Formic Acid Market Size, Share & Industry Analysis, By Grade (85%, 94%, 99%, and Others), By Application (Agriculture, Leather & Textile, Chemical, Rubber, Pharmaceuticals, and Others), and Regional Forecast, 2025-2032

The global formic acid market size was valued at USD 667.1 million in 2024. The market is projected to grow from USD 691.7 million in 2025 to USD 944.6 million by 2032 at a CAGR of 4.6% during the forecast period. Asia Pacific dominated the formic acid market with a market share of 48.42% in 2024.

Formic acid (HCOOH) is a colorless, pungent, and corrosive organic acid widely used in industries such as agriculture, leather, textile dyeing, chemicals, and pharmaceuticals. It serves as a preservative, antibacterial agent, and pH regulator in animal feed, as well as a key component in leather tanning and rubber production.

Market growth is driven by increasing demand for silage preservatives in agriculture, expanding use of industrial chemicals, and the shift toward eco-friendly alternatives in leather and textile processing. Additionally, increasing research into bio-based formic acid production methods, rising product adoption in animal feed additives, and growing sustainable agricultural practices further boost its market potential. Various key players, such as BASF SE, Eastman Chemical Company, and Mitsubishi Gas Chemical Company, Inc., are operating in the market.

Global Formic Acid Market Overview & Key Metrics

Market Size & Forecast:

• 2024 Market Size: USD 667.1 million
• 2025 Market Size: USD 691.7 million
• 2032 Forecast Market Size: USD 944.6 million
• CAGR: 4.6% from 2025–2032

Market Share:

• Asia Pacific dominated the Formic Acid Market with a 48.42% share in 2024, driven by strong demand from agriculture, textile, and chemical industries across China, India, and Japan, along with rising investments in R&D and sustainable agro practices.
• By grade, the 85% formic acid segment is expected to retain the largest market share in 2025, supported by its widespread use as a preservative and antibacterial agent in livestock feed and silage treatment.

Key Country Highlights:

• China: A key contributor to global market share due to high pesticide production, strong agricultural growth, and rising chemical manufacturing capacity.
• India: Government support for domestic agriculture and growing demand for organic acid-based preservatives are fueling market growth.
• United States: Advanced agricultural practices, rising demand for de-icing agents, and expansion in organic poultry farming are boosting the formic acid market.
• Germany: Demand is driven by the expansion of eco-friendly leather and textile processing, aligned with strict EU chemical safety regulations.

FORMIC ACID MARKET TRENDS

Increasing Product Utilization in Fuel Cell Technology to Create Opportunity for Market Growth

Formic acid is widely used in animal feed preservation due to its acidifying nature and antimicrobial properties, which help suppress the growth of harmful bacteria such as Campylobacter, Escherichia coli, and Salmonella, thereby improving animal health and productivity. Its role in agriculture extends beyond feed preservation to silage treatment and pH regulation, driving the global market.

Beyond traditional applications, the product is gaining higher traction in fuel cell technology as a potential energy carrier. When used in direct formic acid fuel cells (DFAFCs), it undergoes a reaction with water and CO₂ to generate electricity, offering a cost-effective and safer alternative to hydrogen fuel. Notably, in January 2016, a Dutch student team developed a fuel-cell-powered bus that runs on formic acid, highlighting its viability in clean energy solutions. Increasing research into hydrogen storage alternatives and the push for renewable energy grades have further expanded opportunities for products in power applications. Moreover, the rising focus on the production of bio-based formic acid to reduce the carbon footprint, integration of AI and automation in production facilities, and growing improvement in manufacturing technologies for enhanced product quality and cost-effective production are expected to contribute to steady market growth.

MARKET DYNAMICS

MARKET DRIVERS

Increasing Dependency on Domestic Agricultural Activities to Drive Market Growth

The market is poised for steady growth, driven by the expanding agriculture industry worldwide and increasing demand for efficient feed preservation solutions. The growing global emphasis on efficient animal nutrition, coupled with stricter regulations on synthetic additives, is bolstering the shift toward organic acid-based preservatives, including formic acid. Furthermore, advancements in biotechnology and sustainable production methods, such as bio-based formic acid derived from renewable feedstocks, are expected to open new avenues for market expansion. As the agriculture sector continues to modernize, the product demand for feed preservation and broader industrial applications is anticipated to rise, reinforcing its market presence worldwide.

