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

The Asia-Pacific Formaldehyde Market Report is Segmented by Derivative (Urea Formaldehyde, Phenol Formaldehyde, Melamine Formaldehyde, Hexamine, Polyoxymethylene, and Other Derivatives (Methylene Diphenyl Diisocyanate and Butanediol)), End-User Industry (Automotive, Construction, Agriculture, Healthcare, Chemical and Petrochemical, and Other End-User Industries (Paints and Textiles)), and Geography (China, India, Japan, South Korea, Thailand, Indonesia, Malaysia, Vietnam, and Rest of Asia-Pacific). The Report Offers the Market Sizes and Forecasts for Formaldehyde in Volume (Kilo Tons) for all the Above Segments.

Asia-Pacific Formaldehyde Market Size

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Asia-Pacific Formaldehyde Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Volume (2024) 16.02 Million tons
Market Volume (2029) 19.68 Million tons
CAGR (2024 - 2029) > 4.20 %
Market Concentration Low

Major Players

Asia-Pacific Formaldehyde Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Asia-Pacific Formaldehyde Market with other markets in Chemicals & Materials Industry

Plastics, Polymers, and Elastomers

Adhesives and Sealants

Commodity Chemicals

Water and Wastewater Treatment

Advanced Materials

Construction Chemicals and Materials

Asia-Pacific Formaldehyde Market Analysis

The Asia-Pacific Formaldehyde Market size is estimated at 16.02 kilotons in 2024, and is expected to reach 19.68 kilotons by 2029, growing at a CAGR of greater than 4.20% during the forecast period (2024-2029).

In 2020, the Asia-Pacific formaldehyde market faced setbacks due to the COVID-19 pandemic. Labor shortages led to temporary suspensions in key industries like construction and automotive, curtailing formaldehyde consumption. However, post-restrictions, the market rebounded robustly, driven by surging demand from the construction, automotive, and healthcare industries.

• Over the short term, growing demand from the construction industry and increasing usage in the automotive industry are expected to be the major factors driving the demand for the market studied.

• However, the toxic and carcinogenic nature of formaldehyde and stringent regulations amid growing environmental concerns are expected to hinder the market's growth.

• R&D on using formaldehyde for waste treatment is expected to create new opportunities for the market studied.

• China is expected to dominate the formaldehyde market in Asia-Pacific, and it is anticipated to witness the highest growth during the forecast period.

Asia-Pacific Formaldehyde Market Trends

The Construction Industry is Expected to Dominate the Market during the Forecast Period

  • The construction industry leads in formaldehyde consumption, primarily for construction, remodeling, and furniture production.
  • Formaldehyde-based resins are integral in crafting composite and engineered wood products. These products are used in various applications, including moldings, furniture, countertops, cabinetry, shelving, stairs, wall sheathing, support beams, flooring, trusses, and numerous other household furnishings and structures.
  • Asia-Pacific, spearheaded by countries like China, India, and Japan, holds a significant share of the construction segment, thus boosting the demand for domestic formaldehyde.
  • In 2023, the construction of new homes in China was reduced owing to the demand for properties. As per the data from statistics released by the National Bureau of Statistics, about 693 million square meters of new homes started construction in 2023, registering a 21% decrease compared to the previous year.
  • Similarly, Japan's Ministry of Land Infrastructure, Transport and Tourism (MLIT) reported 819.62 thousand new construction houses in 2023, down by 26% from 859.53 thousand in 2022.
  • With the weak demand for various construction properties in the region, the demand for formaldehyde may negatively impact the construction industry.
  • However, India is poised to claim the title of the world's third-largest construction market. Driven by initiatives like the Smart Cities project and Housing for All, the Indian government is propelling the construction industry forward. The government has been actively boosting housing construction to provide housing for its vast population of 1.3 billion.
  • In the FY 2024 budget, the finance minister pledged support for an additional 20 million houses over the next five years under the Pradhan Mantri Awas Yojana (PMAY).
  • Given the robust growth of the Asia-Pacific construction industry, the demand for formaldehyde is poised to rise during the forecast period.
Asia-Pacific Formaldehyde Market:  Floor Space of Newly Started Residential Housing Construction, in million square meters, China, 2019-2023

China is Expected to Dominate the Market during the Forecast Period

  • China dominated the Asia-Pacific formaldehyde market, with a substantial market and revenue share, and this dominance is expected to continue during the forecast period. Factors such as good adhesive strength and moisture resistance properties of formaldehyde-based resins and continuous demand from the furniture industry are anticipated to drive market growth.
  • As per data from the China Association of Automobile Manufacturers (CAAM), China is the world's largest automotive production hub. In 2023, China produced over 30.16 million cars, marking an 11.6% rise from the previous year. Sales figures mirrored this growth, with 30.09 million passenger cars sold, a 12% increase Y-o-Y, according to CAAM data. This trend is expected to support the market studied.
  • The Chinese government estimates a 20% penetration rate of electric vehicle production by 2025. Such significant investments are projected to propel the country's automotive industry and positively impact the market studied.
  • As per the International Trade Organization, China holds the title of the world's largest construction market. Data from the American Institute of Architects (AIA) Shanghai paints a staggering picture: by 2025, China is expected to erect a cityscape equivalent to 10 New York cities. Despite the recent underperformance, notably in 2023, where China's new residential construction floor space dipped below 700 million square meters, marking the fourth consecutive annual decline from its 2019 peak, the nation's construction industry remains robust, fueled by ongoing urban development initiatives.
  • Given these dynamics, the Chinese formaldehyde market is poised for growth in the coming years.
Asia-Pacific Formaldehyde Market: Automotive Production, in million units, China, 2019-2023

Asia-Pacific Formaldehyde Industry Overview

The Asia-Pacific formaldehyde market is fragmented in nature. The major players (not in any particular order) include BASF SE, Hexion Inc., Perstorp, Mitsubishi Gas Chemical Company, Inc., and Balaji Formalin Private Limited.

