FORMIC ACID MARKET ANALYSIS

Formic Acid Market Size and Trends

The global formic acid market is estimated to be valued at USD 2.34 Bn in 2024 and is expected to reach USD 3.43 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

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Formic acid is mainly used as an animal feed additive and silage preservative. It plays a key role in food preservation and improving the nutritive value of forage crops. The growing meat consumption and emphasis on food safety are projected to drive the need for formic acid as an animal feed preservative. Rising demand for high-value crops is also likely to boost the consumption of formic acid as a silage preservative. Banning of antibiotic growth promoters will further augment the demand.

Growing Demand from Animal Feed Industry

Formic acid has emerged as an important preservative and acidifying agent for animal feed over the past decade. It helps inhibit the growth of molds and bacteria in livestock feed, extending its shelf life. With the consumer demand for meat and protein growing steadily worldwide, the animal feed industry has been expanding exponentially. Developing countries with increasing meat consumption like China and Brazil have ramped up commercial meat production. This has fueled the demand for high-quality commercial feed globally. Feed producers are increasingly adopting formic acid as it allows them to store compound feed for longer periods without deterioration in quality. This helps ensure the supply is maintained throughout the year for large livestock operations. Formic acid also improves feed conversion and digestion when used as an additive. Some studies have shown it can enhance weight gain and growth in poultry and pigs when supplemented in fiber-rich diets. With farmers looking to maximize productivity amid rising costs, formic acid offers an affordable solution. Regulatory acceptance of its use within limits in animal feed in major markets has further boosted commercial interest. The drive for protein self-sufficiency in Asia Pacific and other regions will support the rise of large-scale concentrated animal farming. This bodes well for the prospects of formic acid, finding greater uptake as a feed preservative and performance enhancer.

Another key factor propelling the demand for formic acid worldwide is the expansion of the rubber industry. Formic acid is extensively consumed in the processing of various types of rubber including synthetic and natural rubber. It acts as a catalyst during the final stage of synthesizing styrene butadiene rubber which finds wide usage in tire manufacturing. Almost 60% of the global rubber production is currently dedicated to tire manufacturing. With rising vehicle ownership and increasing replacement needs, the annual global tire production has been growing steadily at over 3% in recent years. This steady growth in the downstream tire industry naturally augurs well for formic acid consumption. Apart from tires, formic acid also plays an important role in processing rubber for other industrial products like conveyor belts, hoses, footwear, and others. As infrastructural development continues in emerging markets, the demand for such industrial rubber will keep rising. Synthetic rubber is also replacing natural rubber in many applications due to its superior properties.