Formic Acid Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Grade 99%, Grade 94%, Grade 85%, Others), By Application (Animal Feed, Silage, Leather Tanning, Textile Dyeing, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.16 Billion
CAGR (2026-2031)	4.94%
Fastest Growing Segment	Animal Feed
Largest Market	Asia Pacific
Market Size (2031)	USD 2.88 Billion

Market Overview

The Global Formic Acid Market will grow from USD 2.16 Billion in 2025 to USD 2.88 Billion by 2031 at a 4.94% CAGR. Formic acid is a simple carboxylic acid utilized extensively as a potent antibacterial preservative in livestock feed and as a pH regulator in leather tanning and textile dyeing. The market is primarily propelled by the substantial expansion of the animal nutrition sector where the product ensures silage quality and inhibits microbial growth. Furthermore, sustained industrial requirements for efficient leather and textile processing agents continue to bolster global consumption. According to the Methanol Institute, in 2024, global demand for methanol, the crucial feedstock for formic acid production, recovered by approximately 2 to 3 percent, underscoring a resurgence in downstream chemical manufacturing activity.

One significant challenge impeding market expansion is the volatility of raw material prices which creates uncertainty for manufacturers and squeezes profit margins. Fluctuating costs of methanol and energy can lead to unpredictable production expenses, thereby restraining long-term investment and supply chain stability within the global formic acid sector.

Key Market Drivers

The increasing global demand for animal feed preservatives and silage additives serves as a primary catalyst for the formic acid market. As livestock production intensifies to meet rising protein requirements, the industry heavily relies on organic acids to ensure feed hygiene and suppress pathogens like salmonella. This application is critical for maintaining nutrient integrity and animal gut health without dependence on antibiotics, effectively driving consumption of high-purity acid grades. According to Alltech, February 2024, in the '2024 Agri-Food Outlook', global feed production volumes remained substantial, totaling 1.29 billion metric tons in 2023. This immense scale of production necessitates consistent inputs of acid-based preservatives, thereby securing a steady revenue stream for formic acid manufacturers servicing the agricultural sector.

Concurrently, the steady application of formic acid in natural rubber coagulation processes significantly influences market dynamics. Formic acid is the preferred coagulant for producing high-grade rubber sheets due to its ability to ensure uniform structure and mechanical strength, which are essential for automotive tire manufacturing. According to the Association of Natural Rubber Producing Countries, September 2024, in the 'Monthly NR Statistical Report', global natural rubber production saw a slight increase of 0.7 percent during the first seven months of the year, sustaining demand for efficient coagulating agents. While the broader chemical industry faces headwinds, recovery is anticipated; according to the American Chemistry Council, December 2024, in the 'Year-End Situation & Outlook', U.S. chemical output volumes were projected to rebound by 1.9 percent in 2025, suggesting a positive trajectory for intermediate inputs like formic acid.

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Key Market Challenges

The volatility of raw material prices serves as a significant impediment to the stability and expansion of the global formic acid market. Since the synthesis of formic acid is intrinsically linked to the energy-intensive methanol value chain, manufacturers face constant exposure to unpredictable shifts in feedstock costs. This instability continuously erodes profit margins and complicates financial planning, causing key industry players to delay necessary capital investments or capacity enhancements. When production expenses oscillate unpredictably, suppliers struggle to offer stable long-term contracts to buyers in the agriculture and leather industries, thereby disrupting established supply chain dynamics and reducing market confidence.

These economic pressures are substantiated by recent trends in the wider chemical manufacturing sector which directly influence downstream acid production. According to the American Chemistry Council, in the third quarter of 2024, input and raw material costs for chemical manufacturers continued to rise for a third consecutive quarter. This sustained upward trajectory in production expenditures directly hampers the formic acid market by forcing manufacturers to elevate product prices to preserve viability. Such price inflation discourages volume growth in price-sensitive applications like animal silage preservation, ultimately restricting the market’s ability to fully capitalize on rising global demand.

Key Market Trends

The adoption of formic acid as a Liquid Organic Hydrogen Carrier (LOHC) represents a pivotal shift in the market, driven by the global imperative to establish safe and efficient hydrogen storage infrastructure. Unlike compressed gas or cryogenic liquids, formic acid remains stable at ambient temperatures, allowing energy sectors to utilize existing chemical tankers and pipelines for hydrogen transport. This application is rapidly moving from theoretical research to practical demonstration, resolving critical logistics hurdles for the hydrogen economy. Validating this commercial trajectory, the Korea Institute of Science and Technology announced in May 2024 that researchers had successfully constructed and operated a pilot plant capable of producing 10 kilograms of formic acid per day, a development explicitly designed to verify the economic feasibility of the carbon-capture-to-hydrogen-carrier cycle.

