Formic Acid Global Market Report 2024

The formic acid market size has grown strongly in recent years. It will grow from $1.7 billion in 2023 to $1.8 billion in 2024 at a compound annual growth rate (CAGR) of 6.0%. The expansion observed in the historical period can be ascribed to the influence of textile and leather industries, agricultural applications, chemical manufacturing, the rubber industry, and activities in laboratories and research.

The formic acid market size is expected to see strong growth in the next few years. It will grow to $2.2 billion in 2028 at a compound annual growth rate (CAGR) of 5.1%. The anticipated growth in the forecast period can be linked to developments in renewable energy storage, the production of biofuels, the creation of biodegradable polymers, advancements in hydrogen storage, and the utilization of formate salts for oil recovery. Key trends expected in the forecast period encompass the application of formic acid in waste management, the expansion of biotechnology, the promotion of carbon-neutral chemical production, the utilization of formate salts in the oil industry, and the adoption of formic acid fuel cells.

The anticipated growth in the formic acid market is expected to be fueled by the increasing demand for animal feed. Animal feed refers to the food cultivated or formulated for livestock and poultry, serving as an edible substance that supplements their diet with energy, minerals, or both. Formic acid is frequently employed as an additive in animal feed to enhance preservation, nutritional value, and overall animal health. It acts as a preservative and antibacterial agent in livestock feed. For example, in 2022, the Animal Nutrition Association of Canada (ANAC) reported that Canadian livestock consumed an estimated 28.9 million metric tons of feed (excluding forages) in 2021, with approximately 19.3 million metric tons supplied by commercial mills across Canada. The Canadian commercial feed market witnessed over a 20% growth in 2022, reaching a record $11.5 billion in sales. Consequently, the escalating demand for animal feed is a driving force behind the growth of the formic acid market.

The anticipated expansion of the automotive industry is poised to contribute to the growth of the formic acid market. The automotive industry encompasses various entities engaged in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. Formic acid plays a significant role in this industry, being utilized in the production of adhesives and coatings that contribute to the manufacturing and performance of automotive components and finishes. For instance, in August 2023, the Board of Governors of the Federal Reserve System reported an increase in total vehicle production in the United States to 11.77 million units in July, up from 10.91 million units in June. Thus, the expanding automotive industry serves as a driving factor for the growth of the formic acid market.

The adoption of innovative technologies stands out as a key trend gaining traction in the formic acid market. Major companies in the industry are strategically focused on introducing cutting-edge technologies to address specific demands and maintain their market positions. For example, in January 2022, the University of Science and Technology of China, in collaboration with a team of researchers, developed an advanced system that directly utilizes renewable electricity for the reduction of carbon dioxide into pure formic acid. Utilizing a copper-based single-atom alloy catalyst and an innovative electrochemical device with solid-state electrolytes, this system produces refined formic acid liquid fuels using carbon dioxide and water as raw feedstocks. This breakthrough is anticipated to drive the industrialization of carbon dioxide upcycling powered by green electricity, presenting significant potential for practical applications.

Major players in the formic acid market are intensifying their efforts to introduce energy generation systems, such as hydrozine, to gain a competitive advantage. Energy generation systems encompass various technologies and configurations designed to generate electrical or mechanical energy. For instance, in February 2023, Danish Energy Solutions launched a new system utilizing formic acid, or hydrozine, for power generation. This innovative technology, serving as both a fuel and energy carrier, features a 20 kW generator and a 60 kWh battery. It is applicable to diverse uses, including electrified construction sites and potentially even vehicles. The system, having undergone testing, is currently undergoing further development for both stationary and mobile applications, aiming to make sustainable energy more accessible and cost-effective.

In October 2022, Petronas Chemicals Group Berhad (PCG), a Malaysian chemical company, acquired Perstorp for an undisclosed amount. Through this acquisition, Petronas Chemicals Group Berhad aims to achieve its growth targets and reinforce its market position in specialty chemicals. Perstorp AB, based in Sweden, is a chemicals company specializing in the production of formic acid.

Major companies operating in the formic acid market report are BASF SE, Honeywell International Inc., Yara International ASA, Evonik Industries AG, Eastman Chemical Company, Luxi Chemical Group Co. Ltd., Kemira Oyj, Rashtriya Chemicals and Fertilizers Limited, HELM AG, Perstorp Holdings AB, PT Pupuk Kujang, GMM Pfaudler Ltd., Gujarat Narmada Valley Fertilizers & Chemicals Limited, Alfa Aesar, Wuhan Rui Sunny Chemical Co. Ltd., Fleurchem Inc., Noah Chemicals, Polioli S.p.A., Shandong Feicheng Acid Chemicals Co.Ltd., Anhui Asahikasei Chemical Co. Ltd., Chongqing Chuandong Chemical (Group) Co. Ltd., Hubei Yihua Group Co. Ltd., Zibo Xinglu Chemical Factory, Shandong Haili Chemical Industry Co. Ltd., Vigon International.

Asia-Pacific was the largest region in the formic acid market in 2023, and is expected to be the fastest-growing region in the forecast period. The regions covered in the formic acid market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the formic acid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Formic acid is available in various purities, categorized as less than 80% to 89.5%, 89.6% to 90.5%, 91.6% to 99%, and more than 99%. The purity range of less than 80% to 89.5% indicates a lower-purity formic acid, which may include impurities and other substances. These variations are employed in diverse applications, including animal feed, silage, leather tanning, and textile dyeing, catering to a range of end-use industries such as agriculture, leather, textiles and apparel, healthcare, rubber, chemicals, paper, and others.

The formic acid market research report is one of a series of new reports that provides formic acid market statistics, including formic acid industry global market size, regional shares, competitors with a formic acid market share, detailed formic acid market segments, market trends and opportunities, and any further data you may need to thrive in the formic acid industry. This formic acid market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The formic acid market consists of sales of hydrogen carboxylic acid, liquid formic acid, and aritan white formic acid. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.