Formic Acid Market To Expand at 7.7% CAGR by 2034

Overview

New York, NY – June 19, 2025 – The Global Formic Acid Market is projected to grow significantly, reaching around USD 2.7 billion by 2034, up from USD 1.3 billion in 2024, with a strong CAGR of 7.7% from 2025 to 2034.

In 2024, Grade 85% formic acid commanded a leading position in the global market, securing over 49.3% of the market share. Its widespread use stems from an optimal balance of purity and cost-effectiveness. The Animal Feed Segment led the global formic acid market in 2024, accounting for over 38.8% of the market share. This dominance is driven by the rising need for feed preservation and hygiene in the livestock industry.

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.

How Growth is Impacting the Economy

• The formic acid market’s robust growth significantly influences global economies, particularly in Asia-Pacific, where it supports agricultural and industrial advancements. In countries like China and India, the surge in livestock farming, driven by rising meat and dairy demand, boosts employment and rural economies through increased feed production. The leather industry, a key export sector, benefits from formic acid’s role in tanning, generating revenue and jobs in nations with strong leather markets.
• Additionally, the shift toward sustainable additives, replacing antibiotics in feed, aligns with global environmental goals, attracting investments in green technologies. This growth fosters industrial innovation, enhances export capabilities, and strengthens economic resilience in developing regions, while supporting global supply chains in agriculture and textiles through 2025.

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Strategies for Businesses

• Businesses in the formic acid market should focus on innovation and sustainability to capitalize on growth. Investing in R&D to develop eco-friendly production methods can meet the rising demand for green chemicals. Targeting Asia-Pacific markets, particularly China and India, with tailored supply chains for the agriculture and leather industries ensures market penetration.
• Forming partnerships with local feed and textile manufacturers can enhance distribution networks. Additionally, businesses should leverage regulatory support for natural feed additives to gain a competitive edge. Diversifying applications, such as exploring formic acid’s use in pharmaceuticals, and adopting cost-effective production technologies will drive profitability and long-term market leadership.

Report Scope

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Key Market Segments

By Type

• In 2024, Grade 85% formic acid commanded a leading position in the global market, securing over 49.3% of the market share. Its widespread use stems from an optimal balance of purity and cost-effectiveness, making it ideal for large-scale industrial applications. The agricultural sector drives much of this demand, utilizing Grade 85% as a preservative and antibacterial agent in silage and animal feed to prevent mold and bacterial growth. This is particularly critical in regions like Asia-Pacific, where expanding livestock production fuels demand.
• The leather processing industry also relies heavily on Grade 85% for tanning and pH regulation during dyeing, especially in countries with strong leather export markets. Additionally, it serves as a key intermediate in chemical synthesis. In 2025, Grade 85% is expected to maintain its dominance, supported by growing needs in agriculture and textiles, along with its stable shelf life, ease of transport, and regulatory approval for use in feed additives.

By End Use

• The Animal Feed Segment led the global formic acid market in 2024, accounting for over 38.8% of the market share. This dominance is driven by the rising need for feed preservation and hygiene in the livestock industry. Formic acid’s antibacterial and mold-inhibiting properties make it a vital additive for extending the shelf life of silage and compound feed, particularly in warm, humid climates prone to spoilage. The surge in global meat and dairy consumption, especially in Asia-Pacific and Latin America, has increased the demand for cost-effective feed additives like formic acid.
• In countries like India and China, where livestock farming is a cornerstone of the agricultural economy, formic acid use has grown due to government-supported livestock health initiatives and industry-driven quality enhancements. Looking ahead to 2025, the animal feed sector is poised to remain the market leader, driven by the global push for sustainable farming practices and stricter regulations on antibiotic use, positioning formic acid as a preferred natural alternative.

Regional Analysis

• In 2024, the Asia-Pacific (APAC) region solidified its position as the global leader in the formic acid market, capturing approximately 48.3% of the market share, valued at roughly USD 600 million. This dominance is fueled by the region’s thriving agricultural sector, expanding industrial base, and growing demand for sustainable chemical solutions. China and India are key drivers, with China’s vast livestock industry and India’s growing leather and textile sectors significantly boosting formic acid demand.
• In agriculture, formic acid is extensively used as a preservative and antibacterial agent in animal feed, enhancing both quality and shelf life. The region’s leather industry, a major contributor to global production, also relies on formic acid for tanning, supporting high-quality leather exports. The Asia Pacific Leather Fair projects a 10% annual growth in the leather products market, further increasing demand for formic acid. In 2025, APAC is expected to maintain its market leadership, driven by these robust industries and increasing adoption of eco-friendly solutions.

Recent Developments

1. ALPLA Group

• ALPLA, a global packaging solutions provider, has been exploring sustainable chemical applications, including formic acid in biodegradable materials. While not a direct producer, ALPLA collaborates with chemical firms to enhance eco-friendly packaging. Their R&D focuses on reducing carbon footprints, indirectly supporting formic acid’s role in green chemistry.

2. Amcor

• Amcor has been investing in sustainable packaging, with formic acid being studied for its antimicrobial properties in food preservation. The company’s innovation hub explores bio-based chemicals to improve shelf life and safety in flexible packaging solutions.

3. Anhui Asahi Kasei Chemical

• A leading formic acid producer, Anhui Asahi Kasei, has expanded production capacity to meet rising demand in Asia. The company focuses on high-purity formic acid for pharmaceuticals and agriculture, with recent investments in cleaner production technologies.

4. AVA Biochem

• AVA Biochem specializes in bio-based chemicals, including formic acid derivatives for sustainable industrial applications. Their recent advancements include catalytic processes to produce formic acid from biomass, aligning with circular economy goals.

5. Avantium

• Avantium, known for renewable chemistry, has developed novel pathways for formic acid synthesis using CO₂ and green hydrogen. Their “Volta” technology aims to produce formic acid as a hydrogen carrier for energy storage, supporting decarbonization efforts.

Conclusion

The Global Formic Acid Market is on a strong growth path. Rising demand from agriculture, leather, textiles, and animal feed industries is driving expansion, along with increasing use as an eco-friendly preservative and antibacterial agent. The shift toward green chemicals and sustainable manufacturing is creating new opportunities, especially in Asia-Pacific, where rapid industrialization boosts consumption. Innovations in bio-based production and hydrogen storage applications further enhance market potential.

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