Formaldehyde Market Size

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.

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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.