Calcium Formate: An Emerging Acidifier for the Animal Nutrition Industry

Being one of the most versatile chemicals, calcium formate has been gaining attention from a wide range of industries, including animal feed, cement & concrete, and leather industries. However, ongoing research about the benefits of adding organic acids in fodder has opened new avenues of the growth for calcium formate in the animal nutrition landscape.

The growing use of organic acids in animal feed has fostered research & development activities in the calcium formate industry, triggering the commercial applications of feed grade calcium formate in animal nutrition applications. Transparency Market Research (TMR), in its recent offering, provides a complete assessment on the various growth parameters of the calcium formate ecosystem.

TMR’s new study on the calcium formate market can arm decision-makers with a 360-degree overview of the developments in the landscape and actionable insights to expand their presence in the global market.

calcium formate market winning imperatives

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Calcium Formate Market Evolving through Stringent Regulations and Threats from Substitutes

The demand for calcium formate has been on the rise in various industrial applications such as tile additives, concrete setting additives, and leather tanning. TMR’s study finds that, the global market for calcium formate has witnessed healthy growth during the past five years, and it recorded global sales of ~ 695 kilo tons, reaching a valuation of ~ US$ 410 million in 2018.

The primary factor driving the growth of the calcium formate landscape is increasing applications of industrial grade of calcium formate in the concrete & cement industry. However, the emergence of its substitutes such as carbonates, chlorides, thiosulfates, bromides, thiocynates, fluorides, silicates, nitrates, aluminates, and alkali hydroxides in concrete & cement industrial applications, especially in the construction sector, has been hindering market growth.

In addition, though its applications in the animal feed industry are increasing, various policymakers and regulatory bodies have imposed strict rules and regulations on the use of calcium formate in animal feed products. Complying with stringent regulations and standards, especially in the United States (U.S.) and the European Union (EU), has a significant impact on manufacturers’ strategies as well as the production cost of calcium formate. This will ultimately impact the future growth of the calcium formate landscape in the coming years.

Calcium Formate to Emerge as a New Feed Additive and Animal Health Enhancer

Positive growth prospects of the calcium formate landscape are primarily attributed to the substantially high demand for industry grade calcium formate over its feed grade variants.

TMR’s study finds that, industrial grade calcium formate accounts for more than half the revenue share of the global market, recording sales of ~ 430 kilo tons in 2018. However, a significant rise in meat consumption has pushed the growth of the animal feed industry, and this is expected to trigger the demand for feed grade calcium formate as a feed additive in the coming years.

Recent trends in the animal feed industry indicate the rising applications of organic acids in animal nutrition to ingrain their high nutritional value and antimicrobial benefits in animal feed. End users in the animal feed industry are becoming aware of the benefits of calcium formate as an integral component of an ensiling agent for silage treatment.

The growing popularity of calcium formate as a new additive for fodder to promote animal health and improve animal hygiene is expected to have a significant impact on the emerging trends in the calcium formate landscape.

In 2018, the sales of calcium formate as a feed additive exceeded its sales as a concrete setting accelerator, and this trend is likely to prevail in the coming decade. Stakeholders in the calcium formate space are expected to increase focus on the feed industry to capitalize on the new opportunities and sales potential in the animal nutrition landscape, especially in poultry and swine diets.

calcium formate market by region

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Business Strategies to Tap Growth in Asia Pacific will Prove Profitable

TMR’s study finds that, Asia Pacific has remained the top revenue pocket for stakeholders in the calcium formate landscape, attributing to an upsurge in demand triggered by positive industrial growth in the region. In 2018, Asia Pacific accounted for ~ 60% revenue share of the global market for calcium formate, recording sales of ~ 460 kilo tons of calcium formate.

Developed regions, including North America and Europe, collectively held one-third revenue share in 2018, recording maximum sales in cement and tile additive applications. The demand for calcium formate is expected to increase rapidly in developing regions, influencing the salient business strategies of stakeholders in the calcium formate landscape. Market players are focusing on leveraging the upward industrial growth, especially in the animal feed, cement, and leather industries, in Asia Pacific.

Manufacturers are likely to increase focus on offering feed grade calcium formate to capitalize on the rise in meat consumption, and increasing growth of the animal feed industry in the region. In addition, less stringent regulatory framework vis-à-vis the animal feed industry in Asia Pacific is expected to remain an important factor instrumental in attracting more investments in developing countries such as China and India.

Calcium Formate Market: Assessment of the Competitive Landscape

The global market for calcium formate is an intensely competitive landscape, with a mounting number of start-ups and small- and medium-sized businesses (SMEs) entering the market. Frontrunners such as Perstorp, GEO Specialty Chemicals, LANXESS, GELEST, INC., and Henan Botai Chemical Building Materials Co., Ltd. account for ~ 23% revenue share of the global calcium formate landscape, which makes it a highly fragmented market.

