Formic Acid Market Outlook:
Formic Acid Market size was over USD 2.18 billion in 2025 and is poised to exceed USD 3.55 billion by 2035, growing at over 5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of formic acid is evaluated at USD 2.28 billion.
Insects such as stingless bees and ants produce formic acid naturally, but its industrial production is significant, around 870 kt of formic acid was produced industrially in 2021. Formic acid is being increasingly studied for its use as a carrier in power generation. This trend is estimated to offer lucrative opportunities to formic acid producers in the coming years. Energy consumption is booming across the world, for instance, according to the International Energy Agency (IEA), the electricity’s share in the final energy consumption accounted for 20% in 2023. By 2026, sectors such as artificial intelligence (AI), cryptocurrency, and data centers are expected to exhibit double electricity consumption. Data centers alone are forecast to account for total electricity consumption of over 1000TWh by 2026.
The use of formic acid as a liquid hydrogen carrier for power generation is set to be an effective fossil fuel transition move. For instance, In October 2023, Kawanami Hajime, Chief Senior Researcher from the Interdisciplinary Research Center for Catalytic Chemistry, AIST in collaboration with the University of Tsukuba generated power using formic acid. Such achievements are enhancing the application areas of formic acid. Overall, by aligning with sustainability practices and driving innovations in the manufacturing processes, the producers of formic acid are projected to earn high profits.
