Formic Acid Market Driven by Rubber Plantations and Production in APAC

Gaining traction from prospering pharmaceutical and rubber industries, the formic acid market is poised for profitable returns, as per the findings of a new business intelligence study by IndustryARC. The market research report has evaluated that the global formic acid market size hovered around $550 million in 2018, and projects the demand to propagate with a compound annual growth rate (CAGR) of 4.9% during the forecast period 2019-2025. The report is titled “Formic Acid Market: By Types (Grades of 85%, 94%, 99%, and others); By Application (Agriculture, Leather & Textile, Rubber, Chemical & Pharmaceuticals, & others) & Region – Forecast (2019-2025).”

Formic acid is the most abundantly available organic acid in the atmosphere and also a major cause for the acidity of rainwater. It is the simplest form of powerful carboxylic acid, which is also known as methanoic acid. Novel source of formic acid was found by an international group of researchers at Sandia National Laboratories that is over the Pacific and Indian oceans. This invention produces an additional volume of formic acid that is nearly 3.4 billion tons per year. Formic acid is a highly utilized organic chemical raw material in the diverse range of applications such as agricultural, commercial, industrial, and in consumer applications as an animal feed nutrient supplement, in drilling and completion fluids, cleaning and scouring products, de-icer for roadways, airfields, and airplane wings, and biomass reduction. 

Formic acid is unique chemical which is generally used as a preservative in silage and foods, leather tanning, acidulant in the dyeing of natural and synthetic fibers, coagulating latex in rubber production. Government restrictions inhibiting the growth of sulphuric acid and in turn, increase the use of formic acid in the rubber industry. Distinctive physical-chemical properties of formic acid are gaining traction from the rubber manufacturers. For this, the pharmaceutical and rubber end use segments of the formic acid market are anticipated to grow at a healthy CAGR of around 4.5% through to 2025. 

Almost 70% of the nation’s rubber plantations are found in the Mon, Kayin and Tanintharyi states of Asia-Pacific. Rising rubber imports from china are also impacting the growth of formic acid in the APAC region. Thus, according to IndustryARC estimations APAC has identified as the leading region, which accounted with a governing share of around 48% in the global formic acid market for the year 2018. Currently, Southeast Asia produces around 90% of natural rubber which is supplied across the world. Indonesia, Thailand, Vietnam, and Malaysia are the international exporters and China, the United States and Japan are the biggest importers of the rubber. 

Some of the major players operating in the global formic acid market are BASF SE, Feicheng Acid Chemical, Gujarat Narmada Valley Fertilizers & Chemicals Limited, Chongqing Chuandong Chemical Co., Ltd, LUXI Group Co., Ltd., Eastman Chemical Company, and Perstorp AB

Organic Acids Market: By Type (Acetic Acid, Citric Acid, Formic Acid, Lactic Acid, Prop ionic Acid, Fumaric Acid & Others) & By Geography - Forecast(2018 - 2023)