Methyl Formate Market to Surpass USD 360 Million by 2025, Driven by Surging Demand in Chemicals and Pharmaceuticals

According to a recent market research report, the global methyl formate (HCOOCH₃) market is projected to grow from approximately USD 300 million in 2024 to over USD 360 million by 2025, reflecting a healthy CAGR of around 5%. The growth is primarily fueled by increasing demand for environmentally friendly blowing agents, along with expanding applications in pharmaceuticals and agrochemicals. Asia-Pacific continues to dominate global consumption, supported by strong manufacturing growth in China and India, while Europe remains a key market due to stringent environmental policies promoting low-global-warming-potential (GWP) solvents.

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Methyl formate is gaining significant traction across several application segments. In the chemical industry, it serves as a key intermediate for manufacturing formic acid and formamide, supporting downstream applications in adhesives, paints, and resins. Additionally, the pharmaceutical sector is increasingly adopting methyl formate as a building block in API (active pharmaceutical ingredient) synthesis, benefitting from its favorable reactivity profile. Another promising segment is its use as a foam-blowing agent in polyurethane foams, replacing ozone-depleting substances in line with international regulatory frameworks.

From a pricing perspective, methyl formate prices are projected to rise modestly between 2024 and 2025, with an estimated 2–3% year-over-year increase across major markets such as China, Germany, and the United States. This price trend reflects tightening raw material supplies, particularly methanol, along with higher logistics and compliance costs in key production hubs. However, increased capacity utilization and efficiency improvements are expected to limit further price escalation.

Key players operating in the methyl formate market include leading manufacturers in Asia-Pacific such as BASF (China) Co., Ltd. and Shandong Yabang Chemical Co., Ltd., who continue to expand capacity to meet growing regional demand. In Europe, Evonik Industries is a prominent player focused on high-purity methyl formate for specialized applications. Meanwhile, the U.S.-based Eastman Chemical Company is actively investing in sustainable methyl formate derivatives to capture emerging opportunities in eco-friendly foam blowing agents and solvent applications. These companies are strategically investing in technology upgrades and partnerships to strengthen their market positions and address evolving environmental regulations.

Overall, the methyl formate market is positioned for steady growth through 2025, supported by its diverse industrial applications, sustainability advantages, and an expanding customer base across chemicals, pharmaceuticals, and environmental-friendly foam products.