The Global Melamine Market was valued at around 1,500 kilotons in 2020 and the market is projected to register a CAGR of over 3% in terms of revenue during the forecast period (2021-2026). The market was negatively impacted by COVID-19 in 2020. Owing to the pandemic scenario, the construction, and automotive manufacturing activities were on a temporary halt during the government-imposed lockdown, which had negatively impacted the demand of construction materials such as laminates, paints and coatings, and wood adhesives thus led to a decrease in the demand for melamine market. However, the construction industry is recovering fast and is estimated to rise in the coming years, which will stimulate the demand for the melamine market.
- Over the short term, the rising demand for laminates, coatings, and wood adhesives from the construction industry is expected to drive the marketâ€™s growth.
- The availability of substitutes, like liquefied wood, soy, and powder coatings, is expected to hinder the growth of the market studied.
- The increasing trend of melamine-based foams is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries, such as China and India.
Key Market Trends
Laminates to Dominate the Market
- Melamine resins are the polymers of choice used in the outer or decorative layer of laminates, as well as in the manufacture of counter and tabletops, kitchen cabinets, flooring, furniture, etc.
- Melamine resins impart hardness, transparency, stain resistance, freedom from discoloration, and overall durability. For this application, the resin, which is used to saturate the overlay or decorative sheet, is prepared by reacting approximately two moles of formaldehyde per mole of melamine.
- Phenolic resin costs less than melamine-formaldehyde resin. However, it is brown-yellow and non-transparent, hence, not suitable for surface layer applications. Melamine formaldehyde resin is widely used, as it is clear, transparent, and wear-resistant, and often serves as surface dipping material.
- Melamine laminated sheet is in a multilayer structure, including surface paper, decoration paper, and bottom paper. The surface paper is to protect patterns and designs on the decorative paper, to make the surface brighter, solider, and harder, and to provide it with better wear and corrosion resistance.
- Melamine laminated sheet has superior heat-resistant properties, as it is made of the setting plastic. It does not get softened, cracked, or bubbled at a temperature over 100Â°C. It is well resistant to ironing and fire.
- These sheets are commonly applied to the surface decoration projects of walls, columns, tabletops, furniture, suspended ceilings, etc.
- In 2019, total value of new construction put in place was about USD 1365 billion in the United States and reached about USD 1429 billion in 2020, with a growth rate of about 4.5%, thus led to increase in the demand of laminates, wood adhesives and paints and coatings, which in turn stimulates the demand for the melamine market.
- Therefore, the aforementioned factors are expected to show significant impact on the melamine market in the coming years.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market share. With growing construction activities and the increasing demand for laminates, wood adhesives, and paints and coatings in countries, such as China, India, and Japan, the usage of melamine is increasing in the region.
- In Asia-Pacific, China provides the major market for the melamine of the regional market share. Despite the volatile growth in the real estate sector, the significant development of rail and road infrastructure by the Chinese government, in order to withstand the expanding industrial and service sectors, has resulted in significant growth of the Chinese construction industry in recent years.
- The Chinese construction industry was valued at about USD 1,096.69 billion in 2019, with a growth rate of about 12.8% compared to the previous year.
- Furthermore, the total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%, thus led to decrease in the consumption of construction materials like laminates, wood adhesives, and paint and coatings, which in turn negatively impacts the demand for the regional melamine market.
- As the construction industry is dominated by state-owned enterprises, increased government spending is boosting the industry in the country. This scenario may concrete the demand for melamine materials in the nearby future.
- Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.
The global melamine market is partially consolidated and the top five players account for a market share of ~40% of the total production capacity. These companies include OCI NV, Borealis AG, Prefere Resins Holding GmbH, Grupa Azoty, and Sichuan Energy Industry Investment Group Co., Ltd (SCEI), among others.
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