Asia-Pacific Formic Acid Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.63 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Asia-Pacific Formic Acid Market Analysis
The Asia-Pacific Formic Acid Market is estimated at 498.25 kilotons currently and is projected to reach 624.72 kilotons in the next five years, registering a CAGR of 4.63% during the forecast period.
The impact of COVID-19 on the formic acid market remained mixed in the Asia-Pacific region. Demand from segments like animal feed, silage additives, and pharmaceutical intermediaries remained firm. However, a drop in demand was observed from the leather tanning and textile and finishing segments owing to restricted social gatherings, which reduced the purchase of such products. However, the demand substantially recovered with the reopening of economies in 2021.
- One of the major drivers for formic acid is the consistent increase in the demand for animal feed and silage additives owing to the increasing concerns about animal health and nutrition.
- However, the growing emphasis on substitutes like urea sulfate in applications like leather tanning is restraining the market growth.
- Using formic acid in fuel cells as a sustainable alternative will likely create opportunities for the market studied in the Asia-Pacific in the coming years.
- China is expected to dominate the Asia-Pacifc formic acid market as it is one of the world's largest feed manufacturers and textile exporters.
Asia-Pacific Formic Acid Market Trends
Growing Demand for Animal Feed and Silage Additives
- Animal feed and silage additive manufacturers use formic acid as an additive in solid or liquid form, owing to its anti-bacterial and digestive properties. With the growing population of animals, food security for them is an important issue that should be maintained.
- Formic acid inhibits harmful bacteria in the feed through acidification and supports feed digestion with better feed conversion. Formic acid is the second most vital organic acid, inhibiting bacterial growth. It is an essential element for high-quality forage silage production to impede the proliferation of pathogens and is effective for silage microorganisms' growth inhibition. Additionally, the property of formic acid to preserve feed mixes makes it more unique, hence upsurging the demand for formic acid in the market over the period.
- China, India, and Vietnam are amongst the leading feed producers in the region. According to the most recent China Feed Industry Association (CFIA) report, China's total industrial feed production in 2022 was estimated at 302.2 million metric tons, showcasing a rise of 3% year on year. Pig and poultry feed production accounted for 45% and 40% of overall feed output, up from 45% and 41% the previous year.
- The increase in commercial feed tonnage was driven by the recovery and transformation of the pig sector in the country, where swine farms were witnessed contracting with professional food mills rather than utilizing food waste. Feed manufacturers in China saw expanding plant facilities in anticipation of increased demand over the coming years.
- For instance, in July 2022, AB Agri launched a new 240-kilo-ton capacity feed mill in Tongchuan City, Shaanxi Province, China, to significantly enhance production capacity in the region. The new 34,000 sq m plant is AB Agri China's second largest and includes separate production lines for swine and ruminant feeds.
- The animal feed market in India is classified into three broad categories: aqua feed, poultry feed, and cattle feed. The poultry feed segment in India dominates the market. However, in the recent year, the aqua feed segment also witnessed notable growth. Several companies witnessed investment in the aqua-feed market in line with the increasing demand.
- In April 2023, Maharashtra Feeds commenced a fish feed mill in Lucknow, Uttar Pradesh, with a production capacity of 35 kilo metric tons per year. With this new production capacity, the company aims to cater to the demand for fish feed from various regions within India.
- All the above factors indicate the substantial demand for formic acid from the animal feed and silage additives industry.
China to Dominate the Market in Asia-Pacific Region
- China is the leading country generating the highest demand for formic acid in the Asia-Pacific region. It is due to the consistent increase in the production capabilities of animal feed and silage additives, textiles, and pharmaceuticals which are its prominent application segments.
- In the textile industry, formic acid is used for several applications. The product is used to stabilize the color of the fibers, dyeing natural and synthetic fibers such as wool and nylon, and also to neutralize the alkaline solution when washing the fabric.
- China is the world's largest producer and exporter of textiles and clothing. With enormous production capacity, China contains an oversupply of textiles and clothing products. However, the increasing labor costs and rising global protectionism weakened its competitiveness.
- The China National Textile and Apparel Council (CNTAC), the governing body of China's textile and apparel industry, under its 14th five-year plan, focused on relying more heavily on its domestic market to support its growth. Moreover, it intends to continue investing in textile and apparel factories overseas, mainly through the 'Belt and Road Initiative. China intends to develop a 'greener' and more sustainable textile and apparel industry.
- China is the leading global manufacturer and exporter of textile products. In 2022, China experienced a 2.53% increase in its exports of textiles and apparel, reaching a total value of USD 323.3 billion compared to the previous year.
- Further, by 2025, it is projected by the China National Textile and Apparel Council (CNTAC), the regulatory authority overseeing China's textile and apparel sector, that the annual retail sales of clothing in China could surpass USD 415 billion.
