Formaldehyde Market Share

Global Formaldehyde Market Overview

Formaldehyde Market Size was valued at USD 7.5 Billion in 2022. The Formaldehyde industry is projected to grow from USD 7.9 Billion in 2023 to USD 12.88 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.20% during the forecast period (2023 - 2032). Formaldehyde has found applications in the production of anti-infective medications, hard-gel capsules, and vaccines. Noteworthy trends in the market include a rising need within the pharmaceutical and cosmetics sectors, substantial investments in research and development, and the flourishing construction industry, propelled by emerging economies, population growth, and enhanced disposable incomes are expected to be a significant market driver for the Formaldehyde Market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Formaldehyde Market Trends

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  Increased utilization across various sectors, including automotive, construction, and textiles, and the surging demand for luxury furniture and a growing preference for specialty fertilizers are driving the market growth

  
  

Market CAGR for formaldehyde is being driven by Increased utilization across various sectors, including automotive, construction, and textiles, and the surging demand for luxury furniture and a growing preference for specialty fertilizers. Notably, the Asia-Pacific region, which accounts for approximately 60% of the world's automotive production, witnessed a remarkable 11% year-on-year rise in vehicle production, reaching 32.67 million units during the first nine months of 2021. This surge in automotive production has contributed significantly to the formaldehyde market's expansion.

Furthermore, the escalating demand for paints and coatings, as well as the increased need for high-quality plasticizers, are pivotal factors bolstering the formaldehyde market's prospects in the forecast period spanning from 2021 to 2028. Concurrently, heightened construction expenditures and the rapid growth of the automotive industry have also exerted a positive influence on the formaldehyde market. India's real estate sector, for instance, attracted substantial institutional investments in 2020, accounting for 93% of the previous year's transaction volume. Private equity investments worth Rs. 23,946 crores (equivalent to USD 3,241 million) were recorded in the real estate segment during the fourth quarter of FY21. In the first half of 2021, India attracted USD 2.4 billion in investments in real estate assets, marking a remarkable 52% year-on-year increase. The surging demand for luxury furniture and a growing preference for specialty fertilizers are also pivotal drivers contributing to the market's expansion.

As a result, it is anticipated that throughout the projection period, demand for the Formaldehyde Market will increase due to the Increased utilization across various sectors, including automotive, construction, and textiles, and the surging demand for luxury furniture and a growing preference for specialty fertilizers. Thus, driving the Formaldehyde Market revenue.

In February 2024, Kanoria Chemicals & Industries experienced a 4.80% increase in its stock price, reaching Rs 126.75. This rise was a result of the company's announcement regarding the construction of a new Formaldehyde plant with a capacity of 300 TPD at its current site in GIDC, Gujarat. The upcoming Formaldehyde facility will be outfitted with state-of-the-art Metal Oxide-based technology, catering to the increasing needs of various industries like engineered wood, textile, agrochemicals, and pharmaceuticals. This will not only serve the local market but also fulfill the demand in international markets. Kanoria Chemicals & Industries operates three manufacturing facilities located in Ankleshwar, Gujarat, Visakhapatnam, Andhra Pradesh, and Naidupeta, within the same province. The company's primary focus is the production of alco chemicals, specifically Pentaerythritol, Formaldehyde, and Hexamine. Furthermore, Kanoria Chemicals & Industries possesses a solar power plant with a capacity of 5.0 megawatts situated near Jodhpur, Rajasthan.

Formaldehyde Market Segment Insights

Formaldehyde Market Derivatives Insights

The Formaldehyde Market segmentation, based on Derivatives includes Urea Formaldehyde (UF), Phenol Formaldehyde (PF), Melamine formaldehyde (MF), Polyacetal Resins, Pentaerythritol, 1,4 Butanediol, Methylenebis, Hexamethylenetetramine (HMTA), and Others. The Urea Formaldehyde (UF) segment dominated the market, accounting for 58% of market revenue (4.35 Billion). Urea-formaldehyde (UF) is employed to improve the wrinkle and shrink resistance of textile fabrics. Additionally, it plays a vital role in the agriculture sector as a primary source of nitrogen fertilizers. In the construction industry, UF serves as a key adhesive and insulating agent, which is expected to drive growth in the UF segment within the formaldehyde market in the coming forecast period.