Expanding Leather and Textile Industry to Drive Market Growth in the Coming Years

The formic acid market growth is driven by its expanding applications in the leather and textile industries. As a key tanning agent, this product enhances leather durability and reduces processing time, making it an essential component in leather manufacturing. Additionally, its role as a dye-fixing agent in the textile industry boosts fabric quality and color retention capability. With rising demand for high-quality leather products and textiles, especially in the fashion, automotive, and upholstery sectors, the market is expected to witness steady growth in the coming years.

MARKET RESTRAINTS

High Level of Toxic Chemicals Hampers Market Growth

High-grade formic acid poses significant health risks when exposure exceeds safe limits, causing nose and throat irritation, shortness of breath, nausea, and vomiting. Thus, regulatory bodies such as OSHA, NIOSH, and IDLH have set exposure limits between 5 ppm and 10 ppm. Additionally, its high reactivity with oxidizing agents such as peroxides, permanganates, and perchlorates, and with chemically active metals and strong acids, necessitates stringent handling and storage measures. These safety requirements increase operational costs and impact overall consumption in end-use applications.

MARKET OPPORTUNITIES

Growing Product Adoption as a Chemical Derivative and Intermediate in Pharmaceutical Compounds Offers Lucrative Opportunity

Formic acid is utilized in creating formates, esters, and solvents because of its antimicrobial and anti-inflammatory characteristics. It also serves as a precursor in pharmaceutical substances and chemical derivatives that are subsequently used in drug formulation. Additionally, it plays a role in sample preparation for drug analysis. The rising demand for high-quality pharmaceutical products and derivatives is anticipated to provide profitable opportunities for the formic acid market.

MARKET CHALLENGES

Stringent Regulations Pose a Challenge to the Market 

The market faces several challenges due to stringent regulations by the government for the safe disposal of formic acid residues along with regulatory compliance costs associated with approvals. Moreover, unstable prices of raw materials such as methanol and carbon monoxide, supply chain disruptions, availability of substitutes in certain applications, and competition from alternative chemicals further pose challenges to the market. Asia Pacific witnessed a growth from USD 322.7 million in 2023 to USD 323.0 million in 2024.

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IMPACT OF COVID-19

By the end of 2019, COVID-19 impacted the world, including the global economy and business. The pandemic limited the flow of the chemical industry and massively impacted the entire supply chain. Formic acid manufacturers globally had to face a shortage of the workforce and essential raw materials owing to the trade restrictions to ensure public safety. This has limited the business operations, including manufacturing activities, sales & marketing, and product demand decrease. However, post-pandemic, governments of many countries provided funds to chemical companies to ramp up production and meet the growing demand from required applications, which has strengthened the supply chain.

IMPACT OF TRADE PROTECTIONISM

Trade protectionism significantly impacts the market by altering the dynamics of global supply chains and influencing market accessibility. Many of the countries worldwide have imposed tariffs to protect domestic chemical industries. On the other hand, cross-border trade has also faced delays owing to strict environmental compliance measures. Furthermore, disruptions in the supply chain due to geopolitical instability have affected global market equilibrium.

SEGMENTATION ANALYSIS

By Grade

85% Grade Accounted for the Dominant Market Share due to its Growing Adoption in Agriculture Industry

Based on the grade, the market is segmented into 85%, 94%, 99%, and others.

The 85% grade segment held the highest formic acid market share in 2024. This growth is attributed to the increasing 85% grade consumption from the agriculture industry due to its ability to work as an antibacterial and preservative agent in livestock feed. Moreover, the growing agriculture industry worldwide, coupled with rising technological innovation in agro products, is also boosting the segment growth.

The 94% grade segment will grow substantially during the forecast period due to its rising penetration across several end-use industries. Its eco-friendly nature surges its adoption in leather processing and textile applications. Its applications are also rapidly increasing in the manufacturing of pharmaceuticals, cosmetics, disinfectants, and detergents.

The 99% and other segments are forecasted to have significant growth during the forecast period. The others segment includes several grades such as 82%, 75%, 76%, 99.7%, and 88%. The growing demand for such grades and 99% grades in the manufacturing of rubbers, which are further utilized in the production of tires, electronics applications, and consumer goods, is fueling the growth of the segments.  

By Application

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Agriculture Segment Leads the Market due to Rising Product Consumption in Pesticides Manufacturing

Based on the application, the market is segmented into agriculture, leather & textile, chemical, rubber, pharmaceuticals, and others.

