Global Formic Acid Market Size, Share and Future Trends Analysis Report By Type (Grade 85%, Grade 94%, Grade 99%, Others), By End Use (Animal Feed, Agriculture, Leather and Textile, Rubber, Chemical and Pharmaceutical, Dyeing, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Formic Acid Market size is expected to be worth around USD 2.7 Billion by 2034, from USD 1.3 Billion in 2024, growing at a CAGR of 7.7% during the forecast period from 2025 to 2034. The Asia-Pacific (APAC) region, accounting for about 48.3% of the total market share, with an estimated market value of approximately USD 600 million.

Formic acid (HCOOH), a simple carboxylic acid, plays a pivotal role in various industrial applications due to its antibacterial properties and utility as a preservative. Its significance is pronounced in sectors such as agriculture, leather processing, textiles, and chemicals.

In agriculture, formic acid is extensively utilized as a silage additive and feed preservative, enhancing livestock health and productivity. In the leather and textile industries, it serves as an eco-friendly agent for tanning and dyeing processes. Additionally, its application in rubber manufacturing and as an intermediary in chemical synthesis underscores its industrial versatility.

The demand for formic acid is further propelled by its applications in the food industry as a preservative, in pharmaceuticals as an intermediate, and in the leather and textile sectors for processing. In the Asia-Pacific region, the leather industry is projected to grow by approximately 10% annually, significantly boosting formic acid consumption.

Government initiatives are further fostering market expansion. In the United States, the Advanced Research Projects Agency-Energy (ARPA-E) under the Department of Energy is spearheading projects aimed at transforming formic acid production by leveraging renewable energy sources, aiming to reduce production costs by 33% and eliminate reliance on fossil-based resources. Similarly, in Japan, the Nitto Group has embarked on a project to produce carbon-negative formic acid from biomass-derived feedstock, contributing to the decarbonization of the livestock industry.

Future growth opportunities lie in the development of sustainable production methods. For instance, the Nitto Group has initiated a project to produce carbon-negative formic acid from biomass-derived feedstock, contributing to the decarbonization of the livestock industry. Additionally, research by the Department of Science and Technology (DST), Government of India, focuses on the conversion of CO₂ into formic acid and methanol using non-precious metal catalysts, aiming for renewable and sustainable energy storage and production.

Key Takeaways

• Formic Acid Market size is expected to be worth around USD 2.7 Billion by 2034, from USD 1.3 Billion in 2024, growing at a CAGR of 7.7%.
• Grade 85% held a dominant market position, capturing more than a 49.3% share of the global formic acid market.
• Animal Feed held a dominant market position, capturing more than a 38.8% share of the global formic acid market.
• Asia-Pacific (APAC) region emerged as the dominant player in the global formic acid market, capturing approximately 48.3% of the total market share, which equates to a valuation of around USD 600 million.

By Type

Grade 85% leads with 49.3% share in 2024 due to its broad use in agriculture and leather industries.

In 2024, Grade 85% held a dominant market position, capturing more than a 49.3% share of the global formic acid market. This concentration level is widely used because it strikes the right balance between purity and cost-effectiveness, making it suitable for large-scale industrial applications. Most of the demand for Grade 85% comes from agriculture, where it is used as a preservative and antibacterial agent in silage and animal feed. The ability of formic acid to prevent mold and bacterial growth in livestock feed has made it a popular choice among farmers and feed producers, especially in developing regions like Asia-Pacific, where livestock production is expanding rapidly.

In the leather processing industry, Grade 85% is used for tanning and pH control during dyeing, particularly in countries with established leather export markets. Additionally, chemical manufacturers rely on this grade as an intermediate for various syntheses. The year 2025 is expected to see continued preference for this grade, supported by growing demand from the agriculture and textile sectors. Its stable shelf life, ease of transportation, and regulatory acceptance in feed additives further reinforce its leading position in the market.

By End Use

Animal Feed dominates with 38.8% share in 2024 due to growing demand for safe and efficient livestock nutrition.

In 2024, Animal Feed held a dominant market position, capturing more than a 38.8% share of the global formic acid market. This strong demand is mainly driven by the increasing need for feed preservation and hygiene in the livestock industry. Formic acid is widely used in animal nutrition to control bacterial growth and extend the shelf life of silage and compound feed. Its antibacterial and mold-inhibiting properties make it especially valuable in warm and humid climates, where feed spoilage risks are high. As global meat and dairy consumption continues to rise, particularly in Asia-Pacific and Latin America, the demand for efficient and cost-effective feed additives like formic acid has also grown.