Asia-Pacific Formaldehyde Market Leaders

  1. BASF SE

  2. Hexion

  3. Balaji Formalin Private Limited

  4. Perstorp

  5. Mitsubishi Gas Chemical Company, Inc.

*Disclaimer: Major Players sorted in no particular order

Asia-Pacific Formaldehyde Market Concentration
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Asia-Pacific Formaldehyde Market News

  • April 2023: Kanoria Chemicals & Industries Limited (KCI) was set to boost its formaldehyde production in Ankleshwar, Gujarat, by an additional 300 MTPD, addressing the rising demand in the western region. The expansion is slated for completion in FY 2025. The new formaldehyde facility is expected to utilize cutting-edge metal oxide-based technology. This enhanced capacity, leveraging advanced technology, aims to meet the surging demand across diverse industries, including engineering wood, textiles, agrochemicals, and pharmaceuticals.
  • October 2022: Balaji Formalin Private Limited issued an article stating that the company would expand its formaldehyde capacity from 24,000 metric tons per annum to 120,000 metric tons per annum. This expansion is expected to support the company in increasing its regional presence.
  • July 2022: A K Formaline Private Limited proposed the environmental clearance for the expansion of formaldehyde manufacturing from 900 metric tons per month to 3,000 metric tons per month in the existing location of Nani Chira, Kutch, Gujarat (India).

Asia-Pacific Formaldehyde Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Growing Demand from the Construction Industry

      2. 4.1.2 Increasing Usage in the Automotive Industry

      3. 4.1.3 Other Drivers

    2. 4.2 Market Restraints

      1. 4.2.1 Toxic and Carcinogenic Nature of Formaldehyde

      2. 4.2.2 Stringent Regulations Amid Growing Environmental Concerns

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value-chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size by Volume)

    1. 5.1 Derivative

      1. 5.1.1 Urea Formaldehyde

      2. 5.1.2 Phenol Formaldehyde

      3. 5.1.3 Melamine Formaldehyde

      4. 5.1.4 Hexamine

      5. 5.1.5 Polyoxymethylene

      6. 5.1.6 Other Derivatives (Methylene Diphenyl Diisocyanate and Butanediol)

    2. 5.2 End-user Industry

      1. 5.2.1 Automotive

      2. 5.2.2 Construction

      3. 5.2.3 Agriculture

      4. 5.2.4 Healthcare

      5. 5.2.5 Chemical and Petrochemical

      6. 5.2.6 Other End-user Industries (Paints and Textiles)

    3. 5.3 Geography

      1. 5.3.1 China

      2. 5.3.2 India

      3. 5.3.3 Japan

      4. 5.3.4 South Korea

      5. 5.3.5 Malaysia

      6. 5.3.6 Thailand

      7. 5.3.7 Indonesia

      8. 5.3.8 Vietnam

      9. 5.3.9 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/ Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ARCL Organics Ltd

      2. 6.4.2 Asta Chemicals

      3. 6.4.3 Bakelite Synthetics

      4. 6.4.4 Balaji Formalin Private Limited

      5. 6.4.5 BASF SE

      6. 6.4.6 Hexion

      7. 6.4.7 Hexza Corporation Berhad

      8. 6.4.8 Kanoria Chemicals & Industries Ltd (KCI)

      9. 6.4.9 Mitsubishi Gas Chemical Company Inc.

      10. 6.4.10 Perstorp

      11. 6.4.11 Simalin Chemical Industries Pvt. Ltd

      12. 6.4.12 Vechem Organics (P) Limited

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Research and Development on the Use of Formaldehyde for the Treatment of Waste

    2. 7.2 Other Opportunities

**Subject to Availability
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Asia-Pacific Formaldehyde Industry Segmentation

Formaldehyde, a colorless and highly reactive gas with a pungent odor, is produced through the catalytic oxidation of methanol. This flammable gas is a crucial precursor for various materials and chemical compounds. Its versatile and advantageous properties have led to its widespread use across numerous applications.

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 and butanediol). By end-user industry, the market is segmented into automotive, construction, agriculture, healthcare, chemical and petrochemical, and other end-user industries (paints and textiles). The report also covers the market size and forecasts for the formaldehyde market in eight major countries across Asia-Pacific. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo tons).

Derivative
Urea Formaldehyde
Phenol Formaldehyde
Melamine Formaldehyde
Hexamine
Polyoxymethylene
Other Derivatives (Methylene Diphenyl Diisocyanate and Butanediol)
End-user Industry
Automotive
Construction
Agriculture
Healthcare
Chemical and Petrochemical
Other End-user Industries (Paints and Textiles)
Geography
China
India
Japan
South Korea
Malaysia
Thailand
Indonesia
Vietnam
Rest of Asia-Pacific
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Asia-Pacific Formaldehyde Market Research Faqs

The Asia-Pacific Formaldehyde Market size is expected to reach 16.02 million tons in 2024 and grow at a CAGR of greater than 4.20% to reach 19.68 million tons by 2029.

In 2024, the Asia-Pacific Formaldehyde Market size is expected to reach 16.02 million tons.

BASF SE, Hexion, Balaji Formalin Private Limited, Perstorp and Mitsubishi Gas Chemical Company, Inc. are the major companies operating in the Asia-Pacific Formaldehyde Market.

In 2023, the Asia-Pacific Formaldehyde Market size was estimated at 15.35 million tons. 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.

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