Increasing usage of powdered paraformaldehyde and powdered resins in agrochemicals and furniture applications is expected to fuel the demand of overall market. India Powdered Paraformaldehyde and Powdered Resins Market size is forecast to reach $65.8 million by 2026, after growing at a CAGR of 5.7% during 2021-2026.
The India powdered paraformaldehyde and powdered resins market is growing at a significant rate as the manufacturers are embracing new technical advances for modern agriculture to help meet production demands in an environmentally friendly manner. Powdered paraformaldehyde and powdered resins are used as cross linking agent to improve the creasing property of silk fabric due to its wet treatment properties. It is also used as an intermediate to manufacture agrochemicals. Moreover, the rising demand for paraformaldehyde and powdered resins owing to the versatile quality with excellent binding and preservative properties in the production of plywood is anticipated to raise the market growth. Furthermore, the increasing usage of powdered paraformaldehyde and powdered resins in applications such as agrochemicals and furniture is further estimated to drive the growth of the India powdered paraformaldehyde and powdered resins industry.
Rising consumption of fertilizers in North, South, East, and Western Indian states has raised the growth of the India powdered paraformaldehyde and powdered resins market. Pesticides including bismerthiazol, butachlor, acetochlor, glyphosate, and machete use the most paraformaldehyde in the agrochemicals industry. Slow release fertilizers include powdered formaldehyde and powdered resins. These products slowly release nitrogen into the plant, ensuring that it is available when it is required for development. Increased agricultural production is heavily reliant on soil fertility. The use of agrochemicals is the quickest and the most popular option in providing crops with the nutrients they need to grow and enhance crop yield. According to the Ministry of Chemicals and Fertilizers (Department of Fertilizer), in the year 2018-2019, the actual demand and production of P&K Fertilizers were found to be 23.2 million MT (232.88 lakh MT) and 17.4 million MT (174.85 lakh MT) respectively. The demand and production for P&K Fertilizers increased by 0.2 million MT (2.02 lakh MT) and 0.1 million MT (1.47 lakh MT) respectively from the year 2017-2018. Also, the government of India is promoting plywood industry by undertaking various initiatives. For instance, the Department for Promotion of Industry and Internal Trade under Ministry of Commerce & Industry has notified North East Industrial Development Scheme (NEIDS), in 2017. This scheme is meant for granting incentives to new industrial units established in North–East States that also includes plywood industry. Thus, it is anticipated with the increasing production of agrochemicals such as fertilizers/agrochemicals and rising government investments in the furniture industry boost the market growth in India during the forecast period.
Western India dominated the Indian powdered paraformaldehyde and powdered resins market in terms of revenue with a share of 37.3% in 2020 and is projected to dominate the market during the forecast period 2021-2026. Since the textile and agriculture industry is flourishing in West Indian states, it can be projected that there will be an escalating demand for powdered paraformaldehyde and powdered resins in these states. Also, the rising usage of hexamine in the production of agrochemicals would drive the growth of the market. For instance, according to the Directorate of Plant Protection, Quarintine & Storege in the year 2019-2020, the consumption of chemical pesticides in Maharashtra was highest with 12,783 MT, followed by other western states such as Gujarat with 1,784 MT, Chhattisgarh with 1,672 MT, Madhya Pradesh with 540 MT, and Goa with 30 MT. Thus, growing demand for powdered paraformaldehyde and powdered resins in various applications in this region will further drive the market growth during the forecast period.
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India Powdered Paraformaldehyde and Powdered Resins Market Growth Driver
Rising consumption of fertilizers in India drives the demand for powdered paraformaldehyde and powdered resins
Fertilizer use is extremely important for the agriculture sector in India. Majorly slow release fertilisers use formaldehyde derivatives such as powdered paraformaldehyde and urea formaldehyde resin concentrates. These products slowly release nitrogen over time, ensuring that the plant has sufficient availability of nitrogen when it is required for development. Urea-formaldehyde fertilisers have slow release rates and provide good physical properties, which enable them to facilitate the formation of aggregated soil structures, improve soil permeability, and increase root penetration. The nitrogen use efficiency can exceed by 50% with fast, long-term functioning. In India, over the past few years the rising consumption of urea in fertilizers has also positively inclined towards the demand for powdered urea formaldehyde resins. According to the Press Information Bureau, in 2019-20, urea output reached a new height of 244.55 LMT, up from 240 LMT in 2018-19. While Urea sales/consumption reached 336.97 LMT in 2018-19, up from 320.20 LMT the previous year. Thus, the consumption of urea fertilizers has substantially increased by 5.29% during 2019-20 as compared to 2018-19. Thus, with the rising consumption of urea fertilizers the market for India powdered paraformaldehyde and powdered resins are estimated to rise in the forecast period.
Increasing demand for powdered paraformaldehyde and powdered resins from the furniture industry is driving the market growth
The wood industry is one of the major customers of the powdered paraformaldehyde and powdered resins, manufactured by companies in India. Due to the advantages of dimensional stability and easy processing, the wood-based panels are widely used in the furniture manufacturing and interior decoration projects, thus, leading the growth of the India powdered paraformaldehyde and powdered resins market. According to the National Investment Promotion & Facilitation Agency, the demand for furniture has been observed to majorly generate from northern and southern India. In addition, the Indian furniture market is expected to rise at a 14.30 percent Y-o-Y pace in 2023, compared to the previous year. Thus, with the rising growth of the furniture industry in India, it is estimated that the demand for wood products will also increase, which would further drive the India powdered paraformaldehyde and powdered resins growth.
Currently, there are as such no R&D investments but it is estimated that in future the rising adoption of policies made by the Indian government to enable companies to manufacture in India and incentivize committed manufacturing investments would raise several investments for the powdered paraformaldehyde and powdered resins market.
According to the trade map ITC, the Indian export value of paraformaldehyde in 2019 was 1,409 thousand USD Dollar whereas the value in 2018 was 403 thousand USD Dollar. Thus, dramatic increase in the export values has raised the production of paraformaldehyde in India in recent years. Furthermore, the rising growth of paraformaldehyde in India is estimated to raise the focus of major players in the market. Thus, this would raise the R&D investments in upcoming years.
Also, in order to improve domestic manufacturing and minimise inbound shipments of non-essential goods, the government is likely to enforce furniture import restrictions in upcoming years. Due to which manufactures will have to be dependent on the raw materials such as powdered paraformaldehyde manufactured in India. With such initiatives the demand for powdered paraformaldehyde and powdered resins is anticipated to rise in the forecast period.
Major Players of Market
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the India powdered paraformaldehyde and powdered resins market. Major players in the India powdered paraformaldehyde and powdered resins are Kothari Phytochemicals & Industries Ltd. (Claro India), Simalin Chemicals Industries Limited, ARCL Organics Ltd., Windson Chemical Private Limited, Kanoria Chemicals & Industries Limited, Sreechem Resins Limited, Merck KGaA, Kunnathan Polymers Pvt. Ltd., Romit Resins Pvt. Ltd., and Kanoria Chembond Pvt. Ltd., among others.
The outbreak of COVID-19, which the World Health Organization has deemed a pandemic, had a significant effect on regional economic development in 2020. The pandemic of COVID-19 had a negative effect on the India powdered paraformaldehyde and powdered resins market. Due to the corona virus outbreak, there was factory closure in the Indian states, owing to the restriction in movements and lockdown. The furniture and agrochemical facilities were shut down, owing to which there was significant decline in the consumption of powdered paraformaldehyde and powdered resins in various states, which heavily affected the powdered paraformaldehyde and powdered resins market growth in 2020.
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