Market Summary
Global Formic Acid Market Overview
The Formic Acid Market Size was valued at USD 2.11 Billion in 2023. The Formic Acid industry is projected to grow from USD 2.29 Billion in 2024 to USD 4.61 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.53% during the forecast period (2024 - 2032). Formic acid is a colorless, pungent, and highly corrosive organic acid with the chemical formula HCOOH. It is the simplest carboxylic acid and is also known as methanoic acid. Formic acid is naturally found in the venom of certain ants, hence the name "formic" is derived from the Latin word for ant, "Formica." It is commonly used in a variety of industries, such as agriculture, textiles, leather, and rubber manufacturing. Formic acid is also used as a preservative and antibacterial agent in animal feed and as a disinfectant in some household cleaning products. In high concentrations, formic acid can be dangerous and should be handled with care.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Formic Acid Market Trends
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Rising Demand for Preservatives from Agricultural Sectors to Drive Market Growth
The market is anticipated to see exponential development due to the steadily rising demand for formic acid, a preservative. Formic acid is also employed as an anti-bacterial agent, which benefits animal feedstock without degrading its nutritional content and raises demand from the dairy sector. Its acid property will boost the expansion of the market. The use of this acid in the chemical and industrial sectors will also contribute to the market's growth.
Formic Acid Market Segment Insights
Formic Acid Production Method Insights
The market segmentation, based on Production Method, includes Oxalic Acid and Carbonylation of Methanol. The Carbonylation of the Methanol segment may dominate the market. In this process, carbon monoxide and methanol are reacted in the presence of a catalyst to produce formic acid. This method offers several advantages, including higher yield, lower production costs, and more environmentally friendly compared to traditional methods of formic acid production, such as oxidation of formaldehyde.
Formic Acid Application Insights
Based on Application, the global market segmentation includes Rubber, Leather Production, Cleaning Agent, Finishing Textiles, Preservatives, Dyeing, Animal Feed, and Others. The Animal Feed application is holding the largest and fastest market. The use of formic acid in animal feed has been increasing due to the growing demand for meat and other animal products, particularly in developing countries. This has led to a greater focus on animal health and nutrition, which has increased the demand for feed additives such as formic acid.
Figure 2: Formic Acid Market, by Production Method, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Formic Acid Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific is currently the largest and fastest-growing market for formic acid. The region accounts for a significant share of the market, driven by factors such as increasing demand for animal feed additives, growth in the leather and textile industries, and rising demand for formic acid in various other applications. China is the largest producer and consumer of formic acid globally, accounting for a significant share of the Asia-Pacific market. The country's large and growing population, coupled with increasing demand for meat and other animal products, is driving the growth of the animal feed industry and, in turn, the demand for formic acid as a preservative and antibacterial agent. Other countries in the region, such as India, Japan, and South Korea, are also experiencing significant growth in the market, driven by factors such as increasing industrialization and the growing demand for sustainable and environmentally friendly products.
Figure 3: FORMIC ACID MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The demand for formic acid in other regions, such as North America and Europe, is also increasing but at a slower pace compared to the Asia Pacific. However, the development of new applications and the growing trend towards using natural and bio-based products is expected to drive the growth of the formic acid market in these regions.
Formic Acid Key Market Players & Competitive Insights
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Formic Acid industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Formic Acid industry to benefit customers and expand the market sector. Major market players, including BASF SE, Perstorp, Eastman Chemical Company, Luxi Chemical Group Co Ltd, Anhui Asahi Kasei Chemical, and others, are attempting to increase market demand by funding R&D initiatives.
BASF produces and distributes intermediates, petrochemicals, performance materials, monomers, performance chemicals, dispersions and pigments, catalysts, coatings, and care chemicals. The conducts its operations through six business segments: Nutrition and Care, Chemicals, Industrial Solutions, Materials, Surface Technologies, and Agricultural Solutions. The company serves electronics, transportation, construction, energy and resources, consumer goods, health and nutrition, and agriculture industries.
Luxi Chemical Group is a chemical and fertilizer manufacturing and distribution corporation. Coal, salt, fluoro silicone, polycarbonate, caprolactam, hydrogen peroxide, polyols, and other materials.
List of the Key Companies in the Formic Acid market include
- Eastman Chemical Company
- Luxi Chemical Group Co. Ltd
- Anhui Asahi Kasei Chemical
- Feicheng Acid Chemical
- Gujarat Narmada Valley Fertilizers & Chemicals Limited
- Chongqing Chuandong Chemical Co
- Perstorp
- Among others.
Formic Acid Industry Developments
In May 2023, scientists at the Indian Institute of Technology (IIT) Guwahati, innovated a catalyst that can produce hydrogen gas for wood alcohol, without the production of carbon dioxide. With the environmentally safe process, it also produces formic acid which can be useful for various end users in industrial chemicals.
In July 2022, biotechnology company Ingenza stated that the company has formed a strategic partnership with Johnson Matthey to form a formic acid from the various industrial carbon dioxide emission for the use of several industries like pharmaceuticals and agriculture and as future prospects for the feedstock for bioprocess.
March 2021: BASF SE announced an increase in formic acid prices in North America for all grades, which would be USD 0.05 per pound.
Formic Acid Market Segmentation
Formic Acid Production Method Outlook
- Oxalic Acid
- Carbonylation of Methanol
Formic Acid Application Outlook
- Rubber
- Leather Production
- Cleaning Agent
- Finishing Textile
- Dyeing
- Animal Feed
- Others
Formic Acid Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
Market Size & Forecast
| Attribute/Metric | Details |
| Market Size 2023 | USD 2.11 Billion |
| Market Size 2024 | USD 2.29 Billion |
| Market Size 2032 | USD 4.61 Billion |
| Compound Annual Growth Rate (CAGR) | 9.53% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Production Method, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | BASF SE, Perstorp, Eastman Chemical Company, Luxi Chemical Group Co. Ltd, Anhui Asahi Kasei Chemical, Feicheng Acid Chemical, Gujarat Narmada Valley Fertilizers & Chemicals Limited, Chongqing Chuandong Chemical Co, Perstorp |
| Key Market Opportunities | · Growing Awareness of the Sustainability Factor of Formic Acid to Improve Application |
| Key Market Dynamics | · Growing Applications and Superior Properties of Formic Acid to Fuel Market Growth |
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