Formaldehyde Market Outlook - Supply and Demand Analysis 2024-2032

Formaldehyde Market

Formaldehyde is an organic compound commonly used in the production of certain resins, fertilisers, and building materials, among others. It is a colourless and flammable compound with a pungent odour. Widely recognised for its anti-bacterial and preservative properties, it finds application in household products, like medicines, cosmetics, and antiseptics.

Global Supply/Demand Outlook

The global formaldehyde market stood at a volume of around 22,780 KT in 2023. The market is estimated to grow at a CAGR of 3.40% between 2024 and 2032 to reach a volume of about 30,510 KT by 2032. The market is supported by the increasing demand from the building and construction sector. In the construction industry, formaldehyde is used to produce building materials like adhesives and glues, plywood, particleboard, and other pressed-wood products. Urea formaldehyde resins represent the leading derivative type, accounting for nearly 38% of the global formaldehyde consumption.

The global capacity of formaldehyde was about 27,800 KT in the year 2023. It is estimated to reach nearly 35,000 KT by 2032. The Asia Pacific holds the major share of formaldehyde capacities, representing around 55% of the global production capacity. The plant capacity utilization of formaldehyde stood at 82% in 2023.

Regional Market Analysis

In terms of demand, the Asia Pacific region dominates the market with nearly 68% market share. The growing residential construction and infrastructure development, especially in countries like India and China, contribute to the downstream demand for the chemical. Additionally, rising demand for formaldehyde from other application sectors, such as to manufacture personal care products, including toothpaste and mouthwash, disinfectants, and vaccines, due to its excellent antibacterial properties, contributes to the market growth.

Key Market Players

The top five players in the market are Hexion Inc., Georgia-Pacific Chemicals, Foremark Performance Chemicals, Celanese Corporation, and BASF SE.

In 2021, Georgia-Pacific Chemicals entered an agreement to sell its chemicals business to Bakelite Synthetics, complementing Bakelite’s existing operations and formaldehyde-based business of speciality phenolics resin. The acquisition was completed by Bakelite in May 2022, adding to its strong portfolio of products, building on its growth strategy.

Other significant manufacturers of formaldehyde include Evonik Industries AG, DuPont de Nemours, Inc., Metafrax Group, LRBG Chemicals Inc., Capital Resin Corporation, Alder S.P.A., and Alfa Aesar.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for formaldehyde by end use and region?

• What are the derivatives of formaldehyde available by region?

• Which segments and regions are projected to grow at a faster pace and why in the formaldehyde market?

• What is the nameplate capacity of formaldehyde by region from 2018 to 2032?

• How does the plant capacity utilisation of formaldehyde vary by region between 2018 and 2032?

• Who are the major players in the formaldehyde market by capacity and region?

• What major plant shutdowns and expansions have occurred in the formaldehyde market in the last year and the last quarter?

• What major plant shutdowns and expansions are planned in the formaldehyde market over the next year and quarters?

• How did export and import dynamics of formaldehyde vary by region in terms of value between 2018 and 2023?

• How did export and import dynamics of formaldehyde vary by region in terms of volume between 2018 and 2023?

• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of formaldehyde?

• What are the environmental considerations and regulatory impacts affecting the formaldehyde market?

• What technological innovations are having an impact on the production and application of formaldehyde?

• What are the key trends and innovations in the formaldehyde market?

• What are the challenges and opportunities faced by formaldehyde manufacturers?

• What are the potential risks and barriers to entry for new players in the formaldehyde market?

• What strategic investments and expansions have major players made in the formaldehyde market?

• How are geopolitical factors and international trade policies affecting the global formaldehyde market?

• What are the price trends for formaldehyde, and how are they expected to change?

• How does the supply chain of formaldehyde operate, and what are its key components?