KSA Calcium Formate Market Outlook to 2028

KSA Calcium Formate Market Overview

The KSA Calcium Formate Market is growing substantially that reflecting the Global Calcium Formate market size was valued at USD 640 million in 2023. This growth is driven by the increasing demand for calcium formate in various applications, including construction, animal feed, and leather tanning. The construction industry, in particular, has seen growth due to the government's Vision 2030 initiative, which aims to diversify the economy and develop infrastructure.

The key players in the KSA Calcium Formate market include Perstorp, GEO Specialty Chemicals, LANXESS, Henan Botai Chemical Building Materials Co., Ltd., and Zibo Ruibao Chemical Co., Ltd. These companies are leading the market with their extensive distribution networks and strong presence in various end-user industries.

In 2023, the new product line introduced by Henan Botai Chemical Building Materials for their high-purity calcium formate includes two specific grades: FORCA Feed Grade Calcium Formateand FORCA Industrial Grade Calcium Formate. These products are designed to meet the stringent quality requirements of various industries, particularly in construction and feed applications.

The Eastern Province of Saudi Arabia holds a leading position in the calcium formate market. This dominance is due to the concentration of chemical manufacturing facilities and the convenient availability of essential raw materials in the region.

KSA Calcium Formate Market Segmentation

The KSA calcium formate market can be segmented in various factors like application, product, and region.

By Application: The KSA calcium formate market is segmented by application into construction, animal feed, and leather tanning. In 2023, construction segment dominates the KSA calcium formate market due to extensive infrastructure projects under Vision 2030, such as NEOM and Qiddiya. These projects drive high demand for calcium formate as an additive in cement and concrete to accelerate setting times and enhance durability.

By Product: The KSA calcium formate market is segmented by product into industrial grade and feed grade. In 2023, the industrial grade segment holds a dominant position in the KSA calcium formate market due to its widespread use in the construction and leather tanning industries. The demand for fast-setting concrete and high-quality leather products significantly boosts the consumption of industrial-grade calcium formate.

By Region: The KSA calcium formate market is segmented by region into north, east, west and south. In 2023, The Eastern region leads the KSA calcium formate market due to the presence of numerous chemical manufacturing facilities and easy access to raw materials. The concentration of industrial activities in this region supports the high production and consumption of calcium formate.

KSA Calcium Formate Market Competitive Landscape

Company

Establishment Year

Headquarters

Perstorp

1881

Sweden

GEO Specialty Chemicals

1993

USA

LANXESS

2004

Germany

Henan Botai Chemical Building Materials

2003

China

Zibo Ruibao Chemical Co., Ltd.

2004

China

Perstorp: In February 2024, Perstorp inaugurated a state-of-the-art plant in Sayakha, India, with an annual production capacity of 26,000 metric tons of calcium formate. This facility aims to meet growing market demand, reduce lead times by 50% for Asian customers, and enhance global export capabilities.

GEO Specialty Chemicals: GEO Specialty Chemicals has a substantial impact on the market due to its innovative product offerings and focus on research and development. The company reported an increase in sales of calcium formate in 2023.

KSA Calcium Formate Market Analysis

KSA Calcium Formate Market Growth Drivers

Construction Industry Expansion: Saudi Arabia's construction spending is set to reach USD 150 billion by 2025, driven by Vision 2030 projects. This surge, up from USD 142 billion in 2024, underscores the country’s commitment to diversifying its economy and developing its infrastructure, significantly boosting the demand for calcium formate in construction.

Increased Demand for High-Quality Animal Feed: The agricultural sector in Saudi Arabia is experiencing growth, with a heightened focus on improving livestock health and productivity. Calcium formate is widely used as a feed additive due to its benefits in enhancing animal digestion and growth. Saudi Arabia's animal feed market is expanding rapidly, expected to reach USD 2.1 billion by 2027.

Leather Tanning Industry Growth: The leather industry in Saudi Arabia is expanding, driven by both domestic demand and export opportunities. Calcium formate is crucial in the leather tanning process, where it helps in the preservation and softening of hides. In 2024, the leather industry's output is estimated to surpass 200,000 tons of processed leather, necessitating substantial quantities of calcium formate.

KSA Calcium Formate Market Challenges

Competition for imported products: Despite local production, the market faces competition from imported calcium formate products, which sometimes offer lower prices due to economies of scale. In 2024, imports of calcium formate into Saudi Arabia are exceed 10,000 tons, creating price pressure on local manufacturers.

Environmental Regulations: Stricter environmental regulations imposed by the Saudi government regarding chemical manufacturing processes have increased compliance costs for calcium formate producers. In 2024, compliance costs are estimated to rise for major manufacturers, affecting their profit margins.

KSA Calcium Formate Market Government Initiatives

Saudi Industrial Development Fund (SIDF): In 2022, the Saudi Industrial Development Fund (SIDF) approved USD 3.7 billion in loans, supporting various sectors including industry, energy, mining, and logistics. This initiative aims to boost local industrial capacities and reduce import dependency. Small and medium enterprises benefited significantly, securing 87 loans out of the total 111 approved.

Agricultural Development Programs: In 2024, the Saudi Agricultural Development Fund introduced two initiatives worth USD 665 million to support farmers and enhance food security. USD 540 million is allocated for bank guarantees to import essential crops, while USD 0.081 billion supports local farmers. These initiatives aim to stabilize the food supply and support the agricultural sector amid global supply chain disruptions​.

KSA Calcium Formate Market Future Outlook

The KSA calcium formate market is growing over the next five years, driven by increasing local production capacity, manufacturing technologies, construction sector expansion, and exports market demand increasing.

KSA Calcium Formate Future Market Trends

Increased Local Production Capacity: Over the next five years, the local production capacity for calcium formate in Saudi Arabia is expected to increase significantly. Investments in new manufacturing facilities and expansion of existing ones will boost production levels, reducing dependency on imports and stabilizing prices.

Advancements in Manufacturing Technologies: The adoption of advanced manufacturing technologies will enhance the efficiency and quality of calcium formate production. By 2028, it is anticipated that most major producers in Saudi Arabia will have upgraded their facilities to incorporate cutting-edge technologies, leading to improved product consistency and cost-effectiveness.
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