1 Global Potassium Formate Market Insight Analysis
The global Potassium Formate market is valued at USD 672.09 million in 2024 and will grow at a CAGR of 0.75% from 2024 to 2033.
Potassium Formate is defined as an organic salt with strong reducing properties. It is produced through various chemical processes, including the reaction of formic acid with potassium hydroxide or the synthesis from carbon monoxide and potassium chloride. Its applications span multiple industries, making it a versatile and valuable chemical compound. In the oil and gas sector, potassium formate is used to formulate drilling fluids that protect oil reservoirs and reduce operational costs. In the deicing industry, it serves as an effective and environmentally friendly alternative to traditional deicing agents. Furthermore, its use in agriculture as a foliar fertilizer highlights its diverse applications.
Figure Global Potassium Formate Market Size (M USD) and CAGR (2024-2033)
2 Potassium Formate Market Growth Drivers and Restraints
As an important energy source, the global oil industry continues to develop. According to data from the U.S. Energy Information Administration (EIA), global oil demand continued to rise in 2021-2022, and global oil consumption reached 101.2 million barrels per day in 2022. Potassium formate is widely used in the oil field, such as drilling fluid, completion fluid and workover fluid. It has strong inhibitory properties, is environmentally friendly and can protect oil layers.
In the PDF-THRM drilling fluid system, potassium formate can improve the temperature resistance of the main temperature-resistant polymer, reduce the amount of temperature-resistant polymer and the solid content of high-density drilling fluid, and reduce the viscosity increase caused by inferior soil pollution. This has led to a continuous increase in the demand for potassium formate in the oil industry, which has strongly promoted market growth.
In addition to its application in the oil industry, potassium formate is also widely used in other fields. As a de-icing agent in places such as airport runways, it is a non-nitrogen salt low-chlorine product, environmentally friendly, non-toxic, biodegradable, and can maintain the friction coefficient of the road surface to the greatest extent, ensuring the safe take-off and landing of aircraft;
In agriculture, potassium formate can be used as foliar potassium fertilizer, and its high solubility and low chloride ion content make it suitable for a variety of crops; it is also used in leather, printing and dyeing and other industries. The continuous development of these new application areas has expanded the market demand for potassium formate and promoted market growth.
The environmental pollution caused by industrial production has attracted much attention, and potassium formate manufacturers are also facing environmental pressure. Some potassium formate preparation methods use organic solvents such as formaldehyde and isobutyraldehyde, which are easy to cause environmental pollution.
Enterprises need to comply with environmental protection regulations such as air, water quality, and solid waste treatment, and accept inspections by environmental protection departments. If pollutant emissions do not meet standards, they will face penalties and increase operating costs. For example, some small potassium formate manufacturers may reduce or stop production because they cannot afford the cost of environmental protection upgrades, which has imposed certain restrictions on the overall growth of the potassium formate market.
With the development of the potassium formate market, market competition is becoming increasingly fierce. Although the industry concentration is not low, new entrants continue to pour in, and competition is intensifying. New entrants may adopt a low-price competition strategy, resulting in market price fluctuations and affecting corporate profits. Moreover, new entrants may be relatively weak in technology, brand and customer resources, which may lower product quality standards, affect the reputation of the entire industry, and thus hinder the healthy growth of the market.
3 Technological Innovations in the Potassium Formate Market
There are various methods for preparing potassium formate, and currently there are mainly acid-base neutralization method, formic acid method and carbon monoxide method. The raw materials of the acid-base neutralization method are volatile and corrosive, and the production cost is high; although the formic acid method has a simple process and convenient operation, it is difficult to improve the purity of the product, the cost is high and the quality is poor; the carbon monoxide method consumes a lot of energy during the reaction.
The future direction of technological innovation is to reduce production costs, reduce energy consumption, improve product purity and reduce pollution. For example, develop new catalysts or reaction conditions, optimize existing preparation processes, improve potassium formate production efficiency and product quality, and reduce environmental impact.
