The oxalic acid market is anticipated to expand gradually with an estimated size of USD 1 billion in 2025, and it is expected to reach about USD 1.7 billion by 2035, registering a CAGR of about 4.9%. Expansion is largely fueled by its widespread application in pharmaceuticals, cleaning compounds, rare earth processing, and metallurgy.
One of the largest areas of application is in the cleaning and metal finishing industry where oxalic acid is commonly employed as a descaling agent, rust remover, and bleaching agent for textiles, wood, and stone. Its ability to restore surfaces without the residue of toxic materials makes it the preferred choice for use in both industrial and domestic preparations.
The acid finds application in the manufacture of antibiotics, including tetracycline, and other organic chemicals as an intermediate in their synthesis. With increasing demand for APIs and intermediates across the world and particularly in Asia-Pacific and North America, the acid is a key contributor to bulk drug production.
The industry also enjoys robust expansion due to usage in the metallurgy and rare earth industries. The acid precipitates out rare earth elements and cleans metals like uranium, thorium, and lanthanides. When green energy usage like wind turbines and electric cars increases, the demand for refined rare earths also increases.
Environmental and sustainability factors are also driving production processes. Use of bio-based routes for the production of the acid is gaining popularity as a green alternative to conventional nitric acid oxidation routes. The green synthesis routes minimize carbon emissions as well as waste generation, which is in line with industry decarbonization processes.
Asia Pacific dominates the industry, followed by China and India, which are major producers and consumers due to strong chemical, pharma, and textile industries. Then follow North America and Europe on the basis of stringent quality standards, high-value specialty chemicals, and green product innovation.
Market Metrics
| Metrics | Values |
|---|---|
| Industry Size (2025E) | USD 1 billion |
| Industry Value (2035F) | USD 1.7 billion |
| CAGR (2025 to 2035) | 4.9% |
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The demand for oxalic acid is increasing progressively because it finds extensive uses in a number of different industries. The acid finds applications in the manufacture of antibiotics and other active pharmaceutical ingredient in the pharmaceutical industry. In the textile industry, it is employed for bleaching and dyeing.
End-use Industries like pharmaceutical, textile, water treatment, and metal processing industries need efficient and cost-effective solutions with maximized performance for various multiple uses. They are in need of products that have high efficiency, are environment friendly, and custom-adjustable to various uses.
Distributors highlight the need to have a consistent supply chain to support the needs of end-use industries. They aim to provide a wide variety of products to serve various applications with timely delivery and competitive prices.Regulatory Agencies impose compliance with environmental and safety regulations, leading to the adoption of green and sustainable solutions. They are key in influencing the industry by issuing regulations that promote the use of green chemistry and minimize the environmental impact of industrial activities.
Starting 2020 and extending through 2024 there was an amalgamation of steady momentum in the industry, primarily owing to its widespread applications across industries including, textiles, pharmaceuticals, and metal processing.
The acid is heavily used in the textile industry for bleaching and dyeing and this factor is projected to grow in developing countries such as China and India. But the industry was constrained by volatile raw material prices and increasing environmental pressure on the production processes of the acid. Even with all these problems, the chemical continued to be a critical industrial reagent, and initial moves towards safer manufacturing processes were in sight.
Between 2025 and 2035, the industry will move towards more technologically advanced and diversified applications. The acid demand is likely to grow in pharmaceutical production since it is applied in the manufacturing of active pharmaceutical ingredients (API). Its application in metal surface treatment, for instance, stripping rust and paint, will also drive the industry.
Health and safety standards and regulations will, however, determine manufacturing processes, pushing producers to find more environmentally friendly and less toxic alternatives. Industrial bases of developing economies will be major demand centers.
Comparative Market Shift Analysis 2020 to 2024 vs. 2025 to 2035
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| Moderate industrial demand-driven growth. | Increased momentum from diversified end-use applications such as pharmaceuticals and metals. |
| Textile and pharmaceutical expansions. | Pharmaceutical R&D, industrial cleaning, and surface treatment rising. |
| Restricted innovation; development focus on process refinement. | Move towards cleaner, greener synthesis routes and novel applications. |
| Strong in Asia-Pacific, especially China and India. | Entry into Latin America, Eastern Europe, and growth in Asia-Pacific. |
| Initial indications of environmental regulation of production. | Hostile environmental and safety regulations promoting sustainable approaches. |
| Product modifications specific to applications in textiles. | Purer development for drugs and metal surface treatment. |
In 2024, the industry underwent significant fluctuations as a result of fluctuating raw material prices and changing demand in major industries. Prices in Asia moved downwards, driven by lower sugar prices and subdued textile and leather industry demand. On the other hand, Europe's industry stayed fairly stable, but higher imports from Asia placed minimal downward pressure on prices.
