Urea Formaldehyde Resins Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• Over the short term, the increasing demand for particle boards from the furniture sector and the rising demand for medium-density fiberboard (MDF) from the construction industry are expected to drive the market's growth.
• Health hazards regarding urea-formaldehyde resins and unfavorable conditions arising from the COVID-19 outbreak are expected to hinder the market's growth.
• The building and construction segment dominated the market and is expected to grow during the forecast period.
• Asia-Pacific dominated the market across the world, with the most significant consumption from countries such as China and India.

Urea Formaldehyde Resins Market Trends

Building and Construction End-User industry to Dominate the Market

• Urea-formaldehyde market growth is widely influenced by the performance of the building and construction sector, owing to the extensive use of particle boards, plywood, and medium-density fiberboard.
• Owing to this, the demand and production of such building products also increase with growth in construction activities. While urea formaldehyde is extensively used in boards and plywood, it also influences the consumption and growth of the urea formaldehyde market.
• Asia-Pacific and North American regions have been witnessing strong growth in residential construction. Asia-Pacific is witnessing strong growth in residential construction in countries such as India, China, the Philippines, Vietnam, and Indonesia. Besides, in North America, high housing demand due to the growing population demand for homes, increased immigrants, and the trend of nuclear families are some factors driving residential construction in the region.
• China recovered from the pandemic doom. Many residential constructions kick-started in the country. China's Evergrande Group committed to building 600,000 homes in 2022. The housing authorities of Hong Kong launched several measures to push start the construction of low-cost housing. The officials aim to provide 301,000 public housing units in 10 years till 2030.
• According to the US Census Bureau and the US Department of Housing and Urban Development, in May 2022, housing in North America was completed at an annual rate of 1,465,000, which was 9.3% more than the annual rate of May 2021, which was 1,340,000.
• In Canada, various government projects, including the New Building Canada Plan (NBCP), the Affordable Housing Initiative (AHI), and Made in Canada, have supported the residential sector's expansion.
• Thus, the building and construction segment to dominate the market in the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific dominated the market across the world, with the most significant consumption from countries such as China and India.
• China is the largest producer of urea-formaldehyde resins in the world. With the increasing population, the need and demand for food are increasing daily, so the advancements in agriculture activities are changing gradually. To accomplish these changes, fertilizer performance and efficiency are necessary, resulting in increased consumption of urea-formaldehyde resins.
• China is one of the largest construction markets in the region. Non-residential infrastructure is likely to expand significantly. The country's aging population necessitates the construction of additional healthcare facilities and hospitals. The Chinese government approved 26 infrastructure projects worth approximately USD 142 billion in 2019, with completion due in 2023. The country boasts the world's largest construction market, accounting for 20% of all global construction investments. By 2030, the country will spend over USD 13 trillion on construction.
• China is the world's largest furniture manufacturer, exporter, and consumer. China's high furniture consumption is due to its large population and the growing disposable income of urban households. More than 35% of the world's furniture trade originates from China, and 40% of the world's metal furniture exports and over 60% of upholstered wooden and metal seats are produced in China. Chinese furniture manufacturers are primarily located in Guangdong, Zhejiang, Hunan, Guangxi, Jiangxi, and Shandong.
• Urea-formaldehyde resin is also used in fiberboard production. Fiberboard is used in the automotive industry to create free-form shapes, such as dashboards, rear parcel shelves, and inner door shells. China's automotive market for passenger vehicles is the largest in the world, as it accounted for 21.41 million units in 2021 compared to other major global players such as Japan, the United States, and Germany.
• Thus, the Asia-Pacific region is expected to dominate the market during the forecast period.

Urea Formaldehyde Resins Industry Overview

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