Market Size of Saudi Arabia Formic Acid Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.26 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Saudi Arabia Formic Acid Market Analysis
The Saudi Arabian formic acid market size is estimated to reach 19.99 kilotons by the end of this year and is projected to reach 24.63 kilotons in the next five years, registering a CAGR of 4.26% during the forecast period.
The outbreak of COVID-19 did not have a vast impact on the demand for formic acid in Saudi Arabia as the major industries consuming it, like animal feed and pharmaceuticals, did not witness much fluctuation in terms of its demand. However, the demand from the leather and textile industry did witness a slump. However, the situation substantially improved in 2021 with the easing of pandemic-related restrictions.
- One of the major factors driving the market studied is the growing demand for formic acid from the animal feed and sillage additives industry, owing to the increased focus on food security and animal safety.
- On the flip side, the increasing usage of urea sulfate as an alternative in the tanning industry will likely negatively impact the market demand.
- Growing inclination toward the usage of formic acid in fuel cells, with the increased emphasis on sustainability, is expected to offer various opportunities for market growth over the forecast period.
Saudi Arabia Formic Acid Industry Segmentation
Formic acid, or methanoic acid, is the simplest form of carboxylic acid with a pungent odor. Owing to the antibacterial and preservative properties of formic acid, it is used in the animal feed and silage industry as an additive and as an intermediary in the pharmaceutical industry. The product is also used in other industries like leather, tanning, dyes, and textiles.
The Saudi Arabia formic acid market is segmented by application. 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.). For each segment, the market sizing and forecasts are provided in terms of volume (tons).
| Application | |
| Animal Feed and Silage Additives | |
| Leather Tanning | |
| Textile Dying and Finishing | |
| Intermediary in Pharmaceuticals | |
| Other Applications (Cleaners, Cosmetics, etc.) |
Saudi Arabia Formic Acid Market Size Summary
The Saudi Arabian formic acid market is experiencing steady growth, driven primarily by its applications in the animal feed and pharmaceutical industries. The demand for formic acid as a preservative and antimicrobial agent in animal feed is bolstered by the increasing focus on food security and animal health, particularly in light of rising animal diseases. Despite the initial impact of the COVID-19 pandemic, which affected the leather and textile sectors, the market has rebounded as these industries recovered. The pharmaceutical sector also presents significant opportunities for market expansion, with formic acid being used as an intermediary in the synthesis of essential medications like insulin. The Saudi government's efforts to enhance its pharmaceutical industry, including investments in vaccine and medicine production, further support the demand for formic acid.
The market landscape is characterized by a consolidated structure, with key players such as BASF SE, Petroliam Nasional Berhad (PETRONAS), and others actively participating. These companies are not only meeting domestic demand but also expanding their global reach through strategic acquisitions, such as PETRONAS's acquisition of Perstorp, a Swedish specialty chemical company. This move is expected to strengthen their presence in the Saudi market. Additionally, the growing interest in using formic acid in fuel cells aligns with the global shift towards sustainability, offering new avenues for market growth. However, the increasing use of alternatives like urea sulfate in the tanning industry poses a potential challenge to market demand. Overall, the Saudi Arabian formic acid market is poised for continued growth, supported by robust demand from key industries and strategic industry developments.
Saudi Arabia Formic Acid Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Growing Demand for Animal Feed and Silage Additives
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1.1.2 Increasing Investments in the Pharmaceutical Industry
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1.1.3 Other Drivers
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1.2 Market Restraints
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1.2.1 Presence of Alternatives like Urea Sulfate
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1.2.2 Other Restraints
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Buyers
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1.4.2 Bargaining Power of Suppliers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION (Market Size in Volume)
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2.1 Application
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2.1.1 Animal Feed and Silage Additives
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2.1.2 Leather Tanning
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2.1.3 Textile Dying and Finishing
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2.1.4 Intermediary in Pharmaceuticals
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2.1.5 Other Applications (Cleaners, Cosmetics, etc.)
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Saudi Arabia Formic Acid Market Size FAQs
What is the current Saudi Arabia Formic Acid Market size?
The Saudi Arabia Formic Acid Market is projected to register a CAGR of 4.26% during the forecast period (2024-2029)
Who are the key players in Saudi Arabia Formic Acid Market?
BASF SE, Petroliam Nasional Berhad (PETRONAS), Shandong Acid Technology Co., Ltd., Huanghua Pengfa Chemical Co., Ltd and Gujarat Narmada Valley Fertilizers & Chemicals Limited are the major companies operating in the Saudi Arabia Formic Acid Market.