Environmental regulations pose formidable challenges for producers. The toxicity of the compound requires strict handling and disposal procedures, particularly in areas with high environmental standards.
Technological innovation and competitive pressure from substitute chemicals are other threats. Economies and the environment are compelling industries to seek substitutes for the acid to be applied in rust removal and bleaching. Companies must innovate to maintain industry share, through developing environmentally friendly and less expensive substitutes.
The industry's reliance on sectors such as pharmaceuticals, textiles, and metal processing implies that when these sectors slow down, they can directly influence the demand. Penetration into new industries and diversification of uses are critical strategies to counteract such dependence and ensure consistent growth.
In total, the industry in 2024 was under threat from price volatility, regulatory concerns, supply chain disruptions, technological transformation, and industry-specific economic downturns. Navigating these drivers with innovation, regulatory compliance, and strategic diversification is essential for competitiveness in this dynamic industry.
In 2025, the standard grade (purity 96%-99%) segment will account for the largest share of the industry with a forecasted share of 40%, closely followed by technical/pharma grade (purity 99%-99.9%) with a 30% share. Because these segments play considerable roles across several industries, each features extensive application needs.
Collegiate oxalic acid is applied in many industrial applications where high purity is not necessary; such segments include the textiles, paper, metal cleaning, and wood treatment industries. Standard-grade oxalic acid serves as a bleaching agent to whiten the fabrics in the textile industry. In metal cleaning, it serves to remove rust and scale from metals.
BASF, Clariant, and Huntsman International are some of the well-known suppliers of large quantities of standard-grade acid that jointly meet the industrial needs of these sectors. Huntsman International, the chemicals giant, consumes the acid in some of these applications, including its role in producing industrial chemicals and cleaning agents, thus easing itself into the global industry.
On the contrary, the technical/pharma grade segment has cut a notable part of the industry because of its requirement of application under very high purity standards, such as the pharmaceutical grade, which is a high-end chemical process, and for certain cleaning agents.
Pharmaceutical firms use this specific grade for the synthesis of particular medications, such as vitamin B1. The Merck Group, via Sigma-Aldrich, sells pharma-grade acid for research and pharmaceutical applications. Dow Chemical also industries high-purity acid to manufacture fine chemicals and serve biotechnology and specialty chemicals.
Both grades of the acids cater to different sectors with certain quality needs. While the Standard Grade, in volume terms, would typically cover general industrial applications, the Technical/Pharma Grade would dominate in those requiring high precision and purity, for example, in pharmaceuticals and advanced chemical production.
In 2025, it is expected that the segment bleaching and purifying agents will dominate the industry by holding 25% of the industry share, followed by the segment reducing agents, which will probably take up 20% of the industry. The two segments have different applications in diverse industrial sectors and serve very distinct functions in various processes of a chemical nature.
Bleaching and purifying agents are the major category in the industry. It is used in textiles, papers, and wood to produce an effective bleaching agent. This compound whitens fabrics and removes impurities. It is commonly used in the textile industry for stain removal and cleaning purposes.
For example, it ensures that the fabric remains bright and without contaminants. In addition to that, the acid is used in wood treatment to remove discolorations and enhance the natural appearance and luster of the surfaces of wood. Major chemical manufacturing companies such as BASF and Clariant provide oxalic acid in massive amounts for such applications where the demand for efficient bleaching and purifying agents is high.
The reducing agents segment is also relevant. The acid is a reducing agent; it can reduce chemical species. It applies widely to metal finishing and, in some cases, is used for fine metal production like gold or silver in ore forms. The reducing properties of the acid allow it to convert metal ions from a higher oxidation state to a lower one.
Thus, the acid is important for electroplating and plays an important role in fine chemical production. In this jewelry industry, oxalic acid is used to purify metals when refining gold and silver. Therefore, Huntsman International and Dow Chemicals, in this regard, are significant suppliers of the acid as a reducing agent for these applications, driving their industry contributions in the chemical and refining sectors.
Both segments will show strong growth potential, mainly through demand for textiles and wood processing bleaching agents and through reducing agents in the chemical and metal-processing industries.
| Countries | CAGR (2025 to 2035) |
|---|---|
| USA | 3.6% |
| UK | 3.2% |
| France | 3.3% |
| Germany | 3.5% |
| Italy | 3.1% |
| South Korea | 3.8% |
| Japan | 3% |
| China | 5.4% |
| Australia | 3.2% |
| New Zealand | 2.9% |
The USA industry is also poised to see growth at a CAGR of 3.6% during 2025 to 2035. Demand is due to applications in metal cleaning, rare earth processing, and pharmaceuticals. Its application in precision cleaning activities and recycling of lithium batteries is also helping to drive industrial demand. Demand is also being driven by the shift towards more environmentally friendly processing chemicals by employing the acid due to its biodegradable nature.
