Urea Formaldehyde Market

Urea Formaldehyde Market Outlook from 2024 to 2034

The global urea formaldehyde market is estimated to be valued at USD 33,116.80 million in 2024. The market is projected to reach a value of USD41,572.36 million by 2034, reflecting a CAGR of 1.8% over the assessment period.

Global Trends in the Urea Formaldehyde Industry

• The furniture sector is projected to showcase remarkable growth in the Asia Pacific region. The sector is primarily growing on account of the increasing demand for various wood-based building materials. The mounting population is subsequently raising the demand for furniture in hospitals, hotels, offices, and other places, which is driving the demand for urea formaldehyde in Asia Pacific.
• The expanding working population and increasing preference to invest in technology to enhance comfort quotient are driving sales of home appliances.
• The demand for construction materials is increasing due to the rising government expenditure on infrastructure and growth in the real estate and commercial market. As a result, the product demand is raising the consumption of urea formaldehyde over the forecast period.

Attributes	Key Insights
Estimated Urea Formaldehyde Market Size (2024E)	USD 33,116.80 million
Projected Market Value (2034F)	USD 41,572.36 million
Value-based CAGR (2024 to 2034)	1.8%

Top Impediments in the Urea Formaldehyde Market

• Government restrictions to limit exposure to formaldehyde emissions from imported or domestically produced wood articles announced by EPA are expected to restrict the market’s growth.
• Companies are determined to develop eco-friendly alternatives to replace urea formaldehyde used in the development of wood-based boards. This can restrict the scope of urea formaldehyde. For instance, in June 2023, Nilo developed a plastic waste-derived adhesive to substitute for urea formaldehyde.

Historical Period Assessment of the Market Versus Demand Projections

Historical CAGR (2019 to 2023)	2.30%
Forecasted CAGR (2024 to 2034)	1.80%

During the historical period, the urea formaldehyde market was valued at USD 32,142.36 million in 2019. By 2023, the market size reached a valuation of USD 32,457.29 million.

The market grew at a snail pace due to inflation and the oversupply of urea formaldehyde in the top markets like the United States and Europe. The price of urea formaldehyde dropped in March 2023 due to reduced demand from various downstream industries.

Additionally, US bank crunch led to lower consumer spending. Conclusively, the urea formaldehyde industry observed reduced demand as consumers became less able or willing to purchase them.

Over the forecast period, the market growth is anticipated to further slowdown, as businesses invest in developing alternatives to urea formaldehyde to reduce their impact on the environment. By 2034, the urea formaldehyde market is expected to attain USD 41,572.36 million, expanding at a CAGR of 1.80% over the forecast period.

Urea Formaldehyde Industry Analysis by Country

The use of urea formaldehyde in the United States and Germany is expected to record sluggish CAGRs, as these countries are forward in innovating and developing alternatives of urea formaldehyde. Countries like China, India, and Australia are projected to experience a stark contrast to the developed countries in terms of market growth.

Countries	Forecast CAGR (2024 to 2034)
United States	2.50%
Germany	3.30%
China	7.40%
India	8.70%
Australia	6.60%

Growth Outlook of Urea Formaldehyde Market in the United States

In the United States, the demand for urea formaldehyde is anticipated to register a CAGR of 2.50% through 2034. The top factors that back the industry’s progress include:

• Expansion in the demand for specialty fertilizers like urea-formaldehyde in the agriculture sector to maintain high crop yield, especially for grain crops.
• Growth in the automotive sector and increasing consumer demand for electronics and electricals are raising the demand for formaldehyde urea in the United States.

Demand Prospects of Urea Formaldehyde Market in Germany

In Germany, the urea formaldehyde industry is projected to advance at a CAGR of 3.30% from 2024 to 2034. Listed below are the current market dynamics:

• Growth in the production of food crops is lifting the demand for slow-release fertilizers that enhance soil permeability and promote the development of an aggregated soil structure.
• The construction industry in Germany is projected to observe a consistent rise on the grounds of increasing housing demand, infrastructure development, and renovation projects. Since urea formaldehyde adhesives find significant use in wood-based panels like MDF and particle board, which are used in construction activities; demand for the latter is anticipated to propel market growth.

China is Due for Substantial Growth Over the Next 10 Years

The China urea formaldehyde market is expected to record a CAGR of 7.40% through 2034. The market is projected to grow due to following reasons:

• China is an influential market for furniture. The country produces and exports substantial volume of furniture to leading importers. This is escalating the consumption of urea formaldehyde in China.
• China also holds a powerful position in the automotive market. The recent auto production statistics, by volume, display China at the top of the list. Such exponential growth in the automotive sector is inducing significant demand for urea formaldehyde, which is used in multiple automotive-related applications.