Frontrunners are concentrating on expanding their business in the animal feed industry to cater to the increasing demand for calcium formate as a feed additive. For instance, in July 2019, Perstorp announced that it had entered a research agreement with Evonik Industries AG – a German industrial corporation – to bolster developments in the animal nutrition segment and ensure efficient and safe acid application in animal feed products.

In addition, with most SMEs introducing calcium formate products at competitive prices, leading players are adopting strategies to control operational costs and manufacturing expenses to maintain a competitive edge. Leading manufacturers are focusing on the in-house production of formic acid, which is a primary raw material used in the manufacturing of calcium formate, in order to mitigate the impacts of fluctuating raw material costs on manufacturing expenses.

calcium formate market segment

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Analysts’ Viewpoint

Authors of TMR’s study on the calcium formate market are of the opinion that, the market is expected to grow at a value CAGR of ~ 4% during the forecast period 2019-2027. Though the demand for industrial calcium formate will continue to drive the market, the sales potential of food grade calcium formate in the animal feed industry will create new opportunities for market players in the coming years.

Calcium formate manufacturers who will invest in China and India will be able to capitalize on the increasing industrial growth in Asia Pacific. The ever-expanding construction industry and infrastructural developments in the region will create lucrative opportunities for calcium formate market players in Asia Pacific. Market players will have to adopt business strategies to compete with new businesses sprouting up in China’s calcium formate market with cost-competitive products, to gain a competitive edge in the coming years.

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Significant Growth of Global Construction & Infrastructure Industry to Boost Demand for Calcium Formate

  • As per statistics by the U.S. Geological Survey, global cement production has risen substantially over the last decade. For instance, cement production in China rose to 2,370 million tons in 2018 from 1,800 million tons in 2010. Increase in construction and infrastructure activities around the world are likely to result in the rising demand for cement and concrete in the near future. This, in turn, is estimated to augment the demand for calcium formate during the forecast period.
  • Calcium formate makes concrete set quickly, as it increases the rate of hydration. Thus, the use of calcium formate as an accelerator in concrete setting lowers the setting time and/or increases the rate of early development of strength. Growth of the construction sector in Asia Pacific is expected to result in significant rise in the demand for cement and cement-bound building materials in the next few years, thereby presenting potential for increase in the demand for accelerating additives such as calcium formate.

Global Calcium Formate Market: Highlights

  • In terms of value, the global calcium formate market is anticipated to expand at a CAGR of ~ 4% and reach a value of ~ US$ 575 Mn by 2027.
  • Factors such as rising infrastructure development, growing population, increasing meat consumption, and rising awareness about the quality of meat are expected to drive the global calcium formate market during the forecast period.
  • In October 2018, a new legislation banning the prophylactic use of antibiotics in animal farming was approved by the European Parliament. The overuse of antibiotics has become a point of growing concern, especially in Europe. Calcium formate is expected to be a sustainable alternative for antibiotics used in animal nutrition in the near future.
  • Increase in feedstock production has boosted meat production capacities. Rise in the demand for meat and dairy products is likely to provide immense opportunities to the global calcium formate market during the forecast period.
  • The global calcium formate market is likely to witness a significant threat of substitutes, particularly in the construction sector. A few alternatives for calcium formate include soluble organic salts such as compounds of amines and formaldehyde, as well as soluble inorganic salts such as chlorides, bromides, fluorides, carbonates, thiocynates, nitrates, thiosulfates, silicates, aluminates, and alkali hydroxides.

Industrial and Feed Grade Calcium Formate to Witness Significant Demand

  • The demand for calcium formate is anticipated to be high in the near future, due to its increasing usage as a feed additive in pig diet and poultry diet. Calcium formate acts as feedstock preservative, and it has an acidifying effect on the gastrointestinal tract of animals, which promotes health of their gut.
  • The use of sustainable animal diets is crucial in raising livestock productivity. Rise in livestock productivity, which is pivotal for meeting the increasing demand for livestock products (including dairy and meat products), cannot be achieved without the use of sustainable animal diets
  • The development of smart cities and increasing urbanization in Asia Pacific have attracted investments from companies across the globe. Focus by the Government of India on infrastructure development, including road projects, is likely to boost the demand for cement and concrete in the country, in the near future. This factor is expected to augment the demand for industrial-grade calcium formate in India during the forecast period.

Demand for Calcium Formate to Increase in Feed Additives Applications

  • Based on application, the global calcium formate market has been segregated into tile additives, feed additives, concrete-setting accelerators, leather tanning, drilling fluids, textile auxiliaries, flue gas desulfurization additives, and others
  • As per the Food & Agriculture Organization of the United Nations (UN FAO), the world witnessed a production record 335 million tons of meat in 2018. This is an increase of 1.5% over 2017, which was 330 million tons. Also, this has been the most rapid growth rate since 2014.
  • The global demand for meat is rising by 2–3% every year, and the trend is likely to continue till 2050, with around nine billion people consuming meat in ever-larger amounts. The increasing demand for meat products, sourced from livestock and poultry animals, across the globe, is expected to drive the global calcium formate market in the next few years.

