Urea Formaldehyde Market Value and Statistics Report – 2034 | Future Market Insights, Inc.
The global urea formaldehyde market, valued at USD 33,116.80 million in 2024, is projected to grow at a CAGR of 1.8%, reaching USD 41,572.36 million by 2034. This steady growth is driven by rising demand from key industries such as furniture, automotive, agriculture, and building & construction. Market participants are increasingly focusing on developing adhesives with lower formaldehyde emissions to meet stringent regulatory requirements and environmental concerns.
NEWARK, Del, July 24, 2024 (GLOBE NEWSWIRE) -- The urea formaldehyde market value is expected to rise from USD 33,116.80 million in 2024 to USD 41,572.36 million by 2034. The market is expected to expand at a CAGR of 1.80% over the next decade.
The market prospects for urea formaldehyde manufacturers remain high in end-use industries like furniture and construction. These industries are steadily rising, driven by increasing infrastructure development, surging housing demand, and shifting consumer preferences for modern furniture. In the agriculture sector, the demand for specialty fertilizers is increasing as they consistently supply crops with nitrogen. Thus, ensuring high crop yield, especially for grain crops.
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The use of urea formaldehyde is increasing in adhesive applications. These applications are common in end-use sectors like construction, automotive, and electrical appliances. Further, the presence of unorganized end-use industries in countries like India and China is propelling sales of urea formaldehyde in Asia Pacific. This is further supported by the growing demand for cost-effective urea formaldehyde formula in price-sensitive markets of Asia Pacific.
The global market is consistently receding in growth rate, which can be attributed to the research and development activities that are focused on launching sustainable alternatives to urea formaldehyde. Such steps are being taken in light of the high carbon footprint of urea formaldehyde despite its durability and effectiveness.
“Industry players are finding significant growth opportunities in emerging countries where automotive, furniture, and construction sectors are growing at a substantial rate. These industries call for high urea formaldehyde demand. By setting their base in these countries, manufacturers can multiply their profits,” opines Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.)
Key Takeaways from the Urea Formaldehyde Market Report
The urea formaldehyde market gained a market value of USD 32,142.36 million in 2019 and grew to achieve a market valuation of USD 32,457.29 million in 2023. The market registered a CAGR of 2.30% throughout this period.
Based on the end use, the fertilizer segment is anticipated to register a market share of 91.20% in 2024.
The markets in the United States and Germany are projected to expand at CAGRs of 2.5% and 3.3%, respectively, from 2024 to 2034.
Countries like China, India, and Australia are estimated to record healthy CAGRs of 7.4%, 8.7%, and 6.6%, separately, through 2034.
How is demand for urea formaldehyde faring in the building and construction sector?
The building and construction sector accounted for 18.8% of overall urea formaldehyde sales. Urea formaldehyde is a key component in manufacturing various building materials, it is mainly used in pressed wood products. Pressed wood products are further used in particle board which is used in subflooring, shelving, and cabinetry.
According to the FMI report, in the USA construction industry consumes more than 50% of total urea formaldehyde. Mainly it is used in the residential segment.
Emerging countries are significantly investing in the modernization of infrastructure and new building construction. Owing to the huge economic growth in developing countries and low-interest rates in developed countries the construction sector is growing at a rapid pace.
Will increasing demand from agrochemical industry boost up the urea formaldehyde market?
The increasing population is resulting in an increased demand for food, which is directly impacting the agriculture sector. With the growing urbanization & industrialization, arable land is shrinking. Getting the maximum yield from the limited available land is a great challenge. To get the maximum yield, fertilizers are being used to boost production and protect the crop from any harm.
Urea formaldehyde is used in agrochemicals as a nitrogen fertilizer, and it offers a slow release rate and good physical properties. Furthermore, it can also promote the formation of an aggregated soil structure, increasing penetrating power into crop roots, and improving soil permeability.
