Formaldehyde Market Size, Share & Trends Analysis Report By Derivatives (Urea Formaldehyde, Melamine Formaldehyde), By End-use (Building & Construction, Furniture, Automotive), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global formaldehyde market size was valued at USD 7.81 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2021 to 2028. The growing inclusion of formaldehyde in several end-use industries, such as building and construction, automotive, furniture, textile, healthcare, oil and gas, agriculture, water treatment, and cleaning products, is estimated to trigger market growth in the near future. Formaldehyde is also increasingly being used in the manufacturing of disinfectants, vaccines, and personal care products, including mouthwash and toothpaste, on account of its exceptional antibacterial attributes. Increasing demand for these products is likely to boost the demand for formaldehyde over the forecast period.

The production and consumption of formaldehyde are highly influenced by its demand from the end-use industries. Thus, any fluctuations in the demand from the end-use industries are anticipated to directly impact the market. With the outbreak of the COVID-19 pandemic, major end-use industries such as automotive, construction, and wood were shut down at a global level, which severely impacted the growth of the market. However, it is also used to produce hard-gel capsules, vaccines, and antibiotics, which had a positive effect on the demand for the product.

Formaldehyde is made up of oxygen, hydrogen, and carbon. It is widely known for its antibacterial and preservative properties. It offers excellent performance and acts as a bonding agent in end-use applications while offering an affordable price. The U.S. is one of the highest consumers of formaldehyde in the construction sector as the product offers lucrative revenue-generating opportunities to its manufacturers. The production of adhesives and glues for construction applications by utilizing formaldehyde is also rising across the globe, especially in the U.S.

Formaldehyde is of different forms such as molecular formaldehyde, trioxane, paraformaldehyde, and methanediol. The number of hydrogen compounds in each form of formaldehyde differentiates them from each other. These compounds are mainly used in industrial applications. The demand for the product is rising in the Asia Pacific owing to its increasing demand in the automotive and construction industries.

The high toxicity exhibited by formaldehyde is the main factor restricting market growth. Due to its hazardous nature, its application has become limited in the personal care and cosmetics sector. To spread awareness regarding this issue, companies are educating their customers about the needs and advantages of using the product as per regulatory standards.

Derivatives Insights

The urea formaldehyde segment dominated the market with a revenue share of over 35.0% in 2020. This is attributed to the growing use of the product in several end-use applications including textiles, foundry sand, paper, electrical appliances, agriculture, and wood glue. The products are in demand due to their high tensile strength, flexural modulus, low water absorption, elongation at break, high heat distortion temperature, high surface hardness, mold shrinkage, and volume resistance.

Moreover, UF is used to treat textile fabrics by enhancing wrinkle and shrink resistance. It is also used in the agriculture industry as the main source of nitrogen fertilizers. In construction activities, UF is widely used as an adhesive and insulating agent, which is likely to fuel the growth of the UF market over the forecast period.

The melamine formaldehyde (MF) segment is anticipated to expand at a significant CAGR in the coming years owing to its rising demand across the globe due to its exceptional properties, such as moisture resistance, thermal stability, scratch resistance, flame retardant, strength, and hardness. Its characteristics such as gloss, hardness, and ability to retain a dust-free surface make MF a better substitute in comparison to UF in the plastic food containers and plastic plates markets. These factors are likely to boost the demand for MF over the forecast period.

End-use Insights

The building and construction segment dominated the market with a revenue share of over 30.0% in 2020. This is attributed to the growing utilization of formaldehyde in numerous construction materials, which helps improve the tensile strength and toughness of building materials. The demand for the product is increasing in the U.S. owing to the presence of multinational players in the construction industry and rising residential development in the major states of the U.S. such as Arizona, Florida, Georgia, Nevada, Texas, and Washington.

The furniture segment is projected to exhibit a significant CAGR in the forecast period. Formaldehyde is used to make different types of furniture products, such as bed frames, couches, desks, and stools. It is regulated by the Environmental Protection Agency (EPA) owing to its toxicity. The regulations are set to decrease the emissions from products that are made with composite wood in order to reduce customers’ exposure to formaldehyde. These regulations apply to products that are produced from composite wood, i.e. veneers, medium-density fiberboards, hardwood plywood, and particleboards, among others.

In the agriculture sector, it is used as a soil disinfectant, nitrogen fertilizer, seed dressing, and in the preservation of grain. It is used in fertilizers to enhance the quality of soil, protect plants from diseases, and help them grow faster. Furthermore, it helps eliminate bacteria and ensures that poultry is safe from diseases. Thus, the above-mentioned factors are likely to fuel the demand for the product in the agriculture and poultry sectors in the coming years.

Regional Insights

The Asia Pacific region dominated the market with a revenue share of over 50.0% in 2020. This is attributed to the rapid growth of the adhesives, automobile, furniture, and electrical and electronics manufacturing sectors. The product is in demand on account of its low price, high reactivity, and high-quality performance. In addition, significantly growing construction and automotive industries in Asia Pacific countries, especially in China and India, are likely to trigger the demand for the product.

Europe was the second-largest market for formaldehyde in 2020. Increasing demand for formaldehyde from the furniture industry in countries, including Russia, Italy, and Germany, is expected to boost the market growth over the forecast period. Germany is the major consumer of formaldehyde in Europe on account of its increasing demand for use in fiberglass mats in building and construction applications.

Central and South America (CSA) is expected to witness high demand for formaldehyde from different end-use applications, such as cosmetics, healthcare, photography, paint, and food. The product is used as a preservative in cosmetics. The Brazilian Health Regulatory Agency (ANVISA) allows its usage in oral hygiene products at 0.1% concentration and 5% in nail products as a hardening agent.

Key Companies & Market Share Insights

Companies are planning to accomplish digitization on the industrial and operational aspects of business, such as industrial automation and remote work enablement, to reduce operational costs and the need for an additional workforce. Manufacturers are focusing on increasing their production capacities to meet demand in the market, thereby offering lucrative opportunities for the growth of the market.

A majority of these companies have integrated their business operations across the value chain to incur maximum profit at the lowest investment. The market for formaldehyde is characterized by the presence of a large number of multinationals and regional players that are engaged in constant research & development activities to formulate advanced products. Some prominent players in the global formaldehyde market include:

• 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.

Formaldehyde Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global formaldehyde market report on the basis of derivatives, end-use, region:

• Derivatives Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Urea Formaldehyde (UF)

  • Phenol Formaldehyde (PF)

  • Melamine formaldehyde (MF)

  • Polyacetal Resins

  • Pentaerythritol

  • 1,4 Butanediol

  • Methylenebis

  • Hexamethylenetetramine (HMTA)

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Building & Construction

  • Automotive

  • Furniture

  • Textile

  • Healthcare

  • Oil & Gas

  • Agriculture

  • Water Treatment

  • Cleaning Products

  • HVAC

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia