Formic Acid Market Size & Share 2023 to 2032
Market Size by Grade (20%, 25%, 40%, 60%, 70%, 75%, 85%, 90%, 94%, 99%), by Application (Leather & textile processing, Agriculture, Animal Feed, Cleaning, Coating, Rubber, Intermediate) & Forecast.
Report ID: GMI2583
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Published Date: October 2023
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Report Format: PDF
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Authors:
Kiran Pulidindi, Kunal Ahuja
Formic Acid Market Size
Formic Acid Market was valued at around USD 1.01 billion in 2022 and is anticipated to grow at a CAGR of over 5.1% between 2023 and 2032.
Formic Acid Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Formic acid, a colourless, pungent liquid with a wide range of chemical properties, finds extensive use in agriculture, leather production, textile, and chemical manufacturing. In agriculture, it serves as a vital component in animal feed additives, promoting growth and health in livestock. Additionally, its role as a preservative and antibacterial agent in animal feed further enhances its significance. In the leather industry, formic acid plays a crucial role in tanning processes, aiding in the production of high-quality leather products. It also acts as an essential intermediate in chemical synthesis, facilitating the production of various chemicals, including formate salts and esters.
With increasing demand for sustainable and eco-friendly solutions, the formic acid industry is poised for further growth as it aligns with trends favouring environmentally friendly and renewable chemicals, such as bio-based formic acid production methods. However, market dynamics may be influenced by factors like raw material availability, environmental regulations, and competitive pricing. As the industry continues to innovate and adapt to evolving market demands, it is likely to see sustained expansion and diversification in the coming years.
COVID-19 Impact
Many countries faced a major health crisis due to the COVID-19 outbreak. Several governments enforced stringent lockdowns to prevent the spread of COVID-19 in 2020, leading to major disruptions in the industry supply lines. In 2021, the second wave of the COVID-19 pandemic hit major markets, forcing governments around the globe to take strict actions to prevent the virus spread. Considering its importance as a major hub in different global value chains, China was the first country to be hit by the pandemic, which exacerbated supply difficulties. Travel restrictions, labor & material shortages, logistics problems related to increased controls, and border & hub closures had a ripple effect on global supply chains. The supply chain disruptions originating in China severely impacted the availability of key raw materials for formic acid production.
Formic Acid Market Trends
There is a growing emphasis on sustainable and environmentally friendly production methods, with a shift towards bio-based formic acid manufacturing using renewable resources, such as biomass and waste streams, to reduce the industry's carbon footprint. Secondly, increasing awareness of formic acid's antibacterial properties is driving its adoption in diverse sectors, including animal feed additives and as a natural preservative in food products, contributing to its expanding market reach. Thirdly, formic acid is gaining traction in energy storage applications, particularly as a hydrogen storage medium, due to its potential as a safe and efficient carrier for hydrogen, which aligns with the growing interest in clean energy solutions. Lastly, stringent regulations and guidelines regarding food safety and animal health are boosting the demand for high-quality formic acid, further shaping the market's direction towards quality and purity standards. These trends collectively indicate a dynamic and evolving formic acid industry with a strong focus on sustainability, versatility, and regulatory compliance.
Formic Acid Market Analysis
Based on Garde, the 99% grade dominates the market value of USD 0.16 billion in 2022, accounting for the largest portion due to its exceptionally high purity, making it ideal for applications in pharmaceuticals, chemicals, and electronics where stringent quality standards are essential. Following closely, the 94% and 90% grades also hold substantial market shares, serving industries like agriculture and animal feed additives that require a high level of purity.
The 85% and 75% grades find utilization in leather production and textile industries, while the 70% grade is commonly used in cleaning and de-icing applications. Additionally, the 60% and 40% grades have niche market shares in sectors like rubber and plastics manufacturing, and the 25% and 20% grades are less common but still serve specialized applications. This grade segmentation reflects the diverse range of industries and applications that rely on formic acid, with market share distribution aligning with purity requirements and end-use demands.
Based on application, the leather and textile processing industry holds a notable share of around 43.58% in 2022 and is expected to grow at a lucrative pace till 2032 due to its use as a tanning agent and pH adjuster, while cleaning applications, such as rust removal and descaling, are on the rise, driving market growth. Formic acid's role as a coating component and in rubber production, primarily for coagulation and stabilizing latex, is another significant segment. Additionally, formic acid serves as an intermediate in various chemical processes, further diversifying its applications. These market share distinctions emphasize the broad utility of formic acid across multiple industries, with each sector contributing to its overall market stability and growth.
U.S. dominated the North American region with majority market share and a revenue of USD 0.10 billion in 2022 and is anticipated to expand at a significant pace from 2023-2032. The market share in the U.S. is influenced by the diverse range of applications that rely on formic acid, including agriculture, animal feed additives, textiles, and chemical manufacturing. The agricultural sector in the U.S. benefits significantly from formic acid's use in crop protection and soil pH regulation, contributing to its prominence in the market. U.S. plays a pivotal role in North America's formic acid market, contributing significantly to the regional market share due to its diverse industrial and agricultural activities.
Formic Acid Market Share
Some of the major market players operating in the Formic Acid industry are:
These players focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
Formic Acid Industry News:
Formic Acid market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & kilo tons from 2018 to 2032, for the following segments:
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By Grade
By Application
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
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Verified data sources
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GMI archive
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