by Market Overview:
Urea formaldehyde is a type of amino plastic resin obtained by reaction of urea and formaldehyde. It is majorly used as an adhesive in the production of wood panel products like plywood, fiberboard and particleboard. It acts as a binder and improves the strength and durability of these wood composite products. Urea formaldehyde resin also finds application in surface coatings, plastic laminates and moldings due to its excellent adhesive properties.
Market Dynamics:
Growth in construction industry is a major factor driving the demand for urea formaldehyde market during the forecast period. According to IBEF, construction industry in India is expected to reach US$ 1.4 trillion by 2025. Increased demand for residential and commercial buildings will boost the demand for wood composite panels that in turn will propel the urea formaldehyde market growth. Additionally, rising population and rapid urbanization in developing nations are creating more demand for housing and infrastructure development which is fueling the market. Further, growing furniture industry also requires extensive use of composite wood panels using urea formaldehyde as an adhesive, this will augment the market growth over coming years. However, fluctuating prices of raw materials like urea and formaldehyde can hamper the market growth. Toxicity of formaldehyde emissions from urea formaldehyde resins can also limit its market potential.
The global Urea Formaldehyde Market Share is estimated to be valued at US$ 15,209.73 Mn in 2023 and is expected to exhibit a CAGR of 3.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The urea formaldehyde market can be segmented based on application as follows: Thickeners, Binders, Insulation and Loose fill materials, Abrasives, and Flame retardants. Among these, the binders segment dominates the market and is expected to witness steady growth over the forecast period. Urea formaldehyde resins find wide applications as binders in the manufacturing of particleboards, plywood and medium density fiberboard due to their high mechanical strength, water resistance and relatively low cost.
PEST Analysis
Political: Governments across regions are imposing stringent regulations regarding the use of formaldehyde in wood adhesive products due to health hazards associated with formaldehyde emissions. This is creating challenges for market players.
Economic: The growth of wood panel and furniture industries especially in Asia Pacific is driving demand for affordable wood adhesives like urea formaldehyde. Recovery of construction sectors in developed markets is also supporting market growth.
Social: Concerns regarding health hazards of formaldehyde emissions such as irritation in respiratory tract and eyes are prompting customers to shift to safer product alternatives like phenol formaldehyde and polyvinyl acetate resins.
Technological: Manufacturers are focusing on developing innovative low formaldehyde emission resin formulations by modifying curing conditions and chemical composition to comply with changing regulations and customer demands.
Key Takeaways
The global urea formaldehyde market size was valued at US$ 15,209.73 Mn in 2023 and is expected to grow at a CAGR of 3.2% during 2023-2030. Growth of industrial and construction sectors along with rising demand for affordable furniture and wood panel products in developing nations will remain the key driver. The Asia Pacific region dominated with over 35% market share in 2023 led by flourishing wood panel and furniture manufacturing industries in China and India.
Regional analysis: The Asia Pacific region is anticipated to remain the largest and fastest growing market for urea formaldehyde during the forecast period driven by high economic growth and rising disposable incomes in China, India and other Southeast Asian countries. This is fueling demand for cost-effective wood based panels and furniture.
Key players: Key players operating in the urea formaldehyde market include Hexion, BASF SE, Georgia-Pacific Chemicals, Hexza Corporation Berhad, Metadynea, Jiangsu sanmu group Co. Ltd, Ashland, ARCL Organics Ltd., Kronoplus Limited, Advachem, Qafco, Sabic, Acron Group, Asta Chemicals, Melamin KemiÄna Tovarna D.D. KoÄevje, and Arclin Inc. These companies are focusing on new product development and expansion in emerging economies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
