Melamine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
- December 2021 •
- 185 pages •
- Report ID: 6028510 •
- Format: PDF
The Global Melamine Market size is evaluated at 1,600.47 kilo metric tons in 2020 and is projected to register a CAGR of ~4.28% 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 at a temporary halt during the government-imposed lockdown, which had negatively impacted the demand for construction materials such as laminates, paints and coatings, and wood adhesives. Thus, this led to a decrease in the demand in the melamine market during 2020. However, the construction industry is recovering fast and is estimated to rise in the coming years, which will stimulate the demand in 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 market’s growth.
On the flip side, the availability of substitutes, like liquefied wood, soy, and powder coatings, is expected to hinder the growth of the market studied.
However, 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 Segment 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 a 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 100°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.
China is one of the largest producers of floor laminates and (Ready-to-assemble) RTA furniture worldwide. Moreover, the production capacity of China, in terms of laminate boards, is also rapidly expanding. A combination of positive factors stimulates China’s laminate flooring sales. With the better standard of living and the people’s desire for elegant life, laminate flooring sees a rising share in the flooring industry of China.
The United States is also one of the world’s largest construction industries. According to the US Census Bureau, the total private construction in the United States was valued at USD 11,07,920 million in 2020, registering a growth rate of about 5.85% compared to USD 10,46,693 million in 2019. