Formic Acid Market Overview:
According to the Organization of Petroleum and Exporting Countries (OPEC), the global oil demand during the period 2016 to 2022 will increase from 95.4 Mb/d to 102.3 Mb/d with an annual growth rate of 1.2 Mb/d in terms of the barrel. Furthermore, the organization estimates the demand growth rate to be 0.6% through to 2040. This upsurge in the demand for oil will substantially resonate with the demand influx in the formic acid market that was valued to be around $550 million. This attributes to the application of formic acid in the oil & gas sector as the derivative of the chemical, potassium formate brine is added to drilling fluids in order to make them heavier. The demand for formic acid in various industries will observe a compound annual growth rate (CAGR) of 4.9% during the forecast period of 2019 to 2025.
APAC has been observing industrial growth for quite a few years now. The pharmaceutical sector has been making strides with a gamut of international companies investing in developing economies such as India. Subsequently, the demand for formic acid, which is used in pharmaceutical industries, is on the rise. The region led the formic acid market with a share that was gauged at around 48% in 2018. This is also attributed to the cheap raw materials and operational cost for the manufacturing units in APAC, which creates more scope for profit, and a lot of vendors are reaping the benefits of the same.
Formic Acid Market Outlook:
Formic acid, produced from methanol and partly soluble in hydrocarbons, is a carboxylic acid with IUPAC name methanoic acid. It decomposes with sulphuric acid to form carbon monoxide. In solid form, it consists of two polymorphs and an endless network of hydrogen-bonded formic acid molecules. Formic acid is used in pharmaceuticals, rubber, leather, textile, and agricultural industries.
The corollary upsurge in rubber production across the globe is quite evident in the overall economic dynamics. A lot of countries are witnessing demand influx in the rubber industry which is partly due to the need from the automobile sector. Furthermore, the pharmaceutical sector is booming which is aiding to the surging sales in the formic acid market. The key application of formic acid is found to be in the pharmaceutical industry and rubber manufacturing which will collectively grow with a modest CAGR of 4.5% through to 2025.
Formic Acid Market Growth Drivers:
- The Growth of the Pharmaceutical Industry –
According to the International Federation of Pharmaceutical Manufacturers and Association (IFPMA), the global pharmaceutical market size will reach around $1,430 billion by 2020. Pharmaceutical firms use formic acid in the production of various pharmaceutical ingredients. So, the growth of the pharmaceutical industry will have a subsequent impact on the formic acid market which will benefit the vendors and provide them with opportunities to achieve greater sales.
- The Principle Application of Formic Acid in Livestock –
The Food and Agricultural Organization assessed that 40% of the global revenue generated from the agricultural sector is attributable to the production of livestock, and it helps to support the livelihood and food security of 1.3 billion people. Livestock is a huge formic acid marketplace as the chemical is used as a preservative in the animal feed for it prevents the growth of bacteria in the same. The growing production of livestock for a sustainable supply of food will create more prospects in the formic acid market.
- The Thriving Leather Industry Creating a Demand for Formic Acid –
There is a discernible growth in the leather industry for a few years now. The rise in disposable income in developed and developing economies coupled with millennial lifestyle has led to the growth of the fashion industry which is creating a need for leather products. Apart from that, leather is also required in the interior design and the automotive sector. The catapulting production of leather to fulfill its demand from various sectors has led to an augmented demand for formic acid as it helps in the homogenous and efficient tanning of hides in the leather. Considering that there will be a consistent demand for leather in the future, the vendors in the formic acid market will continue to prosper.
Formic Acid Market Trends:
- Formic Acid for Fighting Slippery Roads –
The formic acid market has slithered into the roads as the chemical is now widely used to fight the slipperiness during the times of winter snow in cold countries such as Austria, Switzerland, and Canada. The chemical is found to be effectively removing the ice and make the roads safer to ride cars, thereby reducing the chances of an accident.
- Formic Acid in Poultry Diets –
In March 2017, BASF and Balchem Corporation had received Food & Drug Administration approval for launching Amasil formic acid in poultry diets in the U.S.
- The Advent of Formic Acid-based Fuel Cells –
GRT group has carried out a project that has given rise to the advent of HYFORM-PEMFC device that uses formic acid to store hydrogen. This will have domestic and industrial applications. The innovation will bring upon a tectonic shift in the renewable energy sector, and this will create a new formic acid marketplace in future as a myriad of organizations is expected to leverage the technology.
Formic Acid Market Challenges:
Even though formic acid has occupied the marketplace of many of its many alternatives, the major challenge in front of the vendors is greener production of the chemical. However, there will soon be a shift in the modus operandi with the latest nanotechnology which uses atmospheric carbon to make chemicals such as formic acid. The future foresees the adoption of this technology. Another challenge is that the manufacturing process of formic acid utilizes steam which could come from a renewable source in order to reduce the consumption of the non-renewable resources. Although these technical challenges are being overcome by the vendors at a gradual pace, there are no tangible obstacles that are tapering the formic acid market size.
Formic Acid Market Key Players Perspective:
The key players striving to garner the formic acid market share are BASF SE (Germany), Feicheng Acid Chemical (China), Gujarat Narmada Valley Fertilizers & Chemicals Limited (India), Chongqing Chuandong Chemical (Group) Co., Ltd (China), LUXI Group Co., Ltd. (China), Eastman Chemical Company (U.S), and Perstorp AB (Sweden).
Formic Acid Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the formic acid market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the specific applications of formic acid in the agriculture, leather & textile, rubber, and chemical & pharmaceuticals.
Formic Acid Market Report: Industry Coverage
The report analyses the product demand of formic acid by grade that includes 85%, 94%, and 99%.
The formic acid market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Formic Acid Market Report
Is the market demand for formic acid growing? How long will it continue to grow and at what rate?
Which type of home security system presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for formic acid market?
A Few Focus Points Of This Research Are Given Below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future global formic acid market during the forecast 2018–2023
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures