Formaldehyde Market

Formaldehyde Market Size by Application (Building and Construction, Automotive, Furniture and Cabinetry, Textiles, Health and Personal Care, and Agriculture), Product Type (Urea-Formaldehyde Resins, Phenol-Formaldehyde Resins, Melamine-Formaldehyde Resins, Polyoxymethylene (POM), and Formaldehyde Solutions), End-User Industry (Construction, Automotive, Wood Products, Consumer Goods, and Healthcare), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14595
  • Published Date: Nov, 2024
  • Pages: 231
  • Category: Chemicals & Materials
  • Format: PDF
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The global formaldehyde market was valued at USD 18 billion in 2023 and grew at a CAGR of 4% from 2024 to 2033. The market is expected to reach USD 26.64 billion by 2033. The rising automotive and building and construction sector will drive the growth of the global formaldehyde market.

Market Introduction:

Methylene is an organic compound officially known as formaldehyde, a colourless gas that is highly inflammable and has a pungent smell. It is one of the simplest aldehyde compounds with the molecular formula CH2O. It exists in very small amount in the environment and is formed naturally during the metabolism of life forms and combustion processes. Industrially, it is produced by the catalytic oxidation of methanol thus becoming a major chemical used in different sectors of manufacturing. The largest use of formaldehyde is in the manufacture of resins. Urea-formaldehyde and phenol-formaldehyde are used in adhesives, laminates, and particle board, and as coatings for paper, converted paper products and textiles. These resins are used essentially in the manufacture of composite wood products such as plywood, particle board and medium density fibre board which are widely used in furniture and construction. Furthermore, formalin keeps bacteria off by killing them and it also used in laboratories and mortuaries as a preservative. It is also used in the manufacture of textiles. It is incorporated as a material for shrink-proofing as well as for helping textiles keep their colours. In the automotive industry, it is in aspects like the auto parts and elements which add to the product’s sturdiness. The chemical is useful in the production of numerous drugs and antibiotics, and as an active ingredient in disinfectants and other solutions.

Formaldehyde Market Size

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Recent Development
  • The FDA has disregarded its own timetable and has not produced a proposal to outlaw formaldehyde in hair straightening products, which was supposed to happen in April. The idea was made in response to numerous studies that revealed a link between cancer and certain of the components in hair straightening and smoothing treatments, which are primarily used by Black women.  Why the FDA has not yet published its proposed prohibition is unknown.

Market Dynamics:

Drivers

The increasing applications of formaldehyde across diverse industries – Formaldehyde is in large demand, especially in construction and housing industry as it is essentiality plays a vital part in the production of engineered timber products such as plywood and particle-board. When countries develop and people move to cities, construction rises, particularly in emerging markets, so does the demand for cost-effective construction materials, which enhances formaldehyde usage. In the automobile industry, formaldehyde is used widely as a raw material in creating lightweight and high-strength material. Global automotive production is on the rise as a result of increasing car sales and improvements in technology and automotive manufacturing, there is a similar strong demand for the chemical in automotive manufacturing. Also, formaldehyde plays a vital role in manufacturing of articles of general use like in the textile industries. The chemical industry also increases the demand for formaldehyde since it is a reagent in the synthesis of the several chemicals used in the production of plastic, foam, and resins among others. Finally, in the medical field, this chemical is used for specimen preservation, and as a disinfectant, again underlining its significance particularly in labs and hospitals. Therefore, the increasing applications of formaldehyde in diverse industries will contribute to the market’s growth.

Restraints:

Supply chain uncertainties The volatility of prices of methanol, which is the primary ingredient in the production formaldehyde, due to political issues, shift in the prices of energy, and overall market tendencies will hamper the market’s growth. For example, where the price of oil an important feedstock in the production of methanol goes up, it is likely also that cost of production of methanol would go up in turn exerting pressure on the formaldehyde manufacturers, causing them to increase their production costs. Further, unpredictable events such as natural calamities like hurricanes or earthquake that may impair production sites or transport routes also hinder the market’s growth. The global outbreak of COVID-19 highlighted the aspect of how global health risks affect supply networks. Such interruptions not only hamper production capabilities but can also impact inventory that decreases availability of formaldehyde and its derivatives, thereby hindering the global formaldehyde market’s growth.

Opportunities:

Regulatory environment – Market demands for both formaldehyde and its uses are highly determined by regulatory adjustments in combination with concerns towards sustainability. Tighter controls in relation to indoor air quality and emissions help improve labelling accuracy and drive manufacturers to lower formaldehyde emissions by producing low-formaldehyde and no-formaldehyde products. It also improves protection for the consumers as well as encourages development in the industry. At the same time, concerns for sustainability have impacted the trends of the market. More and more consumers and manufactures are in the search of the sustainable products and technologies. Such concerns have led firms to channel their resources into research that seeks to develop superior green formaldehyde-based products, like bio-based resins. Furthermore, the circular economy idea focuses on recycles and reuse materials, which in turn, has an impact on the application of formaldehyde in manufacturing. Therefore, stringent regulatory environment contributes towards the development of better products and drive the market’s growth.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global formaldehyde market, with a 38% market revenue share in 2023.

