Asia-Pacific Formaldehyde Market Size (2024 - 2029)

The Asia-Pacific formaldehyde market is anticipated to experience growth, driven by its advantageous chemical properties in the construction and automotive sectors. Despite the initial negative impact of COVID-19, which temporarily reduced demand in these areas, the market has shown resilience due to sustained activity and increased use in the pharmaceutical sector. Opportunities for expansion are present in research and development related to formaldehyde derivatives for waste treatment. However, the market's growth is constrained by the substance's toxic and carcinogenic characteristics. China is projected to lead the market in the region, with significant growth expected.

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Market Size of Asia-Pacific Formaldehyde Industry

Asia-Pacific Formaldehyde Market Summary
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

Asia-Pacific Formaldehyde Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
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Asia-Pacific Formaldehyde Market Size Summary

The Asia-Pacific formaldehyde market is poised for significant growth, driven by its extensive application in the construction and automotive industries. Despite the initial setbacks caused by the COVID-19 pandemic, which temporarily halted activities in major sectors like construction and automotive due to labor shortages, the market has rebounded. The pharmaceutical sector's sustained demand for formaldehyde, particularly for disinfectants and personal care products, helped mitigate the pandemic's impact. The market's expansion is further supported by the favorable chemical properties of formaldehyde, which make it a preferred choice in various applications. However, the market faces challenges due to formaldehyde's toxic and carcinogenic nature, which could hinder its growth trajectory. China is expected to maintain its dominance in the region, benefiting from robust construction activities and a growing automotive sector.

The demand for formaldehyde in the Asia-Pacific region is bolstered by its critical role in manufacturing pressed-wood products and its use as an adhesive in construction and automotive applications. The region's construction industry, particularly in China, India, and Japan, is a significant driver of formaldehyde demand, with substantial investments in infrastructure and housing projects. Additionally, the automotive sector's growth, especially in China, with its increasing production and sales of vehicles, including battery electric vehicles, further fuels the market. The fragmented nature of the market sees major players like BASF SE, Hexion, and Sabic actively participating, with companies like Balaji Formalin Private Limited expanding their production capacities to meet the rising demand. These trends indicate a positive outlook for the formaldehyde market in the Asia-Pacific region over the forecast period.

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Asia-Pacific Formaldehyde Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Growing Demand from the Construction Industry

      2. 1.1.2 Rising Application in the Automotive Industry

    2. 1.2 Market Restraints

      1. 1.2.1 Toxic and carcinogenic nature of formaldehyde

      2. 1.2.2 Other Restraints

    3. 1.3 Industry Value-Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION

    1. 2.1 Derivative

      1. 2.1.1 Urea Formaldehyde

      2. 2.1.2 Phenol Formaldehyde

      3. 2.1.3 Melamine Formaldehyde

      4. 2.1.4 Hexamine

      5. 2.1.5 Polyoxymethylene

      6. 2.1.6 Other Derivatives (Methylene Diphenyl Diisocyanate, Butanediol)

    2. 2.2 End-User Industry

      1. 2.2.1 Automotive

      2. 2.2.2 Construction

      3. 2.2.3 Agriculture

      4. 2.2.4 Health Care

      5. 2.2.5 Chemical and Petrochemical

      6. 2.2.6 Other End-user Industries (Paints, Textiles)

    3. 2.3 Geography

      1. 2.3.1 China

      2. 2.3.2 India

      3. 2.3.3 Japan

      4. 2.3.4 South Korea

      5. 2.3.5 Rest of Asia-Pacific

Asia-Pacific Formaldehyde Market Size FAQs

The Asia-Pacific Formaldehyde Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

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.

Asia-Pacific Formaldehyde Report Snapshots

Asia-Pacific Formaldehyde Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)