Urea Formaldehyde Market

Urea Formaldehyde Market Overview

Global Urea Formaldehyde demand is anticipated to be valued at US$ 11.7 Billion in 2022, forecast to grow at a CAGR of 4.2% to be valued at US$ 17.8 Billion from as of 2032. Growth is attributed to increased demand for urea formaldehyde across the automobile, electrical appliances, and building and construction industries.

Urea formaldehyde is a non-transparent thermoset synthetic resin obtained from chemical mixture of urea and formaldehyde. Increasing construction activities augmented the use of urea formaldehyde as an insulating and adhesive agent. Urea formaldehyde are also used in molding electrical devices and bottle caps, among others.

Asia Pacific is expected to dominate the Urea Formaldehyde market for, driven primarily by its utilization across the building and construction industry. Urea Formaldehyde Market is being specifically used in accelerating use of plywood, and medium density fiberboard in construction activities.

The demand for good quality and economically viable adhesives and resins is a factor expected to fuel the growth of the Urea Formaldehyde market during the forecast period. Most of the demand is expected to generate from the automobiles and electrical appliances globally.

Simultaneously, the Increasing restrictions on the use of urea formaldehyde resins and growing popularity for urea formaldehyde alternatives owing to toxicity concerns, are few factors anticipated to hinder the growth of the market. Moreover, the outbreak of coronavirus has disrupted the supply chain which in turn slowed the growth of urea formaldehyde market.

Which are Some Prominent Drivers Spearheading Urea Formaldehyde Market Growth?

Urea formaldehyde is used in agricultural field as a source of slow-release nitrogen fertilizer. In addition, to improving soil permeability, and slow release rates, urea formaldehyde fertilizers also promotes the formation of an aggregated soil structure. Urea Formaldehyde fertilizers degrade in the soil by microbes and decompose to urea and formaldehyde where urea is used as a nitrogen source and encourages the healthy development of foliage and fruit. According to the Food and Agriculture organization (FAO), world food demand may increase by 70 per cent by 2050. Thus, increase in global food demand may augment the growth of urea formaldehyde market.

Urea formaldehyde resins are used in papermaking for enhancing the wet strength of paper and result in less dulling of the whiteness of the paper. Surging use of paper to overcome the environmental impacts of plastics, is driving the growth of urea formaldehyde market. According to the environmental paper network (EPN), paper use is steadily increasing year on year and exceeded to 400 million tons per year in 2018. Moreover, government regulations to lower the use of plastics also boost the growth of market.

The demand for good quality and economically viable adhesives and resins is a factor expected to fuel the growth of the Urea Formaldehyde market during the forecast period. Most of the demand is expected to generate from the automobiles and electrical appliances globally.

What are the Challenges Faced by the Urea Formaldehyde Market?

Major drawback of urea formaldehyde adhesive compared to other thermosetting resins like phenolic formaldehyde and polymeric diisocyanate is its low moisture resistance especially at elevated temperatures. In addition, the reversal bond-forming reactions can lead to the release of formaldehyde. Exposure to formaldehyde may cause burning sensations in the eyes, nose, and throat; coughing; wheezing; nausea; and skin irritation. In 2011, the National Toxicology Program, considered formaldehyde as a known human carcinogen. Government regulations on the emission of formaldehyde may hamper the growth of urea formaldehyde market.

The Formaldehyde Standards for Composite Wood Products Act of 2010 establish emission standards for formaldehyde from composite wood products. In December 2016, Environmental protection Agency (EPA) published a rule to reduce exposure to formaldehyde emissions from certain wood products produced domestically or imported into the United States.

Why is Asia-Pacific Emerging as an Opportunistic Urea Formaldehyde Market?

Asia Pacific is the largest market for urea formaldehyde and the trend is expected to continue into the forecast period owing to China and India being the largest producers of Urea Formaldehyde resins with having the largest consumption base.

With the increasing population, the need and demand for food are increasing daily, due to which, the advancements in agriculture activities are changing gradually. To accomplish these changes, fertilizer performance and efficiency are necessary, resulting in increased consumption of urea-formaldehyde resins in the Asia-Pacific region.

Nikhil Kaitwade

Principal Consultant

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How is North America Contributing to Growth of the Urea Formaldehyde Market?

According to Future Market Insights, North America is expected to provide immense growth opportunities for Urea Formaldehyde Market, with US expected to steer the bulk of all regional growth. Extensive applications in the building and construction are keeping sales of Urea Formaldehyde Market afloat across US.

Countries such as Canada and Mexico are all also generating high demand for Urea Formaldehyde, as these countries are witnessing an uptick in construction activity. Moreover, the automotive industry in these countries is also experiencing a major upsurge, which will generate favorable conditions for market growth.

Market Competition

Some of the key participants present in the global Urea Formaldehyde Market include ADVACHEM, Acron Group, ARCL Organics Ltd., Ashland, Asta Chemicals, Arclin Inc., BASF SE, Georgia-Pacific Chemicals, and Hexion, among others.

Attributed to the presence of such high number of participants, the market is highly competitive. While global players such as ADVACHEM, and Acron Group account for a considerable market size, several regional level players are also operating across key growth regions, particularly in the Asia Pacific.

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Scope Of Report

Key Segments Profiled in the Urea Formaldehyde Market Survey

Application:

• Urea Formaldehyde for Particle Boards
• Urea Formaldehyde for Wood Adhesives
• Urea Formaldehyde for Plywood
• Urea Formaldehyde for Medium Density Fiberboard
• Urea Formaldehyde for Other Applications

End Use Industry:

• Urea Formaldehyde for the Automotive Industry
• Urea Formaldehyde for Electrical Appliances
• Urea Formaldehyde for Agriculture
• Urea Formaldehyde for Building and Construction
• Urea Formaldehyde for Other End Use Industries

Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East & Africa