by Paraformaldehyde is a thermoplastic polymer that is commonly used as a binder and resin for many industrial applications. It can also be used as a fumigant and disinfectant. The product finds its major use in producing wood adhesives for plywood, particleboard, and medium-density fiberboard manufacturing. It is also used in resin production for molding compounds and laminates. The increasing consumption of plywood, particleboard and other wood-based panels in the construction industry has been driving the demand for paraformaldehyde as a binder over the years.
The global paraformaldehyde market is estimated to be valued at US$ 419.8 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the paraformaldehyde market has been the growing use of the product as a binder and resin in the wood adhesives industry. Paraformaldehyde acts as an excellent binder for manufacturing wood panel products like plywood and particleboard. The substantial growth of the global construction industry over the past few years has positively impacted the demand for wood-based panels, which in turn has driven the consumption of paraformaldehyde globally. According to estimates, the global wood adhesives market was valued at over US$ 7 billion in 2020 and is expected to exhibit significant growth over the next few years. This increasing demand from the wood adhesives segment is projected to propel the paraformaldehyde market forward during the forecast period.
SWOT Analysis
Strength: Paraformaldehyde is widely used as a disinfectant and preservative in many industries such as pharmaceuticals, agrochemicals and medical equipment which drives its consistent demand. It exhibits strong biocidal properties and is effective against bacteria, viruses and fungi on surfaces and instruments. The material is also cost effective compared to alternative sterilants and preservatives.
Weakness: Workers involved in the production and transportation of paraformaldehyde are at risk of exposure due to its harmful effects. Strict safety regulations and protocols need to be followed during manufacturing. The material is volatile in nature and has a strong pungent smell which is unpleasant.
Opportunity: Growing need for sterilization and disinfection of surfaces and instruments arises from the COVID-19 pandemic boosting demand. Rising health awareness and focus on hygiene will further augment the market size over the forecast period. Development of novel application areas can open new revenue streams.
Threats: Stringent environmental regulations impose restrictions on paraformaldehyde emissions. Substitute sterilants and preservatives may erode the market share. fluctuation in raw material prices can increase the overall cost of production.
Key Takeaways
The Global Paraformaldehyde Market Share is expected to witness high growth over the forecast period supported by increasing consumption from end-use industries. The global paraformaldehyde market is estimated to be valued at US$ 419.8 Mn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market and is projected to continue exhibiting fastest gains through 2030. Countries like China, India and Japan contribute significantly to rising demand. Rising infrastructural development, healthcare spending and growth in pharmaceutical industry in the region will drive the consumption. North America and Europe also offer substantial opportunities for manufacturers supported by stringent regulations promoting sterilization.
Key players: Key players operating in the paraformaldehyde market are Siemens AG, Dragerwerk AG & Co. KGaA, Getinge AB, GE Healthcare, Heraeus Holding GmbH. These companies focus on capacity expansions to cater to growing requirements.New product launches with innovative technologies widen their portfolio and customer base.
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Source: Coherent Market Insights, Public sources, Desk research
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