acid and this demand is relatively higher in some emerging economies where leather including footwear and textile manufacturing industry has a strong base. In addition, strict environmental legislation encouraging the popularization of green chemicals is also expected to boost its uptake, as Formic acid is regarded as a low-toxicity and biodegradable substitute for other traditional acids.

Restraint

• Fluctuations in raw material prices which may hamper the market growth.

The price levels and volatility of these raw materials are primarily driven by global supply-demand dynamics, fluctuations in crude oil prices, and geopolitical tensions affecting the chemical industry. Feedstock prices directly impact the cost of manufacturing. A significant increase in feedstock prices makes formic-acid production economically less favorable, particularly for small and medium-sized producers. Moreover, this reliance on methanol from petrochemical sources is subject to energy price fluctuations, which introduces additional uncertainty in terms of cost. Fluctuations such as these will cause increased product costs, decreased profit margins, and reduced uptake, especially for anti-microbial technologies needed in perimeter-sensitive industries like agriculture, textiles, and rubber processing. As a result, manufacturers are considering bio-based production methods and supply chain diversification high on their list of measures to reduce raw material price risk.

Opportunity

• The rising adoption of green energy and hydrogen storage creates an opportunity in the market. 

The increasing demand for green energy and hydrogen storage provides a lucrative opportunity for the formic acid market, being recognized as a safe and efficient hydrogen carrier in fuel cell applications. Catalytic decomposition of stored formic acid can release stored hydrogen in a reversible process making it a potential clean fuel for both storage and transportation of energy. In contrast to usually employed hydrogen storage approaches, which need storage tanks under high pressure or cryogenic systems, the formic acid gives an inexpensive, liquid-based storage system that is easier to handle and operate with fuel cell technologies. As a result, research and investments focused on applying formic acid in hydrogen-powered vehicles, renewable energy storage, and industrial fuel applications are gaining momentum. As governments and industries globally turn their attention to decarbonization and green hydrogen projects, the application of formic acid can help advance and sustain these initiatives the demand only rising with the increased need for such energy commitment, innovation, and expansion capacities.

Challenges

• High production costs for high-purity formic acid.

The high-purity applications, particularly in pharmaceuticals, food processing, and electronics sectors, the significant challenge in the market is the high production costs for high-purity formic acid. This purification process contains high levels of distillation and filtering methods that humans use, hence discovering high levels of energy and operational cost to produce. Also, use of premium feedstocks like purified methanol and carbon monoxide further increases the costs of production. As a highly pure formic acid is less cost-competitive than standard grades for many uses, there are restrictions on the widespread adoption of the latter. This is further compounded by the fact that smaller-scale manufacturers do not always have the funds to invest in custom production infrastructure and regulatory compliance. Consequently, organizations have been continually examining economical bio-based producing approaches and method adjustments to boost effectiveness and affordable range manufacturing value.

Formic Acid Market Segmentation Analysis

By Type

Grade 85% held the largest market share around 52% in 2023.  This is due to its wider application scope in agricultural, leather & textile, rubber, and chemical processing industries. This concentration is the right amount for both effective and cost-efficient disinfectant while remaining safe making it the choice of end-users. In agricultural applications, 85% formic acid has been used as silage preservatives and antibacterial agents in animal feed, increasing the health and productivity of livestock. Moreover, in the leather and textile industry, it acts as an important pH regulator in tanning and dyeing. This property is also helpful in its application as a coagulating agent in the natural rubber industry. Additionally, this grade is safer to handle than the higher concentrations, which will make transporting and storing it easier.

By Application

Animal feed held the largest market share around 34% in 2023.  It is due to the use of formic acid as a feed preservative and antibacterial agent in livestock nutrition, the formic acid market is mostly ruled by the formic acid segment with its broader scope among all animal feed segments. By inhibiting bacterial growth, preventing the occurrence of mold, and prolonging animal feed shelf life, formic acid ultimately contributes to an improvement in the quality of the feed and animal health. It is especially useful in poultry, swine, and cattle and can improve gut health and digestion which improves feed efficiency and productivity. Furthermore, the rising concern regarding antibiotic resistance has led many countries to ban AGPs from animal feed which, in turn, is contributing to the increasing demand for natural acidifiers such as formic acid.