India Urea Formaldehyde Market to Display Promising Growth Over the Forecast Period

The consumption of urea formaldehyde formula in India is anticipated to surge at a CAGR of 8.70% over the forecast period. The market is propelled forward by:

• Rising demand for urea formaldehyde in numerous end-use industries.
• Booming construction sector in India is translating to the growing demand for wood-based panels like plywood, MDF, and particle board, which significantly relies on urea formaldehyde adhesives.
• Increasing government initiatives to promote infrastructure development and affordable housing is expected to indirectly drive demand for urea formaldehyde in the construction sector.
• The cost-advantage of using urea formaldehyde as it is a relatively inexpensive adhesive than some alternatives is appealing in a price-sensitive market like India.
• Urea formaldehyde is being used as a slow-release fertilizer in certain situations to prolong the nitrogen release. Thus, raising the demand for urea formaldehyde.

Widening Scope for Urea Formaldehyde in Australia

The market in Australia is projected to record a CAGR of 6.60% over the forecast period. In the next ten years, the market is expected to grow on the ground of:

• The readily available technology and well-established application methods for deploying urea formaldehyde are making it a convenient choice for manufacturers.
• Urea formaldehyde is finding applications in certain infrastructure and mining projects like rock bolting and tunnel reinforcement.
• Rising demand for this product in the construction and furniture sectors in Australia.

Category-wise Insights

Fertilizer Segment to Command Substantial Value Share

Attributes	Details
Top End use	Fertilizer
Market Share in 2024	91.20%

The fertilizer segment is estimated to acquire a market share of 91.20% in 2024. Key factors that are supplementing the segment’s growth are:

• Growing demand for urea formaldehyde in situations where constant, but not extreme nitrogen supply is required.
• Urea formaldehyde as a fertilizer also allows for a tailored release of nitrogen as the rate of release is dependent on microbial activity in the soil and temperature.

Business Growth Strategies of Leading Players in the Urea Formaldehyde Market

The urea formaldehyde industry is crowded with prominent medium- and small-scale players. Thus, the market is considered semi-fragmented in nature. The highly competitive nature of urea formaldehyde rests on the constant new releases of technologies, which is emerging from the research and development activities.

Established market players are going for increased production capacities to have a competitive edge. New, small, and medium-sized firms are focusing on providing cost-effective products to accelerate their local market penetration.

Market players are eyeing the markets that have high growth potential, especially in developing economies where the furniture and construction sectors are thriving. Additionally, players are collaborating with distributors, raw material suppliers, or downstream users to develop synergies and enhance their supply chains.

Industry participants are also consolidating their market share via strategic mergers and acquisitions to enjoy economies of scale and access to new technologies. Additionally, players are zeroing in on research and development activities to drive innovation.

New Developments Impacting the Urea Formaldehyde Market

• In June 2023, Inter IKEA acquired a stake in Nilo Ltd., which is a New Zealand-based start-up. The latter has developed a technology to develop non-toxic adhesives from waste plastics. The company has developed a binding agent, which has managed to replace urea formaldehyde as an adhesive to create engineered wood products like particle board, plywood, and medium-density fiberboard.
• In July 2023, EKHO officially disclosed the opening of production lines and a new factory in Egypt, which is worth USD 48 million via an associate company Sprea Misr.
• In July 2022, Hexicon Inc. introduced a bio-based methanol for the production of formaldehyde. This development is a part of its sustainable product development process.
• In August 2021, KBR came into an agreement with Johnson Matthey (JM) to permit the FORMOX™ Integrated UFC Technology (iUFC™). This technology consists of urea formaldehyde concentrate (UFC) and methanol production processes, which are integrated with proprietary ammonia process of KBR. Thus, enabling low-cost production of UFC for superior-grade urea.

Notable Urea Formaldehyde Companies

• 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

Frequently Asked Questions

How Big will the Urea Formaldehyde Market Be in 2024?

The market is estimated to be worth USD 33,116.80 million in 2024.

At What Rate will the Urea Formaldehyde Industry Grow?

The urea formaldehyde industry is projected to register a CAGR of 1.8% over the forecast period.

What is the Expected Value of the Urea Formaldehyde Market by 2034?

By 2034, the urea formaldehyde industry is forecast to be worth USD 41,572.36 million.

Which Country is Expected to Exhibit Significant Market Growth?

India is expected to observe significant market growth.

Which End User is Projected to Capture Maximum Market Share?

Fertilizers are projected to capture a prominent market share.

Who are the Leading Companies in the Urea Formaldehyde Market?

Key players in the urea formaldehyde market include Kronoplus Limited, Foresa, and Sadepan.