Formamide Market - Forecast(2023 - 2028)

Formamide Market Overview

The formamide market size is estimated to reach US$270 million by 2027 after growing at a CAGR of 2.7% from 2022 to 2027. Formamide is a colorless amide liquid which is derived from formic acid and hasmmonia like odor, hence one such formamide is dimethylformamide. Formamide has various applications such as it is used as chemical feedstock for making agrochemicals, pharmaceuticals drugs, softener for paper & fabrics, solvent for processing polymer like polyacrylonitrile and for making chemicals compound like hydrocyanic acid. Hence, due to such high applicability, formamide is majorly used in sectors like agriculture, paper, construction, plastics and mining. Factors like increase in the production of paper, growing construction activities and growing consumption of agrochemicals in agriculture sector are driving formamide market growth. However, formamide exposure can cause certain health effects like skin & eye irritation, which can hamper the growth of global formamide industry.

COVID-19 Impact

Formamide has major use in sectors like paper, construction and plastics where it is used as solvents and softener. The global lockdown was implemented in order to curb the effect of COVID-19, which has majorly disrupted the activities of these major end use industries of formamide. For instance, according to Confederation of European Paper Industries, in 2020, global paper and board production decreased by 5%. Also, according to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, in July 2020, construction order in Japan decreased by 22.9% compared to 26.9 % increase in 2019 same month. Furthermore, according to PlasticEurope, in 2020, global plastic production was 367 million tones compared to 368 million tones in 2019, showing 0.3% decrease. Formamide is used as a softener to improve paper quality, and as solvent in plasticizers which is used in formulation of concrete and also as solvent used in processing of thermoplastic polymers like polyacrylonitrile. The decrease in production level of these sectors led to decrease in demand and usage of formamide in them, which negatively impacted the growth of global formamide industry.

Report Coverage

The “Formamide Market Report – Forecast (2022 – 2027)”, by IndustryARC covers an in-depth analysis of the following segments of the global formamide Industry.

Key Takeaways

• Asia-Pacific dominates the global formamide industry as the region consists of major end user of formamide like agriculture and paper in major economies like China   and India, with China being the largest producer of paper.
• Formamide is majorly used in industrial production of hydrocyanic acid which is used in the production of potassium cyanide and adiponitrile used in sector like mining and plastic.
• The growing demand for various agrochemicals such as herbicides, pesticides and insecticides due to surge in occurrence of various pests and diseases will increase demand for agrochemicals thereby providing growth opportunities for  formamide market in agriculture sector.

Formamide Market Segment Analysis – By Grade

Industrial grade held a significant share in formamide market in 2021 with a share of over 75%. Industrial grade is used in various sectors like paper, agriculture and construction. The rapid development in these sectors on account of growing demand has increased their productivity as well as consumption level. For instance, according to Confederation of European Paper Industries (Cepi), in 2021, the overall consumption of paper increased by 5% in Cepi member countries compared to 2020. Also, according to US Food and Agriculture Organization, in 2019, pesticide consumption increased in America up to 33% in 2019. Further, according to Eurostat, in October 2021, production in construction sector increased by 1.4% in EU area. Formamide derived from formic acid is used as solvent in plasticizers for making concrete, as chemical feedstock for making agrochemicals like pesticides and as softener it is used in paper sector. The increase in production and consumption level of these sectors will create more demand and usage of formamide in them, resulting a positive growth for global formamide industry.

Formamide Market Segment Analysis – By End Use Industry

Agriculture sector held a significant share in formamide market in 2021 with a share of over 22%. Formamide derived for formic acid is majorly used as chemical feedstock for making agrochemicals like pesticides & herbicides, which are used to protect crops from pests. Growing population has increased sale of agriculture activities which has consumption level of agrochemicals. For instance, according to US Food and Agriculture Organization, in 2019, the global pesticide consumption was 4.2 million tones showing 36% increase compared to 2000. The increase in global pesticides consumption on account of their growing demand in agriculture sector will increase the production level of such agrochemicals. This will positively impact the usage of formamide as chemicals feedstock in pesticide production, resulting a positive growth for global formamide industry.

