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Formaldehyde Market Size - By Derivative (PF Resins, UF Resins, MF Resins, Polyoxymethylene/Polyacetal, Methylene Diphenyl Diisocyanate, Pentaerythritol, 1,4 Butanediol, Paraformaldehyde, Hexamine) and End-use Applications & Forecast, 2021- 2027

  • Report ID: GMI3751
  • Published Date: Sep 2021
  • Report Format: PDF

Formaldehyde Market Size

Formaldehyde Market size surpassed USD 4,350 million in 2020 and is projected to grow over a CAGR of 5% from 2021 to 2027 due to the increasing demand for formaldehyde to produce polymers. The rising demand for plasticizers in various industries such as automotive, construction, and consumer goods is creating favorable conditions for market growth.

Formaldehyde is used as a precursor to formulate chemical compounds and important industrial materials. It is used in textile finishing and in the manufacturing of resins that act as binders & adhesives in products such as pulp, plastics, wood products, paper, coatings, paints, varnishes, and various industrial chemicals. It is available naturally and is a major source of organic compounds. Furthermore, synthesized formaldehyde has several medical uses owing to which it is in high demand in various applications.

Formaldehyde Market Outlook

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Several policies in Europe have levied stringent regulations on the usage of these products owing to their potentially hazardous effects on consumer health. The REACH regulation 1907/2006/EC restricts the usage of formaldehyde and formaldehyde releasers, which are used as antimicrobial preservatives in many consumer products and textile applications. Strict government regulations on the use of formaldehyde in several consumer goods applications are likely to hinder the formaldehyde market growth.

Formaldehyde Market Analysis

The paraformaldehyde derivative segment is poised to surpass USD 275 million by the end of 2027. Paraformaldehyde is considered the smallest form of polyoxymethylene. These polymerized products of formaldehyde, which has a degree of polymerization between 8 - 100 units dissolve rapidly in water to chemically combine and form methylene hydrate. As paraformaldehyde is a condensed form of formaldehyde, it possesses the same characteristics but with a wider range of applications.

Formaldehyde Market by Paraformaldehyde Derivative

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Paraformaldehyde finds application in various sectors including the paint industry, chemical & pharmaceutical industry, and agrochemical industry. It is used in coating applications owing to its low acid content, which aids in gloss control and thermal stability. Its low acid content also prevents the formation of acidic by-products and eliminates the risk of transporting liquid formalin. Moreover, the growing agriculture industry owing to the rising population and increasing trends to utilize maximum arable land may boost the formaldehyde market share. It is widely used in manufacturing organic chemical synthesizers and fertilizers.

Phenol formaldehyde resins or phenolic resins are synthetic polymers obtained from the reaction of formaldehyde with phenol. It is produced by two production methods, the first involves direction reaction with formaldehyde to produce a thermosetting polymer network. The second method involves reaction with formaldehyde but restricts the formation of network polymer to form novellas prepolymer, which can be easily cured and molded.

Phenol Formaldehyde (PF) resins are widely utilized in the manufacturing of paints & coatings owing to high water, chemical & UV resistance along with excellent coating layer strength. The addition of PF resins also improves spreadability and improves the paints’ texture. Increasing demand for thermally stable paints & coatings owing to rising awareness to protect walls against environmental susceptibilities is likely to trigger the PF resin market share. PF resin provides excellent resistance against chemicals, water, and UV rays along with easy spreadability, which is likely to foster the growth of formaldehyde market value.

Formaldehyde Market End User

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The formaldehyde market from paints accounted for over USD 1,025 million in 2020. Increasing advancements in paint technology to offer superior coatings for use in architecture, automotive, and electronics applications are likely to drive the demand for high-performance paints & coatings. Formaldehyde derivatives, such as paraformaldehyde, are used in the manufacturing of paints & coatings. They act as a durable exterior primer that gives a clear coat paint to the final product, augmenting product demand from the industry.

The growing government focus on affordable housing facilities has enabled manufacturers to develop high-performance and glossy paints for use in automotive to improve vehicle appearance, thus displaying favorable opportunities for the formaldehyde market trends.

