Urea formaldehyde is a non-transparent thermoset synthetic resin that is produced by the blending of urea and formaldehyde. It is used for many adhesive applications. These include insulating materials, artificial snow, and manufacturing of plastics and particle boards. In addition to these, urea formaldehyde is used in the production of adhesives with fewer emissions. Urea formaldehyde is used in the production of a wide variety of products. These include vehicle interiors, brake pads, decorative laminates, surface coatings, engine lubricants, body-part adhesives, and other applications. The application of urea formaldehyde resins has been increasing, and it is expected that the demand for this chemical will continue to increase in the coming years.
Market Statistics:
The global Urea Formaldehyde Market is estimated to account for US$ 15,209.7 Mn in terms of value by the end of 2023.
Global Urea Formaldehyde Market: Drivers
Growing demand for urea formaldehyde from medical sector due to its exceptional antibacterial properties is driving growth of the urea formaldehyde market. Formaldehyde is increasingly being used in the production of vaccines, disinfectants, and personal care products, including toothpaste and mouthwash. Hence, growing demand for above mentioned products are projected to fuel market growth.
Global Urea Formaldehyde Market: Opportunities
The Asia Pacific region is expected to offer lucrative opportunities for urea formaldehyde manufacturers. There is a great deal of economic growth in the emerging economies of the region, which is driving the construction sector. Moreover, the emergence of the textile industry is further boosting the market growth.
Global Urea Formaldehyde Market: Restraints
However, owing to the high cost of urea formaldehyde, the usage of urea formaldehyde in various end user industries has a negative impact on the market. This is expected to hinder the market growth.
Global Urea Formaldehyde Market - Impact of Coronavirus (Covid-19) Pandemic:
The outbreak of Covid-19 has hampered the growth of the market. During pandemic, there was decline in the demand for urea in the automotive industry. Consequently, there is a decline in the production of vehicles, which has reduced the demand for urea formaldehyde.
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Key Takeaways:
The global Urea Formaldehyde Market is estimated to account for US$ 15,209.7 Mn in terms of value by the end of 2023.
Particle Board segment held dominant position in the global urea formaldehyde market in 2022, accounting for 41.22% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Urea Formaldehyde Market Trends:
Increasing need for resins in the automotive sector is expected to emerge as key trend. Growing disposable income of consumers is increasing sale of automobile. This is projected to augment market growth. According to the Canada.ca, The total number of road motor vehicles registered in Canada increased to 26.2 million in 2021, up 1.9% over 2020. At 24.1 million, light-duty vehicles accounted for 9 out of every 10 motor vehicles registered in 2021, with passenger cars remaining the most common type. However, registrations of multi-purpose vehicles have experienced the most growth over the last five years.
Rise in development of textile sector is another major trend observed in the market. According to the India Brand Equity Foundation, India’s textiles sector is one of the oldest industries in the Indian economy, dating back several centuries. India's overall textile exports during FY 2017-18 stood at USD 39.2 billion and is expected to increase to USD 82.00 billion by 2021, from USD 31.65 billion in FY19 (up to January 2019).
Global Urea Formaldehyde Market: Competitive Landscape
Hexion, BASF SE, Georgia-Pacific Chemicals, Hexza Corporation Berhad, Metadyena, Jiangsu sanmu group Co. Ltd, Ashland, ARCL Organics Ltd., Kronoplus Limited, Advachem, Qafco, Sabic, Acron Group, Asta Chemicals, Melamin Kemična Tovarna D.D. Kočevje, and Arclin Inc.
Global Urea Formaldehyde Market: Recent Developments
In 2017, Biqem completed the full acquisition of Chemplastica Plastik San. ve Tic. A. to boost its market opportunities in Turkey.
In April 2019,Acron Group has launched an investment project to increase the capacity of the Urea-6 unit at its production facility in Veliky Novgorod.Urea is a high-analysis nitrogen fertiliser and a feedstock to produce urea-ammonium nitrate (UAN) and urea-formaldehyde resins (UFR). Urea contains more nitrogen than any other granular nitrogen fertilisers, making it the world’s most popular fertiliser.