Slow-release properties of Urea Formaldehyde Fertilizers provide a balanced source of nitrogen to crops and improve the soil structure. The Food and Agriculture Organization (FAO) predicts that by 2050, there may be a 70% rise in global food demand. Hence, a rise in global food consumption might accelerate the market for urea formaldehyde.
Will harmful effects of urea formaldehyde and government regulation be the key reasons for hampering the growth of urea formaldehyde market?
The main disadvantage of urea formaldehyde adhesive in comparison to other thermosetting resins such as polymeric diisocyanate and phenolic formaldehyde is its poor moisture resistance, particularly at high temperatures. Formaldehyde can also be released as a result of the reverse bond-forming processes. Burning feelings in the eyes, nose, and throat, coughing, wheezing, nausea, and skin irritation can all result from exposure to formaldehyde.
According to the National Toxicology Program, formaldehyde is a proven human carcinogen as of 2011. Government restrictions on formaldehyde emissions might slow the market's expansion for urea formaldehyde. Emission regulations for formaldehyde from composite wood products are established by the Formaldehyde Standards for Composite Wood Products Act of 2010.
The Environmental Protection Agency (EPA) announced a regulation in December 2016 to limit exposure to formaldehyde emissions from specific domestically manufactured or imported wood goods. Due to such regulations, the demand from several end-use industries is getting hampered.
What will be the opportunity for adhesive resins in global urea formaldehyde market?
In the current time period, there is a huge demand for good quality and economically viable adhesives, particularly in the industrial and manufacturing sectors. It is used in many applications, such as building and construction, the manufacturing of automotive parts, the manufacturing of furniture, and so on.
The major demand for good quality adhesives is to substitute the use of fasteners in industries such as automotive, aerospace, and packaging. In the packaging industry, most formulators are relying on good-quality adhesives rather than heavy bolting techniques.
High-quality adhesives are in demand from various end uses such as aerospace, automotive, packaging, furniture, and others. Urea formaldehyde is extensively utilized as an adhesive in these industries due to its chemical & physical properties, also it is less expensive which adds a plus to its usage.
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Competitive Landscape
Key players are optimizing for success in the urea formaldehyde market using different growth tactics. A common expansion strategy is mergers and acquisitions, through which market players gain access to new technologies and expertise. Additionally, players are raising their presence in high-growth geographies, where the construction and furniture sectors are expanding at a pronounced rate. Industry participants are concentrating on product innovation and development to maintain their relevance in upcoming years.
Over the forecast period, market players are projected to focus on optimization of production processes, exploration of waste reduction techniques, and utilization of alternative raw materials. Thus competing on prices with the other players.
Leading Urea Formaldehyde Market Players
BASF SE
Hexion, Inc.
Hexzachem Sarawak Sdn Bhd
Bakelite Synthetics
Acron PJSC
Asta Chemicals
ARCL Organics Ltd.
Capital Resin Corporation
Biqem
Metadynea
Advachem SA
Kronoplus Limited
Foresa
Sadepan
Siva Chemical Industries
Foremark Performance Chemicals Inc.
LRBG Chemicals
Others
Urea Formaldehyde Market Segmentation
By Form:
Liquid
Powder
Solid
By End Use:
Furniture
Plywood
Laminates
Particle Board
Wood Adhesives
Medium Density Fiberboard
Automotive
Decorative Laminates
Plywood
Molding Compounds
Abrasives
Tires
Electrical Appliances
Electronic Adhesives
Coatings
Molding Compounds
Plywood
Agriculture
Fertilizer
Building and Construction
Plywood
Particle Board
Wood Adhesives
Roofing
Foundry sand molds
Textile
Wrinkle-Resistant fabrics
Cotton Blends
Others
Paper
Paints
Surface Coatings
By Region:
North America
Latin America
Western Europe
Eastern Europe
South Asia and Pacific
East Asia
Middle East and Africa
Authored by:
Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.
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