Formaldehyde and its derivatives are extensively used in the textile industry to provide high-quality textile finishes owing to their superior crease resistance. Changing living standards coupled with the growing consumer spending on personal appearance will accelerate the textile market growth owing to the increasing consumption of natural fibers, such as silk, cotton, wool, and jute.

Formaldehyde Market by Region

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The Europe formaldehyde market is poised to surpass USD 1,300 million by the end of 2027. The significant growth in the European automotive industry has boosted the demand for protective coatings, which is expected to boost the regional paints & coatings market growth. The automotive industry plays a vital role in promoting economic contribution to regional & national economies across the region.

In addition, the rising urbanization has substantially increased the demand for new residential & commercial buildings, which is expected to have a positive impact on the formaldehyde market revenue. Formaldehyde provides high functionality in a resource-efficient way, reducing energy wastage during production and offering cost affordability. Consumer preferences toward the use of high-performance additives in the manufacture of automotive & construction raw materials are further expected to create significant growth opportunities.

The market is witnessing an increasing consumer expenditure on high-performance vehicles and the rising use of premium-grade coatings due to their ability to enhance the aesthetic appeal of vehicles while maintaining safety standards. Innovations in automotive & commercial coatings to increase heat resistance and improve the durability of vehicle exteriors & interiors have urged manufacturers to incorporate high-quality organic additives in coatings formulations, showing favorable growth opportunities for the formaldehyde market.

Formaldehyde Market Share

The formaldehyde industry is competitive and includes various players such as

  • Dynea Oy
  • Bayer AG
  • Huntsman Corporation
  • Chemanol
  • Balaji Formalin
  • Celanese Corporation
  • Pastor
  • Chemique Adhesives
  • Hexion Inc.
  • Georgia-Pacific Chemicals, LLC.
  • Ercros S.A
  • Foremark Performance Chemicals
  • LyondellBasell
  • Alder S.p.A

Companies are focusing on expansion strategies by increasing their production capacities to increase their consumer base and market share. These factors will help them in meeting the demand-supply gap and sustaining in the market for a longer period.

In April 2019, PJSC Metafrax signed a contract with Dynea AS, a Norwegian firm, to set up a new 55% formalin production plant worth USD 81.54 million in Russia. The new plant will be completed by the end of 2021 and will be integrated with the company’s paraformaldehyde production facility under the technology provided by the GEA group of companies. After successful commissioning, the total production capacity of 55% formalin will be 450 thousand tons per year.

The global formaldehyde market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons and revenue in USD million from 2016 to 2027 for the following segments:

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By Derivative

  • PF Resins
  • UF Resins
  • MF Resins
  • Polyoxymethylene/Polyacetal
  • Methylene Diphenyl Diisocyanate
  • Pentaerythritol
  • 1,4 Butanediol
  • Paraformaldehyde
  • Hexamine
  • Others

By End-use Applications

  • Resins
  • Textile
  • Plasticizers
  • Paints
  • Elastic Fibers
  • Synthetic Lubricants
  • Polyurethane Foams
  • Vulcanization Accelerators
  • Household/Electronic Appliances
  • Pesticides
  • Others

The above information has been provided for the following regions and countries:

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Ireland
    • Belgium
    • Netherlands
    • Denmark
    • Norway
    • Sweden
    • Iceland
    • Switzerland
  • Asia Pacific
    • China
    • India
    • Japan
    • Thailand
    • Indonesia
    • Malaysia
    • Australia
  • Latin America
    • Brazil
    • Argentina
    • Mexico
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • South Africa


Authors: Kunal Ahuja, Sarita Bayas

Frequently Asked Questions (FAQ) :

The formaldehyde industry share surpassed USD 4,350 million in 2020 and will expand at a CAGR of 5% through 2027 with rising product demand for polymer production.

Paraformaldehyde derivates will register a valuation of USD 275 million through 2027 owing to their wide application across agrochemical, chemical & pharmaceutical, and paint industries.

The formaldehyde market value from paints exceeded USD 1,025 million in 2020 and will grow on account of surging technological advancements for use in automotive, architecture, and electronics applications.

Europe formaldehyde industry is expected to surpass a revenue of USD 1,300 million by 2027 driven by the substantial expansion of automotive industry in the region.

Formaldehyde Market Scope

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 15
  • Tables & Figures: 290
  • Countries covered: 26
  • Pages: 300
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