The most popular formats are zip, rar and 7z.
Zip is free, but its features are quite limited nowadays.
Rar has quite a lot nice features.
7z does not have recovery record feature, but that is not very important, for my experience these years, I'm not helped with WinRAR recovery record feature. Internet transfer corruption? I did not experienced that.
The compression ratio is not that important like earlier days. So Rar cannot be called "bad" in most cases. The most superior of 7z is lossless bitmat compression (like BMP).
Do we need other formats?
There are arc format from FreeArc, b1 format from B1 Free Archiver, kz from KuaiZip, PEA from PeaZip, if there are more good format, please comment. Arc is better IMO, and it is still in developing. But all of these do not have big difference, and the newer ones do not supported by most archivers. Self-extract archive with exe? Not a bad idea but is it really necessary for us to do that? It will confuses people IMO. So maybe we still just needs 7z.