Calcium Formate Market Size, Share & COVID-19 Impact Analysis, By Type (Feed Grade, Industrial Grade), By Application (Feed, Construction, Leather, Chemical, and Others), and Regional Forecast, 2020-2027

The global calcium formate market size was USD 469.4 million in 2019 and is projected to reach USD 628.5 million by 2027, exhibiting a CAGR of 4.0% during the forecast period.

Calcium formate is a calcium salt of formic acid produced from calcium hydroxide and carbon monoxide or formed as a by-product during the production of trimethylolpropane. The majorly used manufacturing process is through the reaction of dilute formic acid and calcium carbonate or calcium hydroxide. This method produces excellent quality and a less water-content insoluble product. The mineral form of calcium methanoate is formicaite. It can form orthorhombic crystals and remains inflammable and stable at room temperature.

In recent years, animal feed is the key growing segment in the global market. With an increasing demand for vital nutrients for animals, feed manufacturers are adopting multi-featured raw materials to improve the performance of their products. For instance, according to China-based Sidley Chemicals Co. Ltd., adding calcium formate to a piglet diet can improve the feed conversion rate by 7-10 percent. Also, it reduces the feed consumption and helps in improving piglet weight. Therefore, with increasing production of animal-derived products, demand for animal feed and consecutively demand for calcium methanoate is expected to increase during the forecast period.

Supply Chain Disruption amid COVID-19 Is Impacting Market Growth

As a result of the ongoing COVID-19 pandemic, suppliers worldwide are facing challenges due to widespread supply chain disruptions. Countries such as the U.S., China, India are severely hit due to the COVID-19 outbreak. Therefore, global trade has been significantly impacted. Capital management and securing logistic routes are the key challenges in front of suppliers. Owing to delayed pre-decided orders, shortage of raw material, and man-power, key end-use industries of calcium formate products have halted their production. According to the United States Chambers Report, around 87% of the contractors working in the U.S. reported delays in their construction projects during the pandemic. This, in turn, is significantly impacting the growth of the market. Market players such as Jiangxi Kosin Organic Chemical (China), Sidley Chemical Co., Ltd. (China) have reported a decline of 2-3% in their revenues in the first quarter of 2020. However, manufacturers are closely working with suppliers to continue their operations.

LATEST TRENDS

Rising Demand for Efficient Crop Growth Regulators to Favor the Market

Calcium methanoate is an ideal crop growth regulator, which helps in improving crop yield. As per most of the Chinese producers, using this compound as a crop regulator can increase the crop yield by 10 percent. With increasing demand for food, the global agriculture industry is adapting more sustainable solutions to meet the rising demand from the growing population across the world. Therefore, the demand for such crop growth regulators & fertilizer additives is increasing. This, in turn, is expected to drive the calcium formate market growth throughout the forecast period.

DRIVING FACTORS

Growing Demand for Calcium Compounds from Construction Industry to Boost Market Growth

Calcium formate is used in cement additives and accelerators, tile adhesives, and cement-based mortars. The growth in the consumption of cement from the construction industry effectively influences the growth of this market. According to the U.S. Geological Survey, global cement production increased to 4.10 billion tons in 2019 as compared to 4.05 billion tons in 2018.

Moreover, it is used as a cement additive in the construction industry for quick setting and increasing the hardness of cement products. In addition, it is also used as an inhibitor, PH regulator, corrosion protector to substrates of buildings & infrastructures, and for cementation of oil drilling. Currently, this is majorly used in the production of concrete in China, which is the dominant country in production and consumption of cement. Hence, growing demand for cement from the construction industry is expected to drive the growth of the global market.

RESTRAINING FACTORS

Fluctuating Raw Material Prices to Emerge as a Key Challenge for Manufacturers

Formic acid and calcium carbonate are the key raw materials used in the production of calcium formate. Fluctuation in the prices of both formic acid and calcium carbonate affects the profit margins of the manufacturers. Also, the manufacturing process is energy-intensive, which further requires sufficient capital investment. This in turn increases the production cost of the compound and reduces profit margin. Therefore, coping with price volatility and initial capital investments are key challenges for manufacturers to grow in this market.