- Formic acid is used for the synthesis of various pharmaceutical drugs or APIs. In the World Pharma Stage, China's pharmaceuticals market is the second largest after the United States due to high domestic demand from hospitals and the large production base of APIs (Active Pharmaceutical Ingredients).
- China is a current global leader in the manufacturing and export of APIs, about 20% of the world's API production. According to the National Medical Products Administration (NMPA) statistics, China witnessed a record rise in new drug approvals in 2022. The country stood strong regarding new drug approvals by NMPA, which stood at 178 new drugs.
- All the factors mentioned above are likely to keep China ahead of other countries in the formic acid market in the Asia-Pacific region.
Asia-Pacific Formic Acid Industry Overview
The Asia-Pacific formic acid is consolidated by nature. Some of the major players (in no particular order) in the market include BASF SE, LUXI GROUP, Gujarat Narmada Valley Fertilizers & Chemicals Limited, Shandong Acid Technology Co., Ltd., and Sintas Kurama Perdana among others.
Asia-Pacific Formic Acid Market Leaders
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BASF SE
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LUXI GROUP
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Gujarat Narmada Valley Fertilizers & Chemicals Limited
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Shandong Acid Technology Co., Ltd.
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Sintas Kurama Perdana
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Formic Acid Market News
- October 2022: Petroliam Nasional Berhad (PETRONAS) acquired Perstop, a leading specialty chemicals company and a producer of formic acid headquartered in Sweden, to expand its business in the specialty chemicals industry.
- February 2022: Gujarat Narmada Valley Fertilizers & Chemicals Limited announced plans to invest INR 30-40 billion (~USD 364.61- 486.15 million) in the next 3-4 years. It is to expand the plant capacities of formic acid and concentrated nitric acid in India.
Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Growing Demand for Animal Feed and Silage Additives
- 4.1.2 Increasing Usage in Leather Tanning Industry
- 4.1.3 Other Drivers
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4.2 Market Restraints
- 4.2.1 Presence of Alternatives like Urea Sulfate
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 Application
- 5.1.1 Animal Feed and Silage Additives
- 5.1.2 Leather Tanning
- 5.1.3 Textile Dying and Finishing
- 5.1.4 Intermediary in Pharmaceuticals
- 5.1.5 Other Applications (Cleaning, Cosmetics, etc.)
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5.2 Geography
- 5.2.1 China
- 5.2.2 India
- 5.2.3 Japan
- 5.2.4 South Korea
- 5.2.5 ASEAN Countries
- 5.2.6 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
- 6.1 Merger & Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 BASF SE
- 6.4.2 Eastman Chemical Company
- 6.4.3 Gujarat Narmada Valley Fertilizers & Chemicals Limited
- 6.4.4 Huanghua Pengfa Chemical Co., Ltd
- 6.4.5 LUXI GROUP
- 6.4.6 Mudanjiang Fengda Chemical Co., Ltd.
- 6.4.7 Petroliam Nasional Berhad (PETRONAS)
- 6.4.8 Rashtriya Chemicals and Fertilizers Limited
- 6.4.9 Shandong Acid Technology Co., Ltd.
- 6.4.10 Sintas Kurama Perdana
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Usage of Formic Acid as a Sustainable Alternative in Fuel Cell
- 7.2 Other Opportunities
Asia-Pacific Formic Acid Industry Segmentation
Formic acid, or methanoic acid, is the simplest form of carboxylic acid with a pungent odor. Due to its antibacterial properties, it is used in the animal feed and silage industry as an additive and an intermediary in the pharmaceutical industry. The product is also used in other industries like leather, tanning, dyes, and textiles.
The formic acid market is segmented by application and geography. The market is segmented by application into animal feed and silage additives, leather tanning, textile dyeing, finishing, pharmaceutical intermediary, and other applications (cleaning, cosmetics, etc.). The report also covers the market size and forecasts for formic acid across 5 major countries in the Asia-Pacific region. The market sizing and forecasts are provided in volume (tons) for each segment.
| Application | Animal Feed and Silage Additives |
| Leather Tanning | |
| Textile Dying and Finishing | |
| Intermediary in Pharmaceuticals | |
| Other Applications (Cleaning, Cosmetics, etc.) | |
| Geography | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN Countries | |
| Rest of Asia-Pacific |
Frequently Asked Questions
What is the current Asia-Pacific Formic Acid Market size?
The Asia-Pacific Formic Acid Market is projected to register a CAGR of 4.63% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific Formic Acid Market ?
BASF SE, LUXI GROUP, Gujarat Narmada Valley Fertilizers & Chemicals Limited, Shandong Acid Technology Co., Ltd. and Sintas Kurama Perdana are the major companies operating in the Asia-Pacific Formic Acid Market .
What years does this Asia-Pacific Formic Acid Market cover?
The report covers the Asia-Pacific Formic Acid Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Formic Acid Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Formic Acid Market Industry Report
Statistics for the 2024 Asia-Pacific Formic Acid market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Formic Acid analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
