Formic Acid Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2583
Formic Acid Market size should show a significant increase due to rising application usage in agriculture, leather, and feed additive industries. It is also known as carboxylic or methanoic acid, can be produced synthetically and is found naturally in ant venom. It is a colorless liquid with a pungent odor and is known for its anti-microbial property which is the basis for most applications.
Increasing use of the product in preservatives, its eco-friendliness and high quality is likely to boost formic acid market size. Increasing standard of living has led to a rise in meat consumption, which in turn has stimulated the animal feed industry. Global processed meat market may exceed about USD 1.5 million by 2024 and is likely to boost formic acid market size.
The product is used in concentrations of 85%, 90%, 94%, and 99%, with 85% formic acid being the most popular owing to its low concentration which is less harmful to humans or the environment. Also, manufacturers are using customized concentrations depending on specific applications, may boost industry growth.
Increasing its application usage in leather & textiles, rubber, agriculture, and chemicals & pharmaceuticals sectors should drive industry growth. Formic acid market size should increase due to its common use as an agricultural pesticide, further boosted by increasing harvest due to rising animal feed demand.
Formic acid industry demand may rise due to its use in rubber manufacture for its strong coagulating property and leather manufacture for its pH-regulating and absorbing capacity. Global synthetic leather market worth may exceed over USD 80 billion by 2024, which can further accelerate product demand.
Increasing animal feed additives demand should drive formic acid market size Global animal feed additives market demand over USD 17 billion in 2017. Global annual feed production is likely to reach around 1 billion tons which should boost market demand. Rising meat & its product demand owing to increasing consumer per capita income should stimulate industry growth. Silage or grass is stored as animal feed for winter and the product is added to it to prevent nutrient loss. The process of making silage involves the addition of molasses to release energy for lactic acid fermentation, which may further boost industry demand.
Asia Pacific, led by Japan, South Korea, Australia, Malaysia and China formic acid market size, may witness fast development due to rapid growth in the textile, leather and rubber industries. China is the largest producer and exporter due to availability of cheap labor and lax regulations in the country. Meat consumption in China may increase to almost 60 kilos per person in the forecasted time frame, which is likely to increase the demand for animal feed and have a positive impact on market demand in the region.
Europe driven by Italy, France, Spain and Germany formic acid market size has witnessed a spurt in product demand due to the abolition of antibiotics as growth promoters for livestock by the European Union in 2006. The regional market has matured, especially for silage preservation applications. Europe poultry feed market is likely to exceed about USD 2.5 billion in the forecast period at a rate exceeding around 5%, which may boost formic acid market size.
High product cost to may hinder industry profitability which has led to the emergence of low cost alternatives like urea sulfate which may affect formic acid market price trend. Also, higher toxicity in high grade products can hamper market growth. Uncertain weather conditions may negatively affect silage preservative and animal feed additives market demand.
Formic acid market share is competitive and moderately fragmented. The participants in this market include companies like BASF, Eastman Chemical, Gujarat Narmada Valley Fertilizers & Chemicals, Perstorp AB, Feicheng Acid Chemicals, Rashtriya Chemicals & Fertilizers, Taminco and Chongqing Chuandong Chemical. EPA has approved product use as a MITE TM and Mite-away II pesticide ingredient, which presents growth opportunities for formic acid industry size.
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