Formaldehyde Market to Grow with a CAGR of 4.62% through 2030
Expanding Construction and Infrastructure Development and Growing Demand from the Automotive and Transportation Sector are expected to drive the Global Formaldehyde Market growth in the forecast period, 2026-2030
According to TechSci Research report, “Formaldehyde
Market – Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2030F”, the Global Formaldehyde Market stood at USD 7.52 Billion in 2024 and is anticipated to grow with a CAGR of 4.62% in the forecast period.
Government-led regulatory and policy initiatives have played a pivotal role in fostering favorable market conditions for the global formaldehyde industry, supporting both environmental responsibility and industrial growth. In British Columbia, Canada, the Ministry of Environment has implemented targeted air quality objectives specifically addressing emissions from fiberboard manufacturing facilities that utilize formaldehyde-based adhesives. These measures are part of a broader strategy to mitigate the environmental and health impacts of formaldehyde, ensuring compliance with stringent emission thresholds while maintaining industrial productivity.
At the national level, the Canadian government has introduced robust regulatory frameworks to limit formaldehyde emissions from composite wood products. These include binding emission standards aimed at significantly reducing formaldehyde exposure, thereby improving indoor air quality and promoting safer residential and commercial environments. Such regulatory actions reflect a broader commitment to balancing industrial development with public health protection.
In the agriculture sector, formaldehyde is increasingly utilized for soil fumigation applications. Its efficacy in eliminating soil-borne pathogens, nematodes, and weed infestations contributes to healthier crop environments and improved yields. Formaldehyde's herbicidal and sterilizing properties reduce biological competition and enhance soil conditions, leading to stronger plant growth and more efficient nutrient absorption. These agronomic benefits have led to broader adoption of formaldehyde-based treatments among commercial growers.
Formaldehyde continues to serve as a critical building block in the global chemical industry, functioning as a key precursor in the synthesis of resins, thermosetting plastics, solvents, and specialty intermediates. Its indispensable role in downstream sectors such as pharmaceuticals, petrochemicals, textiles, and coatings reinforces its strategic importance. The sustained reliance on formaldehyde for chemical manufacturing underpins its growing global demand, even as industries adapt to evolving regulatory landscapes and sustainability benchmarks.
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Global Formaldehyde market is segmented into derivative,
end user industry, regional distribution, and company
Based on the category of End User Industry, the Building & Construction segment emerged as the dominating in the market for Formaldehyde in 2024. The global surge in infrastructure development, especially in the Asia Pacific, Middle East, and Africa, is fueling demand for construction materials that rely heavily on formaldehyde-based compounds. Key drivers include Rapid urbanization and population growth, Increasing government investments in smart cities, affordable housing, and transportation networks, Rising private-sector investments in commercial and industrial infrastructure. This sustained construction activity translates into increased consumption of formaldehyde in the form of adhesives, laminates, and structural components.
Formaldehyde is a critical component in the manufacturing of thermal insulation materials, particularly glass wool and rock wool. These materials help reduce energy consumption in buildings, aligning with global efforts to improve energy efficiency and reduce carbon emissions. With governments and building codes increasingly mandating green building practices and energy-efficient construction, the demand for formaldehyde-based insulation is experiencing consistent growth especially in cold-climate regions across North America and Europe.
Based on region, North America is well-positioned to witness the fastest growth in the global formaldehyde market, driven by a combination of technological advancements, regulatory evolution, and rising end-use demand across critical industries. One of the primary growth enablers is the renewed investment in residential and commercial construction, particularly in the United States. The increasing demand for engineered wood products, insulation materials, and composite panels which rely heavily on formaldehyde-based resins such as urea-formaldehyde and phenol-formaldehyde is significantly boosting regional consumption. Additionally, infrastructure modernization projects, supported by large-scale federal funding, are further accelerating material demand in the construction sector.
The automotive and transportation industries in North America are also contributing to this growth. Formaldehyde-based resins are used extensively in lightweight components, under-the-hood parts, coatings, and adhesives, aligning well with the region’s push toward fuel efficiency and electric vehicle production. Regulatory alignment with low-emission standards is driving product innovation. U.S. and Canadian regulations, such as the EPA’s formaldehyde emission limits for composite wood products and Canada’s formaldehyde emission guidelines, are pushing manufacturers to develop ultra-low-emitting formulations. These initiatives not only enhance market compliance but also unlock growth opportunities for high-performance, eco-friendly variants.
Major companies operating in Global Formaldehyde
Market are:
- BASF SE
- Evonik Industries AG
- Capital Resin Corporation
- Celanese Corporation
- Foremark Performance Chemicals
- Acron Group
- Georgia-Pacific Chemicals
- Hexion Inc.
- Huntsman International LLC
- Alder SpA
- Dynea AS
- Atul Ltd.
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“The Global Formaldehyde Market is poised for steady and resilient growth, underpinned by its integral role across key industrial value chains including construction, automotive, agriculture, and chemical manufacturing. While regulatory pressures surrounding emissions and safety standards continue to shape market dynamics, the industry is actively evolving through technological innovation, adoption of low-emission formulations, and strategic capacity expansions. As demand strengthens in both developed and emerging economies particularly in Asia Pacific and North America formaldehyde will remain a foundational chemical, driving industrial productivity and enabling material advancements in a wide range of applications.,” said Mr. Karan Chechi, Research
Director of TechSci Research, a research-based management consulting firm.
“Formaldehyde Market - Global Industry Size, Share, Trends, Opportunity & Forecast, Segmented By Derivative (Urea Formaldehyde, Phenol Formaldehyde, Melamine Formaldehyde, Hexamethylenetetramine (HMTA), Others), By End User (Building & Construction, Automotive, Agriculture, Healthcare, Chemicals & Petrochemicals, Others), By Region, & Competition, 2020-2030F”, has evaluated
the future growth potential of Global Formaldehyde Market and provides
statistics & information on market size, structure and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers, challenges,
and opportunities in Global Formaldehyde Market.
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