Formic acid, also known as methanoic acid or carboxylic acid, is a vital intermediate in chemical synthesis. Formic acid gives a strong and penetrating odour at room temperature. Several properties of formic acid are organic solvents, colourless, corrosive, pungent, liquid carboxylic acid. Formic acid is naturally found in a variety of foams, such as stinging ants, nettles, pine needles, and sweat. It is chemically manufactured through various methods such as hydrogenation of carbon dioxide and oxidation of biomass. In addition, it is a bi-product of acetic acid production. It is used in the form of an antibacterial agent and a preservative in livestock feed. Moreover, it is soluble in water, various alcohols, acetone, and ether.
COVID-19 scenario analysis:
- Asia-Pacific is highly affected by the spread of the COVID-19 due to the effect of the pandemic in China, Japan, and India. The chemical industry has been highly affected, which led to decrease in demand for formic acid.
- The outbreak of COVID-19 has disrupted many industrial activities in agriculture and supply chains. Non-availability of migrant labor is interrupting harvesting activities, particularly in northwest India where wheat and pulses are being harvested. Prices have declined for wheat, vegetables, and other crops, yet consumers are paying more.
- Farmers are facing shortage of agricultural inputs, such as seed, fertilizer, and pesticides, due to global trade disruptions. China is one of the major fertilizer producing producers and exporters in the world. The lockdown in China has severely affected the international fertilizer trade.
- The COVID-19 pandemic has changed the global economic picture drastically. Fabric production is expected to decrease, owning to decline in exports and stagnation in apparel/home textile production.
Top impacting factors: Market scenario analysis, trends, drivers, and impact analysis
There is rise in demand for formic acid in various applications such as preservatives, animal feed, agriculture, and leather. Rise in consumption of formic acid as an antibacterial agent for animal feed and increase in usage as silage preservative in agriculture are expected to boost the formic acid market. Moreover, increase in demand for meat across the globe has boosted the consumption of formic acid. Manufacturing companies and end-product manufacturers are significantly investing in advancement and technology modifications of formic acid to fulfil the increase in demand from various end-user industries. In addition, various features and uses of formic acid in several industries are expected to boost the formic acid market growth.
Rubber & leather industry is expected to be the fastest-growing application segment, owing to rise in demand for tires and consumer goods. Formic acid is one of the organic chemical raw materials widely used in rubbers, pharmaceuticals, dyes, leather, and pesticides. The high quality nature of formic acid combined with the global environmental acceptability is one of the main influencing factors that increase the demand in the industry.
However, various emerging companies and developing new cost-effective alternatives, including micro flora enhancers and peptides are expected to hamper the formic acid market growth. Fluctuating weather condition is expected to negatively affect the production of certain application industries such as silage preservative and animal feed additives.
Surge in usage of formic acid in rubber applications:
Based on region, the global formic acid market is segmented into North America, Europe, Asia-Pacific, and LAMEA. Asia Pacific has the largest market share of the formic acid market in terms of revenue. China is the main producer and consumer of formic acid across the globe. Textile and rubber industries are the prominent consumers of formic acid in Asia Pacific. Rapid industrialization and easy availability of raw materials are the factors for the higher share of Asia-Pacific in the market. North America also has significant share of the formic acid market due to large number of manufacturers, such BASF SE and Perstorp AB, which operate in the region.
Furthermore, formic acid is used in various applications such as silage & animal feed preservation, leather & tanning, textiles, formate salts, pharmaceuticals/food chemicals, rubber chemicals (antiozonants and coagulants), catalysts, and plasticizers. It is mainly used in livestock as the chemical is used as a preservative in animal feed as it prevents the growth of bacteria in the feed. The growth in production of livestock for sustainable supply of food is expected to create more growth opportunities in the formic acid market.
Key benefits of the report:
- This study presents the analytical depiction of the formic acid market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the formic acid market share.
- The current market is quantitatively analyzed to highlight the formic acid market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides detailed analysis based on competitive intensity and how the competition will take shape in coming years.
Questions answered in the formic acid market research report:
- Which are the leading market players active in the market?
- What are the current trends that will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the market?
- What are the projections for the future that would help in taking further strategic steps?
Formic Acid Market Report Highlights
Key Market Players
Anhui Asahi Kasei Chemical, Chongqing Chuandong Chemical Co., Feicheng Acid Chemical, Perstorp, Luxi Chemical Group Co. Ltd, BASF SE, Perstorp AB, Eastman Chemical Company, Gujarat Narmada Valley Fertilizers & Chemicals Limited