Global Potassium Formate Market Demand & Forecast Analysis, 2016-2032

Potassium salt of formic acid or Potassium formate is a white solid that absorbs moisture from air and is potentially used as an environment friendly deicing salt. Along with deicing applications, Potassium formate is also used in drilling muds, as a heat transfer fluid and granular potassium formate is used in animal feed additives. However, consumption patterns of potassium formate vary from region to region.

Global demand for potassium formate is driven in large part by the development of the Drilling Fluids, Deicing & Anti-Freeze and Heat Transfer Fluid application. Drilling Fluids is the largest application for potassium formateaccounting for almost 50% of the global potassium formate demand which is poised to register a CAGR of around 3.7% in the long-term forecast till 2030.

Global Potassium Formate Demand Analysis (Kilo Tons)(2015 - 2030)

Due to the on-going COVID-19 pandemic, the global economy is witnessing one of the worst economic slowdowns since the Great Depression of the 1930s. At a national level, every government had imposed lockdowns to “flatten the curve” of the infection rate in 2020 and 2021. Nationwide lockdowns have disrupted both, supply, and demand in the connected world economy. Transportation, labour supply, and productivity have disrupted the supply. Layoffs, unemployment, business closures, and ceasing almost all economic activity disrupted global demand.Nationwide lockdowns significantly impacted air travel and affected the demand of potassium formate in deicing applications. Furthermore, crude oil production cuts of the OPEC triggered a further decline in drilling fluids applications. The global potassium formate declined by around 4% between 2019 and 2020.  

The potassium formate demand in Europe and North America is anticipated to witness strong growth in the forecast period owing to strong demand of deicing and drilling fluids applications. Deicing remains the single largest outlet for potassium formate in Europe whereas drilling fluids dominates the potassium formate demand in the Americas. Asia-Pacific region has diverse market for potassium formate with major application in agricultural products, drilling fluids, and antifreeze coolants & heat transfer fluids. Potassium formate demand in the region expected to be strong especially in countries like China, India and South Korea.

Potassium Formate Demand By Application - 2020( Kilo Tons)

Demand for potassium formate is heavily influenced by oil & gas, agriculture and other niche applications including textiles, leather, feed, dyes, etc. China has the largest and diverse automotive sector and remains one of the attractive locations for manufacturing. The country accounts for around 4.7% of the global oil production.India is the second biggest consumer of potassium formate owing to the strong demand from Agriculture products, Oil & Gas exploration, dyes and textile applications.After China, India has been witnessing a number of petrochemical project announcements. Furthermore, the “AtmaNirbhar Bharat” (self-reliant India) will drive the demand for a number of chemicals including potassium formate in the long-term forecast.