Formamide Market Segment Analysis – By Geography

Asia-Pacific held the largest share in formamide market in 2021 with a share of 34%. The region consists of major economies like China, India and Japan which consist of major end-use industries of formamide like plastic, paper and agriculture. The economic development of these nations has increased their industrial productivity and level of consumption. For instance, according to PlasticEurope, in 2020, China with 36% held the maximum share of plastic production. Also, according to China’s National Bureau of Statistics, in 2021, China’s paper product manufacturers generated revenue of more than US$201 billion, showing 21.2% increase. Further, according to US Food and Agriculture Organization, in 2019, Asia with 52% to 53% held the largest in global pesticide consumption. Formamide is used as solvent for polymer processing of thermoplastics like polyacrylonitrile, as feedstock for making pesticides and as softener for paper. Increase in production and consumption level of plastics, paper and agriculture sector will create more demand for formamide as raw material in these sectors, which will boost global formamide industry growth.

Formamide Market Drivers

Growing Construction Activities

Formamide is used as solvent in plasticizers which when added to concrete mixture increases its workability and strength. The increase in construction activities both residential and commercial, has positively impacted the usage of formic acid driven formamide. For instance, according to Germany’s Federal Statistical Office, in January 2022, the construction of 29,951 dwelling was permitted in Germany, showing an increase of 8.3% compared to 2021 same month. Also, according to Eurostat, in October 2021, in the EU building construction increased by 4.6% and civil engineering by 3.3%. Such increase in residential and commercial production will lead to more usage of plasticizers in concrete, resulting in more usage of formamide as solvents in plasticizers. This will boost the growth of global formamide industry.

Increase in Production of Paper

Formamide as softener is used in paper industry to modify paper fibre and improve overall softness of the paper. Hence, as softener, formamide is majorly used to improve softness of household and sanitary paper like tissue paper. The increase in production of sanitary and household paper on account of growing demand for household sectors, has positively impacted the usage of formic acid driven formamide. For instance, according to Confederation of European Paper Industries, in 2020, in Cepi member countries sanitary and household paper manufacturers’ output increased by about 1.9% compared to 2019 and accounted for 9.3% of total paper and board production. Such an increase in the production of sanitary and household paper will lead to more usage of softener in them, to improve their softness. This will boost global formamide industry growth.

Formamide Market Challenge

Negative Health Effects

Exposure to formamide can cause irritation to skin, eyes and moreover it can cause throat infection. Such negative effects of formamide will limit its usage in certain applications, like as raw material it is used in making hydrocyanic acid, which is used in mining sector during gold and silver mining and electroplating of those metals. Lack of applicability of formamide in mining sector in order to limit its negative effects will hamper the growth of global formamide industry.

Formamide Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In formamide market report, the global formamide top 10 companies are:

1. Mitsubishi Gas Chemicals
2. Balaji Amines
3. Zhejiang Realsun Chemical
4. Shandong Rongyue Chemical
5. Balaji Amines
6. BASF
7. Chemvon Biotechnology Co. Ltd
8. Alpha Chemika
9. AB Enterprises
10. Jigchem Universal

Recent Developments

• In 2022, Open Gate Capital a global private equity firm acquired Chemisphere Corp, a specialty solvent blender and chemical distributor and this acquisition will enable OpenGate to create solvent distribution channel form Midwest to Mid-Atlantic region of US.
• In 2021, Draslovka Holding a global leader in cyanide-based chemical specialties and agricultural chemicals, acquired Mining Solutions business of The Chemours Company and this acquisition will enable Draslovka to make highly purified liquid hydrogen cyanide-based specialty chemicals.
• In 2021, Borealis and Renasci Oostende Recycling NV signed an agreement to acquire chemically recycled feedstock output from its high-tech recycling center in Oostende, Belgium. 

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