Major producers are focusing on expanding capacity with an emphasis on purity and regulatory compliance. Integration into end-use applications such as electronics and water treatment is increasing slowly. Strategic partnerships with specialty chemical firms and innovation in high-purity formulations will continue to drive further industry growth in the USA
The UKindustry will increase at a CAGR of 3.2% between 2025 and 2035. Specialty industrial applications, including metal surface treatment, dye intermediates, and laboratory applications, define the industry. Growing awareness about the environment and the requirement for green solvents in restoration and cleaning applications is driving the adoption of the acid.
Producers are also focusing on obtaining sustainable supply chains and maximizing product consistency. Specialty chemical distributors and research centers also promote the use of the acid in precision and analytical industries. Its use in the preservation of historical artifacts also supports the specialized demand in heritage industries.
France is expected to achieve a CAGR of 3.3% in the industry between 2025 and 2035. Industry growth is being driven by increasing usage of pharmaceutical intermediates, wood bleaching, and metal surface treatment. Excellent industrial hygiene and environmental standards are driving the shift away from synthetic cleaners towards organic acids.
French chemical companies are focusing on the diversification of applications and the development of value-added derivative chemicals. Expansion is also being driven by textile treatment and purification of rare earth applications development. Regulatory concern for non-toxic and biodegradable chemicals is also enhancing the position of the acid in varied end-use applications.
Germany's industry is likely to post a CAGR of 3.5% during the forecast period. The country's advanced manufacturing base supports the use of the acid in surface conditioning, precision cleaning, and electronic component processing. Growing applications in laboratory reagents and specialty pharmaceutical applications also contribute to industry growth.
Major manufacturers are increasing investments in high-purity grades and improving efficiency in the energy consumption of production processes. Demand from the automotive and electronics sectors, especially for polishing and metal pickling operations, is impacting purchasing plans. German regulatory schemes continue to concentrate on low-emission chemicals, increasing the applicability of the acid to technical ends.
Italy is anticipated to achieve a 3.1% CAGR in the industry over the 2025 to 2035 forecast period. Consumption is concentrated in the textile industry, marble maintenance, and industrial cleaning. Artisanal applications and specialty applications in dye processing and organic synthesis also support the industry. Increasing use in food-grade applications, particularly in cleaning and de-scaling processes, is emerging as an added growth driver.
Domestic manufacturers and exporters are building up product distribution channels and adapting to EU standards for chemical safety. Growing awareness of the natural and environmental sources of oxalic acid is facilitating its substitution with more stringent chemicals in various applications. Collaboration with local industries is enabling customized supply solutions.
South Korea's industry is also expected to increase at a CAGR of 3.8% from 2025 to 2035. High-tech applications and semiconductor production require precision-grade chemicals, supporting the demand for high-purity oxalic acid. Other metal treatment, dyeing, and pharmaceutical intermediate uses continue to drive consumption.
South Korean producers are making investments in scale and technology to support rising local and regional demand. Green chemistry is in vogue in the industry, and the acid is an excellent alternative to surface cleaning and treating electronic materials. Technologically advanced processing plants increase product quality and competitiveness.
Japan is set to grow in the industryat a CAGR of 3% from 2035. Applications in pharmaceutical manufacturing, textile treatment, and electronic polishing drive growth in the industry. Steady demand is supported by the demand for precision and high-purity chemicals that are popular with Japan's industry.
Chemical firms are targeting production efficiency and low environmental impact, which are in alignment with national sustainability goals. The use in historic preservation and pharmaceutical-grade applications is generating niche industry growth opportunities. Japan's status as a supplier of high-specification materials still tips the scale in favor of value-added usage.
China will dominate the industry with a CAGR of 5.4% during 2025 to 2035. The country is the largest producer and consumer of the acid because of the high demand from pharmaceuticals, agrochemicals, and rare earth processing, fueled by speedy industrialization and growing end-use applications such as metal finishing and dye intermediates.
Mass production manufacturers are ramping up production capacities and incorporating more environmentally benign synthesis pathways to increase environmental regulatory conformity. Expanded use of oxalic acid in battery recycling, such as lithium-ion cells, is fueling increased industrial utility. China's integration of the acid into the circular economy fuels steady industry growth.
The industry in Australia is forecast to grow at a CAGR of 3.2% during the period from 2025 to 2035. The industry growth results from growing use in mining applications, such as for rare earth and mineral cleaning processes. Additional domestic cleaning product uses, and surface refinishing are also emerging due to increasing demand for low-impact cleaning products.
Imports typically fulfill supply, although local players are establishing storage and distribution facilities. The industry is seeing incremental use in water treatment and agricultural uses, where the acid is used in pesticide production and cleaning. Environmental interest in eco-friendliness is driving usage across additional industry segments.
