Europe Formic Acid Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 2.96 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Formic Acid Market Analysis
The Europe Formic Acid Market is estimated to reach 290.34 kilotons by the end of this year and is projected to reach 335.87 kilotons in the next five years, registering a CAGR of over 2.96% during the forecast period.
Due to the COVID-19 outbreak, demand from several segments of formic acid, like animal feed and silage additives and pharmaceutical intermediaries, remained firm. However, a drop in demand was observed from the leather tanning and textile and finishing segments owing to the curbs induced on social gatherings, which led to the limited purchase of these products. However, the demand recovered substantially with the reopening of European economies in 2021.
- One of the major drivers for formic acid is the consistent increase in the demand for animal feed and silage additives. It is owing to the rising concerns about animal health and nutrition.
- However, growing emphasis on substitutes like urea sulfate in applications like leather tanning is restraining the market growth.
- Using formic acid as a sustainable alternative in fuel cells will likely create opportunities for the market studied in the European region in the coming years.
- Germany is expected to dominate the European formic acid market since it contains the largest industrial base in the region.
Europe Formic Acid Market Trends
Growing Demand for Animal Feed and Silage Additives
- Animal feed and silage additive manufacturers use formic acid as an additive in solid or liquid form, owing to its anti-bacterial and preservative properties. With the growing population of animals, food security is an important concern for these manufacturers because the usage of products like formic acid is increasing.
- The European compound feed industry includes approximately 3,500 production sites, primarily in rural areas. The growth in the demand for animal proteins increases the need for compound feed. This need is also an important factor affecting the growth of the formic acid market in Europe. However, animal diseases, the Russia-Ukraine war, and the raw material and energy crisis experienced as a part of the war significantly disrupted the compound feed production in Europe in 2022.
- Europe is the world's second-largest compound feed producer after the Asia-Pacific region. As per Alltech's Agri-Food Outlook 2023 report, 263 million metric tons (20.7%) of world compound feed production in 2022, which was approximately 1.266 billion metric tons, was produced by European countries.
- According to the Agri-Food Outlook 2023 by Alltech, Spain produced 31.2 million metric tons of compound feed in 2022, showcasing a decline of 12.8% from the volume produced in 2021. Despite the decline, Spain was ranked 7th in the world compound feed production in 2022. Moreover, Germany, the other major producer of Europe, was ranked 10th in the world with an approximate production of 24 million metric tons in 2022.
- In Europe, Spain and Germany are the two largest compound feed producers. In Spain, various global manufacturers witnessed expanding their presence in the compound feed market of the country with anticipation of a further increase in demand in the coming years. Some leading players operating in the Spanish feed market include Cargill Inc., Trouw Nutrition España SA, Alltech Inc., and Nutreco NV., among others.
- All the above trends indicate the factors driving the demand for formic acid from the European region's animal feed and silage industry.
Germany to Dominate Formic Acid Market in Europe
- Formic acid is used for the synthesis of various pharmaceutical drugs or APIs. Germany is the largest pharmaceutical market in Europe and the fourth largest worldwide after the United States, China, and Japan. The increasing investments and pharmaceutical advances are anticipated to drive market growth for Formic Acid in Germany.
- According to Germany's vaccine commissioner, Germany and the European Union are planning to double their vaccine production capacity. According to a statement from Germany's economy ministry, the country will invest USD 2.86 billion or more to secure local vaccine production capacities through 2029. In line with the same objective, the cabinet ministry of Germany in March 2022 announced plans to sign contractual agreements with BioNTech SE, CureVac SE, CordenPharma International, CELONIC Group, and Integrated DNA Technologies, Inc. in the coming years.
- Several companies witnessed the expansion of their pharmaceutical manufacturing capabilities in Germany in line with the growing demand. For instance, in May 2022, Bayer AG announced plans to develop a new pharmaceutical facility named Solida-1 production facility in Leverkusen, Germany. The facility will primarily produce medicinal products for treating cancer and cardiovascular diseases. The scheduled commencement of the facility is in 2024.
- In the textile industry, formic acid is used for several applications. The product is used to stabilize the color of the fibers, dyeing natural and synthetic fibers such as wool and nylon, and also to neutralize the alkaline solution when washing the fabric.
