Formic Acid Market Size, Share, Trends, Growth, and Forecasts for 2025 - 2032

Formic Acid Market Size and Forecast Analysis

Market Overview

The global formic acid market size is likely to be valued at US$ 1.7 Bn in 2025 and is expected to reach US$ 2.2 Bn by 2032, growing at a CAGR of 4.0% from 2025 to 2032. This growth is fueled by rising demand for eco-friendly agrochemicals, leather processing, and sustainable chemical solutions. Key players are adopting CO2-based synthesis and expanding high-purity formic acid production to meet global regulatory and industrial requirements.

The global formic acid market is a key segment of the specialty chemicals industry, driven by rising demand across animal feed additives, leather tanning, textile dyeing, and rubber processing. Market expansion is supported by the growing use of sustainable chemicals, increasing meat consumption, and advancements in eco-friendly production technologies.

Rapid industrialization in the Asia-Pacific, along with supportive environmental regulations, accelerates regional growth. Leading players are focusing on capacity expansion and innovation to meet rising demand for low-emission, bio-based formic acid in high-growth applications.

Market Dynamics

Drivers

• Rising Demand for Animal Feed and Silage Preservatives: Global meat consumption is projected to rise by 14% by 2030, according to the Food and Agriculture Organization (FAO). This surge is increasing the demand for feed acidifiers, such as formic acid is a key solution due to its antibacterial and antifungal properties. In 2024, the global animal feed market reached a value of US$ 510 billion, where formic acid played a vital role in preventing microbial growth and extending the shelf life of feed and silage.

For instance, 85% grade formic acid is extensively used in poultry and swine farming to improve feed hygiene, particularly in the European Union, where the ban on antibiotic growth promoters has led to higher adoption of formic acid, with the region consuming 30% of global feed-grade formic acid in 2024.

• Growth in Textile and Leather Industries: The textile and leather industries, valued at US$1.2 trillion and US$ 100 billion respectively in 2024, are major contributors to formic acid demand, particularly in processes such as tanning and dye-fixing. Formic acid is widely used as a pH regulator and dye-fixing agent, essential for producing high-quality leather goods and colorfast textiles. Its effectiveness in improving finish quality and material durability strengthens its adoption across these sectors.

For instance, the Indian Brand Equity Foundation (IBEF) projects India’s textile industry to reach US$ 350 billion by 2030, reflecting strong growth potential. In China, the leather industry is expanding at an annual rate of 8%, according to the China Leather Industry Association, driving increased consumption of 85% and 94% grade formic acid and contributing to a 10% annual rise in market share across the Asia-Pacific region.

Restraints

• Availability of Substitutes: The formic acid market faces competitive pressure from cost-effective alternatives such as acetic acid and propionic acid, especially in animal feed preservation. In 2024, generic substitutes accounted for 20% of the animal feed preservative market in price-sensitive regions such as India, according to industry estimates. This growing preference for lower-cost options limits demand for branded formic acid products and poses a challenge for manufacturers targeting emerging markets.
• Regulatory Challenges: The formic acid market faces rising compliance costs due to stringent regulations such as the EU’s REACH and the U.S. EPA’s chemical safety standards. In 2024, REACH compliance averaged US$ 500,000 per product, delaying market entry and limiting innovation. These regulations increase operational complexity, particularly for small manufacturers, and create barriers to global expansion. While they promote safety and sustainability, they also slow market growth and add significant pressure to producers.

Opportunities

• Sustainable Production Technologies: Innovations in sustainable formic acid production, such as CO2-to-formic acid conversion, are driving new growth opportunities in the global formic acid market. In 2024, the Korea Institute of Science and Technology developed a cost-effective CO2-based process, projected to reduce production costs by 15% by 2030. These advancements support the shift toward eco-friendly chemicals, reduce dependence on fossil-based inputs, and align with rising demand for low-emission, bio-based solutions in the specialty chemicals industry.
• Growing Pharmaceutical Applications: The increasing use of 99% high-purity formic acid in pharmaceutical manufacturing is driving demand in the global formic acid market. Widely used in drug synthesis and as a chemical intermediate, formic acid supports efficient and high-quality production processes. In 2024, the global pharmaceutical market reached US$ 1.5 trillion and is projected to grow at 6% annually, further boosting formic acid consumption. This trend highlights the compound’s expanding role in pharmaceutical applications and high-value specialty chemicals.

Category-wise Analysis

Grade Type Insights

• The 85% grade is widely adopted, driven by its cost-effectiveness and widespread use in animal feed preservation and leather tanning. Its versatility makes it the standard choice for agriculture and textile applications.
• The 99% grade is expected to grow rapidly from 2025 to 2032, driven by its high purity for pharmaceutical and electronics applications, with a projected growth rate of 7% annually.

