Formic Acid Market - Segmented by Grade Type, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global formic acid market, by volume, is expected to be 708.15 kilotons in 2017. It is likely to reach 879.93 kilotons by 2023, at an estimated CAGR of 3.74%, over 2018-2023 (henceforth referred to as the forecast period).
Increasing Consumption of Meat and Poultry
Formic acid helps to preserve and acidify feeds. The acid has anti-microbial properties, which help reduce food-borne infections in poultry. It is generally mixed with propionic acid, in order to ensure microbiologically safe feed. In poultry, it is also added to the drinking water, in order to inhibit the growth of microorganisms and algae. The strongest bactericidal and bacteriostatic effects have been observed for formic acid. It is found to be effective against the most serious bacterial threats to poultry and pig productivity. This MIC (minimal inhibitory concentration) shows the efficiency of this acid in reducing the pH level, which, in turn, minimizes the growth of bacteria, algae, and fungus in the poultry and farms. An increase in the demand for meat worldwide, has led to the increase in demand for formic acid. The growth is highly influenced in Asia-Pacific and Western Europe by the consumption practices in the regions with respect to meat, broiler, and poultry. Thus, the increased consumption has lead to the rise in production of meat, which has further increased the demand for formic acid in order to decontaminate meat and other meat products, and for meat processing.
Animal Feed a Huge Market Potential
Formic acid, as a commercial animal feed additive, is added to animal diet for feed acidification. It is used as 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 also is 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, 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. In addition, the use of formic acid on hay feed may reduce the total milk fat, when given to milch cows. These applications of 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, over the forecast period.
Asia-Pacific Region to Dominate the Market
In 2017, Asia-Pacific region dominated the global market share. The region is expected to dominate the market during the forecast period owing to the demand for meat and poultry coupled with the demand from textile industry in the countries such as China and India. China is among the largest meat producers in the world. The top three categories include pork, chicken, and beef. Pork production in the country increased by 0.8% in 2017, to 53.4 million metric ton. Beef production also increased by 1.3% in 2017, to 7.26 million metric ton. Poultry output increased by 0.5%, to 18.97 million metric ton, while lamb production went up 1.8%, to 4.68 million metric ton. China currently has about 560 large and medium-sized tanneries. The leather tanning industry in the country shows signs of decline. The exports decreased by 8.2% in the first half of 2017. This downturn is likely to be due to the renewal process of laboriously adapting to the new environmental standards. The country’s textile market share in the global textile and clothing industry fell from 38.6%, in 2015, to 35.8%, in 2016. The downward trend is seen in major apparel importing regions such as the United States, European Union, and Japan. All the aforementioned factors, in turn, expected to increase the demand for formic acid in the region during the forecast period.
Key Developments in the Market
- March 2017- BASF and Balchem Corp. received the US FDA approval to launch Amasil formic acid in poultry diets, in the United States.
Major Players -BASF SE, Eastman Chemical Company, Perstorp, Luxi Chemical Group, and Feicheng Acid Chemical Co. Ltd, among others.
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- Market analysis for the global formic acid market, with region-specific assessments and competition analysis on a global and regional scale
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