Figure 1: Formaldehyde Market, by Derivatives, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Formaldehyde Market End-use Insights

The Formaldehyde Market segmentation, based on End-use includes Building and construction, Automotive, Furniture, Textile, Healthcare, Oil and gas, Agriculture, Water Treatment, Cleaning Products, HVAC, and Others. The Building and construction segment dominated the market, accounting for 60% of market revenue (4.5 Billion). Formaldehyde-based resins find widespread use in the production of composite and engineered wood products, serving various applications in household furnishings and structural elements. These include moldings, furniture, countertops, cabinetry, shelving, stairs, wall sheathing, support beams, flooring, and trusses. In line with forecasts from the Ministry of Housing and Urban-Rural Development, China's construction industry is projected to maintain a 6% share of the nation's GDP through 2025. In response to these projections, the Chinese government introduced a five-year plan in January 2022 with a strong emphasis on enhancing sustainability and quality in the construction sector. This strategic initiative aligns with the evolving landscape of the construction industry in China.

Formaldehyde Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Formaldehyde market in North America can be attributed to several key factors. Formaldehyde-based adhesives are commonly used in the manufacture of furniture and woodworking. Data from Emarsys and GoodData reveals a substantial uptick in online orders in North America, surging by over 80% since January 2020, encompassing a wide range of products from essentials to home maintenance and furnishings. Of particular note is the significant increase in online furniture purchases, with nearly 69% of North America's major furniture retailers now offering e-commerce options. In 2021, Berkshire Hathaway made strategic investments, including a new USD 99 million position in Floor & Decor, a flooring retail company, and a USD 475 million stake in Royalty Pharma, a firm specializing in funding clinical trials in exchange for royalties. These developments underscore the evolving trends and investment strategies in the business landscape. As the furniture industry continues to thrive, so does the need for formaldehyde in adhesives to create durable and cost-effective products.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FORMALDEHYDE MARKET SHARE BY REGION 2022 (USD Billion) 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Formaldehyde Market accounts for the second-largest market share as Germany boasts the largest construction industry in Europe, primarily driven by the gradual growth in new residential construction projects. The European residential construction market experienced a notable upsurge during the COVID-19 pandemic, particularly as restrictions eased, leading to a surge in housing demand and consequent price increases. Notably, non-residential and commercial building segments are anticipated to offer significant growth opportunities in Germany. This is complemented by a rise in multi-family housing projects across Europe, exemplified by endeavors like the USD 332 million Sackville Road Residential Community in the UK. The construction sector holds great economic importance in the EU, providing millions of jobs and contributing substantially to the region's GDP. This growth is expected to be further bolstered by favorable interest rates, increased disposable incomes, and substantial investments from the European Union and the German government. Further, the German Formaldehyde Market held the largest market share, and the UK Formaldehyde Market was the fastest-growing market in the European region

The Asia-Pacific Formaldehyde Market is expected to grow at the fastest CAGR from 2023 to 2032. India is actively preparing for urbanization by upgrading its existing urban infrastructure. This effort is supported by comprehensive reforms, including the Real Estate Act, GST, and REITs, aimed at streamlining construction projects. The industrial and commercial infrastructure sectors are experiencing significant growth, with the Indian government simplifying regulations to attract foreign direct investment (FDI) in construction, thus accelerating national development. These projects will require the use of formaldehyde-based products in various applications, further fueling the market. In addition, the oil and gas industry is of paramount importance to India, being one of its core industries. India ranks as the world's third-largest consumer of oil and energy and the fourth-largest importer of liquefied natural gas (LNG). Projections from the India Brand Equity Foundation suggest that India's oil demand is expected to double, reaching 11 million barrels per day by 2045. Simultaneously, natural gas consumption is poised for a substantial increase, with an estimated annual growth rate of 9% until 2024, resulting in a growth of 25 billion cubic meters. These developments in the energy and infrastructure sectors present significant business opportunities and strategic considerations for enterprises operating in India. Formaldehyde-based resins are used in various applications within this sector, such as drilling and production operations. As India's oil and natural gas consumption continues to grow, there will be a sustained demand for formaldehyde-related products in these operations. Moreover, China’s Formaldehyde Market held the largest market share, and the Indian Formaldehyde Market was the fastest-growing market in the Asia-Pacific region.