In countries such as India and China, where livestock farming is a major part of the agricultural economy, the use of formic acid in feed has become more common due to both government-backed livestock health programs and industry-led quality improvements. In 2025, the animal feed segment is expected to retain its leading position, as sustainable and safe farming practices gain traction globally. With increasing regulations on antibiotic use in livestock, natural and effective alternatives like formic acid are becoming even more important for feed manufacturers and farmers alike.

Key Market Segments

By Type

• Grade 85%
• Grade 94%
• Grade 99%
• Others

By End Use

• Animal Feed
  • Poultry
  • Swine
  • Ruminants
  • Aquatic
  • Others
• Agriculture
• Leather and Textile
• Rubber
• Chemical and Pharmaceutical
• Dyeing
• Others

Drivers

Rising Demand for Animal Feed Preservatives Drives Formic Acid Market Growth

A significant driver of the formic acid market is its increasing use as a preservative in animal feed. Formic acid’s antibacterial properties help inhibit the growth of harmful microbes in silage, thereby preventing spoilage and nutrient loss. This ensures better preservation and quality of livestock feed, which supports animal health and productivity. The rising global consumption of meat and protein, particularly in developing countries such as China and Brazil, is driving demand for high-quality animal feed, increasing the requirement for formic acid.

In 2024, agriculture led the formic acid market, accounting for approximately 45.0% of the market share. This dominance is attributed to the wide application of formic acid in animal feed preservation, silage production, and crop protection. Its use as an enhancer of pesticides and herbicides in crop protection ensures improved agricultural yields with increased resistance to pests and lowered chemical needs. The biodegradable and environmentally friendly character of formic acid aligns well with the increasing emphasis on sustainable farming methods.

Government initiatives promoting sustainable agricultural practices and the reduction of chemical preservatives in food production are also expected to bolster the demand for formic acid. For instance, policies encouraging the use of natural preservatives in animal feed could lead to increased adoption of formic acid in the agricultural sector.

Restraints

High Toxicity and Safety Concerns Restrain Formic Acid Market Growth

A significant challenge facing the formic acid market is the compound’s inherent toxicity and associated safety concerns. While formic acid is valued for its antibacterial and preservative properties, particularly in agriculture and animal feed, its corrosive nature poses risks during handling and storage. Exposure to concentrated formic acid can lead to skin burns, eye damage, and respiratory issues, necessitating stringent safety protocols in industrial settings.

According to the National Institute for Occupational Safety and Health (NIOSH), the recommended exposure limit for formic acid vapor is 5 parts per million (ppm) over an 8-hour workday, highlighting the need for controlled environments during its use.

These safety concerns have led to regulatory scrutiny and restrictions in certain regions. For instance, the European Chemicals Agency (ECHA) classifies formic acid as a substance of concern, requiring manufacturers and users to adhere to strict guidelines under the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation. Such regulations can increase operational costs for companies, as they must invest in specialized equipment, training, and safety measures to comply with legal standards.

Moreover, the potential health hazards associated with formic acid have prompted industries to seek safer alternatives. In the animal feed sector, for example, producers are exploring other organic acids like lactic and propionic acid, which offer similar preservative benefits with lower toxicity profiles. This shift could impact the demand for formic acid, particularly in markets where health and environmental regulations are becoming increasingly stringent.

Opportunity

Formic Acid’s Role in Renewable Energy: A Promising Growth Opportunity

Formic acid is gaining attention in the renewable energy sector, particularly as a hydrogen carrier in fuel cells. Its high volumetric energy density and ease of storage make it an attractive alternative to traditional hydrogen storage methods. Unlike compressed hydrogen gas, formic acid can be stored as a liquid at ambient conditions, reducing the need for high-pressure storage systems. This characteristic simplifies the infrastructure required for hydrogen storage and transportation, potentially lowering costs and improving safety. Moreover, formic acid can be produced sustainably from biomass or through the electrochemical reduction of carbon dioxide, aligning with global efforts to reduce carbon emissions and promote circular economy practices.

The application of formic acid in fuel cells, known as direct formic acid fuel cells (DFAFCs), offers several advantages over other fuel cell technologies. DFAFCs operate at lower temperatures and have faster startup times, making them suitable for portable power applications and backup power systems. Additionally, the oxidation of formic acid in these fuel cells produces only carbon dioxide and water as byproducts, contributing to cleaner energy generation.

