Production of Formic Acid. Investment Opportunities in Chemical Industry.
Formic acid was first isolated from certain ants and was named after the Latin Formica, meaning ant. It is made by the action of sulfuric acid upon sodium formate, which is produced from carbon monoxide and sodium hydroxide. Formic acid. Saturated fat.
The principal use of formic acid is as a preservative and antibacterial agent in livestock feed. When sprayed on fresh hay or other silage, it arrests certain decay processes and causes the feed to retain its nutritive value longer and so it is widely used to preserve winter feed for cattle. Formic acid is also prepared in the form of its esters by treatment of carbon monoxide with an alcohol such as methanol (methyl alcohol) in the presence of a catalyst.
Formic acid (also called methanoic acid) is a colorless liquid with a sharp odor. It is also the simplest carboxylic acid. The chemical formula is HCOOH or HCO2H. Formic acid is an environmentally acceptable and highly efficient organic acid. It is used in many areas, from leather processing to feed preservation. Formic acid is soluble in water, various alcohols, acetone and ether. Most applications require formic acid in concentrations of 85%, 90%, 94% or 99%; the 85% product accounts for the major portion of global demand and is considered the industry standard.
Market Outlook
The global demand will increase from 95.4 Mb/d to 102.3 Mb/d with an annual growth rate of 1.2 Mb/d in terms of the barrel. Furthermore, the organization estimates the demand growth rate to be 0.6% through to 2040. This upsurge in the demand for oil will substantially resonate with the demand influx in the formic acid market that was valued to be around $550 million. This attributes to the application of formic acid in the oil & gas sector as the derivative of the chemical, potassium formate brine is added to drilling fluids in order to make them heavier. The demand for formic acid in various industries will observe a compound annual growth rate (CAGR) of 4.9% during the forecast period of 2019 to 2025.
The pharmaceutical sector has been making strides with a gamut of international companies investing in developing economies such as India. Subsequently, the demand for formic acid, which is used in pharmaceutical industries, is on the rise. The region led the formic acid market. One of the major factors driving the growth of formic acid is the increasing demand for preservatives and feed additives. Increasing consumption of meat and poultry has also hugely attributed to the growth of the market.
The market is segmented into animal feed, rubber and leather, finishing textile, dyeing, cleaning agents, and others. Formic Acid & rsquos proliferation in the animal feed industry has been so extensive that it is now dominating the segment and will continue to do in the coming years. Agriculture and animal feed industries are experiencing a transformation due to the increasing implementation of formic acid. Formic acid is the simplest form of the carboxylic acid, and its eco-friendly features assist in protecting livestock feed, ensuring nutritional value and increasing shelf life of foods to maintain a continuous supply of the same during the winter season.
Formic Acid Market Revenue, 2016-2022 ($Million)
Global formic acid market is anticipated to witness significant growth increasing application scope in various end-use industries including leather, textile, rubber, chemical, pharmaceutical and agriculture. Rising demand for preservative and antibacterial agents in cattle feed is expected to augment the formic acid market growth.
Rubber and leather industry are anticipated to be the fastest growing application segment owing to rising demand for tires and consumer goods in Asia Pacific. However agriculture segment is expected to witness largest demand on account of increasing use of animal feed additives. Superior antibacterial properties further fuel formic acid demand in aforementioned applications. Growing health and safety concerns ban on use of antibiotics in animal feedstock and increasing consumption of poultry & meat products are anticipated to propel the formic acid market over the next seven years.
Asia Pacific formic acid market is anticipated to grow at a fast pace over the forecast period owing to increasing demand in rubber, agriculture, leather & textile industries in China and India. Lower capital and labor costs along with rapidly growing market in China are expected to draw high investments from major players. Agricultural segment is poised to lead the formic acid market is expected to create growth opportunities.
Formic acid as a commercial animal feed additive, is added to the animal diet for feed it is used as an animal feed additive for fisheries, cattle, poultry, etc. Growth of cattle and poultry is higher in countries, such as the United States, China, India, etc., and these are the countries where the demand for formic acid has increased at a moderately high rate. Formic acid is also used as an antibacterial agent and preservative in livestock feed. Formic acid is sprayed on fresh hay, in order to delay or halt decay, thereby, allowing the feed a longer survival period. This process is of particular importance in the preservation of winter cattle feed.
In poultry farming, formic acid is applied to feed in order to kill salmonella bacteria. These practices are widespread in Europe, but are not as common in the United States, due to the generally low commercial availability of formic acid. The use of formic acid on hay feed may reduce the total milk fat when given to mulch cows. Formic acid are on the rise due to the increase in demand for animal feed. This trend is expected to contribute to the demand for formic acid.
Key Players
- BASF SE (Germany)
- Feicheng Acid Chemical (China)
- Gujarat Narmada Valley Fertilizers & Chemicals Limited (India)
- Chongqing Chuandong Chemical (Group) Co., Ltd (China)
- LUXI Group Co., Ltd. (China)
- Eastman Chemical Company (U.S)
- Perstorp AB (Sweden)
- Anhui Asahi Kasei Chemical
- Rashtriya Chemicals and Fertilizers
- Tianyuan Group
- Feicheng Acid
- Perstorp
- Wuhan Ruisunny Chemical
- Shandong Rongyue Chemical
- Huaqiang Chemical
- Shanxi Yuanping Chemicals
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