Formaldehyde Market Report 2025

The formaldehyde market size has grown strongly in recent years. It will grow from $22.55 billion in 2024 to $24.13 billion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to growth in construction and building industry, expansion of automotive manufacturing, increasing demand in furniture manufacturing, rise in textile and leather industries, utilization in agrochemicals and fertilizers.

The formaldehyde market size is expected to see strong growth in the next few years. It will grow to $32.78 billion in 2029 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to sustainable and eco-friendly formaldehyde alternatives, increased focus on green building materials, stringent regulations and emission standards, growing demand in healthcare and biomedical research, emergence of innovative industrial applications. Major trends in the forecast period include advancements in resin technology, expanding furniture manufacturing, stringent emission standards and regulations, increasing adoption in automotive sector, rising popularity of formaldehyde-free alternatives.

The growing demand in the automotive sector is expected to drive the growth of the formaldehyde market in the coming years. The automotive industry encompasses the various companies, organizations, and activities involved in designing, developing, manufacturing, marketing, and selling motor vehicles. Formaldehyde-based adhesives and resins play a significant role in manufacturing composite materials, enhancing the production of durable and robust interior components, insulation, and emission control. They are also utilized in the textile and leather sectors for specific automotive interior components. For instance, MarkLines, a Japan-based provider of automotive industry forecast reports, reported in October 2023 that auto sales in the USA rose by 2% compared to October 2022. The new vehicle sales volume for October 2023 reached 1,211,141 units, reflecting a 2% increase from the previous year. Thus, the expanding automotive industry is contributing to the growth of the formaldehyde market.

The growing emphasis on sustainability is anticipated to significantly boost demand in the formaldehyde market during the forecast period. As industries and consumers become more environmentally aware, there is a rising preference for low-emission and eco-friendly formaldehyde products. In response to this trend, manufacturers are developing sustainable alternatives and formulations that comply with stringent environmental regulations while ensuring product performance. For example, in April 2024, TheRoundUp.org, a US-based website focused on sustainable living, reported that sustainable products now hold a 17% market share and account for 32% of growth, expanding 2.7 times faster than non-sustainable options. Sustainability is important to 78% of consumers, with 62% frequently choosing products based on their environmental impact. Furthermore, 55% are willing to pay a premium for eco-friendly brands. Therefore, the increasing focus on sustainability will drive demand in the formaldehyde market.

Major companies in the formaldehyde market are enhancing their manufacturing facilities to increase production capacity. This strategic decision enables them to address the growing demand for formaldehyde across various sectors. For example, in September 2024, Kanoria Chemicals & Industries Limited, an India-based chemical manufacturer, inaugurated a new formaldehyde plant in Ankleshwar, Gujarat, with a production capacity of 345 metric tons per day (MTPD), raising the company’s total output to 763 MTPD. The facility utilizes advanced metal oxide-based technology to meet the increasing demand from industries such as pharmaceuticals, textiles, and agrochemicals, serving both domestic and international markets.

Major players in the formaldehyde market are actively pursuing the development of new products, particularly advanced chemical products, as a strategic move to secure a competitive advantage. Advanced chemical products encompass sophisticated and innovative chemical substances and materials resulting from advanced research, development, and manufacturing processes. As an example, in August 2022, SKTB Katalizator JSC, a Russia-based catalyst manufacturer, initiated the semi-commercial production of a new catalyst designed for formaldehyde synthesis. This innovative catalyst is anticipated to enhance the sustainability and efficiency of formaldehyde production. With over 46 years of experience, SKTB Katalizator JSC is a notable player in the industry, providing cutting-edge catalysts for various applications, including desulfurization, dehydrogenation, and the elimination of hazardous organic compounds. The launch of semi-commercial production for the novel formaldehyde synthesis catalyst underscores SKTB Katalizator JSC's commitment to sustainability and innovation in the chemical industry. The new catalyst is expected to contribute to the industry by improving production processes and facilitating the creation of superior formaldehyde products.

In May 2022, Bakelite Synthetics, a formaldehyde network operator based in the United States, successfully concluded the acquisition of Georgia-Pacific Chemicals for an undisclosed sum. This strategic move is anticipated to provide Bakelite Synthetics with complementary resin and new formaldehyde technology, enabling the company to cater to various end markets more effectively. Additionally, the acquisition is expected to enhance customer service capabilities and facilitate the expansion of Bakelite Synthetics' business into new geographic regions. Georgia-Pacific Chemicals LLC, the acquired entity, is a chemical manufacturer and marketer operating in the formaldehyde market based in the United States.

Major companies operating in the formaldehyde market include BASF SE, Johnson Matthey Process Technologies, AkzoNobel NV, Celanese Corporation, Georgia-Pacific Chemicals LLC, Huntsman International LLC, Hexion Inc., Allnex GMBH, Perstorp Holding AB, Acron Group, Arclin Inc., Atul Ltd., Momentive Specialty Chemical Inc., Prefere Resins Holding GmbH, Sprea Misr, Cornerstone Chemical, Metafrax, Pörner Ingenieurgesellschaft mbH, Metadynea Metafrax Group, Kanoria Chemicals & Industries Ltd., Dynea Oy, Foremark Performance Chemicals, Pacific Texchem Private Limited, Frati Luigi S.p.A, Balaji Formalin Private Limited, Alder S.p.A, Simalin Chemicals Industries Limited.

Asia-Pacific was the largest region in the formaldehyde market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the formaldehyde market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the formaldehyde market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Formaldehyde is a colorless, pungent, and irritating gas represented by CH2O, and a solution of it is produced by oxidizing methanol. It is employed as a preservative in food, paints, and cosmetics. Additionally, formaldehyde is utilized in the manufacturing of under-the-hood components and interior molded components that require resilience to high temperatures.

The primary types of formaldehyde include urea-formaldehyde, phenol-formaldehyde, melamine-formaldehyde, polyoxymethylene, and other variations. Urea-formaldehyde is a synthetic resin created through the condensation process between urea and formaldehyde, primarily used in wood-bonding adhesives, colored molded articles, and similar applications. Formaldehyde finds various applications in resins, fibers, solvents, plasticizers, drying agents, and other chemical intermediates. These applications cater to diverse end-users such as construction, furniture, automotive, healthcare, and other sectors.

The formaldehyde market research report is one of a series of new reports that provides formaldehyde market statistics, including formaldehyde industry global market size, regional shares, competitors with a formaldehyde market share, detailed formaldehyde market segments, market trends, and opportunities, and any further data you may need to thrive in the formaldehyde industry. This formaldehyde market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The formaldehyde market consists of sales of molecular formaldehyde, 1,3,5-trioxaneand methanediol. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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