Formic Acid, Its Salts And Esters Market

The article discusses the current trends in the global market for formic acid, its salts, and esters. It predicts a steady increase in consumption and production over the next eight years, with China being the largest consumer and producer. The Netherlands emerges as a major importer and exporter of these products. The data reveals fluctuations in market performance, with increases in consumption levels in countries like India and the United States. Import and export volumes also show significant growth, with varying price trends across different countries.

Market Forecast

Driven by increasing demand for formic acid, its salts and esters worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +3.6% for the period from 2022 to 2030, which is projected to bring the market volume to 4M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +5.4% for the period from 2022 to 2030, which is projected to bring the market value to $8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Formic Acid, Its Salts And Esters

In 2022, consumption of formic acid, its salts and esters decreased by -3.3% to 3M tons for the first time since 2016, thus ending a five-year rising trend. In general, consumption, however, enjoyed a strong increase. Global consumption peaked at 3.1M tons in 2021, and then shrank slightly in the following year.

The value of the market for formic acid, its salts and esters worldwide contracted slightly to $5.3B in 2022, remaining stable against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, enjoyed a remarkable increase. Global consumption peaked at $5.3B in 2021, and then shrank slightly in the following year.

Consumption By Country

China (713K tons) remains the largest formic acid, its salts and esters consuming country worldwide, accounting for 24% of total volume. Moreover, consumption of formic acid, its salts and esters in China exceeded the figures recorded by the second-largest consumer, the United States (314K tons), twofold. India (273K tons) ranked third in terms of total consumption with a 9.2% share.

In China, consumption of formic acid, its salts and esters expanded at an average annual rate of +8.4% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: the United States (+8.6% per year) and India (+8.3% per year).

In value terms, India ($1.6B) led the market, alone. The second position in the ranking was taken by China ($450M). It was followed by Mexico.

In India, the market of formic acid, its salts and esters increased at an average annual rate of +8.8% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of market growth: China (+7.5% per year) and Mexico (+7.6% per year).

In 2022, the highest levels of per capita consumption of formic acid, its salts and esters was registered in the Netherlands (4.2 kg per person), followed by Germany (1.6 kg per person), Japan (1.2 kg per person) and Canada (1.2 kg per person), while the world average per capita consumption of formic acid, its salts and esters was estimated at 0.4 kg per person.

From 2012 to 2022, the average annual rate of growth in terms of the per capita consumption of formic acid, its salts and esters in the Netherlands amounted to +13.2%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Germany (+11.7% per year) and Japan (+5.0% per year).

Production

World Production of Formic Acid, Its Salts And Esters

In 2022, production of formic acid, its salts and esters decreased by -2.7% to 2.8M tons for the first time since 2016, thus ending a five-year rising trend. In general, production, however, showed a buoyant expansion. The most prominent rate of growth was recorded in 2017 with an increase of 28% against the previous year. Over the period under review, global production of hit record highs at 2.9M tons in 2021, and then contracted modestly in the following year.

In value terms, production of formic acid, its salts and esters contracted modestly to $4.4B in 2022 estimated in export price. Over the period under review, production, however, saw prominent growth. The growth pace was the most rapid in 2018 with an increase of 35%. Over the period under review, global production of reached the maximum level at $4.4B in 2021, and then dropped in the following year.

Production By Country

China (1.1M tons) remains the largest formic acid, its salts and esters producing country worldwide, accounting for 41% of total volume. Moreover, production of formic acid, its salts and esters in China exceeded the figures recorded by the second-largest producer, the United States (308K tons), fourfold. India (215K tons) ranked third in terms of total production with a 7.7% share.

In China, production of formic acid, its salts and esters expanded at an average annual rate of +7.0% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: the United States (+9.8% per year) and India (+9.5% per year).

Imports

World Imports of Formic Acid, Its Salts And Esters

In 2022, the amount of formic acid, its salts and esters imported worldwide dropped to 901K tons, which is down by -5.7% on the previous year. The total import volume increased at an average annual rate of +1.9% over the period from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The growth pace was the most rapid in 2021 when imports increased by 21% against the previous year. Over the period under review, global imports of reached the maximum at 958K tons in 2018; however, from 2019 to 2022, imports stood at a somewhat lower figure.

