February 24, 2024

The Global Formic Acid Market Growth Accelerated By Rising Demand From Animal Feed Industry

The Global Formic Acid Market is driven by Rising Demand from Animal Feed Industry
Formic acid is widely used in animal feed industry as an acidifying agent and preservative. It improves digestion and nutrient absorption in animals. It acts as a replacement for antibiotics which are now banned in feed industry in many countries. Formic acid is non-corrosive and non-toxic in nature at lower concentrations. It plays an important role in silage production which is the major source of feed for livestock worldwide. With the growing meat consumption globally, the demand for high quality animal feed is increasing rapidly which is propelling the growth of the formic acid market.

The global Formic Acid Market is estimated to be valued at US$ 1.76 Bn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

 Formic acid acts as an excellent biocide and preservative. It prevents bacterial and fungal growth on natural materials like leather, natural rubber, and textile. With rising demand for sustainable and eco-friendly products, formic acid is gaining popularity as an alternative to traditional chrome-tanned leather production which generates hazardous waste. It is also used as a reducing and denaturing agent in the production of rayon and acetate fibers. The superior preservative properties of formic acid is expanding its application in various downstream industries

Porter’s Analysis

Threat of new entrants: Low capital requirement and availability of raw materials is favorable for new companies to enter the market. However, established players have strong brand recognition and distribution network which act as a barrier.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, customized solutions provided by manufacturers increase switching costs.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative raw material sources. However, integration of operations provides strategic advantage to few suppliers.

Threat of new substitutes: Substitutes like acetic acid and lactic acid are available but have limitations. Formic acid has advantage of high yields and less energy requirements during production.

Competitive rivalry: Intense competition among major players to gain higher market share. Companies differentiate product offerings through innovations and expansion into application segments.

Key Takeaways

The Global Formic Acid Market Size is expected to witness high growth over the forecast period. Asia Pacific dominates the market currently due to large chemicals industry and presence of emerging economies like China and India. The region’s market is driven by growing demand from rubber processing, leather tanning, and silage applications.

Europe is another major regional market for formic acid owing to significant demand from feed additives application. Stringent regulations regarding sustainability and animal welfare are supporting growth of organic and pasture-fed livestock in the region.

Key players operating in the formic acid market are 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. Major players are focusing on capacity expansions as well as developing innovative production technologies to gain competitive edge.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it