Global Formaldehyde Market 2023-2030

Global Formaldehyde Market 2023-2030

Global Formaldehyde Market Size, Share & Trends Analysis Report by Derivative (Urea Formaldehyde, Phenol Formaldehyde, Melamine Formaldehyde, Hexamine, Polyoxymethylene, and Others), and By Application (Construction, Agriculture, Automotive, Medical, Chemical & Petrochemical, and Others), Forecast Period (2023-2030)

The global formaldehyde market is anticipated to grow at a considerable CAGR of 3.8% during the forecast period (2023-2030). The growing consumption of formaldehyde by end-user industries owing to its high durability and other favorable chemical properties is a key factor driving the growth of the global formaldehyde market. The rising project launches to increase the formaldehyde production is anticipated to offer lucrative growth opportunity of the global formaldehyde market. Exposure to the formaldehyde can cause irritation of the skin, eyes, nose, and throat.

High levels of exposure may cause some types of cancers. Therefore, the health related problems associated with the formaldehyde usage may impede its market growth during the forecast period. The increase in R&D activities related to the application of formaldehyde derivative for treatment of Organic Fraction of Municipal Solid Waste (OFMSW) are likely to offer lucrative opportunities for the growth of the formaldehyde market during the forecast period.

Impact of COVID-19 on Formaldehyde Market

The COVID-19 pandemic has made dual impact on the global formaldehyde market. The lockdown imposed by the several regional governments has led to the temporary shutdown of automobile, construction, and wood-based industries among other. Being a key chemical additive in these industries, the shutdown of operational plants of these industries has led to stiff decline in the demand of formaldehyde across theses industries. However, as it has high application in medical industry as a surface disinfectant, ingredient in several drugs and capsules; the formaldehyde manufactures recorded high sales in this segment.

Segmental Outlook

The global formaldehyde market is segmented based on derivative and application. Based on derivative, the market is sub-segmented into urea formaldehyde, phenol formaldehyde, melamine formaldehyde, hexamine, polyoxymethylene, and others. Based on the application, the market is segmented into construction, agriculture, automotive, medical, chemical & petrochemical, and others.

The Construction Sub-Segment to Hold a Considerable Share of the Global Formaldehyde Market

Among the application segment, the construction sub-segment is expected to hold a considerable share of the market. The formaldehyde is used to manufacture composite and engineered wood products that are used extensively in cabinetry, countertops, moldings, furniture, shelving, stair systems, and flooring among others. Glues that use formaldehyde as a building block are exceptional bonding agents, delivering high-quality performance that is also economical. Moreover, it is used in manufacturing of a wide range of panel and board products, enabling sustainable use of forestry resources and minimizing waste. The large-scale usage of formaldehyde-based resin in construction industry is driving high share to this market segment.

Regional Outlooks

The global formaldehyde market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, North America is anticipated to exhibit a considerable growth in the global formaldehyde market, followed by Europe. Significant increase in formaldehyde projects across the US is a key factor contributing towards the high share of the regional market. Further, the presence of key market players across the region and their contribution in establishment of new production plants across the region is another major contributor towards the considerable growth of the regional market. Moreover, the growing investment in building & construction activities across the US is anticipated to offer lucrative opportunities for the growth of the regional market.

Global Formaldehyde Market Growth by Region 2023-2030

Source: OMR Global

The Asia-Pacific Region to Hold a Considerable Share of the Global Formaldehyde Market

The Asia-Pacific region to hold a considerable market share in the global formaldehyde market. India and China are the key contributors to the growth of the regional market. Out of which, China is one of the major producers of formaldehyde. The high consumption of formaldehyde across the region in construction and agriculture industry is a key factor contributing to the high share of the regional market. The increasing government investments on infrastructural expansion by emerging economies such as China and India are fueling the demand of formaldehyde in construction industry.

Market Players Outlook

The major players operating in the market include BASF SE, Hexion Inc., PJSC Metafrax, and Ercros S.A. among others. These companies are making continuous investments in R&D to make progress in producing technologically advanced formaldehyde. Mergers & acquisitions, geographical expansion, production capacity expansion, partnerships, and collaborations are some of the key strategies adopted by the market players to remain competitive in the market place. For instance, in September 2020, PJSC Metafrax and Altex-Stroy LLC signed a MoU in relation to the general contractor contract signing for construction of the paraformaldehyde and formaldehyde production plants. In addition, Metafrax announced to invest more than $68 million (without VAT) in the investment project execution for creation of the paraformaldehyde (30 thousand tons per year) and formaldehyde (180 thousand tons per year) production on the production facility in Gubakha.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global formaldehyde market. Based on the availability of data, information related to new project launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.