Formic Acid Market Expected to Grow by USD 543.9 Million (2024-2028), Due to Rising Demand for Preservatives, AI's Impact on Market Trends - Technavio Report

NEW YORK, Aug. 28, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape- The global formic acid market size is estimated to grow by USD 543.9 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 5.2% during the forecast period. Rising demand for formic acid as a preservative is driving market growth, with a trend towards direct syntheses of formic acid in acidic media. However, presence of cost-effective substitutes poses a challenge. Key market players include BASF SE, Eastman Chemical Co., GNFC Ltd., Joshi Agrochem Pharma Pvt. Ltd., Kakdiya Chemicals, Kemira Oyj, Luxi Chemical Group Co. Ltd., Merck KGaA, MERU CHEM PVT. LTD., NuGenTec, PETRONAS Chemicals Group Berhad, Pon Pure Chemicals Group, ProChem Inc., RXChemicals, Shandong Acid Technology Co. Ltd., Shandong Jiuan Chemical Industry Co. Ltd., Shijiazhuang Taihe Chemical Co. Ltd., Thermo Fisher Scientific Inc., Tokyo Chemical Industry Co. Ltd., and Vizag Chemical International.

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Market Driver

The global formic acid market is experiencing significant changes due to the growing concern over rising carbon dioxide (CO2) levels in the atmosphere. A new CO2 hydrogenation process is emerging, which directly synthesizes formic acid using a homogeneous ruthenium catalyst in dimethyl sulphoxide (DMSO) and an aqueous solution, without the need for additives. This process allows for the reuse of catalysts multiple times without decreasing their synthesis capacity, making it a sustainable trend in the market. Another trend is the dehydrogenation of catalysts in the preparation of formic acid. These developments are expected to contribute to the growth of the formic acid market during the forecast period. The direct synthesis of formic acid in acidic media is a key factor driving market expansion. 

The Formic Acid market is witnessing significant growth due to its diverse applications in various industries. Key feedstocks like methanol and carbon dioxide (CO2) are driving the demand for formic acid in the production of acetic acid, a crucial ingredient in the textile industry for finishing textiles. In the livestock industry, formic acid is used as an antibacterial agent and a silage additive, extending the shelf-life of animal feed. Moreover, the dairy sector utilizes formic acid as a preservative in dairy products and as an animal health supplement. The chemical energy derived from formic acid is also used in fuel cells as an alternative to fossil fuels, reducing greenhouse gas emissions and carbon footprint. Formic acid is also used as a carboxylic acid in the production of Formica and household cleaning products. In the pharmaceutical industry, it serves as a pharmaceutical intermediate, while in the rubber industry, it is used as a rubber chemical. The market is segmented into grade type segments, including technical and food-grade formic acid. Occupational hazards associated with formic acid production and handling are a concern, but advancements in formylation and transfer hydrogenation processes are addressing these challenges. The agriculture market uses formic acid as a silage additive, while the processed food market utilizes it as a preservative in processed food and livestock sectors. The market is also expanding in the metallurgy, leather, and leather preservatives, and oil and gas industries. 

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Market Challenges

• The formic acid market faces challenges due to the availability of cost-effective substitutes. These substitutes, including peptides, microflora enhancers, potassium sorbate, sodium sorbate, acetic acid, citric acid, and phosphoric acid, offer competitive pricing and similar functionalities in various applications. For instance, citric acid acts as a pH adjuster in cosmetics and pharmaceuticals, while potassium sorbate functions as a food preservative. Formic acid's high cost puts it at a disadvantage, potentially impeding market growth during the forecast period. Therefore, the increasing adoption of these substitutes may negatively impact the global formic acid market.
• Formic Acid is a crucial industrial chemical with various applications in diverse sectors. Its primary uses include animal feed additives and disinfectants. However, handling high concentrations can be dangerous, making safety measures essential. The market for Formic Acid has seen exponential development due to its acid property and use as an anti-bacterial agent in animal feedstock. Industries like rubber and leather production utilize Formic Acid as a cleaning agent and finishing textiles. In preservatives, it's used in dyeing processes and as a catalyst in the production of monomers and performance chemicals. The chemical industry relies on Formic Acid for producing dispersions and pigments, catalysts, coatings, care chemicals, and industrial solutions. Formic Acid also finds applications in petrochemicals, performance materials, and hydrogen peroxide production. Traditional methods like oxidation of formaldehyde and carbonylation of methanol are being replaced with more environmentally friendly processes. Formic Acid is also used in coal gasification, salt production, and as a reducing agent in hydrogen gas and carbon dioxide processes. In pharmaceuticals, it's used as a precursor for various drugs. Despite its numerous uses, it's essential to ensure safety measures due to its dangerous nature.

