Paraformaldehyde Market Expected to Reach $2.8 Billion by 2030-Allied Market Research

According to a new report published by Allied Market Research, titled, "Paraformaldehyde Market by Application: Global Opportunity Analysis and Industry Forecast, 2021-2030," the paraformaldehyde market size was valued at $1.6 billion in 2020, and is projected to reach $2.8 billion by 2030, at a CAGR of 5.5% from 2021 to 2030.

Paraformaldehyde is a white crystalline solid formed by polymerization of formaldehyde. It is majorly used to make various resins with phenol (melamine resin, phenolic resin, vinylon, polyacetal resin, terephthalic acid, diphenylmethane diisocyanate, and acrylate). In addition, paraformaldehyde is majorly used in pesticides, as the synthesis of acetochlor, butachlor, and glyphosate. It can be produced as vitamin A in medicine and pharmacy, and as a composite of high-quality automotive paints. 

The global paraformaldehyde market is expected to grow significantly in the future, due to increase in demand for paraformaldehyde to synthesize disinfectants, fumigants, fixatives, and fungicides. Moreover, exponential increase in population  coupled with the development of the agricultural sector acts as a key driving force of the global market. In addition, surge in demand for organic chemical synthesis, fertilizers, pharmaceuticals, printing and photography, fluorescent lighting, consumer products, cleaning products, personal care products, and intermediate additives is expected to drive market growth.

The paraformaldehyde market analysis has been done on the basis of application and region. 

The applications covered in the study include resins, agrochemicals, medical, and others. The agrochemicals segment dominates the global paraformaldehyde market, owing to increase in need for crop protection attributed to rise in population across the globe. This fuels the demand for agrochemicals, as they help in improving the yield. 

Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is expected to grow at a rapid CAGR during the projection period, owing to the rapid development of the agrochemicals industry and increase in government initiatives for improving agriculture. These factors are expected to boost the demand for paraformaldehyde, as it is used in the production of agrochemicals. China, Japan, and India are the major producers of agrochemicals.

The major companies profiled in this report include Alfa Aesar, Alpha Chemika, Caldic, Celanese, Chemanol, Ekta International, Ercros, Jinan Xiangrui Chemical Co., Ltd., Merck, and Yinhe Chemical. 

Key findings of the study

• Region wise, the Asia-Pacific paraformaldehyde market is projected to grow at the highest CAGR of nearly 57.2%, in terms of revenue, during the paraformaldehyde market forecast period.
• By application, the agrochemicals segment garnered the largest paraformaldehyde market share in 2020.
• Impact of COVID-19 on the global paraformaldehyde market
• Some of the major economies suffering from the COVID-19 crisis include Germany, France, Italy, Spain, the UK, and Norway. Many industries have been shut down due to lack of raw material availability and disruptions in the supply chain, owing to the virus outbreak. The worldwide lockdown has suspended the marine and industrial activities, which results in decline in demand for paraformaldehyde.
• Manufacture of oil & gas and other products across the globe came to a halt due to unavailability of raw materials and shortage of labor. This is expected to hamper the paraformaldehyde market growth.
• Increase in demand–supply gap, price volatility, and change in government policy are expected to affect the growth of various end-use industries. In terms of its immediate and long-term effect on paraformaldehyde market industry and consumers, the COVID-19 pandemic has outpaced any headwind ever encountered. The world economy of paraformaldehyde industries has been experiencing a rapid slowdown due to constraints of the COVID-19 pandemic on economic activity.
• Owing to COVID-19, the market witnessed significant dip due to closure of agrochemicals; however, the market is projected to witness strong growth in the next couple of years as situation continues to ease down in the North America and Asia-Pacific.