Formaldehyde Market: Current Analysis and Forecast (2021-2027)

Demand of formaldehyde depends on the countries economic performance since formaldehyde is used in myriad of applications therefore with increasing growth in industries like automotive, construction, consumer goods, to name a few, demand of formaldehyde increase and vice-versa. For instance, according to Methanol Institute, wide range of uses for formaldehyde make it essential for the operations of nearly 50,000 product manufacturing facilities in the U.S. alone. Further, countries like U.S., China, India, Japan, Germany, and South Korea are among the largest construction, consumer goods, and automotive market, and these industries had showcased considerable growth in the last few years, except automobile, as a result demand of formaldehyde also witnessed considerable growth. Moreover, it is expected that developing countries like India would witness considerable growth during the forecast period owing to increasing foreign investment, new schemes launched by the governments like product link incentives scheme, which would encourage foreign companies to establish their manufacturing facilities in the country.

Based on production process, the market is bifurcated into silver catalyst and metal oxide catalyst. Of both, silver catalyst held the significant share in the market in 2020. Because the silver is not affected by the reaction, it is almost completely recovered after it is used, so making it economically superior. Further, silver catalyst is a much more conventional method owing to which many companies are using this technology for the production of formaldehyde

Based on derivatives, the market is categorized into UF, PF, polyoxymethylene, pentaerythritol, MDI, 1,4 BDO, paraformaldehyde, hexamine, and others. Among these, UF accounted for significant share in the market. Due to its properties like high tensile strength, high flexural modulus, high heat-distortion temperature, and low water absorption it is used in large number of products like adhesives, plywood, particle board, medium-density fiberboard (MDF), and molded objects.

Based on application, the market is categorized into resins, textile treatment, vulcanization accelerators, poly urethane foams, explosives, paint resins, pesticides, elastic fibers, synthetic lubricants, plasticizers, and household/electronic appliances. Among these, resins held the substantial share in the market and is expected to show significant growth rate. Resins of UF and PF are among largest consumable derivatives of formaldehyde due to their properties which can withstand tough conditions. These resin are used in the adhesives and paints & coatings industries. Also, is an essential raw materials which are used in the wood and wood-based industry as adhesives for furniture and floors, and tiles.

Based on end-use, the market is categorized into consumer products, automotive, healthcare, construction, textile, chemical & petrochemical, agricultural, and others. Among these, construction held the significant share in the market. In construction industry, formaldehyde as derivative used in the manufacturing of carpet underlay, structural wood panels, particle wood, and plywood. Due to the large and increasing demand of these products owing to rising construction activities and increasing consumer disposable power, which encourage consumers to spend more on house decoration and renovation work.

For a better understanding of the market adoption of formaldehyde, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, France, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia-Pacific held the significant share in the market owing to large manufacturing industry such as construction, automotive, and consumer goods to name a few. As a result, demand of several products like photographic film, paper towels, cosmetics, carpeting, furniture, cabinets, paints, automotive components, wood-based products is large compared to other regions. Eventually, demand of formaldehyde to produce aforementioned products is high in the region.

Some of the major players operating in the market include Dynea Oy, Celanese Corporation, Perstorp Group, BASF SE, Georgia-Pacific Chemicals, Alder S.p.A, Hexion, Foremark Performance Chemicals, Balaji Formalin Private Limited, and Kanoria Chemicals & Industries Ltd.