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Segment Overview 

This formic acid market report extensively covers market segmentation by

1. Distribution Channel
• 1.1 Offline
• 1.2 Online
2. End-user 
• 2.1 Agriculture and animal feed
• 2.2 Leather
• 2.3 Textile
• 2.4 Chemicals and pharmaceuticals
• 2.5 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Offline- Formic acid is a crucial organic compound used primarily in the production of various industrial chemicals and as a food additive. The global formic acid market size was valued at over USD3 billion in 2020 and is expected to grow due to increasing demand from the agrochemicals industry. Key applications include the manufacture of methylamine, quinaldine, and 1,3-dimethylformamide. Major producers include China, Germany, and the United States. The market growth is driven by rising demand for formic acid in the production of bio-based chemicals and as a preservative in the food industry.

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Research Analysis

Formic acid, a colorless, pungent, and highly corrosive organic acid with the chemical formula HCOOH, is the simplest carboxylic acid and the first member of the aldehyde and carboxylic acid families. It is naturally produced by ants as part of their venom and is also found in small quantities in some fruits and vegetables. Formic acid is used in various industries, including agriculture for the production of methanol from methane, in silage to improve fermentation, and as an antibacterial agent in the dairy sector. In the chemical industry, it is used for formylation and transfer hydrogenation processes. Formic acid is also used as a fuel additive in fuel cells, as a greenhouse gas reduction agent, and as a carbon emissions offset in the context of climate change. It is used in the processing of food and livestock markets as preservatives, antibiotics, and leather preservatives. Formic acid is also used in the production of methanol and is a byproduct of the methanol production process. It is also used as a raw material in the production of antifreeze, solvents, and dyes. The global formic acid market is expected to grow significantly due to its wide range of applications in various industries.

Market Research Overview

Formic acid, with the chemical formula HCOOH and the simplest carboxylic acid, is a colorless, pungent, and highly corrosive organic acid. It is also known as methanoic acid due to its relation to methane. Formic acid is produced through various methods such as the oxidation of formaldehyde or carbonylation of methanol. This acid is used in various industries including agriculture, textiles, leather, rubber manufacturing, and as a preservative, antibacterial agent, and animal feedstock. In agriculture, it is used as a preservative and antibacterial agent, particularly in the dairy sector to improve the shelf-life of milk and prevent the growth of E. Coli. Formic acid is also used in the production of rubber, leather, and textiles as a cleaning agent, finishing textiles, and preservatives. In the chemical industry, it is used as a catalyst, solvent, and raw material in the production of various performance materials, monomers, dispersions and pigments, coatings, care chemicals, and industrial solutions. Despite its benefits, formic acid is dangerous in high concentrations and can be harmful to human health and the environment. Traditional methods of producing formic acid have high emissions and contribute to carbon emissions, making the development of environmentally friendly processes a priority. Formic acid is also used as a feedstock in the production of other chemicals such as oxalic acid, hydrogen peroxide, polyols, and hydrogen gas. It is also used in the pharmaceutical industry as a feedstock and as an antibacterial agent. In the livestock industry, formic acid is used as a disinfectant and in animal health. Formic acid is also used in the production of fuel cells and as a fuel additive, making it an important player in the transition towards renewable energy and reducing greenhouse gas emissions from fossil fuels. However, the production and use of formic acid also come with occupational hazards, making safety measures essential.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Offline
• Online
• End-user
• Agriculture And Animal Feed
• Leather
• Textile
• Chemicals And Pharmaceuticals
• Others
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Website: www.technavio.com/

SOURCE Technavio

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