by The global Formic Acid Market is estimated to be valued at USD 1.6 billion in 2021 and is expected to exhibit a CAGR of 4.9% over the forecast period of 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Formic acid is a colorless liquid with a pungent odor and is widely used in various end-use industries such as agriculture, pharmaceuticals, chemicals, and textiles. It is primarily used as a preservative and antibacterial agent in animal feed and silage preservation. In addition, it is also used in the production of leather, rubber, and dyestuffs.
B) Market Dynamics:
The market for formic acid is being driven by two main factors. Firstly, the increasing demand for preservatives and antibacterial agents in the agriculture sector is driving the growth of the market. Formic acid is used in animal feed as a preservative, which helps in preventing the growth of harmful bacteria and improving the quality of feed. It also acts as an antibacterial agent in silage preservation, ensuring its freshness and nutritional value.
Secondly, the growing agriculture sector is fueling the demand for formic acid. Formic acid is used as a fertilizer in the agriculture sector due to its ability to improve the soil quality and increase crop yield. It helps in reducing the pH level of the soil, making it favorable for plant growth.
C) Segment Analysis:
The market for formic acid can be segmented based on its application. The dominating segment in the market is the agriculture segment. The increasing demand for high-quality animal feed and the need for improved crop yield is driving the growth of this segment.
D) PEST Analysis:
Political: There are no major political factors affecting the formic acid market. However, government regulations regarding the use of preservatives and fertilizers in the agriculture sector may have an impact on the market.
Economic: The economic factors influencing the market include the increasing demand for agricultural products and the growth of the agriculture sector in emerging economies.
Social: The social factors include the growing awareness among consumers about the importance of food safety and the need for improved crop yield.
Technological: Technological advancements in the production of formic acid are driving the market growth. Various manufacturers are adopting innovative production techniques to improve the quality and purity of formic acid.
E) 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 demand for preservatives and antibacterial agents in the agriculture sector. The agriculture segment dominates the market, driven by the need for improved animal feed quality and increased crop yield.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the market. The region has a large agricultural sector and is witnessing increasing demand for preservatives and fertilizers. China and India are the major contributors to the growth of the market in this region.
Key players operating in the global formic acid market include BASF SE, Eastman Chemical Company, Shandong Acid Technology Co. Ltd, Gujarat Narmada Valley Fertilizers & Chemicals Limited, LUXI GROUP, Perstorp Holdings AB, POLIOLI SpA, PT Pupuk Kujang, Rashtriya Chemicals and Fertilizers Limited, and Wuhan Ruisunny Chemical Co. Ltd. These players are focusing on product innovation and expanding their production capacities to meet the growing demand for formic acid.
