Paraformaldehyde is a stable polymeric form of formaldehyde that is widely used as a fungicide, disinfectant, and fixative in the production of laboratory reagents and industrial resins. It is employed as a precursor to produce many resins such as urea-formaldehyde resins, melamine resins, and phenol resins. Paraformaldehyde also finds applications in the manufacturing of medical equipment, pharmaceutical antiseptics, rubber chemicals, paper strengthening agents, and disinfectants. The growing pharmaceutical industry globally has fueled the demand for paraformaldehyde which is extensively used in the production of various pharmaceutical drugs and medical equipment. 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:
The global paraformaldehyde market growth is majorly driven by the increasing demand from the pharmaceutical industry. As per estimates, the global pharmaceutical market size was valued at US$ 1.27 trillion in 2020 and is anticipated to reach US$ 1.62 trillion by 2026, growing at a CAGR of 4.4% during 2021-2026. This rapid expansion of the pharmaceutical sector has augmented the consumption of paraformaldehyde which is widely employed in the manufacture of various drugs like vaccines, hormones, and antibiotics. Additionally, the increasing prevalence of diseases globally will further propel the demand for pharmaceutical products which in turn will boost the paraformaldehyde market during the forecast period.
Segment Analysis
Paraformaldehyde market is segmented into flakes, powder and others. Amongst them, the powder segment accounts for the largest market share of around 45% owing to its wide applications in making disinfectants, resins & fungicides. It is easy to handle and store in powder form.
PEST Analysis
Political: Stringent regulations regarding the use of formaldehyde posing challenges for market growth. However, paraformaldehyde being a safer alternative is gaining traction.
Economic: Growth of various end-use industries such as construction, agriculture and healthcare driving the demand. Developing nations in Asia Pacific witnessing higher infrastructure spending.
Social: Increasing health awareness and safety concerns pushing the consumption of alternative disinfectants and preservatives like paraformaldehyde.
Technological: Advancements in production technologies making paraformaldehyde more cost-effective. Continuous research enhancing the product profile.
Key Takeaways
The global paraformaldehyde market is expected to witness high growth over the forecast period.
The Asia Pacific region represents the fastest growing regional market occupying over 35% share owing to the massive growth of end-use industries in nations like India and China.
Key players operating in the paraformaldehyde market are Siemens AG, Dragerwerk AG & Co. KGaA, Getinge AB, GE Healthcare, Hill-Rom Holdings Inc. Key players are focusing on capacity expansions and new product launches to strengthen their market position.
