Formic Acid Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The global formic acid market is projected to expand from USD 2.16 billion in 2025 to USD 2.88 billion by 2031, reflecting a compound annual growth rate of 4.94%. This simple carboxylic acid is widely employed as a robust antibacterial preservative in livestock feed and as a critical pH regulator within the leather tanning and textile dyeing industries. Growth is chiefly driven by the burgeoning animal nutrition sector, where the chemical is essential for maintaining silage quality and preventing microbial contamination. Additionally, sustained industrial demand for effective processing agents in leather and textile manufacturing continues to support global consumption levels. Highlighting a revival in downstream manufacturing, the Methanol Institute reported in 2024 that global demand for methanol - the key feedstock for formic acid - rebounded by approximately 2 to 3 percent.

However, the market faces a substantial hurdle regarding the volatility of raw material prices, which introduces uncertainty for manufacturers and compresses profit margins. The fluctuating costs associated with methanol and energy inputs result in unpredictable production expenses, thereby hindering long-term capital investment and threatening supply chain stability across the global sector. These economic variables complicate strategic planning and may constrain the overall growth trajectory of the formic acid industry despite increasing demand from end-user applications.

Market Drivers

A primary catalyst propelling the formic acid market is the escalating global requirement for animal feed preservatives and silage additives. As the livestock industry intensifies operations to satisfy growing protein needs, there is a heavy reliance on organic acids to guarantee feed hygiene and suppress pathogens such as salmonella. This usage is indispensable for preserving nutrient quality and ensuring animal gut health without depending on antibiotics, a factor that drives the consumption of high-purity acid grades. According to Alltech’s '2024 Agri-Food Outlook' published in February 2024, global feed production volumes remained robust at 1.29 billion metric tons in 2023, necessitating consistent inputs of acid-based preservatives and securing steady revenue for manufacturers serving the agricultural sector.

In parallel, the market is significantly influenced by the consistent application of formic acid in natural rubber coagulation processes. It remains the preferred coagulant for manufacturing high-grade rubber sheets, as it ensures the uniform structure and mechanical strength required for automotive tire production. Data from the Association of Natural Rubber Producing Countries in their September 2024 'Monthly NR Statistical Report' indicates that global natural rubber production rose slightly by 0.7 percent during the first seven months of the year, maintaining demand for effective coagulating agents. Furthermore, while the broader chemical sector encounters challenges, recovery is expected; the American Chemistry Council’s December 2024 'Year-End Situation & Outlook' projected a 1.9 percent rebound in U.S. chemical output volumes for 2025, suggesting a favorable outlook for intermediate inputs like formic acid.

Market Challenges

Significant instability and volatility in raw material prices stand as major obstacles to the expansion and stability of the global formic acid market. Because the synthesis of this acid is deeply tied to the energy-intensive methanol value chain, manufacturers are frequently exposed to unpredictable fluctuations in feedstock costs. This instability consistently compresses profit margins and complicates financial forecasting, prompting key industry stakeholders to postpone essential capital investments or capacity upgrades. Furthermore, when production costs swing unpredictably, suppliers find it difficult to provide stable, long-term contracts to customers in the agriculture and leather sectors, which disrupts established supply chains and diminishes overall market confidence.

These economic strains are corroborated by recent trends in the broader chemical manufacturing industry, which directly impact downstream acid production. As reported by the American Chemistry Council regarding the third quarter of 2024, input and raw material costs for chemical manufacturers escalated for a third consecutive quarter. This persistent rise in production expenditures negatively affects the market by compelling manufacturers to increase product prices to maintain operational viability. Such price inflation deters volume growth in price-sensitive applications, particularly animal silage preservation, thereby limiting the market’s capacity to fully leverage rising global demand.

Market Trends

A pivotal shift in the market is the adoption of formic acid as a Liquid Organic Hydrogen Carrier (LOHC), driven by the global necessity to build safe and efficient hydrogen storage infrastructure. Unlike compressed gas or cryogenic liquids, formic acid remains stable at ambient temperatures, enabling the energy sector to leverage existing chemical tankers and pipelines for hydrogen transport. This application is rapidly transitioning from theoretical research to practical demonstration, addressing key logistical challenges in the hydrogen economy. In May 2024, the Korea Institute of Science and Technology announced that researchers had successfully built and operated a pilot plant producing 10 kilograms of formic acid daily, a milestone intended to verify the economic feasibility of the carbon-capture-to-hydrogen-carrier cycle.

Concurrently, supply chain dynamics are being redefined by the emergence of green formic acid produced through carbon dioxide utilization, which decouples manufacturing from fossil-fuel-based methanol. This trend involves the industrial scaling of electrochemical reduction technologies that convert captured carbon emissions directly into high-purity acid using renewable electricity. These innovations meet the chemical industry's urgent demand for inputs with lower carbon intensity while providing a productive method for waste carbon valorization. Validating the technical viability of these sustainable methods, the U.S. Department of Energy reported in its August 2024 'Low Carbon Intensity Formic Acid Chemical Synthesis' document that OCOchem successfully commissioned a commercial-scale carbon dioxide electrolyzer earlier in the year, achieving a Faradaic efficiency exceeding 80 percent.

Key Players Profiled in the formic acid market

• BASF SE
• Eastman Chemical Company
• Shandong Acid Technology Co. Ltd.
• Gujarat Narmada Valley Fertilizers & Chemicals Limited
• Luxi Chemical Group Co Ltd.
• Perstorp Holdings AB
• Polioli S.p.A.
• Pupuk Kujang PT
• Rashtriya Chemicals and Fertilizers Limited
• Wuhan Rui Sunny Chemical Co. Ltd.

Report Scope

In this report, the Global Formic Acid Market has been segmented into the following categories:

Formic Acid Market, by Type:

• Grade 99%
• Grade 94%
• Grade 85%
• Others

Formic Acid Market, by Application:

• Animal Feed
• Silage
• Leather Tanning
• Textile Dyeing
• Others

Formic Acid Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Formic Acid Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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