June 23, 2024
Paraformaldehyde Market

Rapid Industrialization and Growing Construction Activities to Boost the Growth of Paraformaldehyde Market

Paraformaldehyde is a thermoplastic solid that is widely used as a disinfectant and preservative in medical applications and as an anti-fungal agent in paints. It finds numerous industrial applications as an intermediate in the production of chemical reagents, resin, fungicides, bactericides and other products. Rapid industrialization and urbanization especially in developing countries have increased construction activities thereby driving the demand for paints, coating and construction chemicals where paraformaldehyde plays a crucial role. Its excellent antimicrobial properties also make it suitable for use as a preservative in pharmaceuticals and personal care products.

The global Paraformaldehyde Market is estimated to be valued at US$ 419.8 Mn in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the paraformaldehyde market is its increasing use in resin production. Paraformaldehyde acts as a starting material in the manufacturing of various thermosetting resins like urea-formaldehyde resins, melamine-formaldehyde resins and phenol-formaldehyde resins. These resins find wide usage in wood adhesives, laminates, molded products and surface coatings. Rapid growth of the automotive industry is also propelling the demand for resins from the sector. Additionally, rising healthcare expenditure and growing awareness about hygiene has augmented the use of paraformaldehyde as a preservative and disinfectant in hospitals, clinics and other medical settings. Stringent regulations around food safety and packaging hygiene in developed economies are further augmenting its demand from the food industry for sanitation and pest control.

Porter’s Analysis

Threat of new entrants: The paraformaldehyde industry requires high initial capital investments setting up production facilities which pose as a barrier for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous large buyers that procure paraformaldehyde in bulk quantities.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitutes and requirement of specialized production process.

Threat of new substitutes: Limited number of substitutes like formaldehyde keep this threat low due to strict regulations regarding health and safety.

Competitive rivalry: High due to presence of numerous players producing standardized product leading to competition based on pricing.

Key Takeaways

Global Paraformaldehyde Market Size is expected to witness high growth, exhibiting CAGR of 3.8% over the forecast period, due to increasing demand from resins and plasticizers applications. Asia Pacific dominated the global paraformaldehyde market in 2023, accounting for around 35% of global share, with China being the major producer and consumer.

Regional analysis shows that Asia Pacific region is expected to be the fastest growing as well as dominating regional market over the forecast period. Factors such as increasing demand from chemical industry along with rapid industrialization in China and India are anticipated to drive the paraformaldehyde market growth.

Key players operating in the paraformaldehyde market are Ercros, CCP, Celanese, LCY Chemical, Nantong Jiangtian, Hebei Jintaida Chemical, Shangdong Aldehyde Chemical, Yinhe Chemical, Shouguang Xudong, Linyi Taier, Merck, Mitsubishi Gas Chemical, Chemanol, Xiangrui Chemical, Caldic. Ercros and Celanese are identified as the largest producers in Asia Pacific and North America region respectively.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it