The global calcium formate market size is projected to reach USD 628.5 million by 2027, exhibiting a CAGR of 4.0% during the forecast period. Increasing cement production is likely to emerge as a central growth driver for this market, finds Fortune Business Insights™ in its report, The International Energy Agency (IEA) estimates that 4.1Gt of cement was produced worldwide in 2019, with China accounting for nearly 55% of the global production, followed by India at 8%. By 2030, according to the World Cement Association, China’s production is forecasted to contract to 35%, while India’s is set to double to 16%. These changing dynamics augur well for this market as calcium formate is an essential component in cement manufacturing. This compound acts as a setting accelerator for cement, working as an additive to boost strength of the cement mortar. Thus, rising demand for cement, especially in developing economies, will provide the necessary fuel for the growth of the market for calcium formate.
The outbreak of the COVID-19 pandemic has had grave implications for the global chemicals industry, which are hurting the calcium formate market growth. Lockdowns, social distancing, and trade restrictions have caused massive disruptions in supply chain networks, while severe economic downturn has impacted demand and consumption. As a result, companies in this market are reporting unprecedented loss of revenue, which in turn has forced them to rethink their investment plans. For instance, in August 2020, the Germany-based specialty chemicals company, Lanxess, sold off its organic leather chemicals business for USD 230 million to TFL Ledertechnik GmbH to reduce its dependence on the automotive industry. With the automotive industry facing an unparalleled demand crunch amid COVID-19, Lanxess’s divesture from the leather business seems prudent. In another example, Sweden-based Perstop AB reported a staggering drop of 32% in its net sales, amounting to SEK 2.08 billion in July 2020, as the company took drastic measures to tackle COVID-19. These adverse developments are likely to stall the adoption of calcium methanoate during the current year.
Surging Construction Activities to Power the Market in Asia Pacific
Asia Pacific, with a market size of USD 251.4 million in 2019, is anticipated to dominate the calcium formate market share during the forecast period. The main reason attributable for the prolific market growth in the region is the rapid expansion of building and construction activities in India and China. For example, the India Brand Equity Foundation (IBEF) predicts that India will emerge as the third-largest construction industry by 2025.
Steady Expansion of Presence in Fledgling Markets by Key Players to Stir Competition
Key players in this market are intensely focused on strategically expanding their presence in booming markets in the developing regions around the world. In implementing this strategy, companies are entering into partnerships and undertaking acquisitions with regional players to establish operations in emerging economies.
November 2019: Perstorp announced plans to invest in a new facility in Gujarat, India, to produce Pentaerythritol (Penta). The plant will allow Perstorp to meet the rising demand in Asia for its Penta products as well as produce and distribute calcium formate in the country.
September 2019: CPS Performance Materials, a portfolio company under Arsenal Capital Partners, announced the acquisition of GEO Specialty Chemicals. The acquisition will allow CPS to add GEO’s diverse chemicals and materials for diverse industries such as water treatment and paints & coatings to its specialty chemicals portfolio.
List of Key Companies Profiled in this Market Report:
Chongqing Chuandong Chemical (Group) Co., Ltd. (China)
Jiangxi Kosin Organic Chemical (China)
Zibo Ruibao Chemical Co., Ltd. (China)
GEO Specialty Chemicals (USA)
Sidley Chemical Co., Ltd. (China)
Shandong Baoyuan Chemical Co., Ltd. (China)
Henan Botai Chemical Building Materials Company Ltd. (China)
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