Global Formaldehyde Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Industry Vertical (Agriculture, Construction, Chemical, Automotive, Others), By Distribution Channel (Online, Offline), And By Geography- Forecasts From 2020 To 2025
Published:  May 2021 Report Code: KSI061613845 Pages: 120

The global formaldehyde market is predicted to augment at a significant CAGR over the forecast period, the estimated value for 2019 is accounted to be USD21.095 billion.

formaldehyde is quite simple, and naturally occurring chemical that is composed of hydrogen, oxygen, and carbon. Its chemical formula is CH2O or HCHO. The chemical holds importance in being one of the most versatile substances for the production of varied goods. With important applications in the construction and automotive industries. The growing construction industry with varied commercial and residential projects is fueling the market demand during the forecast period. However, the current novel coronavirus pandemic crisis has put a hard hit on the global chemical sector along with the shut-down of varied construction activities worldwide. This has impacted the market growth in 2020. However, with the recovery in the end-use industries, the market is predicted to propel till the end of the forecast period. Based on geography, the market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. The Asia Pacific region is projected to hold a significant market share followed by the European region in the forecast period.

Formaldehyde is known to have excellent adhesive and binding properties; hence, it is widely utilized for making resins. These resins are then used for the production of wood products that are used for making furniture. 

Other applications of formaldehyde include preservation of tissue specimens in biology labs, also they are helpful in preserving the shape of the specimen; it is also utilized for the production of sanitary paper products like paper towels and tissues, and it is also utilized in the development of photography film among other applications.  

However, concerns regarding formaldehyde being hazardous to human health are posing a threat in impeding the market growth during the forecast period.

global formaldehyde market

The utilization of formaldehyde as a disinfectant in the agriculture industry is burgeoning the market demand during the forecast period.

Formaldehyde in the form of disinfectant is used in the poultry industry in the hatcheries. The formaldehyde solutions as germicides are used for killing bacteria, viruses, and mold for the reduction of contamination. Additionally, the chemical in different formulations is utilized in slow-release fertilizers. Companies such as Hexion offer formaldehyde formulations like formaldehyde derivatives and urea-formaldehyde for these fertilizers. Products include formaldehyde 52% solution, formaldehyde 50% solution, and urea-formaldehyde concentrate. Thus, with the manufacturing of slow-release fertilizers that provide a sustainable supply of nutrition to plants for an extended time period, the market is projected to grow at a significant pace during the forecast period. The use of fertilizers is mainly supported by the growing global population with the growing global food demand for enhancing the crop yield. As per the World Bank, the global population is estimated to grow from 7.17 billion in 2013 to 7.674 billion in 2019.

global formaldehyde market

As per the European Union predictions, the total population of the world is predicted to remain the main driver for the global food demand. In addition, the per capita consumption has also significantly increased. This is mainly attributed to the facilitation via trade where the per capita consumption has surged faster than the growing population. The growing income resulting in the consumption of food products that are of high quality are gaining popularity. The change in consumption patterns has been observed with time along with the changing consumer preferences resulting out of societal habits, health concerns, and concerns regarding environmental and climate change issues. The consumption of meat and dairy products has also gained momentum with time in the developing economies of the world with the rise in income. Due to environmental concerns, a decline in the consumption of meat, specifically, red meat has been observed in the regions of Asia and Africa. However, the growth remained stable in the European Union and South American regions, whereas, in North America, the growth was bolstered.

The presence of companies offering formaldehyde-based products along with strategic partnerships for formaldehyde projects is fueling the market growth during the forecast period.

Hexion Inc. is a pioneer in the production of formaldehyde-based resins for the forest products industry in the North American region. The company further announced holding significant positions in the regions of Latin America, Australia, New Zealand, and Europe. The company’s formaldehyde-based resins are an important adhesive and binding ingredient that is utilized for the production of a wide variety of engineered lumber commodities. The products include medium-density fiberboard, particleboard, oriented strand board, and varied types of plywood, and laminated veneer lumber. The product finds huge applications in construction, furniture, and remodeling industries. Furthermore, the company offers formaldehyde as a crucial ingredient for the manufacturing of chemicals and products that include methylene diphenyl diisocyanate, and butanediol. The company’s formaldehyde products find applications in the agriculture, energy, and automotive industries as well. As the forest products and formaldehyde have a short shelf life, the manufacturing capabilities of the company are strategically based in close proximity to the customers.

Dynea, situated in Norway, is a specialist manufacturer of wood adhesives. The company is a pioneer with a strong production footprint in Europe. The company offers formaldehyde under specialty adhesive and polymers section. Formaldehyde is available in a wide range of concentration and quality grades. The product is produced in the form of an intermediate product.

