SWOT Analysis
Strength: Formic acid has numerous applications across various end-use industries such as animal feed, leather, pharmaceuticals, agriculture and food additives which drives its market growth. It is non-corrosive in nature and has low toxicity which makes it safer to handle. Many key players are investing in R&D to discover newer applications of formic acid which is expanding the scope of the market.
Weakness: Strict government regulations regarding the production, handling and transportation of formic acid poses a challenge for market growth. It is highly flammable in nature which requires special care during manufacturing. Low awareness among end-users regarding the various uses of formic acid limits the expansion of the market globally.
Opportunity: Increasing demand for preservatives and food additives from food and beverage industry offers lucrative opportunities. Rising usage of formic acid as a non-hazardous substitute for hazardous acids in leather processing and rubber industries will augment the market revenue. Growing pharmaceutical industry worldwide is fueling the demand for formic acid in drug formulations.
Threats: Volatility in raw material prices required for formic acid production poses major threat. Presence of substitutes like acetic acid and propionic acid limits the market potential. High toxicity at concentrated levels can hamper overall demand.
Key Takeaways
The Global Formic Acid Market Size is expected to witness high growth, exhibiting a CAGR of 4.9% over the forecast period, due to increasing application in animal feed preservatives. In 2023, the market size is estimated to reach US$ 1.76 billion.
Regional analysis:
Asia Pacific dominates the global formic acid market and is expected to grow at the fastest rate owing to large consumer base in major countries like China, India and Japan. China alone accounts for over 35% of global demand due to rapid industrialization and strong textile sector. North America is second largest market driven by increasing usage of formic acid as a preservative in cattle feed formulations.
Key players
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 SE and Eastman Chemicals are the dominant players with wide product portfolio and global presence.
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