APAC Formaldehyde Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Formaldehyde Market Analysis
The Asia-Pacific formaldehyde market is expected to register a CAGR of over 5% during the forecast period. COVID-19 negatively affected the Asia-Pacific formaldehyde market in 2020. Major construction and automotive segments were temporarily suspended during COVID-19 due to labour shortages, reducing the formaldehyde consumption within the region in these segments. However, its use in the pharmaceutical sector to produce disinfectants, vaccines, and personal care products, created a great demand and was unimpacted during Covid-19. After 2020, the market grew steadily due to the continuous activity in the Asia-Pacific region.
- Rising demand due to the favourable chemical properties of formaldehyde in the construction and automotive industry is expected to drive the formaldehyde market's growth in Asia-Pacific.
- Research and development on using formaldehyde derivatives for treating organic fractions of municipal solid waste (OFMSW) is likely an opportunity.
- However, formaldehyde's toxic and carcinogenic nature is the primary factor hindering the growth of the targeted market.
- China is expected to dominate the formaldehyde market in Asia-Pacific and is also likely to witness the highest CAGR during the forecast period.
APAC Formaldehyde Market Trends
This section covers the major market trends shaping the APAC Formaldehyde Market according to our research experts:
Rising Demand from the Construction Industry
- Formaldehydes are used in pressed-wood products manufacturing, like cabinetry, countertops, mouldings, furniture, shelves, stair systems, flooring, wall sheathing, support beams and trusses, and a variety of other home furnishings and constructions.
- Furthermore, Asia-Pacific holds a considerable market share in the construction segment, with leading countries such as China, India, and Japan driving domestic demand for formaldehyde to new heights.
- According to the National Bureau of Statistics of China, the construction industry in China generated an added value of approximately CNY 8 trillion (~USD 1.161 trillion), witnessing a growth rate of around 10.6% as compared to the previous year.
- According to the India Brand Equity Foundation (IBEF), India will spend USD 1.4 trillion on infrastructure in the next five years. As of August 2022, 62.21 lakh houses have been completed, and 103.01 lakh houses have been grounded under the Pradhan Mantri Awas Yojna scheme (PMAY-Urban).
- According to the Japanese Ministry of Land, Infrastructure, Transport, and Tourism, around 856.5 thousand new dwelling constructions were launched in Japan in 2021, a slight increase compared to 815.34 dwelling constructions in 2020. Such trends are projected to support the studied market.
- Hence, with such robust growth of the Asian-Pacific construction industry, the formaldehyde market's demand is expected to increase during the forecast period.
China to Dominate the Market
- China dominated the Asia-Pacific formaldehyde market in 2021, with a substantial market and revenue share, and this dominance is likely to continue during the forecast period.
- Formaldehyde is used in major end-user sectors due to its property. In the construction segment, it is used as an excellent adhesive for pressed wood. In the automobile segment, it is utilized as the main compound in exterior primers, tire cord adhesives, and transparent coating paints. Furthermore, its application as a sanitiser and disinfectant in the pharmaceutical industry demonstrates its popularity within the region.
- According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China produced around 26 million units of vehicles in 2021, witnessing a growth rate of 3% compared to the previous year. This trend is expected to support the studied market.
- According to the China Association of Automobile Manufacturers (CAAM), China sold 2.9 million units of battery electric vehicles in 2021, an increase of 162% over the previous year. This trend will continue, creating substantial demand for formaldehyde in automotive parts manufacturing.
- All factors above will likely fuel the formaldehyde market growth in China over the forecast period.
APAC Formaldehyde Industry Overview
The Asia-Pacific formaldehyde market is fragmented in nature. Some of the market's major players (not in any particular order) include BASF SE, Hexion, Sabic, Jiangsu sanmu group Co. Ltd, and Balaji Formalin Private Limited, among others.
APAC Formaldehyde Market Leaders
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BASF SE
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Hexion
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Sabic
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Jiangsu sanmu group Co. Ltd
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Balaji Formalin Private Limited
*Disclaimer: Major Players sorted in no particular order
APAC Formaldehyde Market News
- October 2022: Balaji Formalin Private Limited issued an article stating that the company is expanding its existing formaldehyde capacity from 24,000 metric tons per annum to 1,20,000 metric tons per annum. This expansion will support the company in increasing its regional presence.