New Zealand is expected to grow at a CAGR of 2.9% in the industry from 2025 to 2035. The industry is relatively niche and is used primarily in cleaning, agriculture, and wood treatment. Growing demand for biodegradable and low-toxicity chemicals is supporting the sustained limited demand.
Distribution is under the control of local chemical distributors and specialty resellers catering to niche markets. Conservation practices and utilization of the acid as a natural pest control method in beekeeping are expected to spur growth. Industrial uses are limited, but environmental acceptability and rural demand offer steady industry opportunities.
The industry is dominated by intense competition among global chemical manufacturers owing to their various applications in industries such as pharmaceuticals and agriculture. For instance, Mudanjiang Fengda Chemical, Oxaquim, and Merck KGaA have also appealed to advanced production techniques and diversified distribution channels to retain their industry leadership. Their strong presence in Asia-Pacific and Europe allows them for patronization by different uses in industries, including but not limited to metal cleaning, processing textiles, and rare earth extraction.
UBE Industries and Clariant International have always targeted high-purity oxalic acid for use in pharmaceuticals and electronics, being a lock-in to long-term contracts with battery manufacturers and specialty chemical producers. Their competitive positioning is further reinforced by investment in their sustainable production processes and advanced purification technologies.
While emerging regional players such as Shijiazhuang Taihe Chemical and Indian Oxalate Limited focus on cost-effective manufacturing as well as region-specific industry access, their bulk industrial-grade oxalic acid offerings at competitive prices further enable their penetration into other developing economies. In addition, metal treatment and agriculture industries have forged strategic partnerships that will allow them to scale operations.
Mergers, acquisitions, and joint ventures are leading the competitive landscape as companies try to expand the footprint of their global supply chains and invest in enhancing production capabilities. For example, players considering investing in research directed at bio-based oxalic acid production will have a long-term competitive advantage as sustainability concerns tend to increase within the chemical sector.
Market Share Analysis by Company
| Company Name | Market Share (%) |
|---|---|
| Mudanjiang Fengda Chemical Co., Ltd. | 20-25% |
| Oxaquim | 15-20% |
| Merck KGaA | 12-16% |
| UBE Industries Ltd. | 10-14% |
| Clariant International Limited | 8-12% |
| Others (combined) | 30-40% |
| Company Name | Key Offerings and Activities |
|---|---|
| Mudanjiang Fengda Chemical Co., Ltd. | Leading supplier of industrial-grade and high-purity oxalic acid for metal cleaning and rare earth processing. |
| Oxaquim | Specializes in high-purity oxalic acid for pharmaceutical, electronics, and automotive applications. |
| Merck KGaA | Develops lab-grade oxalic acid solutions for research and pharmaceutical use. |
| UBE Industries Ltd. | Focuses on sustainable oxalic acid production and specialty chemical applications. |
| Clariant International Limited | Innovates in high-performance oxalic acid formulations for textile and leather processing. |
Key Company Insights
Mudanjiang Fengda Chemical Co., Ltd. (20-25%)
A leading global producer, excelling in bulk industrial-grade oxalic acid manufacturing with strong distribution in China and international markets.
Oxaquim (15-20%)
Focuses on pharmaceutical and electronic-grade oxalic acid, ensuring high-purity formulations for critical industries.
Merck KGaA (12-16%)
Strengthens its position with lab-grade oxalic acid solutions tailored for scientific research and medical applications.
UBE Industries Ltd. (10-14%)
Invests in sustainable production technologies, focusing on environmentally friendly oxalic acid manufacturing.
Clariant International Limited (8-12%)
Specializes in advanced solutions for textiles, leather treatment, and specialty chemicals.
Other Key Players
The industry is estimated to reach USD 1 billion by 2025.
The industry is projected to grow to USD 1.7 billion by 2035.
China is expected to have a 5.4% CAGR.
The standard grade segment is the dominant product type in the industry, used in industries such as textiles, pharmaceuticals, and agriculture.
Key players include Mudanjiang Fengda Chemical Co., Ltd., Oxaquim, Merck KGaA, UBE Industries Ltd., Clariant International Limited, Indian Oxalate Limited, Shijiazhuang Taihe Chemical Co., Ltd., Spectrum Chemical Manufacturing Corp., Shandong Fengyuan Chemical Co., Ltd., and Penta s.r.o.
The industry is segmented into standard grade (purity 96%-99%), technical/pharma grade (purity 99%-99.9%), and electronic/food grade (purity 99.9%-99.999%).
The industry is segmented into bleaching & purifying agents, reducing agents, stain & rust removers, miticide, precipitation agents, and others.
The industry is segmented into petrochemicals, water treatment chemicals, metallurgy, textiles & leather, pharmaceuticals, electronics & semiconductors, food, wood pulp, and bee-hiving.
The industry is segmented into North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, and Middle East and Africa.
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