Formic Acid Market size was USD 1.1 billion in 2024 and is estimated to reach USD 2.2 billion by the end of 2037, expanding at a CAGR of 5.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of formic acid is evaluated at USD 1.2 billion.
Insects such as stingless bees and ants produce formic acid naturally, but its industrial production is significant, around 870 kt of formic acid was produced industrially in 2021. Formic acid is being increasingly studied for its use as a carrier in power generation. This trend is estimated to offer lucrative opportunities to formic acid producers in the coming years. Energy consumption is booming across the world, for instance, according to the International Energy Agency (IEA), the electricity’s share in the final energy consumption accounted for 20% in 2023. By 2026, sectors such as artificial intelligence (AI), cryptocurrency, and data centers are expected to exhibit double electricity consumption. Data centers alone are forecast to account for total electricity consumption of over 1000TWh by 2026.
The use of formic acid as a liquid hydrogen carrier for power generation is set to be an effective fossil fuel transition move. For instance, In October 2023, Kawanami Hajime, Chief Senior Researcher from the Interdisciplinary Research Center for Catalytic Chemistry, AIST in collaboration with the University of Tsukuba generated power using formic acid. Such achievements are enhancing the application areas of formic acid. Overall, by aligning with sustainability practices and driving innovations in the manufacturing processes, the producers of formic acid are projected to earn high profits.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.5% |
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Base Year Market Size (2024) |
USD 1.1 billion |
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Forecast Year Market Size (2037) |
USD 2.2 billion |
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Regional Scope |
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Application (Leather & Textile Processing, Agriculture, Animal Feed, Cleaning, Coating, Rubber, Intermediate)
Leather and textile processing segment is anticipated to account for more than 44.1% formic acid market share by the end of 2037. This high-purity formic acid is widely used for dyeing, finishing processes, and the production of synthetic fibers. Leather and textile producers make high use of formic acid to control the pH level and enhance the dye stability. For instance, the Observatory for Economic Complexity revealed that the textiles held 7th position as the most traded product, with a global trade of USD 941 billion in 2022. This explains that, as the demand for textiles increases the consumption of formic acid is set to uplift.
Grade (20%, 25%, 40%, 60%, 70%, 75%, 85%, 90%, 94%, 99%)
By 2037, 99% formic acid segment is predicted to hold more than 16.2% formic acid market share. The abundance of 99% formic acid and more environment friendliness are majorly contributing to its high sales. These high-purity grade-type formic acids are utilized as preservatives and antibacterial agents in feed production for animals. For instance, the Research Nester study estimates that the global animal feed trade reached USD 44.5 billion in 2022 and also ranked as the 106th most traded product, worldwide. Thus, a constant rise in the demand for animal feed products is estimated to push the consumption rates of 99 % grade formic acid.
Our in-depth analysis of the global market includes the following segments:
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Grade |
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Application |
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North America Market Forecast
North America formic acid market is predicted to account for revenue share of more than 37.8% by the end of 2037. The strong presence of industry giants, chemical research organizations and high livestock feed demand is fuelling the consumption of formic acid in the region. The United States holds a dominating position in the North America market and the formic acid demand in Canada is estimated to expand at the fastest CAGR through 2037.
The U.S. is one of the major exporters of formic acid to the world, and according to the World Integrated Trade Solution report the country exported around 18,450,00 kg of formic acid worldwide, in 2022. Furthermore, the Observatory of Economic Complexity reveals that the U.S. accounted for USD 5.05 million in formic acid exports in 2022. These statistics highlight the major role of the U.S. in the global formic acid market growth.
Canada is significantly contributing to the formic acid trade, through both import and export activities. For instance, the World Integrated Trade Solution study reveals that the country exported around 1,435,330 kg of formic acid salts to the world, in 2022. Furthermore, the report by the Innovation, Science, and Economic Development Canada estimates that Agro-Bio Contrôle Inc., Brenntag Canada, Inc., ClearTech Industries, Inc., NOD Apiary Products Ltd, Quadra Chemicals Ltd, and Univar Solutions Ltd are major importers of formic acid in Canada and accounts for around cumulative 78.57% of imports.
Asia Pacific Market Statistics
Formic acid manufacturers are projected to grab high-earning opportunities in Asia Pacific due to the supportive government investments in advancing the chemical sector and the presence of labor and technologies at cost-effective prices. China and India are the most lucrative marketplaces followed by Japan and South Korea.
China has a strong presence of chemical producers, which have the potential to positively influence the sales of formic acid. For instance, according to the World Integrated Trade Solution, formic acid exports from China to the globe reached USD 168.340 billion in 2023. Formic acid companies focusing on investing in China are expected to earn high profits in the coming years.
In India, textile, homecare, agriculture, and cosmetics are major end users of formic acid. The rapid expansion of these markets is substantially influencing the consumption of formic acid. The India Brand Equity Foundation estimates that by 2025-end the country is expected to witness an investment of USD 107.38 billion in the chemicals and petrochemicals sector. Such investments are anticipated to positively influence formic acid sales in the country.
Key players in the formic acid market are employing strategies such as technological innovations, advanced solution launches, strategic collaborations and partnerships, mergers & acquisitions, and regional expansions. Industry giants are forming strategic partnerships with other players and collaborating with research organizations and universities to increase the applications areas of formic areas. In recent years, many market players collaborated with researchers from top universities to expand the use of formic acid. Furthermore, mergers, acquisitions, and regional expansion strategies are aiding them to boost their formic acid market reach.
Some of the key players include:
Author Credits: Rajrani Baghel
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