Formalin Market Expected To Reach $11.7 Billion by 2030

According to a new published report by Allied Market Research titled, “Formalin Market by Percentage, and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030,” The global formalin market size was valued at $6.9 billion in 2020, and is projected to reach $11.7 billion by 2030, growing at a CAGR of 5.6% from 2021 to 2030.

Formalin is a saturated solution of formaldehyde gas in water. It has a strong, unpleasant odor due to formaldehyde off-gassing. This solution can be used as a reducing agent to reduce other compounds when generating formic acid because its pH is neutral. It includes around 40% formaldehyde gas by volume or 37% formaldehyde gas by weight, along with a tiny amount of stabilizer. In this situation, the general stabilizer is 10-12% methanol, which helps prevent polymerization of formaldehyde. Without a stabilizer, formalin solution is highly unstable, and it appears to be polymerized, becoming insoluble macromolecules. Methylene glycol is the main product of the complete hydration of formaldehyde gas. As a result of the polymerization process, paraformaldehyde is produced.

This solution can be used as disinfectants and germicides because it can eliminate harmful microorganisms. In addition, formalin has a dehydrating effect, the ability to preserve themselves, and the ability to combine with proteins, inactivating them and destroying cells. Formalin is widely used in aquariums to destroy parasites that live on fish because of these properties. Furthermore, increase in growth in the building & construction industry and continuous demand for formalin in the furniture sector drive the growth of the global formalin market. Formalin is primarily used to produce wood panels and adhesives. Formaldehyde-based resins are used in the construction and furniture industry due to their strong adhesive strength and moisture resistance properties.

The global formalin market is segmented on the basis of percentage, application, and region. Based on the percentage, the global formalin market is segmented into 1.0%-20.0%, 20.0%-40.0%, and 40.0% - 60.0%. The 1.0%-20.0% resin segment accounted for the largest share in 2020 and projected to witness growth at the highest CAGR of 5.7%.

Based on the application, the global formalin market is segmented into automotive, drugs, dyes, fertilizer, antiseptic perfume, rubber chemicals and others. The fertilizer segment accounted for the largest share in 2020 and antiseptic perfume segment projected to witness growth at the highest CAGR of 5.8%.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the largest share of the market in 2020.

The global formalin industry is consolidated in nature with a few players, such as BASF SE, 3M, Balaji Formalin Private Limited, Bayer AG, Celanese Corporation, DuPont, Dynea AS, Georgia-Pacific Chemicals, and Merck KGaA, which hold significant share of the market. These players have been adopting various strategies to gain higher share or to retain leading positions in the market.

Key Findings Of The Study

• On the basis of percentage, the 1.0%-20.0% resin segment emerged as the global leader by acquiring more than 45.0% of the market share in 2020.
• On the basis of application, the fertilizer segment emerged as the global leader by acquiring more than 35.8% of the market share in 2020.
• On the basis of region, Asia-Pacific is the major consumer of formalin among other regions.

Impact Of Covid-19 On The Global Formalin Market

• COVID-19 has spread to almost 213 countries around the globe with the World Health Organization declaring it a public health emergency on March 11, 2020.
• Some of the major economies suffering from the COVID-19 crises include Germany, France, Italy, Spain, the UK, and Norway.
• The COVID-19 pandemic has had an impact on formaldehyde market activity. Companies in the formaldehyde market are focusing on cleaning agents, disinfectants, and other critical items during the pandemic because formaldehyde and its derivatives are virtually present in almost all end-use applications.
• In many countries, the economy has dropped due to the halt of several industries, especially transport and supply chain. Demand for the product has been hindered as there is no development due to the lockdown.
• The companies are incorporating various techniques to increase production volume and are attempting to develop innovative solutions at an affordable price that can meet customer requirements at a lower cost and support the overall breakthrough required for increased fragrance product penetration sustainability.
• The rise in public awareness about health issues is one of the factors propelling the formalin market throughout the forecast period. Increase in use of sterilizing solutions as a result of the coronavirus epidemic is also driving the demand for the overall industry.