Paraformaldehyde is a polymeric formulation of formaldehyde which is commonly used as a precursor or reagent in many applications. It acts as an excellent preservative and disinfectant making it ideal for various end-use industries like agriculture, pharmaceuticals, healthcare, electronics and construction among others. Some key applications of paraformaldehyde include resin production, preservatives, disinfectants, fixatives, sterilizers and fungicides. Rising demand from end-use industries along with its antimicrobial properties will continue to drive the paraformaldehyde market over the forecast period.
The 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 Dynamics:
There are two key drivers that are expected to positively influence the paraformaldehyde market during the forecast period. Firstly, growing awareness about healthcare, hygiene, plant cultivation and food safety across the globe is augmenting the demand for antimicrobial chemicals and preservatives. Paraformaldehyde being a strong disinfectant and preservative finds applications across diverse industries and its use is likely to rise steadily. Secondly, rising demand from agricultural sector is also acting as a major growth driver. With growing world population, agricultural production needs to increase substantially which will require more fungicides, herbicides and plant protection chemicals. Paraformaldehyde is widely used as a raw material in production of various agrochemicals thereby supporting the agricultural sector.
Segment Analysis
Paraformaldehyde is dominantly used in the production of agrochemicals, where it functions as a fungicide and herbicide. Around 40% of the total paraformaldehyde produced globally is consumed by the agrochemical segment. This is because paraformaldehyde has excellent chemical properties such as thermal stability that make it highly suitable for use as a precursor in the production of various agrochemicals.
PEST Analysis
Political: The governments across major economies are supporting the agrochemical industry through various initiatives and funding to boost agricultural production. This is positively impacting the demand for paraformaldehyde.
Economic: With growing population and reducing agricultural land, the demand for high-quality agrochemicals is increasing. This is driving the paraformaldehyde market.
Social: The rising awareness among farmers about using agrochemicals for better crop yield is favoring the market growth.
Technological: New production technologies are helping paraformaldehyde manufacturers lower manufacturing costs and reduce environmental impact. This is allowing greater market penetration.
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 the agrochemical industry. The agrochemical segment currently accounts for over 40% of the total paraformaldehyde demand globally.
The Asia Pacific region is projected to dominate the paraformaldehyde market during the forecast period. Countries like China, India, and Japan are the major consumers as well as producers of agrochemicals in the world, which is driving the paraformaldehyde demand in the region.
North America and Europe are other major markets for paraformaldehyde due to the large presence of prominent agrochemical manufacturers such as Bayer, BASF, Syngenta, etc. in these regions.
Key players operating in the paraformaldehyde market incorporate 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, and Caldic.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it