Formaldehyde Market Report 2026

The formaldehyde market size has grown strongly in recent years. It will grow from $23.68 billion in 2025 to $25.56 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to expansion of construction and furniture manufacturing, growth in resin-based composites, rising automotive interior production, increased use of preservatives and binders, availability of methanol feedstock.

The formaldehyde market size is expected to see strong growth in the next few years. It will grow to $34.08 billion in 2030 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to increasing demand for low-toxicity formulations, rising adoption of formaldehyde alternatives and blends, expansion of lightweight automotive materials, growing investments in emission control technologies, increasing regulatory oversight on chemical safety. Major trends in the forecast period include increasing use of low-emission resins, rising demand for engineered wood products, growing application in automotive molded components, expansion of high-performance thermoset resins, enhanced focus on product safety compliance.

Growing demand from the construction industry is expected to propel the growth of the formaldehyde market going forward. Construction refers to the process of building, altering, repairing, remodeling, improving, or demolishing any structures. Formaldehyde supports the construction industry through its use in manufacturing glues, resins, and other essential building materials. For instance, in July 2024, according to the Bureau of National Statistics, a Kazakhstan-based government agency, the total value of construction services in 2023 reached 7.61 trillion tenge, marking a 15.1% increase compared to 2022. Therefore, the growing demand from the construction industry is driving the growth of the formaldehyde market.

The increasing demand in the automotive industry is expected to propel the growth of the formaldehyde market going forward. The automotive industry refers to the collective group of companies, organizations, and activities involved in the design, development, manufacturing, marketing, and sale of motor vehicles. Formaldehyde-based adhesives and resins can be used in the manufacturing of composite materials, contribute to the production of durable and sturdy interior components, insulation, emission control, and used in the textile and leather industries for certain automotive interior components. For instance, according to MarkLines, a Japan-based provider of forecast reports of the automotive industry, in October 2023, auto sales in the USA increased by 2% compared to October 2022. The new vehicle sales volume for the month of October 2023 was 1,211,141 units, which represented a 2% increase from October 2022. Therefore, the increasing automotive industry is driving the growth of the formaldehyde market.

Major companies operating in the formaldehyde market are expanding their manufacturing facilities to boost production capacity. This strategic move allows them to meet the rising demand for formaldehyde across various industries. For instance, in September 2024, Kanoria Chemicals & Industries Limited, a India-based chemical manufacturer, opened a new formaldehyde plant in Ankleshwar, Gujarat, with a production capacity of 345 metric tons per day (MTPD), bringing the company's total output to 763 MTPD. The facility employs advanced metal oxide-based technology to cater to the growing demand from industries like pharmaceuticals, textiles, and agrochemicals, serving both domestic and international markets.

Major companies operating in the formaldehyde market are BASF SE, Johnson Matthey Process Technologies, Celanese Corporation, Georgia-Pacific Chemicals LLC, Huntsman International LLC, Hexion Inc., Allnex GmbH, Perstorp Holding AB, Acron Group, Arclin Inc., Atul Ltd., Momentive Specialty Chemical Inc., Prefere Resins Holding GmbH, Sprea Misr, Cornerstone Chemical, Metafrax, Metadynea Metafrax Group, Kanoria Chemicals & Industries Ltd., Dynea Oy, Foremark Performance Chemicals, Pacific Texchem Private Limited, Frati Luigi S.p.A, Balaji Formalin Private Limited, Alder S.p.A, Simalin Chemicals Industries Limited.

Asia-Pacific was the largest region in the formaldehyde market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the formaldehyde market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the formaldehyde market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The formaldehyde market consists of sales of molecular formaldehyde, 1,3,5-trioxaneand methanediol. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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