Research and development efforts are underway to enhance the efficiency and cost-effectiveness of formic acid production and utilization in energy applications. For instance, the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) has explored electrochemical methods to convert carbon dioxide into formic acid using renewable electricity. This approach not only provides a sustainable pathway for formic acid production but also offers a means to capture and utilize carbon dioxide emissions.

Trends

Advancements in Bio-Based Production Methods: A Key Trend in the Formic Acid Market

A notable trend in the formic acid market is the shift towards bio-based production methods, driven by the global emphasis on sustainability and environmental responsibility. Traditional production of formic acid often involves fossil fuel-based processes, which contribute to greenhouse gas emissions. In contrast, bio-based methods utilize renewable resources, such as biomass and carbon dioxide, aligning with the principles of green chemistry.

One innovative approach is the OxFA process, which produces formic acid from biomass through catalytic oxidation using molecular oxygen or air. This method employs polyoxometalates of the Keggin-type as catalysts, enabling the conversion of various biomass sources, including sugars and wood, into formic acid with yields of up to 53% . Such advancements not only reduce reliance on non-renewable resources but also offer a means to valorize agricultural and forestry residues, contributing to waste reduction.

Furthermore, research efforts are exploring the electrochemical reduction of carbon dioxide to formic acid, presenting a dual benefit of mitigating CO₂ emissions while producing valuable chemicals . These methods are gaining traction as industries seek to lower their carbon footprints and adhere to stricter environmental regulations.

Regional Analysis

In 2024, the Asia-Pacific (APAC) region emerged as the dominant player in the global formic acid market, capturing approximately 48.3% of the total market share, which equates to a valuation of around USD 600 million. This significant market presence is primarily driven by the region’s robust agricultural sector, expanding industrial base, and increasing demand for eco-friendly chemical solutions.

Countries like China and India are at the forefront of this growth, with China’s extensive livestock industry and India’s burgeoning leather and textile sectors contributing substantially to the demand for formic acid. In agriculture, formic acid is widely used as a preservative and antibacterial agent in animal feed, enhancing feed quality and shelf life.

The leather industry in the APAC region has also been on the rise, with countries like India and China being major contributors to leather production. The Asia Pacific Leather Fair highlights that the leather products market is expected to grow by approximately 10% annually, bolstered by consistent export demands. Formic acid plays a crucial role in the tanning process, allowing for better-quality finished leather. Hence, this booming leather industry significantly boosts the APAC formic acid market.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Alpla Group, headquartered in Hard, Austria, is a global leader in plastic packaging solutions, serving industries such as food, beverages, pharmaceuticals, and crop protection. In 2024, the company reported global sales of €4.9 billion, marking a 4% increase from the previous year. Alpla’s commitment to sustainability and innovation positions it as a significant player in the packaging sector, which indirectly influences the formic acid market through demand for sustainable packaging materials.

Amcor, a global packaging company, has been expanding its thermoforming production capacity to support healthcare customer growth in North America. While specific financial figures for 2024 are not publicly disclosed, Amcor’s strategic investments in healthcare packaging indicate a growing demand for materials like formic acid, used in various packaging applications due to its preservative properties.

Anhui Asahi Kasei Chemical Co., Ltd., based in China, is a prominent producer of formic acid, catering to industries such as agriculture, textiles, and leather. The company is recognized for its commitment to quality and environmental sustainability, aligning with the growing demand for eco-friendly chemical solutions in the formic acid market.

Top Key Players in the Market

• Alpla Group Amcor
• Anhui Asahi Kasei Chemical
• AVA Biochem
• Avantium
• BASF SE
• Chongqing Chuandong Chemical Co
• Eastman Chemical Company
• Feicheng Acid Chemical
• Gujarat Narmada Valley Fertilizers & Chemicals Limited
• Luxi Chemical Group Co. Ltd
• Origin Materials
• Perstorp
• Sulzer
• Swicofil
• Toyobo

Recent Developments

In 2024, Avantium secured a €3.5 million grant from the European Union’s Horizon Europe program to support its participation in the ICONIC project.

In 2024, Alpla Group reported a revenue of €4.9 billion, marking a 4% increase from the previous year. With a workforce of 24,350 employees across 200 locations in 46 countries, Alpla has significantly expanded its global footprint. The company has been investing at least €50 million annually in recycling initiatives, aiming to double its recycling capacity to 700,000 tonnes by 2030.

Report Scope