Formaldehyde Market Size, Share & Industry Analysis, By Application (Urea Formaldehyde (UF) Resins and Concentrates, Phenol Formaldehyde (PF) Resins, Polyoxymethylene (POM), Paraformaldehyde, and Others), By End-use Industry (Building & Construction, Automotive, Furniture, Textile, Healthcare, Oil & Gas, Agriculture, Water Treatment, Cleaning Products, and Others), and Regional Forecast, 2024-2032

The global formaldehyde market size was valued at USD 7.89 billion in 2023 and is projected to grow from USD 8.35 billion in 2024 to USD 13.25 billion by 2032, exhibiting a CAGR of 5.9% during the forecast period. Asia Pacific dominated the formaldehyde market with a market share of 60.46% in 2023.

Formaldehyde is a colorless organic compound, which is gaseous at room temperature and is stored in the aqueous solution form. It is used to manufacture plywood, paper, fertilizers, and resins, and is also used in food preservation and household products, including antiseptics, cosmetics, and medicines. Moreover, its different derivatives are used in urea-formaldehyde resins and concentrates, phenol-formaldehyde resins, polyoxymethylene, and paraformaldehyde in several end-use industries, such as building & construction, automotive, furniture, textile, healthcare, oil & gas, agriculture, water treatment, and cleaning products.

The COVID-19 pandemic negatively impacted the global market. Supply chain disruptions, factory shutdowns, and reduced demand from end-use industries, such as construction, automotive, and textile, led to declined product manufacturing and sales. However, the increased need for disinfectants and sanitizers in which product is used partially offset the decline.  With gradual control over the spread of the pandemic and a reduction in COVID-19 cases, the market recovered at a considerable rate and is anticipated to have significant growth prospects in the near future.

Global Formaldehyde Market Overview

Market Size & Forecast:

• 2023 Market Size: USD 7.89 billion
• 2024 Market Size: USD 8.35 billion
• 2032 Forecast Market Size: USD 13.25 billion
• CAGR: 5.9% during 2024–2032

Market Share:

• Asia Pacific dominated with a 60.46% share in 2023

Regional Insights

• Asia Pacific: Largest market (~USD 4.77 billion in 2023), driven by rapid industrialization, construction growth, automotive expansion, and rising agriculture. China and India lead the demand surge.
• North America & Europe: Moderate growth led by construction, automotive, furniture, and cleaning product sectors.
• Latin America & Middle East & Africa: Growing demand due to industrialization, infrastructure projects, and economic diversification, particularly in Brazil, Mexico, South Africa, UAE, and Saudi Arabia.

Formaldehyde Market Trends

Increasing Demand from Furniture Industry to Present Lucrative Opportunities for Market Growth

The rising demand in the furniture industry is creating lucrative opportunities for the formaldehyde market growth. Formaldehyde is a key component in producing composite wood products, such as particleboard, plywood, and medium-density fiberboard, which are extensively used in furniture manufacturing. As consumer preferences shift toward stylish and affordable furniture, the demand for these composite materials is increasing. Resins, such as urea and phenol formaldehyde, are essential adhesives in furniture production due to their strong bonding properties and cost-effectiveness. The growth of the real estate sector and the rising home renovation trend further boost furniture sales, driving product demand.   

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Formaldehyde Market Growth Factors

Rising Building & Construction and Automotive Industries to Drive Market Growth

The rising building & construction and automotive industries are expected to drive demand for formaldehyde during the forecast period owing to a wide range of applications. It is a key chemical used in the production of resins, such as urea formaldehyde resins, phenol formaldehyde resins, and melamine formaldehyde, which are widely used in the production of building materials, such as particleboard, plywood, and insulation. The building and construction industry is growing at a faster pace in various regions, with significant investment from public and private players. For instance, in 2021, the Biden administration developed the Bipartisan Infrastructure Law. Under this initiative, the government has kept a target of spending around USD 1.2 trillion to fund infrastructure projects, which include a range of civil construction projects across the country.

In the automotive industry, formaldehyde-based resins are used to produce high-performance materials, such as plastics, adhesives, and coatings, which are essentially employed in vehicle manufacturing. In recent years, the automotive sector has witnessed a paradigm shift, with stakeholders bidding high on the electric future. For instance, major automakers, such as Tata, Ford, Volkswagen, Toyota, and General Motors have invested significantly in the development of hybrid and electric vehicles. Further, the rising consumer demand and technological innovations are anticipated to significantly drive the growth of the automotive industry, propelling market growth.

RESTRAINING FACTORS

Health and Environmental Concerns Associated with the Product to Limit Market Growth

Formaldehyde is a gas at room temperature and is classified as a carcinogen. Prolonged exposure to it can lead to serious health issues, including respiratory diseases and cancer. These concerns have led to stringent regulations and standards for the production and use of products in different industries. Compliance with these regulations requires technological modification in the manufacturing process and product formulations, which are expensive and affect profitability. Consequently, various end-use industries are opting for alternatives to comply with the environmental regulations and standards, which is anticipated to limit the market growth.

