Formaldehyde Catalyst Market Share, Growth & Forecast [2031]

Report Description

Formaldehyde Catalyst Market Outlook 2031

The global formaldehyde catalyst market was valued at USD 72.7 Million in 2022 and is projected to reach USD 121.4 Million by 2031, expanding at a CAGR of 6.0% during the forecast period.

Formaldehyde or CH₂O is a highly toxic, flammable, and colorless gas at room temperature. It has applications in producing paper, fertilizers, resins, and plywood. It is used as a food preservative and in household products, such as medicines, cosmetics, and antiseptics. Formaldehyde is the basis for many industrial products and an important raw material for the chemical industry.

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Formaldehyde is produced by the catalytic oxidation of methanol. The catalysts used in the production of formaldehyde include silver-based catalysts, iron molybdate catalysts, and others. The safest process for producing formaldehyde involves using a silver-based catalyst. This method does not require the use of formic acid or caustic soda and antifoam agents, which increases the preference for the product for all formulations among end-users.

Additionally, this process uses only water or steam instead of hot oil, which reduces the fire risk and improves the product quality, due to the absence of oxygen in the absorber. The investment costs for the process involving silver catalysts are similar to other catalyst-based processes; however, this system has additional advantages.

For instance, the catalyst is inexpensive, as it is fully regenerated, and the process consumes less electricity. It also generates more steam and requires less cooling. These factors compensate for the slightly higher consumption of methanol as compared to processes that use other oxides. The use of iron molybdate and other catalysts has shown to produce better quantities of formaldehyde while consuming slightly less methanol.

The investment costs for this process are similar to those of the silver catalyst process. In this process, methanol is fed along with ambient air to iron molybdate catalyst. The process gas generated is absorbed in water and condensed during the absorption step. The process yields formaldehyde solutions, which contain up to 55% w/w formaldehyde with 0.5-1% w/w methanol.

Macro-economic Factors:

Industrialization

The demand for formaldehyde catalysts is driven by industrialization in sectors such as automotive, building and construction, agriculture, healthcare, and others, leading to a positive impact on the market. According to the Netherlands Bureau for Economic Policy Analysis (CPB), global industrial production increased by 3.3% in 2022. This growth reflects an increase in output to the 2.8% annual average for the previous ten years.

Industrial production has increased by 4% in 2022 as compared to 2021, bringing industrial production in these advanced economies to more than 8% above pre-pandemic levels.

Technological Advancement

Silver-based and iron molybdate catalysts are widely used in the production of formaldehyde. Silver-based catalyst has approximately 2 to 5 years of lifespan, after which it is sent for recycling purposes and is reused. Advances in formaldehyde catalyst performance have enabled operation at high work rates while improving selectivity and stability.

The formaldehyde production process has been optimized to take advantage of improvements in catalyst performance. These developments help to increase output and reduce capital or operating costs of core projects. Existing plants also benefit from this advancement. Facilities across the globe that have replaced old catalysts with the latest generation catalysts have reaped significant value, which influences the market.

Raw Material Prices

Formaldehyde catalyst is made from various materials, such as silver, iron molybdate, vanadium oxide, and others. The price of these metals depends on various factors, including supply & demand, market conditions, natural disasters, geopolitical changes, and restrictions imposed by governments.

The supply chain of raw materials was affected by the impact of the pandemic on the transportation networks. People had extra time during the pandemic, as several companies closed. The rise in chemical demand, and thus the increase in material requirement, had an impact on the availability of raw materials and pricing. Silver has charted a volatile path into 2022, with prices hovering between USD 22 and USD 26 an ounce for the majority of the year.

Many industries, including chemical and solar energy, use silver for its excellent conductive properties. These industries are major contributors to the silver market. The slowdown in the industries reduces the demand for silver as well as the prices. Raw materials are needed for manufacturing products for customers. Thus, these resources are an essential component of the global economy and international trade.

Formaldehyde Catalyst Market Dynamics

Driver: Rising demand for formaldehyde from the agriculture industry

Formaldehyde is used in various ways in the agriculture industry. It is commonly used as a disinfectant in poultry hatcheries to reduce contamination. Formaldehyde solutions are also used to get rid of bacteria, viruses, and mold. Additionally, this chemical is utilized in different slow-release fertilizer formulations, which provide plants with a sustainable supply of nutrients for a long period.

The use of formaldehyde in fertilizers is mainly driven by the growing global population and the increasing demand for food to improve crop yield.

Driver: Increasing demand from the automotive industry

The demand for formaldehyde across the world is mainly driven by its use in the production of thermosetting resins. These resins are viscous substances made from organic compounds, which are converted into polymers. They are used to make adhesives, plastics, and other products, and are valued for their superior chemical properties.

Demand for adhesives is growing, due to the increasing popularity of lightweight and fuel-efficient passenger vehicles. Adhesives have several benefits, such as reducing product weight, eliminating the risk of corrosion, and not causing any deformation in materials or substrates. High-performance additives are required in adhesive formulations, which is driving the demand for formaldehyde.

The production of formaldehyde is a catalytic reaction that requires a catalyst. This contributes to the growth of the formaldehyde market, which, in turn, boosts the formaldehyde catalyst market.

Restraint: Hazardous Effects on Human Health

Formaldehyde has both immediate and long-term effects on human health. When inhaled, it irritates the eyes, nose, throat, and nasal cavity, as well as coughing, chest pains, wheezing, and bronchitis. If ingested, it corrodes the gastrointestinal tract, leading to inflammation, mouth ulcers, esophagus ulcers, and stomach ulcers.

Skin irritation and allergic contact dermatitis have been observed in people who have been in continuous contact with liquid formaldehyde solutions. Exposure to formaldehyde resins has also shown developmental and reproductive effects in female workers. It is important to be aware of these hazards and take necessary precautions to avoid them. This restricts the use of formaldehyde, reducing the use of catalysts for the manufacture of formaldehyde.

Opportunity: Green methanol production

Methanol serves as a raw material in the production of formaldehyde, acetic acid, and olefins in the chemical industry. Thus, renewable methanol is required for making a broad range of chemical products environmentally friendly, such as plastics for packaging, adsorbents/diapers, glues, paints, solvents, adhesives, and others. Methanol serves as a fuel or fuel additive in the construction, plastics, and chemical industries.

The traditional production method involves a catalytic process using fossil feedstock such as coal or natural gas. Interest in an environmentally friendly alternative to traditional technology is growing. Thus, an alternative green source of methanol makes formaldehyde an environmentally friendly product based for green raw material, making it more sustainable and providing an opportunity for the formaldehyde catalyst market.

Scope of The Formaldehyde Catalyst Market Report

The report on the global formaldehyde catalyst market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Segmental Outlook:

The global formaldehyde catalyst market is segmented based on type, end use, and distribution channel.

In terms of type, the global formaldehyde catalyst market is segmented into iron molybdate, silver-based, and others.

The iron molybdate segment expected to grow with lucrative CAGR of X.XX% during the forecast period. Formaldehyde is primarily synthesized industrially by the selective oxidation of methanol over an iron molybdate catalyst (Fe2(MoO4)3–MoO3). This is one of the standard energy-efficient processes. Iron molybdate catalyst is a popular commercial catalyst for converting methanol to formaldehyde, contributing to the segmental growth.

The silver-based segment expected to expand at a CAGR of X.XX% during the forecast period. Silver is a vital catalyst for the production of formaldehyde, owing to its unique chemical properties. Silver is not affected by the reaction; hence, it is completely recovered after its use. Thus, the above-mentioned factors are likely to raise the demand for the catalyst in formaldehyde production.

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In terms of end use, the global formaldehyde catalyst market is segmented into automotive, building and construction, agriculture, healthcare, chemical & petrochemicals, and others. The automotive segment held XX.X% market share in 2022 and is expected to expand at a CAGR of X.XX% during the forecast period. Automotive components, such as transmission parts, brake pads, and fuel pumps, are produced with formaldehyde-based resins.

Other formaldehyde–based applications include the decorative laminates of car interiors, engine lubricants, vulcanized rubber tires, and lightweight polyurethane foams for automobile door insulation. The growth of building and construction is attributed to the use of formaldehyde in manufacturing pressed-wood products, such as cabinetry, countertops, moldings, furniture, shelves, stair systems, flooring, wall sheathing, support beams and trusses, and a variety of other home furnishings and constructions. 

