Global Sodium Formate Market Expected to Experience Bolstering Sales by 2029

Posted by Arslan on October 7th, 2019

Global consumption volume of sodium formate neared 640 thousand tons in 2018, according to a recent research study of Fact.MR. Highly influenced by a couple of strong restraining factors, the global sodium formate consumption volume is likely to record a mere 2.5% Y-o-Y growth in 2019. Strengthening sustainable raw material pricing strategies will remain among the key actionable areas for leading stakeholders in the sodium formate market, in addition to leveraging the traction witnessed for high-efficiency de-icing agents. Key operators in the sodium formate manufacturing landscape have been facing sluggish demand as a result of the availability of multiple low-priced alternatives of sodium formate, according to Fact.MR’s analysis. However, research studies that have revealed considerable biodegradability of sodium formate point to a gradually progressing demand scenario that may shape the global market over forthcoming years.

Sodium Formate Market in Numbers

• Predominantly averted by widespread availability of economically favorable alternatives, sodium formate sales have been sluggish over the recent past.
• Between 2013 and 2017, the global sodium formate market growth registered below 2% CAGR.
• Global sales of sodium formate exceeded US$ 210 Mn in 2018, and are expected to observe 2.8% CAGR through 2028, prominently driven by the sustained demand in production of sodium hydrosulphite – a popular bleaching agent used in paper and pulp industry.
• Europe is likely to remain the leading market for sodium formate, upheld by the strong presence of leading players and rising sodium formate adoption for de-icing applications at airport runways.
• In the light of increasing sustainability quest, the eco-friendly attribute of sodium formate is anticipated to help manufacturers pinpoint the most profitable opportunities.

Sodium Format Landscape - Competition Analysis

According to the Fact.MR study, consolidation of market leaders is characterizing the global competition landsacape of sodium formate market. While the key companies actively operating in sodium formate marketplaces are focused on retaining their global footprint on the basis of stronger sales strategies, improvement of their regional foothold will remain highly influenced by application-specific strategies. For instance, the European market for sodium formate has been recently observing prioritization of sodium formate production capacity expansion by regional leaders, who are keen on tapping the escalating demand for sustainable de-icing solutions for airport runways, bridges, and other structures within the region that always demand an effective de-icing treatment. On the other hand, followers in the competition landscape are likely to majorly rely on strategic partnerships to achieve a dual objective of enhanced manufacturing output and business expansion.

The Fact.MR study finds that the forerunners in sodium formate market have a primary focus on expanding their international establishments, with an increased emphasis on cementing their presence in lucrative markets of South Asia and East Asia. Growing stringency of the environmental regulatory standards have been resulting in a significant decline China’s domestic supply of sodium formate, which is subsequently challenging companies to keep abreast of evolving market dynamics. China’s tightening environmental regulatory framework will also remain a pivotal factor influencing production of sodium formate over the coming years.

Downstream manufacturing facilities specific to production of de-icing agents are garnering strategic interests of sodium formate market players. In line with the pricing volatility of raw materials used in the manufacturing of sodium formate, it is highly likely that an increasing number of manufacturers will leverage advancing technologies to explore their potential substitutes. Cosmetics is currently being perceived as an attractive application area by several sodium formate manufacturers, which signals a relatively progressing growth outlook for the sodium formate market in the near future. R&D investments will thus be an important part of developmental strategies adopted by companies operating in the sodium formate industry.

Key Challenges Facing Sodium Formate Market Players

• The precarious pricing structure of raw materials significantly accounts for the below average growth of the sodium formate market worldwide. Additionally, the continued end user preference for commercially attractive sodium formate substitutes such as low cost urea, will remain a major factor constraining the growth of sodium formate market.
• Although the demand for sodium formate as a de-icing agent remains modest, it is more likely that myriad cost-effective alternatives, which are already in use for de-icing purpose, will continue to pose strong competition to sodium formate sales in the forthcoming years.
• Hygroscopic nature that accounts for the convoluted handling and transport of sodium formate, is also a significant factor impeding the revenue growth of sodium formate market.

Potential Applicability of Sodium Formate as an Animal Feed Additive

Currently, multiple research studies on sodium formate are attempting to explore its potential as a feed additive, more precisely, as a feed acidifying agent. In the backdrop of sustained need for the presence of balanced dietary electrolyte in poultry and swine feed, sodium formate is likely to emerge as a potential additive to animal feed. The role of sodium formate in production of fermented dairy and soyproducts is also being examined in some of the ongoing studies.

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An extensive methodology and a holistic approach lay the foundation of the incisive insights on the sodium formate market landscape. The Fact.MR report provides exhaustive information pertaining to the growth prospects of sodium formate industry along with intriguing insights into the projection analysis of the market. Extensive primary and secondary research underpins the collection of actionable insights on the sodium formate market. The report on sodium formate market has also undergone cross-validation to certain the delivery of precise information to the market enthusiasts.