- Germany's textile and apparel industry is one of the most important sectors of the economy. In the past few years, the country witnessed an increased production of technical textiles and subsequent raw materials. However, in 2022, various enterprises in the textile industry complained about bottlenecks and problems in procuring intermediate products and raw materials. According to the Ifo Institute for Economic Research, it was due to the supply disruption caused by the Russia-Ukraine crisis.
- As per the statistics of the Statistisches Bundesamt, the Federal Statistical Office in Germany, 2022 private household spending on shoes and clothing witnessed a notable rise of nearly 16% from the previous year. It indicated a high inclination of consumers toward these items.
- Germany's focus on increasing the production of sustainable textiles and relief initiatives by the government. It is to combat inflation and is expected to positively contribute to the textile industry in the country, thereby impacting formic acid demand as well.
- All the above factors will likely keep Germany ahead of other European countries in the formic acid market.
Europe Formic Acid Industry Overview
The Europe formic acid market is consolidated by nature. Some of the market's major players (in no particular order) include BASF SE, Eastman Chemical Company, LUXI GROUP, Petroliam Nasional Berhad (PETRONAS), and POLIOLI SpA, among others.
Europe Formic Acid Market Leaders
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BASF SE
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Eastman Chemical Company
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LUXI GROUP
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Petroliam Nasional Berhad (PETRONAS)
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POLIOLI SpA
*Disclaimer: Major Players sorted in no particular order
Europe Formic Acid Market News
October 2022: Petroliam Nasional Berhad (PETRONAS) acquired Perstop, a leading specialty chemicals company and a producer of formic acid headquartered in Sweden, to expand its business in the speciality chemical industry.
Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Demand for Animal Feed and Silage Additives
4.1.2 Increasing Usage in Leather Tanning Industry
4.1.3 Other Drivers
4.2 Market Restraints
4.2.1 Presence of Alternatives like Urea Sulfate
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Application
5.1.1 Animal Feed and Silage Additives
5.1.2 Leather Tanning
5.1.3 Textile Dying and Finishing
5.1.4 Intermediary in Pharmaceuticals
5.1.5 Other Applications (Cleaners, Cosmetics, etc.)
5.2 Geography
5.2.1 Germany
5.2.2 United Kingdom
5.2.3 Italy
5.2.4 France
5.2.5 Spain
5.2.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Merger & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 CK Chemicals
6.4.3 Eastman Chemical Company
6.4.4 LUXI GROUP
6.4.5 Petroliam Nasional Berhad (PETRONAS)
6.4.6 POLIOLI SpA
6.4.7 Qingdao Hisea Chem Co., Ltd.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Usage of Formic Acid as a Sustainable Alternative in Fuel Cell
7.2 Other Oppportunities
Europe Formic Acid Industry Segmentation
Formic acid, or methanoic acid, is the simplest form of carboxylic acid with a pungent odor. Due to its antibacterial and preservative properties, it is used in the animal feed and silage industry as an additive and an intermediary in the pharmaceutical industry. The product is also used in other industries like leather, tanning, dyes, and textiles.
The Europe Formic Acid Market is segmented by application and geography. The product is segmented by application into animal feed and silage additives, leather tanning, textile dyeing, finishing, an intermediary in pharmaceuticals, and other applications (cleaner, cosmetics, etc.). The report also covers the market size and forecasts for the formic acid market across 5 countries in the European region. The market sizing and forecasts are provided in volume (tons) for each segment.
| Application | |
| Animal Feed and Silage Additives | |
| Leather Tanning | |
| Textile Dying and Finishing | |
| Intermediary in Pharmaceuticals | |
| Other Applications (Cleaners, Cosmetics, etc.) |
| Geography | |
| Germany | |
| United Kingdom | |
| Italy | |
| France | |
| Spain | |
| Rest of Europe |
Frequently Asked Questions
What is the current Europe Formic Acid Market size?
The Europe Formic Acid Market is projected to register a CAGR of greater than 2.96% during the forecast period (2024-2029)
Who are the key players in Europe Formic Acid Market?
BASF SE, Eastman Chemical Company, LUXI GROUP, Petroliam Nasional Berhad (PETRONAS) and POLIOLI SpA are the major companies operating in the Europe Formic Acid Market.
What years does this Europe Formic Acid Market cover?
The report covers the Europe Formic Acid Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Formic Acid Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Formic Acid Industry Report
Statistics for the 2024 Europe Formic Acid market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Formic Acid analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