SEGMENTATION

By Type Analysis

Industrial Grade to Exhibit a Significant CAGR

Industrial-grade calcium methanoate is used as a cement and tile additive, flue-gas desulfurization agent, de-icing agent, feed additive, and adhesive & sealant. Increasing demand for industrial-grade from construction and chemical industries is expected to drive the global market. In addition, the growing construction industry is expected to majorly support the market growth, according to the calcium methanoate market study.

Similarly, feed grade is expected to boost the growth of the market owing to the increasing use of calcium formate as feed additives. Increasing demand for quality feed for animals from the feed industry will also drive the demand for the market, globally. According to the 2019 Alltech Global Feed Survey, the global production of feed increased by 3% in 2019 compared to 2018.

By Application Analysis

The Construction Segment to Generate Highest Revenue

The demand for calcium formate is expected to rise, since it is used as a cement accelerator and in several other applications such as production of concrete and cement-based mortar, cement blocks & sheets, and other cement-based products required in the construction industry. The major use of this compound in cement for enhancing its properties, such as increased hardness and less setting time, inhibition of corrosion of metal substrates, and prevention of efflorescence, is the major application in the construction industry.

In addition, calcium formate has application in the leather industry as a masking agent during the chrome leather tanning process. It is also used to promote faster formulation of leather and more efficient leather penetration of the chrome. China, India, Brazil, and the U.S. are the major consumers of leathers, and thus this calcium compound has high demand in these countries. According to the Council of Leather Exports, India is the second-largest producer and exporter of leather products in the world.

REGIONAL INSIGHTS

Asia-Pacific is anticipated to remain a major region in the calcium formate market share during the forecast period owing to the increased demand from feed, construction, leather, and chemical Industries. The region is also expected to register the highest growth in the global market. As a result of favorable growth in the feed and construction industries, the demand for calcium formate is expected to increase in the region. China, Japan, and India are key countries contributing to the market growth owing to the rising construction industry in these countries. According to the India Brand Equity Foundation (IBEF), India is expected to be the third-largest construction industry by the end of 2025. China & India are together anticipated to account for the largest share in the global construction industry by 2025.

However, the growth of the market in North America is anticipated to grow at a relatively low CAGR owing to considerable growth in the construction industry in this region. Europe is projected to witness significant growth in the market. The increasing demand from the feed industry contributes to the growth of the market in the region. Additionally, the use of calcium methanoate in various applications of the construction industry is another key factor driving the market growth in Europe. South America and the Middle East & Africa are expected to grow at a lower growth rate in the calcium methanoate market owing to the lower demand from end-use industries in the region.

KEY INDUSTRY PLAYERS

Major Players are Expected to Strengthen their Market Position in Untapped Market

The major producers of calcium formate are located in China. The producers located in the United States and Europe are aiming to increase their presence in China and other countries in Asia Pacific in order to strengthen their position and drive the growth of their businesses. The key players operating in the market are focusing to develop strong distribution channels to expand their presence in untapped markets.

LIST OF KEY COMPANIES PROFILED:

• LANXESS (Germany)


• Perstorp (Sweden)


• American Elements (USA)


• GEO Specialty Chemicals (USA)


• Henan Botai Chemical Building Materials Company Ltd. (China)


• Zibo Ruibao Chemical Co., Ltd. (China)


• Shandong Baoyuan Chemical Co., Ltd. (China)


• Jiangxi Kosin Organic Chemical (China)


• Sidley Chemical Co., Ltd. (China)


• Chongqing Chuandong Chemical (Group) Co., Ltd. (China)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• September 2019: CPS Performance Materials, a leading manufacturer of specialty & fine chemicals, acquired GEO Specialty Chemicals. The acquisition was done to expand CPS’s specialty chemicals offerings and to strengthen its market position.

REPORT COVERAGE

The calcium formate market research report provides both qualitative & quantitative insights of the global market. Quantitative insights include the global market sizing in terms of value (USD Million) and volume (Kilo Tons) across each type and application segment and region profiled in the scope of the study.

Also, the report covers market share analysis and growth rates of segment, sub-segment and key counties across each region. Qualitative insight covers an in-depth analysis of market dynamics such as drivers, restraints, growth opportunities, key market trends etc. The competitive landscape section covers detailed company profiling of the key players operating in the global market.

Report Scope & Segmentation