Furthermore, the presence of companies collaborating for formaldehyde production projects is further providing an impetus in fueling the market growth during the forecast period. In 2019, the Clariant announced a partnership with Wuxi Xiyuan for two novel projects in order to supply their combined formaldehyde production technology. The new contracts are aimed towards increasing the number of customers that use Clariant’s state-of-the-art technology to six in a very short period of time. The fast rise in demand is attributed to the technology’s higher efficiency and selectivity in comparison to the conventional method of formaldehyde production that is based on silver.

The innovative solution is deployed by the Wuxi Xiyuan in its three formaldehyde plants situated in China and India. The fourth plant that is ready to use the technology is poised to be installed in China, Jiangsu province. The operation is poised to start from Q2 2019. The predicted annual capacity of formaldehyde is around 240 kilotons.

Concerns regarding the hazardous health effects of formaldehyde are predicted to impede market growth during the forecast period.

Formaldehyde is known to have significant adverse health effects on humans. The chemical is a well-regulated substance, still, heath agencies continue to evaluate its safety. For example, the World Health Organization and International Agency for Research on Cancer along with the National Toxicology Program that lies within the United States Department of Health and Human Services filed formaldehyde as a carcinogen. The EPA, under its Integrated Risk Information System (IRIS), unveiled a draft of a toxicological review of formaldehyde in 2010. This stated that the chemical fulfills the criteria of being described as carcinogenic to humans. The draft IRIS toxicological review was reviewed by the National Academy of Sciences and a report on April 2011 was issued. This criticized the IRIS review on formaldehyde toxicology, further stating that the methodologies and underlying science in the draft does not provide a clear conclusion that there is a causal link between formaldehyde exposure and leukemia, and would further require a risk evaluation. The European Chemicals Agency (ECHA), classified formaldehyde as a category 2 mutagen with effect from 1st January 2016. It also rejected its reclassification as a category 1A carcinogen. Hence, it is quite possible that novel regulatory requirements could be put forward on a wide scale so as to limit the exposure of formaldehyde to humans. The companies in the formaldehyde business would require to incur significant costs for meeting such regulatory requirements leading to the reduction in demand for formaldehyde-based products. Additionally, the additional costs and reduction in demand, would, in turn, have an adverse effect on the companies’ operations and profitability. Hence, causing an impact on hampering the market growth during the forecast period.

As per the EPA, there have been the highest levels of airborne formaldehyde detected in the indoor air. This is known to be released through varied consumer products like building materials, and home furnishings. The source of higher levels of formaldehyde is reported from novel manufactured or mobile homes in comparison to traditional homes. The major sources reported are power plants, manufacturing units, exhaust emissions coming from automobiles, and incinerators. In addition, it has been reported by the EPA that smoking is an important source of formaldehyde. Several acute and chronic effects of formaldehyde have been noticed. These include toxic effects caused by the chemical through the inhalation include eyes, nose, throat, and nasal cavity irritation. The effects observed on inhalation are coughing, chest pains, wheezing, and bronchitis. Formaldehyde, when ingested, results in the corrosion of the gastrointestinal tract and inflammation. Mouth ulcers, ulcers of the esophagus, and stomach are also reported. On the other hand, the non-cancer chronic effects of formaldehyde include eyes, nose, and throat irritation. Continuous contact with formaldehyde liquid solutions has led to causing skin irritation and allergic contact dermatitis in human beings. Developmental and reproductive effects were also observed in female workers using formaldehyde resins.

Global Formaldehyde Market Scope:

Report Metric Details
 Market size value in 2019  US$21.095 billion
 Growth Rate  CAGR of during the forecast period
 Base year  2019
 Forecast period  2020–2025
 Forecast Unit (Value)  USD Billion
 Segments covered  Industry Vertical, Distribution Channel, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered Dynea AS, Johnson Matthey, Foremark Performance Chemicals, Hexion Inc., Alder S.p.A, Georgia-Pacific Chemicals, Perstorp Holding AB, Celanese Corporation, BASF SE, Sprea Misr, Balaji Formalin Private Limited, Mansoura for Resins & Chemical Industries Co. (MRI), Wuxi Xiyuan Engineering Technology Co., Ltd., Kronoplus Limited, Oman Formaldehyde Chemical Company LLC (OFCC)
 Customization scope  Free report customization with purchase

Segmentation:

  • By Industry Vertical
    • Agriculture
    • Construction
    • Chemical
    • Automotive
    • Others
  • By Distribution Channel
    • Online
    • Offline
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • UK
      • Germany
      • Italy
      • Spain
      • Netherlands
      • Russia
      • Others
    • Middle East and Africa
      • UAE
      • Israel
      • Saudi Arabia
      • Others
    • Asia Pacific
      • Japan
      • China
      • India
      • Australia
      • Others

Frequently Asked Questions (FAQs)

Q1. What is the size of the global formaldehyde market?
A1. The global formaldehyde market was valued at US$21.095 billion in 2019. 
 