In value terms, imports of formic acid, its salts and esters surged to $967M in 2022. Overall, total imports indicated measured growth from 2012 to 2022: its value increased at an average annual rate of +3.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +84.9% against 2020 indices. The pace of growth appeared the most rapid in 2021 when imports increased by 43%. Over the period under review, global imports of attained the peak figure in 2022 and are likely to see steady growth in years to come.

Imports By Country

In 2022, the Netherlands (104K tons), followed by India (61K tons), Belgium (50K tons), Brazil (49K tons), Russia (47K tons), Italy (46K tons) and Germany (41K tons) represented the major importers of formic acid, its salts and esters, together creating 44% of total imports. The United States (33K tons), Turkey (31K tons), Norway (30K tons), Spain (27K tons), Poland (21K tons) and Pakistan (21K tons) held a little share of total imports.

From 2012 to 2022, the biggest increases were recorded for Spain (with a CAGR of +6.4%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the Netherlands ($90M), India ($75M) and Brazil ($64M) constituted the countries with the highest levels of imports in 2022, with a combined 24% share of global imports. Belgium, Italy, Germany, the United States, Turkey, Russia, Spain, Norway, Poland and Pakistan lagged somewhat behind, together comprising a further 36%.

Spain, with a CAGR of +8.8%, saw the highest rates of growth with regard to the value of imports, in terms of the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

In 2022, the average import price for formic acid, its salts and esters amounted to $1,073 per ton, growing by 37% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +1.2%. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Brazil ($1,308 per ton), while Pakistan ($559 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Belgium (+5.6%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Formic Acid, Its Salts And Esters

In 2022, global exports of formic acid, its salts and esters fell modestly to 724K tons, dropping by -4.1% on the previous year's figure. The total export volume increased at an average annual rate of +3.0% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2021 with an increase of 27%. As a result, the exports attained the peak of 754K tons, and then declined modestly in the following year.

In value terms, exports of formic acid, its salts and esters soared to $715M in 2022. Over the period under review, total exports indicated pronounced growth from 2012 to 2022: its value increased at an average annual rate of +2.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +99.1% against 2020 indices. The most prominent rate of growth was recorded in 2021 with an increase of 58% against the previous year. Over the period under review, the global exports of attained the peak figure in 2022 and are likely to continue growth in the near future.

Exports By Country

China dominates esters structure, finishing at 435K tons, which was approx. 60% of total exports in 2022. It was distantly followed by Finland (56K tons) and Germany (54K tons), together mixing up a 15% share of total exports. The following exporters - the Netherlands (31K tons), the United States (28K tons), Belgium (27K tons), Taiwan (Chinese) (18K tons), Norway (16K tons) and Spain (15K tons) - together made up 19% of total exports.

From 2012 to 2022, average annual rates of growth with regard to formic acid, its salts and esters exports from China stood at +5.0%. At the same time, Finland (+25.9%), Norway (+3.6%), Germany (+2.5%) and the United States (+1.0%) displayed positive paces of growth. Moreover, Finland emerged as the fastest-growing exporter exported in the world, with a CAGR of +25.9% from 2012-2022. Taiwan (Chinese) and Spain experienced a relatively flat trend pattern. By contrast, the Netherlands (-2.1%) and Belgium (-7.3%) illustrated a downward trend over the same period. While the share of China (+11 p.p.) and Finland (+6.8 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of the Netherlands (-2.9 p.p.) and Belgium (-6.9 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($343M) remains the largest formic acid, its salts and esters supplier worldwide, comprising 48% of global exports. The second position in the ranking was held by Germany ($67M), with a 9.3% share of global exports. It was followed by Finland, with a 6.6% share.

From 2012 to 2022, the average annual growth rate of value in China stood at +5.9%. The remaining exporting countries recorded the following average annual rates of exports growth: Germany (+5.1% per year) and Finland (-3.4% per year).

Export Prices By Country

In 2022, the average export price for formic acid, its salts and esters amounted to $988 per ton, increasing by 32% against the previous year. In general, the export price, however, recorded a relatively flat trend pattern. The pace of growth was the most pronounced in 2016 an increase of 60%. As a result, the export price attained the peak level of $1,023 per ton. From 2017 to 2022, the average export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Norway ($1,915 per ton), while Taiwan (Chinese) ($303 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Norway (+4.7%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform