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Urea Formaldehyde Resins Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Urea Formaldehyde Resins Market is segmented by Application (Particle Board, Wood Adhesives, Plywood, Medium Density Fiberboard, and Other Applications), End-user Industry (Automotive, Electrical Appliances, Agriculture, Building and Construction, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Urea Formaldehyde Resins in volume (kilo tons) for all the above segments.

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Market Snapshot

Urea Formaldehyde Resins Market - Market Summary
Study Period: 2016-2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >4 %

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Market Overview

The Global Urea Formaldehyde Resins Market size was estimated at around 12.3 million tons in 2020 and the market is projected to register a CAGR of over 4% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Urea formaldehyde resins are used for the production of various products, including particle board, fiberboard, plywood, etc., of the construction and automotive industry. It is mainly used for adhesion purposes in these products. Considering the pandemic scenario, the construction and automotive manufacturing activities were stopped temporarily. For example, the global automotive production decreased from 91.7 million units in 2019 to 77.6 million units in 2020, declining with a rate of 16%. Moreover, in April month of 2019, the total residential and non-residential construction in Canada was valued at about USD 12.34 billion and reached about USD 6.86 billion in April 2020, with a decline rate of about 44% mainly due to COVID-19 impact, thus led to a decrease in the demand of products such as fiberboard, particle board, plywood, etc., which in turn negatively impacts the demand for the market studied.

  • Over the short term, the increasing demand for particle board from the furniture sector and rising demand for medium density fiberboard (MDF) from the construction industry are expected to drive the market's growth.
  • Health hazards regarding urea formaldehyde resins and unfavourable conditions arising due to the COVID-19 outbreak are expected to hinder the growth of the market studied.
  • The building and construction segment dominated the market, and is expected to grow during the forecast period.
  • Rise in demand for good quality resins in automobile and electrical appliances is likely to act as an opportunity in the future.
  • Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China and India.

Scope of the Report

Urea formaldehyde resins are the types of amino resins that are manufactured by polymeric condensation of formaldehyde with urea. It is mainly used as binders in the production of adhered wood products, particleboard, plywood, medium-density fiberboard, and others and also offers high heat distortion temperature, high tensile strength, low water absorption, high surface hardness, and other favorable properties to these products. The urea formaldehyde resins market is segmented by application, end-user industry, and geography. By application, the market is segmented into Particle Board, Wood Adhesives, Plywood, Medium Density Fiberboard, and Other Applications. By end-user industry, the market is segmented into Automotive, Electrical Appliances, Agriculture, Building and Construction, and Other End-user Industries. The report also covers the market size and forecasts for the urea formaldehyde resins market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo tons).

Application
Particle Board
Wood Adhesives
Plywood
Medium Density Fiberboard
Other Applications
End-user Industry
Automotive
Electrical Appliances
Agriculture
Building and Construction
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Particle Board to Dominate the Market

  • Particle board is an eco-friendly material, which is made up of wood wastes, such as wood chips, sawdust, and wood shavings, mixed together with a resin to form boards. It can be found in different grades, depending on the size of the particles used in the material. With smaller particles, particle board tends to become stronger.
  • Urea-formaldehyde resin is extensively used as a bonding agent in the particle board industry. While urea-formaldehyde resins stand cheaper than other formaldehyde-based resin, such as phenol-formaldehyde resin, it gives cost-benefit over its substitutes. ​
  • However, some of the major limitations of particle boards based on urea-formaldehyde binders are high emission of formaldehyde during both production and usage, and subsequent exploitation of the boards. ​
  • Particle board formulated with urea-formaldehyde resins results in thickness swelling if it comes in contact with water, which makes it unsuitable for outdoor application. However, it is preferred for internal applications.​
  • Besides, while formaldehyde emissions can be reduced by reducing formaldehyde/urea molar ratio, but it also leads to deterioration of physical and mechanical properties of particle board.
  • Particle board still stands to be a common building material, which is used in almost all types of construction projects. In the construction industry, particle boards are used as web plates for beams, as a base material for parquet floors, as a base material for covering strips, and in fixtures and fittings.​
  • In 2019. the total residential and non-residential construction was valued at about USD 178 billion in Canada and reached about USD 174.5 in 2020, with a decline rate of about 2%, thus led to a decrease in the consumption of particle board from the construction segment within the country, which in turn negatively impacts the demand for the studied market.
  • Further, it is also used in furniture industries for making furniture frames and boards for interior applications. Besides, it can also be used for all structural components, like jambs, shelves, bottoms, and backs of cabinets can be made from particleboard.​
  • Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.
Urea Formaldehyde Resins Market - Segmentation