In addition to its application in traditional petroleum, snow melting agents, agriculture and other fields, potassium formate’s application technology in other fields is also constantly exploring and innovating. In the chemical industry, the application of potassium formate in the synthesis of new materials is studied to explore its possibility as a catalyst or reaction intermediate; in the field of environmental protection, how to use potassium formate to treat industrial wastewater and waste gas to improve environmental governance effects is studied. The expansion of these application technologies will open up new growth space for the potassium formate market.
4 Global Potassium Formate Market Size by Type
Solid potassium formate is the dominant type in the market, both in terms of volume and revenue. In 2024, it is expected to generate a revenue of 574.23 million USD, accounting for approximately 85.45% of the total market revenue. This type is highly valued for its versatility and ease of handling, making it suitable for a wide range of applications. Solid potassium formate is extensively used in the oil and gas industry as a key component in drilling fluids, completion fluids, and workover fluids. Its high density and excellent performance in high-temperature and high-pressure environments make it an essential additive for enhancing drilling efficiency and protecting oil reservoirs.
Beyond the oil and gas sector, solid potassium formate is also used in agriculture as a foliar fertilizer. Its high solubility and low content of harmful substances make it an ideal choice for providing essential nutrients to crops. Additionally, it is used in the leather industry as a camouflage acid in the chrome tanning process and in the printing and dyeing industry as a reducing agent. These diverse applications contribute to the significant market share and revenue generated by solid potassium formate.
Liquid potassium formate, while less dominant than its solid counterpart, still holds a substantial market share. In 2024, it is projected to generate a revenue of 97.86 million USD, representing about 14.55% of the total market revenue. Liquid potassium formate is particularly valued for its ease of application and compatibility with various industrial processes. It is commonly used in the deicing industry as an environmentally friendly alternative to traditional deicing agents. Liquid potassium formate is effective in melting snow and ice on airport runways, taxiways, and aprons, ensuring safe and efficient aircraft operations.
In addition to deicing applications, liquid potassium formate is used in the oil and gas industry as a drilling fluid component. It provides similar benefits to solid potassium formate, such as high density and excellent performance in harsh conditions. However, its liquid form allows for easier mixing and application in drilling operations. Liquid potassium formate is also used in industrial processes as a heat transfer fluid and in the production of carbon black, further contributing to its market value.
Table Global Potassium Formate Market Size by Type in 2024
Type | Market Size (M USD) 2024 |
|---|---|
Solid Potassium Formate | 574.23 |
Liquid Potassium Formate | 97.86 |
5 Global Potassium Formate Market Size by Application
The oil field sector remains the largest consumer of potassium formate. In 2024, the revenue generated from its use in the oil field is expected to reach $564.90 million. Potassium formate is widely used in the oil field as a drilling fluid, completion fluid, and workover fluid. Its excellent performance, such as strong inhibition, environmental protection, and oil layer protection, makes it an essential material in oil field operations. For example, in the PDF – THERM drilling fluid system, potassium formate can improve the temperature resistance of the main temperature – resistant polymer, reducing the amount of temperature – resistant polymer and controlling the solid content of high – density drilling fluids.
As a deicing agent, potassium formate has a unique advantage in airport runway deicing and snow – melting. In 2024, the revenue from this application is projected to be $63.81 million. It is a non – nitrogen salt low – chlorine product, which is non – toxic to humans and aquatic animals and can be completely biodegraded in water. This makes it an environmentally friendly choice for maintaining the friction coefficient of the road surface, ensuring the safe take – off and landing of aircraft.
Table Global Potassium Formate Market Size by Application in 2024
Application | Market Size (M USD) 2024 |
|---|---|
Oil Field | 564.90 |
Deicing Agent | 63.81 |
Others | 43.38 |
6 Global Potassium Formate Market Size by Region
In 2024, the revenue of the potassium formate market in North America is expected to reach $180.63 million. North America has been a major market for potassium formate. The region has a well – developed oil and gas industry, which is one of the key drivers for the demand of potassium formate. The United States, in particular, has a large number of oil drilling and gas extraction activities.