United States and Canada have higher demand for formaldehyde products mainly because of good construction and automotive industry. Another factor is the well-developed market in North America with its established key manufacturers and innovators in the sphere of formaldehyde production. Also, the EPA standards set in North America mandate high requirements of emission standards and product safety which has spurred manufacturers to come up with more efficient technologies. This proactive approach not only increases the consumer’s confidence but will also shift North American manufacturers as leaders in sustainable formaldehyde market. Housing, automotive, and the consumption industries are continually advancing within the region and are anticipated to continue growing, therefore the demand for formaldehyde will remain high.

North America Region Formaldehyde Market Share in 2023 - 38%

 

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Application Segment Analysis

The application segment is divided into building and construction, automotive, furniture and cabinetry, textiles, health and personal care, and agriculture. The building and construction segment dominated the market, with a market share of around 37% in 2023. The largest application area of the formaldehyde is the building and construction field that has driven this market mainly through demand for production of engineered woods and resins. Formaldehyde-based resins including urea-formaldehyde and phenol-formaldehyde which are needed in the formulation of composites including plywood, particleboard, and medium-density fibre-board. These components are commonly used in construction. The growth in the urban population and disposable income in developing countries pushes up the demand for housing and construction, which will support the strong development of the formaldehyde market. The performance characteristics of construction materials is improved by incorporating formaldehyde. It helps in reducing warping, raises the moisture resistance level and increases durability.

Product type Segment Analysis

The product type segment is divided into urea-formaldehyde resins, phenol-formaldehyde resins, melamine-formaldehyde resins, polyoxymethylene (POM), and formaldehyde solutions. The urea-formaldehyde resins segment dominated the market, with a market share of around 34% in 2023. urea-formaldehyde resins hold the largest share of the formaldehyde market because of its use in the manufacturing of composite wood products and adhesives. Highly valued for their low costs, these resins are widely applied in the production of particle boards, ply boards and medium density fibre boards (MDFs) which are core products for the furniture and construction industries respectively. Also, flexibility in formulating UF resins is possible, which makes it possible to develop end products with required performance characteristics or to conform to set legislation standards. Furthermore, owing to rising strict environmental standards, there have been improvements in the formulations of urea-formaldehyde resins to low emission ones. This move towards versatility has positioned UF resins as a popular product with manufacturers who are in search of functionality together with sustainability. Since construction is fast growing across the world and especially in developing countries, requirement of urea-formaldehyde resins is likely to remain high.

End user industry Segment Analysis

The end user industry segment is divided into construction, automotive, wood products, consumer goods, and healthcare. The automotive segment dominated the market, with a market share of around 35% in 2023. Automotive Industry is one of the largest segments of end users of formaldehyde primarily because of its importance in production of a number of automotive parts. A large amount of formaldehyde is used to manufacture numerous resins, adhesives and composites that are necessary for the production of lightweight and long-term vehicle components. Manufacturers are keen on creating compounding materials with high strength to weight ratios in a bid to deliver lighter and efficient automobiles without having to reduce on mechanized safety and power output. Formaldehyde helps achieve this. Furthermore, the transition towards electrification of vehicles such as electric vehicles and hybrid vehicles is presenting new opportunities for application of formaldehyde. The robustness of the automotive industry coupled with continuous research and development in the sector continues to make formaldehyde essential in the production of automobiles.

Some of the Key Market Players:
  • BASF SE
  • Crown Holdings, Inc.
  • Duratek, Inc.
  • Formosa Plastics Corporation
  • Georgia-Pacific LLC
  • Hexion Inc.
  • Huntsman Corporation
  • Kraton Corporation
  • Methanol Holdings (Trinidad) Limited
  • SABIC
  • Wacker Chemie AG
  • Westlake Chemical Corporation

Report Description: 

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 18 Billion
Market size value in 2033 USD 26.64 Billion
CAGR (2024 to 2033) 4%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level.
Segments Application, Product Type and End User Industry

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global formaldehyde market was valued at USD 18 billion in 2023 to USD 26.64 billion by 2033.

Global formaldehyde market is growing at a CAGR of 4% during the forecast period 2024-2033.

The market's growth will be influenced by the increasing applications of formaldehyde across diverse industries.

Supply chain uncertainties could hamper the market growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global formaldehyde market based on below mentioned segments:

Global Formaldehyde Market by Application:

  • Building and Construction
  • Automotive
  • Furniture and Cabinetry
  • Textiles
  • Health and Personal Care
  • Agriculture

Global Formaldehyde Market by Product Type:

  • Urea-Formaldehyde Resins
  • Phenol-Formaldehyde Resins
  • Melamine-Formaldehyde Resins
  • Polyoxymethylene (POM)
  • Formaldehyde Solutions

Global Formaldehyde Market by End User Industry:

  • Construction
  • Automotive
  • Wood Products
  • Consumer Goods
  • Healthcare

Global Formaldehyde Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa

Methodology

Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:

MARKET RESEARCH PROCESS

Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
  • Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
  • We also have contractual agreements with various reputed data providers and third party vendors who provide information which are not limited to:
    • Import & Export Data
    • Business Trade Information
    • Usage rates of a particular product/service on certain demographics mainly focusing on the unmet prerequisites

Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

  • Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
  • Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

  • CXOs and VPs of leading companies’ specific to sector
  • Purchasing managers, technical personnel, end-users
  • Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

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