The agricultural segment is dominating the market with the highest market share in 2024. Formic acid consumption is rising rapidly in the agricultural segment for the synthesis of chemicals and manufacturing of pesticides. It is also adopted as a preservative to prevent the spoilage of livestock winter food and antibacterial in animal feed. Additionally, the acid is also utilized in chicken feed to kill Salmonella bacteria in poultry farms. The growing government initiative globally to increase agriculture production while reducing the dependency on imports from other countries will lead to segment growth during the forecast period.

• The leather & textile segment is expected to hold a 19.5% share in 2024.

The chemical industry segment is growing at a rapid pace and is estimated to continue during the forecasted timeline. As a pH regulator, the product demand is rising in neutralizing the alkaline environment, thereby surging its adoption in textile and leather production.

Moreover, the growing demand for leather from several leading industries such as construction, aerospace, automotive, sports, and consumer goods, is promoting product adoption in the leather segment. It is highly consumed in the tanning industry to neutralize and disinfect lime while hair removal from raw skin. Its consumption is also flourishing rapidly in leather dyeing as a uniform agent. On the other hand, in textiles, formic acid is adopted to neutralize the alkaline solution while washing the fabric and to stabilize the color of synthetic and natural fibers, including nylon and wool.

FORMIC ACID MARKET REGIONAL OUTLOOK

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific

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Asia Pacific accounted for the largest market size of USD 323.0 million in 2024. The region is also expected to witness a significant growth rate during the forecast period. This is attributed to the growing agriculture industry in the region. The increasing demand for pesticides in China, Japan, and India, along with the rising importance of organic agro products, is expected to drive the regional market growth. Moreover, the growing expansion of textile and chemical industries, coupled with the increase in the company's focus on investments in R&D activities and expanding their businesses in Asia Pacific will further bolster the market growth.

• In China, the leather & textile segment is estimated to hold a 19% market share in 2024.

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Europe

Europe represents a significant market, with increasing demand for preservatives in livestock feed and the expansion of the leather-based products industry. The region's focus on sustainable and eco-friendly chemical solutions and growing supportive environmental policies contribute to market growth.

North America

In North America, the market is significantly driven by the presence of large-scale producers and the expansion of end-use industries. The U.S., in particular, is expected to lead the market due to its advanced agricultural sector and the growing product use as a de-icing agent. The rising demand for organic poultry and the subsequent need for organic acid-based feed preservatives further support market expansion in this region.

Latin America and Middle East & Africa

In Latin America and the Middle East & Africa, the market is supported by increasing industrial applications, especially in the agriculture and leather industries. These regions are expected to grow at a moderate pace during the forecast period. Moreover, the rising demand for silage preservatives and antibacterial agents, as well as an expanding animal feed additives sector, contributes toward the market growth in the regions. Advancements in agricultural practices and the growing livestock industry also subsidize market expansion in these regions.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Focus on Strategic Partnerships and Technological Advancements is the Key Market Strategy of Companies to Sustain the Competition

The market is highly competitive, with key players focusing on expanding their capacity, strategic partnerships, and technological advancements to strengthen their market positions. Major companies include BASF SE, Eastman Chemical Company, and Mitsubishi Gas Chemical Company, Inc. These companies dominate the industry through extensive product portfolios and global distribution networks. Chinese manufacturers also contribute significantly to market supply, benefiting from cost-effective production. Increasing demand for eco-friendly and bio-based formic acid is driving innovation, while regulatory compliance and raw material costs remain critical challenges for industry players.

LIST OF KEY FORMIC ACID COMPANIES PROFILED

• BASF SE (Germany)
• Koei Chemical Co., Ltd. (Japan)
• Eastman Chemical Company (U.S.)
• Perstorp AB (Sweden)
• Mudanjiang Fengda Chemicals Co., Ltd (China)
• Tokyo Chemical Industry Co., Ltd (Japan)
• Mitsubishi Gas Chemical Company, Inc. (Japan)
• Nacalai Tesque Inc. (Japan)
• FUJIFILM Wako Pure Chemical Corporation (Japan)
• Chongqing Chuandong Chemical (Group) Co., Ltd., (China)

REPORT COVERAGE

The report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, types, printing methods used to produce these products, and end-use industries of the product. Besides this, it offers insights into the market and current industry trends and highlights key industry developments. In addition to the factors mentioned above, the report also encompasses several factors contributing to the market's growth.

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Report Scope & Segmentation