The continuous exploration and development of new oil fields, as well as the increasing demand for high – performance drilling fluids, have led to a stable demand for potassium formate. Moreover, the strict environmental regulations in North America also promote the use of environmentally friendly potassium formate in applications like deicing, further driving the market growth.
The East Asian market for potassium formate is showing strong growth potential. In 2024, the revenue is projected to be $234.55 million. China, as the largest economy in the region, has a booming industrial sector. The rapid development of the oil and gas industry, along with the increasing awareness of environmental protection, has led to a growing demand for potassium formate. Chinese companies are also actively involved in research and development, improving production technologies and product quality. Additionally, the expansion of other applications such as in agriculture and the manufacturing industry in East Asia is also contributing to the growth of the potassium formate market.
Europe is another significant market for potassium formate, with an expected revenue of $143.59 million in 2024. The region has a long – standing chemical industry and strict environmental standards. Potassium formate’s properties such as being environmentally friendly and having multiple applications make it popular in Europe. In the oil and gas sector, European companies are constantly seeking more efficient and sustainable solutions, and potassium formate meets these requirements. Moreover, its use in deicing and other industrial applications also contributes to the market size.
Figure Global Potassium Formate Market Size (M USD) by Region in 2024
7 Global Potassium Formate Market Analysis by Major Players
7.1 Perstorp
Company Introduction and Business Overview:
Perstorp is a leading specialty chemicals company founded in 1881, with a global presence across Europe, North America, and Asia. The company is renowned for its commitment to sustainability and innovation, focusing on providing high-quality specialty chemicals for various industries.
Perstorp’s business is centered around creating safer, more convenient, and greener solutions for global markets. The company specializes in resins and coatings, engineered fluids, and animal nutrition, offering a wide range of products that enhance performance and sustainability in multiple sectors.
Products:
Perstorp offers a 75% potassium formate solution, primarily used in oil drilling and completion fluids, deicing agents, and secondary heat transfer fluids. This product is highly valued for its high performance and environmental benefits.
Market Performance in 2022:
In 2022, Perstorp generated a revenue of 75.62 million USD from potassium formate sales, with a gross margin of 21.19%.
7.2 Shuntong Group
Company Introduction and Business Overview:
Shuntong Group is a comprehensive international enterprise founded in 1990, with a focus on environmental protection chemicals, oil and gas equipment, technical services, modern logistics, and international trade. The company is a major manufacturer of formate and polyacrylamide products, providing technical services across various industries.
Shuntong Group’s business encompasses a wide range of products and services, including high-performance drilling fluids, carbon black surface modifiers, snow-melting agents, and more. The company’s focus on environmental sustainability and technical innovation has positioned it as a key player in the global market.
Products:
Shuntong Group’s potassium formate is an environmentally friendly drilling fluid series product, known for its high pollution resistance, high-temperature resistance, and high-pressure resistance. It is widely used in oilfield development, snow-melting agents, and other industrial applications.
Market Performance in 2022:
In 2022, Shuntong Group achieved a revenue of 53.67 million USD from potassium formate sales, with a gross margin of 18.55%.
7.3 Esseco
Company Introduction and Business Overview:
Esseco is an Italian industrial chemical group with over a century of experience in manufacturing inorganic chemicals and winemaking products. The company is known for its high-quality sodium, ammonium, and potassium derivatives, which are supplied globally to various industries.
Esseco’s business focuses on providing high-quality chemical products for water treatment, oil and gas, feed and food, agriculture, and specialty deicing. The company’s commitment to quality and innovation has made it a trusted supplier in the global market.
Products:
Esseco offers potassium formate crystals, which are white crystalline products used in latex manufacturing, oil drilling, deicing formulations, and heat transfer fluids. These products are highly valued for their purity and performance.
Market Performance in 2022:
In 2022, Esseco generated a revenue of 41.81 million USD from potassium formate sales, with a gross margin of 19.04%.