Q2. Who are the major players in the formaldehyde market?
A2. Prominent key market players in the formaldehyde market include Dynea AS, Johnson Matthey, Foremark Performance Chemicals, Hexion Inc., Alder S.p.A, Georgia-Pacific Chemicals, Perstorp Holding AB, Celanese Corporation, BASF SE, Sprea Misr, Balaji Formalin Private Limited, Mansoura for Resins & Chemical Industries Co. (MRI), Wuxi Xiyuan Engineering Technology Co., Ltd., Kronoplus Limited, Oman Formaldehyde Chemical Company LLC (OFCC), among others.
 
Q3. How is the global formaldehyde market segmented?
A3. The global formaldehyde market has been segmented by industry vertical, distribution channel, and geography.
 
Q4. What factors are anticipated to drive the formaldehyde market growth?
A4. The growing construction industry with varied commercial and residential projects is fueling the market demand during the forecast period.
 
Q5. Which region holds the largest market share in the formaldehyde market?
A5. The Asia Pacific region is projected to hold a significant share in the formaldehyde market.
1. Introduction
1.1. Market Definition
1.2. Market Segmentation
 
2. Research Methodology
2.1. Research Data
2.2. Assumptions
 
3. Executive Summary
3.1. Research Highlights
 
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porters Five Forces Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
 
5. Global Formaldehyde Market Analysis, by Industry Vertical
5.1. Introduction
5.2. Agriculture
5.3. Construction
5.4. Chemical
5.5. Automotive
5.6. Others
 
6. Global Formaldehyde Market Analysis, by Distribution Channel
6.1. Introduction
6.2. Online
6.3. Offline
 
7. Global Formaldehyde Market Analysis, by Geography
7.1. Introduction
7.2. North America
7.2.1. North America Formaldehyde Market, By Industry Vertical, 2019 to 2025
7.2.2. North America Formaldehyde Market, By Distribution Channel, 2019 to 2025
7.2.3. By Country
7.2.3.1. United States
7.2.3.2. Canada
7.2.3.3. Mexico
7.3. South America
7.3.1. South America Formaldehyde Market, By Industry Vertical, 2019 to 2025
7.3.2. South America Formaldehyde Market, By Distribution Channel, 2019 to 2025
7.3.3. By Country
7.3.3.1. Brazil
7.3.3.2. Argentina
7.3.3.3. Others
7.4. Europe
7.4.1. Europe Formaldehyde Market, By Industry Vertical, 2019 to 2025
7.4.2. Europe Formaldehyde Market, By Distribution Channel, 2019 to 2025
7.4.3. By Country
7.4.3.1. UK
7.4.3.2. Germany
7.4.3.3. Italy
7.4.3.4. Spain
7.4.3.5. Netherlands
7.4.3.6. Russia
7.4.3.7. Others
7.5. Middle East and Africa
7.5.1. Middle East and Africa Formaldehyde Market, By Industry Vertical, 2019 to 2025
7.5.2. Middle East and Africa Formaldehyde Market, By Distribution Channel, 2019 to 2025
7.5.3. By Country
7.5.3.1. United Arab Emirates
7.5.3.2. Israel
7.5.3.3. Saudi Arabia
7.5.3.4. Others
7.6. Asia Pacific
7.6.1. Asia Pacific Formaldehyde Market, By, Industry Vertical 2019 to 2025
7.6.2. Asia Pacific Formaldehyde Market, By Distribution Channel, 2019 to 2025
7.6.3. By Country
7.6.3.1. Japan
7.6.3.2. China
7.6.3.3. India
7.6.3.4. Australia
7.6.3.5. Others
 
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
 
9. Company Profiles 
9.1.   Dynea AS
9.2. Johnson Matthey
9.3. Foremark Performance Chemicals
9.4. Hexion Inc.
9.5. Alder S.p.A
9.6. Georgia-Pacific Chemicals
9.7. Perstorp Holding AB
9.8. Celanese Corporation
9.9. BASF SE
9.10. Sprea Misr
9.11. Balaji Formalin Private Limited
9.12. Mansoura for Resins & Chemical Industries Co. (MRI)
9.13. Wuxi Xiyuan Engineering Technology Co., Ltd.
9.14. Kronoplus Limited 
9.15. Oman Formaldehyde Chemical Company LLC (OFCC)

Dynea AS

Johnson Matthey

Foremark Performance Chemicals

Hexion Inc.

Alder S.p.A

Georgia-Pacific Chemicals

Perstorp Holding AB

Celanese Corporation

BASF SE

Sprea Misr

Balaji Formalin Private Limited

Mansoura for Resins & Chemical Industries Co. (MRI)

Wuxi Xiyuan Engineering Technology Co., Ltd.

Kronoplus Limited

Oman Formaldehyde Chemical Company LLC (OFCC)

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