H1 2023: The significant players in the global Formaldehyde market were Perstorp Chemicals GmbH, Dynea, BASF, and Bakelite Synthetics. In April 2023, Kanoria Chemicals & Industries Limited (KCI), one of the leading chemical producers of India, announced about a brownfield expansion of Formaldehyde at Ankleshwar, Gujarat by 99 thousand tonnes per annum. The expansion is likely to be completed by 2025. The aim of the expansion is to be able to meet the growing demand of Formaldehyde in the Western part of India. The most advanced Metal Oxide-based technology will be used in the planned formaldehyde facility. The region's and export markets' rising needs in several industries including engineering wood, textiles and clothing, agrochemicals, drugs, etc., will be met by this additional capacity. In H1 2023, Asia Pacific region witnessed mixed Formaldehyde market. In January and February, the formaldehyde market in the Asia Pacific region had an upward price trend. It was due to the high demand for formaldehyde by the downstream chemical industries like Urea Formaldehyde Resins & Concentrates and Phenol Formaldehyde Resins. In China's formaldehyde market, high demand by the downstream industries led to the surge in prices. The demand for formaldehyde from the plastic and downstream preservation industries declined in March 2023 in China and other Asian nations. However, prices continued to fall in the Asian Nations from April 2023. Weak cost support from the upstream methanol market contributed to the significant lowering of Formaldehyde production costs in China.
H1 2022: During H1 2022, the total production of Formaldehyde was approximately 11.8 million tonnes. The prominent market players in the global Formaldehyde market were Perstorp Chemicals GmbH, Bakelite Synthetics, Dynea, and Ercos. Although, Perstorp Chemicals GmbH stood as the largest producer of Formaldehyde in H1 2022. In May 2022, Bakelite Synthetics completed the acquisition of the Georgia-Pacific Chemicals. Bakelite Synthetics made this move to expand its production and its vision of reaching more consumers across the U.S. by an organic means. Geographically, Asia Pacific held the position of the largest consumer of Formaldehyde during H1 2022. Asia Pacific witnessed mixed market prices of formaldehyde during H1 2022. Formaldehyde prices rose during February 2022 due to improved market sentiment and the impact on the manufacturing sector of China due to February's Winter Olympics and Chinese New Year celebrations. Methanol raw material prices rose due to strong cost support and buying interest from the downstream industries. However, in India, prices settled lagged till mid-February 2022 and then accelerated. Asian formaldehyde manufacturers players reported that the consumption of formaldehyde was very limited in the region. However, formaldehyde prices dipped in April 2022 across Asia. Formaldehyde prices continued to fall in the Asia-Pacific region from April 2022. It was due to excess supply of raw material methanol. The decline in the demand for formaldehyde from the preservatives industry had impacted formaldehyde prices which led to changes in price developments.
H2 2022: In October 2022, Balaji formalin announced about expansion of its plant at Patalganga, India. The total production capacity of formaldehyde by the company is estimated to reach nearly 370 thousand tonnes by 2023. In H2 2022, Asia Pacific experienced a bearish Formaldehyde pricing. Formaldehyde prices fell in July 2022 based on lower formaldehyde demand by the consumers and weak market sentiment. However, Prices accelerated in August 2022- September 2022 on the basis of inventory utilization and strong demand for formaldehyde from the downstream industries like preservation and canning industry. In China, the formaldehyde market followed a stable price trend during October-November 2022 due to healthy demand of formaldehyde by the downstream industry. There was abundance of methanol inventories and lower costs for raw stocks drove prices down in December 2022 across China. In December 2022, the demand for formaldehyde was sluggish and supply is plentiful which led to the substantial decline in the formaldehyde prices in the Chinese market. Downstream companies had sufficient inventories to meet market needs of China. Amid weak market fundamentals, market trends such as high inventories, sluggish domestic demand, led to fall in formaldehyde prices across the Asian nations. Similarly, formaldehyde prices looked dark across Germany as well. Major causes like weak demand and weak trade fundamentals pushed German formaldehyde prices down the last three months of 2022. Formaldehyde imports significantly declined in Germany due to ample of inventories and weak demand for formaldehyde in the nation.
The global Formaldehyde market demand stood at 23 million tonnes in 2022 and is expected to grow at a CAGR of 3.39% during the forecast period until 2032.
Formaldehyde is an aldehyde and is a highly flammable, colorless gas with a strong pungent smell. It is mainly produced by the vapor-phase oxidation of methanal. Naturally, it is produced by almost every living organism during cellular metabolism. Formaldehyde is used extensively as a precursor in the production processes of various chemicals, like industrial resins, for manufacturing plywood, particle boards, fiberboards, adhesives and glues, permanent press fabrics, industrial coatings, and insulation materials. It also finds application in dyes, glass mirrors, cellulose esters and artificial silk, organic chemicals, explosives, industrial disinfectant, as a preservative, storage houses, utensils, clothes, etc., as a fungicide or germicide in agriculture, the tanning industry, waterproofing of fabrics, preserving & coagulating rubber latex, as embalming fluids, in the manufacture of photographic materials, antiseptics, in pulp & papers treatment, in cosmetics, fuels, mouth wash, in surgical instruments sterilization and germicidal soap, etc.
