Market Overview:
Urea formaldehyde is a thermosetting resin obtained by the reaction of urea and formaldehyde. It is commonly used as a binding agent and adhesive in the production of engineered wood products such asparticleboard, medium-density fiberboard (MDF), and plywood. Urea formaldehyde resins provide advantages such as easy availability, low cost, and excellent adhesive strength. They find widespread applications in the construction and furniture industries due to their properties.
Market key trends:
The global urea formaldehyde market is witnessing significant growth owing to the rising construction activities worldwide. According to the Global Construction 2030 report, the volume of construction output is projected to grow by 85% to $15.5 trillion worldwide by 2030. The flourishing construction sector is increasing the demand for engineered wood products, thereby driving the urea formaldehyde market growth. Moreover, urea formaldehyde resins help increase the durability and water resistance of wood materials, making them popular for flooring, roofing, and other construction applications.
The global Urea Formaldehyde Market Share is estimated to be valued at US$ 15,209.73 Mn in 2023 and is expected to exhibit a CAGR of 3.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: Low capital required to enter urea formaldehyde market is a threat but established players hold major market share.
Bargaining power of buyers: Presence of many buyers and suppliers leads to competitive pricing in market.
Bargaining power of suppliers: Major suppliers control prices due to economies of scale and brand value.
Threat of new substitutes: New substitutes pose low threat as urea formaldehyde offers cost effective solution for various end use industries.
Competitive rivalry: Intense competition among existing players to gain market share.
Key Takeaways
The global urea formaldehyde market is expected to witness high growth, exhibiting CAGR of 3.2% over the forecast period, due to increasing demand from building and construction industries.
Asia Pacific dominates the global urea formaldehyde market due to growth in building & construction activities and rising population in China and India. Growing construction industry in Indonesia, Malaysia and Vietnam is further expected to drive the regional market.
Key players operating in the urea formaldehyde market are Hexion, BASF SE, Georgia-Pacific Chemicals, Hexza Corporation Berhad, Metadynea, Jiangsu sanmu group Co. Ltd, Ashland, ARCL Organics Ltd., Kronoplus Limited, Advachem, Qafco, Sabic, Acron Group, Asta Chemicals, Melamin KemiÄna Tovarna D.D. KoÄevje, and Arclin Inc. These players are focusing on expansion of production facilities and new product launches to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it