Simultaneously, the emergence of green formic acid produced through carbon dioxide utilization is redefining supply chain dynamics by decoupling manufacturing from fossil-fuel-based methanol. This trend is characterized by the industrial scaling of electrochemical reduction technologies, which convert captured carbon emissions directly into high-purity acid using renewable electricity. These innovations address the chemical industry's urgent need for lower carbon intensity inputs while offering a productive route for waste carbon valorization. According to the U.S. Department of Energy, August 2024, in the 'Low Carbon Intensity Formic Acid Chemical Synthesis' report, OCOchem successfully commissioned a commercial-scale carbon dioxide electrolyzer earlier in the year that achieved a Faradaic efficiency of greater than 80 percent, underscoring the technical viability of these sustainable production methods.

Segmental Insights

The Animal Feed segment represents the fastest-growing category within the global formic acid market, driven by the intensified demand for antibiotic-free livestock production. Regulatory shifts, particularly the restriction on antibiotic growth promoters by the European Union, have necessitated the adoption of organic acid alternatives to ensure animal safety. Formic acid serves as an effective preservative and antibacterial agent that improves gut health by inhibiting harmful bacteria such as Salmonella. Consequently, increasing global consumption of meat and poultry reinforces the continued expansion of this additive in modern animal nutrition strategies.

Regional Insights

Asia Pacific maintains a dominant position in the global formic acid market, driven primarily by robust industrial activity in China and India. The region experiences substantial demand from the leather and textile sectors, where the chemical is essential for tanning and dyeing processes. Furthermore, the expanding livestock industry relies on formic acid as a vital preservative and antibacterial agent in animal feed. High production volumes of natural rubber in Southeast Asia also contribute significantly to regional consumption. Consequently, widespread industrialization and agricultural needs sustain Asia Pacific’s leadership in this market.

Recent Developments

• In August 2025, OCOchem and ADM announced a strategic collaboration to construct a commercial-scale carbon dioxide conversion facility in Decatur, Illinois. The partnership involves deploying OCOchem’s proprietary electrolyzer technology to convert biogenic carbon dioxide, captured from ADM’s corn processing operations, into formate molecules and formic acid. This facility was designed to produce carbon-negative chemicals for use in diverse sectors, including agriculture, pharmaceutical intermediates, and industrial solvents. The initiative aims to establish a comprehensive value chain for sustainable formic acid derivatives, reducing reliance on fossil-fuel-based production methods and supporting the global transition to renewable chemical manufacturing.
• In November 2024, BASF SE announced that it had received verification from the Carbon Trust for several of its intermediate products, including formic acid. The independent certification confirmed that the company’s formic acid has a cradle-to-gate product carbon footprint that is demonstrably lower than the global market average for fossil-based equivalents. This achievement highlighted the company’s success in utilizing efficient production processes and low-emission energy sources at its integrated manufacturing sites. The verified status enables the company to offer its customers certified sustainable solutions that contribute to reducing Scope 3 emissions in various downstream applications.
• In October 2024, Avantium N.V. was awarded a €3.5 million grant from the EU Horizon Europe program to participate in the ICONIC consortium. The company, alongside twelve other partners, committed to scaling up a breakthrough electrochemical technology that converts carbon dioxide from refinery gases directly into formic acid. This research initiative focuses on utilizing the produced formic acid as a sustainable feedstock for manufacturing single-cell proteins and other value-added chemical products. The project represents a significant advancement in carbon capture and utilization technologies, aiming to demonstrate the viability of converting industrial emissions into essential chemical building blocks.
• In June 2024, Kemin Industries launched a new feed additive product in the United States designed to enhance the health and productivity of swine. The product, marketed as FORMYL, utilizes a proprietary encapsulation technology to deliver a blend of formic acid and citric acid effectively within the animals' gastrointestinal tract. This innovation was developed to provide producers with a non-antibiotic solution for managing gut health and reducing the prevalence of pathogens such as E. coli. The release of this acidifier aims to improve feed efficiency and animal performance by optimizing intestinal acidity and enzyme activity.

Key Market Players

• BASF SE
• Eastman Chemical Company
• Shandong Acid Technology Co. Ltd
• Gujarat Narmada Valley Fertilizers & Chemicals Limited
• Luxi Chemical Group Co Ltd
• Perstorp Holdings AB
• Polioli S.p.A.
• Pupuk Kujang PT
• Rashtriya Chemicals and Fertilizers Limited
• Wuhan Rui Sunny Chemical Co. Ltd

By Type	By Application	By Region
Grade 99% Grade 94% Grade 85% Others	Animal Feed Silage Leather Tanning Textile Dyeing Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Formic Acid Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Formic Acid Market, By Type:

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

• Formic Acid Market, By Application:

• Animal Feed
• Silage
• Leather Tanning
• Textile Dyeing
• Others

• Formic Acid Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE