Formic acid, also known as methanoic acid, is a colorless toxic chemical compound, occurring naturally in insect stings and is also produced synthetically. It is mainly used as animal feed preservatives, leather preservatives, pharmaceuticals, food preservatives, rubber, textile, and dyeing and finishing agents. As a preservative, formic acid acts as an effective antimicrobial agent to extend the shelf-life of animal feed and prevent spoilage. It is also used as a biostatic preservative for apples, peaches, grapes and other produce to inhibit microbial growth and decay.
The global Formic Acid Market is estimated to be valued at US$ 1.76 Bn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
As a preservative, formic acid controls the growth of harmful microorganisms like bacteria, yeasts and molds, and protects animal feed and produce from spoilage. The increasing livestock production and concerns regarding food spoilage has boosted the demand for formic acid as a cost-effective preservative.
Growing leather industry: The increasing use of formic acid in leather tanning and dyeing is another driver of market growth. Formic acid is widely used in leather processing to soften animal hides, increase workability, improve dye penetration and preserve leather against microbial deterioration. The expanding leather industry in developing countries like China and India has fueled the demand for formic acid over the forecast period.
Segment Analysis
The global formic acid market is dominated by silage and animal feed segment. The segment accounts for over 35% of the total market share owing to wide application of formic acid as preservative and anti-bacterial agent in animal feed and silage. Formic acid helps improve the nutritional value and digestibility of silage and prevents spoilage by inhibiting the growth of harmful microbes.
PEST Analysis
Political: The formic acid market is governed by stringent regulations regarding manufacture, storage, transportation and handling of formic acid due to its highly corrosive and toxic nature. Various organizations like EPA and REACH frame policies to ensure safety.
Economic: Growth of agricultural and livestock industries drives the demand for formic acid-preserved silage and animal feed. Rising meat consumption globally augments the market. However, price volatility of raw materials impacts the production cost.
Social: Increasing health awareness regarding meat quality and safety boosts the use of preservatives like formic acid in animal feed. Social media promoting natural preservatives also contributes to the market growth.
Technological: Advancements in fermentation and chemical synthesis processes aid in efficient and sustainable production of formic acid. New application areas in textile finishing and leather tanning extend growth opportunities.
Key Takeaways
The Global Formic Acid Market Size is expected to witness high growth on account of rising meat consumption and increasing demand for natural preservatives in animal feed globally. Regionally, Asia Pacific dominates the market and is expected to maintain its leading position over the forecast period. China accounts for over 35% of the APAC demand due to strong livestock sector and presence of numerous domestic formic acid producers like BASF SE, Shandong Acid Technology Co. Ltd.
Key players operating in the formic acid market are BASF SE, Eastman Chemical Company, Shandong Acid Technology Co. Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Limited, LUXI GROUP, Perstorp Holdings ABPOLIOLI SpA, PT Pupuk Kujang, Rashtriya Chemicals and Fertilizers Limited, and Wuhan Ruisunny Chemical Co. Ltd. BASF, Eastman and Shandong Acid Technology are the top three players accounting for over 45% of the global production capacity.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it