Asia Pacific Expected to be a Highly Lucrative Market

  • In terms of value and volume, Asia Pacific constituted a prominent share of the global calcium formate market in 2018. Shift of the livestock industry in the region from an unorganized sector toward an organized sector is projected to boost the demand for calcium formate in Asia Pacific, for use as a feed additive, between 2019 and 2027.
  • Asia Pacific is likely to witness the completion of various mega-structures in the next few years. A few notable skyscraper projects include Malaysia’s Merdeka PNB118, Thailand’s Grand Rama 9 Tower, China’s Tianyu Tower, Evergrande International Financial Center, and Global Financial Center Tower 1. These projects indicate the high demand for steel. This, in turn, is likely to boost the calcium formate market in the region, for its use in construction applications, during the forecast period.
  • The leather tanning segment constituted 9.8% share of the global calcium formate market in 2018. Europe is a major player in international leather trade, holding around 25% share of leather production across the world. Increase in the demand from leather tanning, wherein, industrial-grade calcium formate is used as a masking agent, is expected to propel the industrial grade segment of the calcium formate market in Europe during the forecast period.

Global Calcium Formate Market: Competition Landscape

  • The report comprises detailed profiles of the major players operating in the global calcium formate market. The report also consists of a comparison matrix of the top four players operating in the global market, along with their market share analysis and product mapping for 2018.
  • A majority of calcium formate manufacturers have integrated their operations to save on production and operational costs. Several calcium formate manufacturers, such as Perstop, ZIBO AIHENG NEW MATERIAL CO., LTD, ZIBO RUIBAO CHEMICAL CO.LTD, Zouping Fenlian Biotech Co., Ltd., and Huanghua Pengfa Chemical Co., Ltd, are engaged in the production of formic acid, which is a key raw material required for the manufacture of calcium formate.

A new market study on the calcium formate market was recently published by Transparency Market Research (TMR), which provides a complete analysis on how the market will grow between 2019 and 2027. The study covers all the growth indicators as well as growth prospects of the calcium formate market in terms of volume (kilo tons) and value (US$ million).

Information featured in the study unveils important statistics and data about the demand for calcium formate solutions, as well as the penetration of these services in various regions around the world. This has helped the authors of this study to reach the precise estimates on the valuation of the calcium formate market.

TMR’s study on the calcium formate market helps readers understand the business strategies that proved profitable for leading stakeholders in the market. It also focuses on various regulations that stakeholders must keep in mind for succeeding in the calcium formate market. In this study, readers can also find unique as well as accurate information on the market dynamics of the calcium formate landscape, to help companies in adopting appropriate business strategies in the coming future.

TMR’s study includes recent developments that are setting the degree of competition in the calcium formate market, along with accurate and complete information about leading players in the market. Leading calcium formate firms and companies, and new businesses in the calcium formate market, are profiled in the study. Information featured in the study helps readers understand the growth prospects of the calcium formate market for the assessment period.

Key Segments of the Calcium Formate Market

TMR’s study on the calcium formate market divides information into three important segments—grade, application, and region. The study can help readers understand how the growth of the calcium formate market is influenced by the market dynamics, including the emerging trends, based on these segments.

Grade

Application

Region

Feed Grade

Tile Additives

North America

Industrial Grade

Feed Additives

Europe

 

Concrete-Setting Accelerators

Asia Pacific

 

Leather Tanning

Latin America

 

Drilling Fluids

Middle East & Africa

 

Textile Auxiliaries

 

 

Flue Gas Desulfurization Additives

 

 

Others

 

Key Questions Answered in TMR’s Calcium Formate Market Report

  • What is the impact of the global food industry and rise in meat consumption on the growth of the calcium formate market?
  • How can stakeholders in the calcium formate market deal with the threats from substitutes and grab lucrative opportunities?
  • How will regulatory frameworks in Europe influence business strategies in the calcium formate market?
  • What are the major barriers to growth for new entrants in the calcium formate market?
  • What are the growth prospects and low-hanging opportunities for stakeholders in the calcium formate market in Asia Pacific?

Research Methodology

An exhaustive and unique research methodology is followed for studying the market dynamics of the calcium formate landscape by analysts at TMR. It includes two main stages – primary research and secondary research.

For conducting secondary research, analysts were given access to various important, external proprietary databases and a large internal repository, which could help them ensure the validity and reliability of the data and statistics acquired through secondary research on the calcium formate market. Analysts have come to conclusions on how the calcium formate market will grow, after deriving exclusive and accurate insights from both, primary and secondary resources.

Primary resources that have contributed to the production of this study include discussion with key opinion leaders, enterprise size expert inputs, response analysis, and data triangulation. Interviews were conducted by analysts with brand managers of the market players in the supply chain of the calcium formate market, and their respective c-level executives. Industry experts and investors were also approached to collect industry-validated information about the calcium formate market.

Primary as well as secondary resources provide exclusive information about the market, which acts as a mark of reliability and validation from calcium formate market players, and makes TMR’s estimates on the future prospects of the calcium formate market more reliable and accurate.

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