The agriculture segment is anticipated to expand at a CAGR of XX.X% in the forecast period. In the agriculture sector, formaldehyde is used as a seed dressing, nitrogen fertilizer, soil disinfectant, and in the preservation of grain. It is used in fertilizers to enhance the quality of soil, protect plants from diseases, and help them grow rapidly. Thus, the above-mentioned factors are likely to fuel the demand for the product in the agriculture industry in the coming years. 

The healthcare segment is expected to expand at a CAGR of XX.X% in 2031. The unique chemistries offered by formaldehyde make it suitable for use as a preservative in personal care products, as they are resistant to bacteria. Additionally, it contributes to the foaming action in detergents and soaps. These products help improve hygiene and protect health, contributing to the segmental growth. 

The chemical & petrochemical segment accounted for a significant market share of XX.X% in 2022. Formaldehyde is well known as a preservative in chemical laboratories, as a sterilizer, and in vaccines (some polio, hepatitis, and influenza vaccines use it to inactivate viruses and detoxify bacterial toxins), thereby increasing the use of the formaldehyde catalyst for formaldehyde production.

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Based on the distribution channel, the market is bifurcated into direct sales through manufacturers and sales through distributor/wholesalers. The direct sales through manufacturers segment accounted for XX.X% share of the market in 2022. It is projected to expand at a CAGR of XX.X% in the forecasted period. Manufacturers are responsible for designing, producing, and assembling products using raw materials and components.

Manufacturers tend to sell their products directly to the end-users without intermediaries. This method is often used by companies with a strong brand image and a loyal customer base. Direct sales allow manufacturers to have control over the distribution process and establish a direct relationship with their customers.

The sales through distributor/wholesalers segment is estimated to expand at a CAGR of XX.X% in the forecast period. Distributors are resellers of products. Sales through wholesalers/distributors involves the use of intermediaries between the manufacturer and the end-user. Distributors buy products from manufacturers and sell them to retailers or directly to the end-users.

This method is often used by manufacturers who want to reach a wide customer base and do not have the resources to establish a direct sales channel. Distributors provide manufacturers with access to new markets and customers, as well as help them reduce their distribution costs.

Regional Outlook:

Based on region, the global formaldehyde catalyst market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America accounted for a significant revenue share of around XX.X% in 2022. This is attributed to the rising use of formaldehyde in several construction materials, which helps improve the toughness and tensile strength of building materials.

The demand for the product is rising in the US, due to the presence of various players in the construction industry and residential development in major states, such as Arizona, Georgia, Nevada, Florida, Washington, and Texas. Europe held XX% market share in 2022. Increasing demand for formaldehyde from the construction industry in countries, including Germany, Russia, and Italy, is expected to boost the market in the region over the forecast period.

Rising product demand for fiberglass mats in building and construction applications in Germany is driving the market in the country. Asia Pacific is expected to hold XX.X% market share in 2022. This is attributed to the rapid growth of the furniture, automobile, adhesives, and electrical and electronics manufacturing sectors that use formaldehyde-based products in the region.

The formaldehyde catalyst is in demand on account of its requirement for formaldehyde production due to its high reactivity, high-quality performance, and low price. Additionally, the growing automotive and construction industries in Asia Pacific, especially in India and China, are likely to raise the demand for the product. 

Latin America held XX% share of the market in 2022 and is expected to hold XX% share of the market in 2031, owing to high demand for formaldehyde from different end-users, such as healthcare, cosmetics, paint, food, and photography, in the region. The product is used as a preservative in cosmetics. The market in the Middle East & Africa is projected to expand at a CAGR of XX.X% during the forecast period.

This is attributed to the expansion of the construction industry in the region. The government of Saudi Arabia focuses on boosting the healthcare, education, industrial, and infrastructure sectors for economic diversification. As a result, demand for residential, institutional, commercial, and industrial buildings is likely to rise, which contributes to the market growth in Saudi Arabia.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Formaldehyde Catalyst Market

• Historical, Current, and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Formaldehyde Catalyst Market Performance