Formic Acid Market Regional Outlook

Asia pacific held the largest market share around 42% in 2023. It is due to high industrial base, increasing agriculture sector, and expanding leather & textile industry in this region. High demand for formic acid from animal feed, rubber processing, and chemical manufacturing enables countries such as China, India, and South Korea to become the major producers and consumers of the product. In China and India, the growing livestock industry has also been a driving force for the formic acid market, leading to a high demand for the substance as an antibacterial and feed preservative, which also promotes the value of the product. Moreover, Asia-Pacific accounts for a major share of leather and textile manufacturing hubs globally over which, formic acid is a prominent ingredient involved in tanning and dyeing processes. Asia-Pacific retains its dominant position in the global formic acid market with an increasing adoption of eco-friendly solutions coupled with a rise in sustainable chemical production investments.

North America held a significant market share in 2023. With the high use of formic acid as a feed preservative in livestock farming, the region is estimated to be a prominent consumer due to the presence of stringent regulations in the US and Canada promoting safe and effective feed additives. Furthermore, the market growth is driven by the increasing research of formic acid as a hydrogen carrier which has fueled the biofuel and renewable energy sector in North America. The consumption is also contributed by the rubber and leather industries, wherein natural rubber coagulation and leather processing applications are performed. In addition, stringent environmental regulations by agencies like the EPA (Environmental Protection Agency) facilitate the use of low-consuming and eco-friendly chemicals, allowing the growth of formic acid. North America is a key region in the global formic acid market with continuous trends in the chemical manufacturing field and a high demand for high-purity formic acid in the pharmaceutical and industrial sectors.

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Key Players

• BASF SE (Formic Acid, Formic Acid 85%)

• Eastman Chemical Company (Formic Acid 85%, Methylamines)

• Perstorp Holding AB (Formic Acid 85%, Feed Additives)

• Feicheng Acid Chemicals Co., Ltd. (Formic Acid, Calcium Formate)

• LUXI Group Co., Ltd. (Formic Acid, Fertilizers)

• Gujarat Narmada Valley Fertilizers & Chemicals Limited (Formic Acid, Urea)

• Shandong Acid Technology Co., Ltd. (Formic Acid, Methylamine)

• Kemira Oyj (Formic Acid, Water Treatment Chemicals)

• Rashtriya Chemicals and Fertilizers Limited (Formic Acid, Ammonia)

• Wuhan Ruisunny Chemical Co., Ltd. (Formic Acid, Calcium Hypochlorite)

• Chongqing Chuandong Chemical (Group) Co., Ltd. (Formic Acid, Sodium Formate)

• Fleurchem, Inc. (Formic Acid, Fragrance Ingredients)

• Yara International ASA (Formic Acid, Fertilizers)

• POLIOLI SpA (Formic Acid, Polyols)

• PT Pupuk Kujang (Formic Acid, Fertilizers)

• NuGenTec (Formic Acid, Specialty Chemicals)

• Thermo Fisher Scientific Inc. (Formic Acid, Laboratory Chemicals)

• Haviland Enterprises Inc. (Formic Acid, Industrial Chemicals)

• ClearTech Industries, Inc. (Formic Acid, Water Treatment Chemicals)

• Univar Solutions Ltd. (Formic Acid, Chemical Distribution Services)

Recent Development:

• In May 2023, Thermo Fisher Scientific partnered with Indonesia's National Research and Innovation Agency (BRIN) to enhance the country's research infrastructure and capabilities. This collaboration aims to bolster research competencies and expand capacity in the region.

• In December 2023, Nitto Denko Corporation and Air Water Inc. initiated a project to produce formic acid from CO₂ sourced from livestock manure biomass. This effort seeks to support the decarbonization of the livestock industry by generating carbon-negative formic acid through Nitto's CO₂ chemical conversion technology.