- July 2022: A K Formaline Private Limited proposed the environmental clearance for the expansion of formaldehyde manufacture from 900 Metric tons per month to 3000 metric tons per month in the existing location of Nani Chira, Kutch, Gujarat (India).
APAC Formaldehyde Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Market Drivers
- 4.1.1 Growing Demand from the Construction Industry
- 4.1.2 Rising Application in the Automotive Industry
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4.2 Market Restraints
- 4.2.1 Toxic and carcinogenic nature of formaldehyde
- 4.2.2 Other Restraints
- 4.3 Industry Value-Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION
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5.1 Derivative
- 5.1.1 Urea Formaldehyde
- 5.1.2 Phenol Formaldehyde
- 5.1.3 Melamine Formaldehyde
- 5.1.4 Hexamine
- 5.1.5 Polyoxymethylene
- 5.1.6 Other Derivatives (Methylene Diphenyl Diisocyanate, Butanediol)
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5.2 End-User Industry
- 5.2.1 Automotive
- 5.2.2 Construction
- 5.2.3 Agriculture
- 5.2.4 Health Care
- 5.2.5 Chemical and Petrochemical
- 5.2.6 Other End-user Industries (Paints, Textiles)
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5.3 Geography
- 5.3.1 China
- 5.3.2 India
- 5.3.3 Japan
- 5.3.4 South Korea
- 5.3.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share(%)
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 ARCL Organics Ltd
- 6.4.2 Ashland Global Specialty Chemicals Inc.
- 6.4.3 Asta Chemicals
- 6.4.4 Balaji Formalin Private Limited
- 6.4.5 BASF SE
- 6.4.6 Hexion
- 6.4.7 Hexza Corporation Berhad
- 6.4.8 Jiangsu sanmu group Co. Ltd
- 6.4.9 QAFCO
- 6.4.10 Sabic
- 6.4.11 Samed Chemical Industries Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Research and development on the use of formaldehyde derivatives for the treatment of organic fractions of municipal solid waste (OFMSW)
APAC Formaldehyde Industry Segmentation
Formaldehyde is a colourless toxic gas produced by the catalytic oxidation of methanol. Iron (III) oxide, silver metal, and iron-molybdenum oxides are the most common catalysts. For large-scale production of formaldehyde, methanol and oxygen (Air) are passed through the catalyst at the optimum temperature depending upon the nature of the catalyst. The Asia-Pacific formaldehyde market is segmented by derivative, end-user industry, and geography. By derivative, the market is segmented into urea formaldehyde, phenol formaldehyde, melamine formaldehyde, hexamine, polyoxymethylene, and other derivatives (methylene diphenyl diisocyanate, butanediol). By end-user industry, the market is segmented into automotive, construction, agriculture, health care, chemical and petrochemical, and other end-user industries (paints, textiles). The report also covers the market size and forecasts for the formaldehyde market in 4 major countries across the Asia-Pacific region. For each segment, the market sizing and forecasts have been done based on volume (kilo tons).
| Derivative | Urea Formaldehyde |
| Phenol Formaldehyde | |
| Melamine Formaldehyde | |
| Hexamine | |
| Polyoxymethylene | |
| Other Derivatives (Methylene Diphenyl Diisocyanate, Butanediol) | |
| End-User Industry | Automotive |
| Construction | |
| Agriculture | |
| Health Care | |
| Chemical and Petrochemical | |
| Other End-user Industries (Paints, Textiles) | |
| Geography | China |
| India | |
| Japan | |
| South Korea | |
| Rest of Asia-Pacific |
APAC Formaldehyde Market Research FAQs
What is the current Asia-Pacific Formaldehyde Market size?
The Asia-Pacific Formaldehyde Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific Formaldehyde Market?
BASF SE , Hexion , Sabic , Jiangsu sanmu group Co. Ltd and Balaji Formalin Private Limited are the major companies operating in the Asia-Pacific Formaldehyde Market.
What years does this Asia-Pacific Formaldehyde Market cover?
The report covers the Asia-Pacific Formaldehyde Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Formaldehyde Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Formaldehyde Industry Report
Statistics for the 2024 Asia-Pacific Formaldehyde market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Formaldehyde analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
