Saudi Arabia Formaldehyde Market Share, Growing Demand, and Top Key Players

Market Overview

The Saudi Arabian formaldehyde market is projected to generate around USD 194.6 million in revenue by 2024, with an anticipated compound annual growth rate of 5.0% from 2024 to 2030. Economic diversification and rising urbanization are driving industrial growth in the country, resulting in increased demand for formaldehyde. 

This chemical is extensively used as an adhesive and binder in wood production, pulp and paper, and synthetic vitreous-fiber industries. Formaldehyde is a colorless gas known for its strong odor and high toxicity, and its application in the building and automotive sectors is rapidly expanding due to its advantageous properties.

Recent advancements in formaldehyde aim to enhance its thermal stability, sound absorption, and ease of processing, thereby broadening its applications. The chemical's effectiveness as a disinfectant in aqueous solutions also contributes to rising demand, as it can eliminate various bacteria, fungi, and their spores. 
In personal care products like shampoos and baby soaps, formaldehyde serves as a biocide. Its importance in the automotive sector is growing, particularly for under-the-hood and molded interior components that help improve fuel efficiency by reducing vehicle weight.

As urban construction increases, the demand for formaldehyde rises in Saudi Arabia. The focus on safety in infrastructure elevates the need for formaldehyde-based resins, which enhance the durability and strength of composite and engineered wood products used in residential applications such as furniture, cabinets, and roofing. The Saudi government’s commitment to safer infrastructure further drives the demand for formaldehyde in protective coatings and waterproofing solutions.

Key Insights

•    The urea formaldehyde category will hold a 30% market share in 2024.  
•    Formaldehyde is commonly used in textiles, electrical appliances, and wood glue due to its low water absorption and high heat distortion.  
•    The phenol formaldehyde category is expected to grow at the highest CAGR of 5.5% during the forecast period.  
•    Phenol formaldehyde provides dimensional stability and chemical and electrical resistance.  
•    It serves as a strong adhesive for plywood and particleboard.  
•    The building and construction category will account for 35% of the market share in 2024.  
•    Formaldehyde enhances the tensile strength and durability of building materials.  
•    It is widely utilized for insulation and as an adhesive in wood panel products.  
•    The furniture category is projected to experience the highest CAGR over the forecast period.  
•    Formaldehyde is used in furniture items like bed frames and desks, providing durability and moisture resistance.  
•    Al-Riyadh will generate 40% of national revenue in 2024, dominating the market.  
•    Al-Riyadh is expected to have the highest CAGR of 5.8% due to extensive construction activities.  
•    The region's rapid development enhances the demand for formaldehyde to improve infrastructure longevity.  
•    The Saudi Arabian formaldehyde market is fragmented, with both international and local players.  
•    Easy access to methanol, the key raw material for formaldehyde, contributes to the presence of small and medium enterprises in the market.  

Source: P&S Intelligence