Formaldehyde Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Formaldehyde market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Formaldehyde industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Formaldehyde industry to benefit clients and increase the market sector. In recent years, the Formaldehyde industry has offered some of the most significant advantages to the manufacturing and various downstream sectors. Major players in the Formaldehyde Market, including Foremark Performance Chemicals; Hexion; Georgia-Pacific Chemicals; Celanese Corporation; BASF SE; Capital Resin Corporation; Evonik Industries AG; DuPont; Alfa Aesar; Ashland; Perstorp; LRBG Chemicals Inc are attempting to increase market demand by investing in research and development operations.

Foremark Performance Chemicals, headquartered in League City, Texas, is a technology-driven leader specializing in natural gas sweetening applications and formalin manufacturing for chemical intermediates. With a strong focus on exceeding customer expectations, Foremark leverages substantial production capacity and proprietary technology to deliver precision-crafted products and services. The company benefits from the support of SK Capital Partners, a private investment firm renowned for its disciplined approach to the specialty materials, chemicals, and pharmaceutical sectors, managing a substantial portfolio exceeding $5 billion in assets. Foremark is an active member of the ACC board-approved, self-funded panel representing producers, suppliers, and users of formaldehyde and related products. In July 2022, Foremark Performance Chemicals communicated a formaldehyde price increase of $0.020 per pound for Formaldehyde Solution 50% and $0.015 per pound for Formaldehyde Solution 37%.

Hexion, a subsidiary of Hexion LLC, is a prominent manufacturer of thermoset resins, adhesives, structural resins, and coatings. Their extensive product range encompasses epoxy resins, versatile acids and derivatives, phenolic specialty resins, molding compounds, and formaldehyde-based resins. Hexion serves a diverse array of rapidly expanding end markets, including residential and non-residential construction, industrial sectors, automotive, wind energy, consumer goods, and electronics. Moreover, they are a significant provider of formaldehyde-based resins to the North American forest products industry. The company's distribution network encompasses a direct sales force and a network of third-party distributors. Hexion operates across multiple regions, spanning North America, Europe, Asia-Pacific, and Latin America, with its corporate headquarters situated in Columbus, Ohio, USA. In a strategic shift announced in July 2022, Hexion has initiated the use of bio-based methanol for formaldehyde production, underscoring their commitment to sustainable growth goals and enhancing their strategic positioning within the market.

Key companies in the Formaldehyde Market include

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  Foremark Performance Chemicals

  
  


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  Hexion

  
  


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  Georgia-Pacific Chemicals

  
  


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  Celanese Corporation

  
  


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  BASF SE

  
  


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  Capital Resin Corporation

  
  


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  Evonik Industries AG

  
  


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  DuPont

  
  


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  Alfa Aesar

  
  


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  Ashland

  
  


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  Perstorp

  
  


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  LRBG Chemicals Inc

  
  

Formaldehyde Industry Developments

July 2022: In July 2022, Hexion Inc. disclosed its utilization of bio-based methanol in formaldehyde production at its Baytown, Texas manufacturing facility, a strategic move aimed at enhancing the sustainability of its product offerings.

May 2023: In May 2023, Foremark Performance Chemicals successfully finalized its acquisition of NexGen Chemical Technologies. This acquisition positions Foremark to support secure and environmentally sustainable natural gas production, contributing to the overall transition towards cleaner energy sources.

Formaldehyde Market Segmentation

Formaldehyde Market Derivatives Outlook

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  Urea Formaldehyde (UF)

  
  


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  Phenol-Formaldehyde (PF)

  
  


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  Melamine formaldehyde (MF)

  
  


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  Polyacetal Resins

  
  


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  Pentaerythritol

  
  


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  1,4 Butanediol

  
  


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  Methylenebis

  
  


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  Hexamethylenetetramine (HMTA)

  
  


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  Others

  
  

Formaldehyde Market End-use Outlook

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  Building & Construction

  
  


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  Automotive

  
  


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  Furniture

  
  


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  Textile

  
  


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  Healthcare

  
  


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  Oil & Gas

  
  


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  Agriculture

  
  


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  Water Treatment

  
  


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  Cleaning Products

  
  


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  HVAC

  
  


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  Others

  
  

Formaldehyde Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America