Asia-Pacific Region to Dominate the Market

  • Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China and India.
  • China is the largest producer of urea-formaldehyde resins in the world. With the increasing population, the need and demand for food are increasing daily, due to which, the advancements in agriculture activities are changing gradually. To accomplish these changes, fertilizer performance and efficiency are necessary, resulting in increased consumption of urea-formaldehyde resins.
  • The furniture industry in China has been rising steadily over the last decade. The production of the Chinese furniture industry accounted for around 39% of the world’s furniture production.
  • This burgeoning production scenario of the furniture industry is instrumental in propelling the market demand for various products, such as particleboard, medium-density fiberboard (MDF), mold finishes, oriented stranded board (OSB), etc., which in turn, boosts the consumption of urea-formaldehyde resins in the country.
  • Urea-formaldehyde resin is also used in fiberboard production. Fiberboard is further used in the automotive industry to create free-form shapes, such as dashboards, rear parcel shelves, and inner door shells. According to OICA, China had produced about 25.75 million vehicles in 2019 and reached about 25.23 million vehicles in 2020, with a decline rate of about 2%, thus led to a decrease in the consumption of fiberboard from the automotive sector.
  • Furthermore, India had produced about 4.52 million vehicles in 2019 and reached about 3.39 million vehicles in 2020, with a decline rate of about 25%, which in turn negatively impacts the demand for the urea-formaldehyde resins market.
  • In the textile industry, urea-formaldehyde resin consumption is expensively driven due to its ability to avoid shrinking and creasing of fabrics. It further offers tear strength of the fabric and is also used in providing finishing to the white, plain-dyed, and printed fabrics.
  • China is home to the largest textile production industry in the world and is almost worth one-fourth of the global textile industry. In the year 2020, the Chinese textile exports were amounted to about USD 153.83 billion, with a growth rate of 29.2% year on year, which in turn stimulates the demand for the market studied.
  • In India, rising per capita income, favorable demographics, and a shift in preference to branded products boost the demand for the textile industry. According to the IBEF, the textile industry in India is estimated to reach about USD 223 billion by 2021, which in turn stimulates the demand for the urea-formaldehyde resins market.
  • Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.
Urea Formaldehyde Resins Market - Regional Trend

Competitive Landscape

The global urea formaldehyde resins market is a fragmented one. The leading players are well established and are operating to acquire a larger share in the market through innovative products that meet all the necessities and achieve inorganic growth. Some of the key players include BASF SE, Hexion, ADVACHEM, Kronoplus Limited, and Georgia-Pacific Chemicals, among others.

Urea Formaldehyde Resins Market - Market Concentration.png

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand for MDF

      2. 4.1.2 Soaring Demand for Particle Board in the Furniture Sector

    2. 4.2 Restraints

      1. 4.2.1 Health Hazards Regarding Urea Formaldehyde Resins

      2. 4.2.2 Unfavourable Conditions Arising Due to COVID-19 Outbreak

    3. 4.3 Industry Value-chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Feedstock Analysis

    6. 4.6 Technological Snapshot

    7. 4.7 Trade Analysis

    8. 4.8 Regulatory Policy Analysis

    9. 4.9 Price Trend Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Particle Board

      2. 5.1.2 Wood Adhesives

      3. 5.1.3 Plywood

      4. 5.1.4 Medium Density Fiberboard

      5. 5.1.5 Other Applications

    2. 5.2 End-user Industry

      1. 5.2.1 Automotive

      2. 5.2.2 Electrical Appliances

      3. 5.2.3 Agriculture

      4. 5.2.4 Building and Construction

      5. 5.2.5 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 ASEAN Countries

        6. 5.3.1.6 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ADVACHEM

      2. 6.4.2 Acron Group

      3. 6.4.3 ARCL Organics Ltd.

      4. 6.4.4 Ashland

      5. 6.4.5 Asta Chemicals

      6. 6.4.6 Arclin Inc.

      7. 6.4.7 BASF SE

      8. 6.4.8 Georgia-Pacific Chemicals

      9. 6.4.9 Hexion

      10. 6.4.10 Hexza Corporation Berhad

      11. 6.4.11 Jiangsu Sanmu Group Co., Ltd.

      12. 6.4.12 Kronoplus Limited

      13. 6.4.13 Melamin kemicna tovarna d.d. Kocevje

      14. 6.4.14 Metadynea Metafrax Group

      15. 6.4.15 SABIC

      16. 6.4.16 QAFCO

      5. *List Not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Rise in Demand for Good Quality Resins in Automobile and Electrical Appliances

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Urea Formaldehyde Resins Market market is studied from 2016 - 2026.

The Urea Formaldehyde Resins Market is growing at a CAGR of >4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Hexion, BASF SE, ADVACHEM, Kronoplus Limited, Georgia-Pacific Chemicals are the major companies operating in Urea Formaldehyde Resins Market.

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