Application Type Insights

• Animal feed held a 53.1% market share in 2024, driven by its role as a preservative and antibacterial agent in livestock feed, particularly in poultry and swine farming
• Rubber applications are growing at an annual rate of 6.5%, supported by the expanding rubber industry in the Asia-Pacific region. Formic acid is widely used as a coagulant in natural rubber processing, especially in major producing countries such as Thailand, Indonesia, and Malaysia. Rising demand from the automotive and construction sectors continues to drive formic acid consumption in rubber manufacturing.

End-use Insights

• Agriculture: In 2024, the agriculture segment led the global formic acid market with a 40% share, driven by high demand for formic acid-based silage preservatives and feed additives in livestock farming. The growing emphasis on animal nutrition, feed efficiency, and sustainable farming practices continues to support strong market growth, particularly in regions with large-scale agricultural operations.
• Pharmaceuticals: The pharmaceutical sector is expected to see steady growth from 2025 to 2032, driven by increasing use of formic acid in drug synthesis and chemical intermediates, fueled by the rising use of 99% grade formic acid in drug synthesis and chemical intermediates. Increasing pharmaceutical R&D activities, demand for high-purity chemical compounds, and advancements in API manufacturing are key factors driving growth in this segment.

Regional Insights

North America Formic Acid Market Trends

• United States: The U.S. dominates the North American formic acid market in 2024, supported by a strong agricultural sector valued at US$ 1.3 trillion, according to the USDA. The increased adoption of 85% grade formic acid in animal feed, driven by environmental regulations, is contributing to a 5% annual growth rate. Additional demand stems from its textile industry, which uses formic acid in dyeing processes, and the pharmaceutical sector, where 99% grade formic acid is used for drug synthesis and chemical production.
• Canada: Canada holds a 4% share of the regional market, with growth supported by its expanding livestock and animal feed industry. The adoption of formic acid-based feed additives and sustainable farming practices, along with government-backed animal health programs, is contributing to steady market expansion.

Europe Formic Acid Market Trends

• Germany: The largest contributor to Europe’s formic acid market in 2024, backed by a US$ 250 billion chemical industry (German Federal Ministry of Economics). Demand is driven by pharmaceutical intermediates and an 8% annual rise in animal feed applications due to the EU’s antibiotic ban.
• France: Growth in the French market is driven by its thriving leather industry, which is expanding at a 6% annual rate. This growth supports rising demand for 85% and 94% grade formic acid in leather tanning and processing. Strategic investments in leather manufacturing facilities and increasing export demand are further fueling formic acid consumption across the country.
• United Kingdom: The UK’s emphasis on sustainable and bio-based chemicals is accelerating the adoption of bio-based formic acid, which is growing at a 12% annual rate. The shift aligns with national climate goals and the broader move toward green chemical alternatives across industries such as agriculture, textiles, and pharmaceuticals.

Asia-Pacific Formic Acid Market Trends

• China: Leading the Asia-Pacific formic acid market in 2024, China’s dominance is fueled by its US$1.5 trillion agricultural sector and strong textile industry, driving high demand for 85% grade formic acid in feed and fabric applications.
• India: With textile and leather sectors projected to grow at 10% annually (IBEF), India sees rising demand for 85% grade formic acid, especially in leather tanning and dyeing processes.
• Japan: Japan’s US$ 120 billion pharmaceutical industry supports robust demand for 99% grade formic acid, growing at 7% annually, primarily for drug synthesis and chemical intermediates.

Competitive Landscape

Key players in the global formic acid market are focusing on sustainable production methods, including CO2-based synthesis, to meet rising environmental and regulatory demands. Companies such as BASF SE and LUXI GROUP are investing in research and development to produce high-purity 99% grade formic acid, which is widely used in pharmaceuticals and electronics.

In contrast, Perstorp and GNFC are targeting the production of cost-effective 85% grade formic acid to serve the growing needs of the agriculture and textile sectors. Strategic partnerships support expansion into emerging markets across Asia and Latin America.

Key Developments

• 2024: BASF SE introduced a bio-based formic acid with a 15% lower carbon footprint.
• 2023: Perstorp expanded its Asia-Pacific production capacity by 20%, targeting China’s textile market.
• 2022: Eastman Chemical partnered with Ingenza to produce formic acid from CO2 emissions for pharmaceutical applications.

Companies Covered in Formic Acid Market

• BASF SE
• Eastman Chemical Company
• Perstorp
• Feicheng Acid Chemicals Co., Ltd.
• Chongqing Chuandong Chemical (Group) Co., Ltd.
• Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC)
• LUXI GROUP
• Others