Formaldehyde Market Segmentation Analysis

By Application Analysis

Urea Formaldehyde Resins and Concentrates Segment Dominate with Higher Demand from Building & Construction and Automotive Industries

Based on the application, the market is segmented into Urea Formaldehyde (UF) resins and concentrates, Phenol Formaldehyde (PF) resins, Polyoxymethylene (POM), paraformaldehyde, and others. Among these segments, the urea formaldehyde resins and concentrates segment held the largest market share in 2023. It is expected to maintain its position during the forecast period, owing to higher demand from the building & construction and automotive industries. These resins are crucial in manufacturing adhesives, coatings, and molded products used in the construction and automotive sectors.

The polyoxymethylene segment is also expected to witness considerable growth owing to its extensive use for the production of precision parts for automotive, consumer electronics, and industrial machinery. Paraformaldehyde is a polymerized product that is growing significantly due to its applications in the manufacturing of pharmaceuticals, chemicals, and agrochemicals.

The others segment is expected to grow at a considerable growth rate over the estimated timeframe. The segment’s growth is credited to the rising product demand for the preparation of derivatives, such as pentaerythritol, methylene diphenyl diisocyanate, 1,4 butanediol, hexamine, and melamine formaldehyde used in different industries.

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By End-use Industry Analysis

Building & Construction Industry Leads Owing to Higher Product Adoption for Different Applications

Based on end-use industry, the market is segmented into building & construction, automotive, furniture, textile, healthcare, oil & gas, agriculture, water treatment, cleaning products, and others.

The building & construction segment held the largest formaldehyde market share in 2023 and is anticipated to retain its dominance during the forecast period owing to rising construction activities in several regions. The rising adoption of fiberboard, plywood, particle boards, and other engineered wood products in the building and construction industry is the key factor responsible for the largest share held by the industry.

The automotive industry held a significant market share owing to increasing product demand for the manufacturing of high-performance plastics components and coatings. In the textile industry, the product is used for fabric treatment to enhance wrinkle and stain resistance. In the oil and gas industry, the product finds applications in drilling fluids and production processes.

The healthcare segment is also growing at a considerable rate owing to product usage in the manufacturing of vaccines and as a disinfectant. The agriculture industry leverages products for preservatives and fumigants.

The water treatment segment is also expected to grow considerably owing to product use as a biocide. The cleaning products industry incorporates products as an effective antimicrobial agent in different products. Therefore, rising industrialization and increasing consumer expenditure are anticipated to drive market growth.

REGIONAL INSIGHTS

The market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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Asia Pacific held the largest share, accounting for USD 4.77 billion of the global market in 2023. The region is witnessing the fastest growth owing to rapid industrialization and urbanization, especially in China and India. The construction industry boom and the expansion of the automotive and textile industries drive substantial product demand. Rising consumer expenditure and increasing health awareness are the factors propelling the demand for products from the water treatment and cleaning product industries. Moreover, the rapidly growing agriculture industry in Asia Pacific is anticipated to drive market growth significantly.

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The market in North America and Europe is growing at a moderate rate and is anticipated to witness favorable growth during the forecast period. The market in these regions is primarily driven by the construction and automotive industries. Along with this, the higher demand from the furniture industry is significantly driving the market growth. The oil and gas industry in these regions consumes considerable amounts of the product. Significant consumer expenditure for cleaning products is anticipated to grow further during the forecast period, which is crucial for maintaining the momentum of market growth.

Latin America and the Middle East & Africa are expected to witness considerable growth during the forecast period.  The rising industrial activities in the major economies of these regions, including Brazil, Mexico, South Africa, the UAE, and Saudi Arabia, drive product demand primarily in the construction and furniture sector. Ongoing infrastructure projects and economic diversification efforts in the Gulf countries are anticipated to impact the market growth during the forecast period positively.

KEY INDUSTRY PLAYERS

Acquisition is the Key Strategic Initiative Implemented by Companies to Gain Position

Major players operating in the formaldehyde market are BASF SE, Dynea, Hexion Inc., Perstorp Holding AB, Celanese Corporation, Foremark Performance Chemicals, and Bakelite Synthetics. Prominent players in the market are engaged in strategic expansion through the acquisition of small regional players. Many companies in the market are actively engaged in enhancing their production capacity to meet the rising demand. Many key manufacturers in the industry are involved in supply agreements with raw material suppliers to ensure the continuous supply of raw materials. The larger companies in the market are making the transition toward sustainable product manufacturing.

List of Top Formaldehyde Companies:

• BASF SE (Germany)
• Dynea (Norway)
• DB Western Inc. (U.S.)
• Huaqiang Chemical Group Stock Co., Ltd. (China)
• Çamsan Entegre (Turkey)
• Hexion Inc. (U.S.)
• CHIMICA POMPONESCO S.P.A. (Italy)
• Perstorp Holding AB (Sweden)
• Celanese Corporation (U.S.)
• Foremark Performance Chemicals (U.S.)
• Bakelite Synthetics (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 – Foremark Performance Chemicals acquired NexGen Chemical Technologies. The move is anticipated to help the company transition to clean energy.
• May 2022 – Bakelite Synthetics acquired Georgia Pacific Chemicals. The move significantly expanded the company's production capacity and geographical footprint in different regions globally, thereby strengthening its position.

REPORT COVERAGE

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The report provides a detailed market analysis and focuses on crucial aspects such as leading companies, sources, applications, and products. Additionally, it offers insights into market trends and dynamics and highlights vital industry developments and market outlook. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth over recent years.

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Report Scope & Segmentation