As per Fact.MR, a market research and competitive intelligence provider, the global formic acid market is set to expand at a CAGR over 4% to be valued at more than US$ 3 Bn by the end of the 2021-2031 assessment period.
Formic acid is made artificially through different strategies like hydrogenation of carbon dioxide and oxidation of biomass. HCOOH is the chemical formula of formic acid. It is chemically manufactured through various methods such as hydrogenation of carbon dioxide and oxidation of biomass.
Formic acid is one of the basic organic chemical raw materials widely used in pesticide, leather, dyes, pharmaceuticals and rubber industries. Formic acid is a suitable substitute for cleaning and de-scaling applications, increasing its application across a broad range of products, especially those requiring low concentration. These factors will propel the growth of the market.
Key Takeaways from Market Study
- Global formic acid market to top US$ 3 Bn by 2031.
- Formic acid of 85% concentration valuation projected to reach around US$ 2 Bn by 2031.
- Formic acid of 99% concentration sales projected to record above 2% CAGR over the next 10 years.
- Market in Japan to record 1.5% CAGR over forecast period of 2021- 2031.
- China forecast to reach projected market size above US$ 365 Mn by 2031.
“Silage preservative / animal feed and leather tanning applications largely define the demand growth of formic acid. APAC would continue its winning streak over the forecast period, with market players in China expected to increase production capacity in the near future,” according to a Fact.MR analyst.
Market Competition
The formic acid market has reached its maturity sage. Increasing demand for formic acid from several applications and the constant supply-demand gap will create incremental opportunities for new entrants. The market is moderately consolidated, with a few chemical industry giants capturing a large part of the market share.
Companies such as BASF and Perstop are focusing on strengthening their market position in formic acid with continuous collaborations and innovations related to patents and pricing of formic acid.
Recently, BASF collaborated with Addcon to develop a solution for online distribution of its Viafoam brand in the formic acid segment. This has enabled BASF to increase its online visibility and enhance personalization.