The 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 Overview:
Formic acid is commonly used as an animal feed acidulant, preservative and antimicrobial agent. It is an odorless, colorless and corrosive organic acid with many industrial uses. The acid helps improve feed digestibility and enhances uptake of nutrients in animals. Its antibacterial properties also preserve silage and improve fermentation.
Market key trends:
Formic acid demand is rising rapidly owing to its increasing use as an animal feed acidulant worldwide. It is widely used in silage preservation and helps improve feed conversion efficiency in livestock. Around 45% of global formic acid production is consumed for animal feed applications. Growing meat consumption and rising demand for high-quality animal proteins is driving formic acid consumption for feed applications. The global feed acidulants market is projected to grow at over 5% annually during the forecast period, which will favor formic acid market growth. Stringent regulations regarding antibiotic growth promoters is also creating opportunities for feed acidulants like formic acid in livestock and poultry production.
Porter’s Analysis
Threat of new entrants: The formic acid market requires high capital investments and R&D costs, which pose high entry barriers for new players. Bargaining power of buyers: Buyers have moderate bargaining power due to presence of numerous established producers in the market. Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute raw materials. Threat of new substitutes: Formic acid faces threat from substitutes like acetic acid; however, specialized applications restrict impact of substitutes. Competitive rivalry: Intense competition exists among key established players to gain higher market share.
SWOT Analysis
Strengths: Wide applications in textile finishing, leather tanning, animal feed preservatives, and rubber processing. Weaknesses: Highly toxic in nature and requires careful handling during production, storage, transportation and usage. Opportunities: Increasing demand for silage additives and preservatives in animal feed industry. Growing need for eco-friendly antimicrobial agents. Threats: Volatility in raw material prices affect production costs. Stringent government regulations pertaining to usage and disposal.
Key Takeaways
The Global Formic Acid Market Growth size was valued at US$ 1.76 billion in 2023 and is expected to witness high growth at a CAGR of 4.9% over the forecast period. The increasing demand from silage applications in animal feed sector is expected to drive the market during the forecast period.
Regionally, Asia Pacific dominated the global market in 2023 and is likely to maintain its lead over 2023-2030. This can be attributed to rising meat consumption and growing livestock population in countries like China and India. The demand for cattle feed additives containing formic acid is surging in the region.
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. Established players are investing in expanding production capacities to meet the growing demand across regions.
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