The primary driver of the global Formaldehyde market is its usage in the building & construction sector. Formaldehyde resins are heavily used in this sector because of their properties such as stiffness, scratch resistance, moisture & mold resistance, high tensile strength, low coefficient of friction, high heat-distortion temperature, and cost-effectiveness. Formaldehyde finds applications in the form of Industrial resins, such as Urea-Formaldehyde resin, Phenol-Formaldehyde resin, Melamine- Formaldehyde resin, and acetal resin. These resins are majorly used as thermosetting plastics in Building & Construction, Household & Kitchenware, and automotive domains. Among these resins, Urea-Formaldehyde is the leading segment in terms of demand. The formaldehyde Market is expected to grow at a significant rate over the forecast period owing to its vast applications and reach a volume of 36 million tonnes by 2032.
Based on region, the Asia Pacific is dominating the Formaldehyde market. In 2022, Asia Pacific held demand of approximately 55% of the global Formaldehyde market. It is anticipated that Asia Pacific will remain the biggest consumer in the forecast period owing to robust growth in demand for formaldehyde-based applications in construction activities and infrastructure development in countries like India, China, and Japan. The textile industry in this region is also a contributing factor to fuel the market due to the increasing demand for Formaldehyde in improving the fastness of dyes and pigments on fabrics, tanning & preserving hides to prevent its decomposition, and making the fabric more durable. The formaldehyde market is anticipated to grow during the forecast period due to impelling demand from end-use industries such as Building & Construction coupled with its utilization in Chemical and Automotive. As of 2022, China has been the leading producer of Formaldehyde among the other regions of the globe.
Based on the end-user industry, the global Formaldehyde market is segmented into Urea Formaldehyde (UF) Resins & Concentrates, Phenol Formaldehyde (PF) Resins, Polyoxymethylene/ Polyacetal (POM), Paraformaldehyde, and Others. Among these, Urea Formaldehyde (UF) Resins & Concentrates industry is leading the global Formaldehyde market and held approximately 38% of the market in 2022 and is expected to maintain its position in the forecast period as well. In the coming years, increased residential and commercial construction due to an increase in population around the world is predicted to lead to an increase in demand for phenol formaldehyde resin. These resins are also used in the creation of paints and coatings due to their exceptional durability against chemicals, moisture, and Ultraviolet rays.
Major players in the production of Global Formaldehyde are Nantong jiangtian Chemical Co., LTD, Balaji formalin, Kanoria Chemicals & Industries, Shandong Yu Shi Ju Chemical Co. ltd, Simalin Chemical Industries Private Limited, Shandong Yushiju Chemical, Shandong Sunny Wealth New Materials, Hebei yuhang chemical industry co.,ltd, Linyi Jinyuan Chemical Co., Ltd, Huaqiang Chemical Group Co., LTD, Sinopec Sichuan Vinylon Works, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Formaldehyde which covers production, demand and supply of Formaldehyde market in the globe.
• To analyse and forecast the market size of Formaldehyde
• To classify and forecast Global Formaldehyde market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Formaldehyde market in the globe.
To extract data for Global Formaldehyde market, primary research surveys were conducted with Formaldehyde manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Formaldehyde market over the coming years.
ChemAnalyst calculated Formaldehyde demand in the globe by analyzing the historical data and demand forecast which was carried out considering the production of raw material to produce Formaldehyde. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Formaldehyde manufacturers and other stakeholders
• Organizations, forums and alliances related to Formaldehyde distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Formaldehyde manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Formaldehyde market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
23 million tonnes
Market size Volume by 2032
36 million tonnes
Growth Rate
CAGR of 3.39% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Foreign Trade, Company Share, Manufacturing Process, Policy and Regulatory Landscape,
Segments covered
By End-Use: [Urea Formaldehyde (UF) Resins & Concentrates, Phenol Formaldehyde (PF) Resins, Polyoxymethylene/ Polyacetal (POM), Paraformaldehyde, and Others]
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Member - Board of Directors
Osaka Gas Co. Ltd
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What was global market size of Formaldehyde in terms of volume in 2022?
Ans:
The global market size of Formaldehyde has grown significantly in the historical years and reached approximately 23 million tonnes in 2022.
Q2.
Which region is leading as a consumer of Formaldehyde?
Ans:
Asia Pacific is the leading consumer of Formaldehyde, which produced roughly 55% of the global Formaldehyde in 2022.
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