Formic acid is a widely used reducing agent in chemical processes. Its reductive nature and acid strength make it a useful reducing agent. The commercially available forms of the compound are methyl and ethyl esters.It can be dehydrated to carbon monoxide by the addition of concentrated sulfuric acid. Its pure form is a colourless, flammable liquid that burns the skin and mucous membranes.
The global formic acid market is estimated to account for US$ 1.6 Bn in terms of value by the end of 2021.
Global Formic Acid Market: Drivers
Increasing demand from oil &gas industry is driving growth of the formic acid market. Formic acid facilitates efficient well acidizing by extending spend rates while reducing equipment corrosion, especially in high-pressure, high-temperature wells when added to hydrochloric acid. Increasing demand for petroleum will further favour the market growth. According to the US Energy Information Administration, the global consumption of petroleum and fuels will average around 96.9 million b/d for all of 2021, a 5.1 million b/d increase from 2020. Furthermore, global consumption of petroleum and liquid fuels is estimated to increase by 3.5 million b/d in 2022 to average 100.5 million b/d, which is a positive for the formic acid market.
Global Formic Acid Market: Opportunities
Growing demand from disinfectant products due to rising awareness regarding cleaning and hygiene is expected to serve major growth opportunities. Moreover, increasing application in food industry where it is used as food chemical is again boosting market growth.
Global Formic Acid Market: Restraints
Negative impact of Covid-19 on production and supply chain is expected to hamper the market growth.
Global Formic Acid Market - Impact of Coronavirus (Covid-19) Pandemic
A significant impact of Coronavirus disease 2019 (COVID-19) is already being felt around the globe and will be felt in 2020 on the Formic Acid market. The pandemic has impacted the global economy by influencing production and demand, disrupting supply chains and industries, and businesses worldwide.
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The global formic acid market was valued at US$ 1.6 Bn in 2021 and is forecast to reach a value of US$ 2.4 Bn by 2030 at a CAGR of 4.9% between 2022 and 2030.
Animal Feed and Silage Additive segment held dominant position in the global formic acid market in 2020, accounting for 36.00% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Formic Acid Market Trends:
Growing demand for cosmetic &personal care products due to influence of social media and rising hygiene awareness is expected to emerge as major trend in the market. Due to its acidic properties it is majorly used as dermal and ocular irritant. Moreover, it adds fragrance, preserves the formulation, and adjusts pH in the cosmetic products. This is again expected to boost the demand for formic acid in cosmetics & personal care segment.
Rapid urbanization and industrialization are expected to act as key trend in the market of formic acid.
Global Formic Acid Market: Competitive Landscape
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
Global Formic Acid Market: Recent Developments
In 2020, Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) was expected to execute formic acid (FA) capacity enhancement project to increase the production by 20 MTPD (6,800 MT per annum). The project could be completed by the second quarter of FY 2022, and the total capacity of formic acid would be 85 MTD.