November 13, 2008
World market for formic acid expected to reach 573,000 tonnes
World market for formic acid, a livestock feed agent, is expected to hit 573,000 tonnes by year 2012, spurred on by high consumption patterns in Europe and Asia.
As stated by the recent report published by Global Industry Analysts, Inc., world Formic Acid market is dominated by Europe and Asia-Pacific with a combined share of nearly 80 percent estimated in the year 2008. Asia-Pacific, the second largest formic acid market is expected to offer strongest growth opportunity with a CAGR of about 4.4 percent over the period 2011 to 2015.
The restriction on usage of antibiotics within the EU is driving the market for feed acid applications of formic acid. Consumption of formic acid in the European feed acid end-use market is expected to reach 40,400 tonnes by 2012.
The principal use of formic acid is as a preservative and antibacterial agent in livestock feed. When sprayed on fresh hay or other silage, it stops certain decay processes and causes the feed to retain its nutritive value longer, and so it is widely used to preserve winter feed for cattle. In the poultry industry, it is also added to feed to kill salmonella bacteria.
Formic acid is primarily used in preservation of animal feed and in tanning of leather in the leather industry. Strong growth is expected to stem from Europe and North America, given the rising substitution of antibiotics with formic acid in animal feed. This is largely due to the increasing use of formic acid as an antibacterial agent in animal feed in addition to its traditional use as a preservative.
Over the years, formic acid has gradually replaced certain mineral acids in several industrial applications, mainly due to its strong acidic and reducing properties.