Formic acid market size is expected to grow from 2021 to 2027 owing to the rising adoption of antibacterial agents in cattle feed. The increasing emphasis on animal health has limited the use of antibiotics in animal feedstock. The growing requirement for high-quality and environment-friendly materials has increased the usage of formic acid across various industries. In addition, the higher intake of poultry & meat products coupled with the influx of advanced technologies and product diversification in feed acidifiers will spur the market growth.
The mount in the number of safety regulations and the spiraling product demand in the food processing and pharmaceutical sectors are other factors bolstering the market outlook.
With respect to product type, the formic acid industry is segmented into 85%, 94%, 99%, and other grades. The annual remuneration of the 94% grade formic acid will grow with increasing penetration across several end-user industries. On account of its environmentally friendly nature, it is widely employed in textiles, and leather processing. It also marks extensive utility in the production of cosmetics, medicines, detergents, and disinfectants as well as in the agriculture sector to limit microbial growth and control acidity. Higher adoption in industrial and institutional cleaners will also boost the product demand spurt.
Based on application, the animal feed sector is set to collect substantial gains for the formic acid market on account of the rising need for preservatives and antibacterial agents in livestock feed. The escalating household incomes of consumers has made way for higher meat consumption. Formic acid is not only used to offer feed acidification but is also preferred in hay feed to reduce the total milk fat in milch cows. The booming cattle and poultry sector in highly developing countries, like the U.S., China, and India, will considerably contribute to the overall market expansion. It has been estimated that the number of beef cows in the U.S. crossed 31.2 million as of Jan. 1, 2021.
In terms of regional landscape, Asia Pacific will record significant consumption of formic acid through 2027 due to the flourishing agricultural sector and the mounting number of chemical manufacturing industries. The presence of cheap labor and favorable regulations, mainly in China has led to significant developments in the textile and rubber sector. This growth has paved way for the surge in investments. The considerable boom in commercial feed production across the region will also play a key role in the market progression in APAC.
Europe formic acid industry size will gain notable proceeds driven by the increasing obligation for growth promoters for livestock coupled with the soaring regulatory support to limit the use of antibiotics. Rising product penetration in silage preservation applications in the region will additionally drive the market expansion.
Perstorp AB (Perstorp Holding AB), Eastman Chemical, Taminco (Eastman Chemical Company), Gujarat Narmada Valley Fertilizers & Chemicals, Feicheng Acid Chemicals, Chongqing Chuandong Chemical, Rashtriya Chemicals & Fertilizers, and BASF are some of the major global formic acid industry participants.
Strategic marketing team-ups and acquisitions, along with capacity expansions and new product launches are some initiatives actively undertaken by these companies to reinforce their geographical footprint while sustaining competition.
For instance, in May 2021, Caverion entered an agreement with Eastman Chemical Company’s Finnish subsidiary, Taminco Finland Oy, for the outsourcing of mechanical as well as electrical automation maintenance and the workshop operations at the latter’s Oulu-based chemical plant, which produces formic acid and derivatives.
Effect of the COVID-19 crisis on the formic acid market trends
The ongoing coronavirus pandemic brought huge ructions to the global economy and took a significant toll on the operational activities of numerous businesses. It also left the industry for formic acid perturbed considering the halted supply of raw materials and the dearth of workers. The considerable repercussions on the animal feed sector and the abrupt shutting down of restaurants amidst the outbreak also negatively impeded the demand and production of formic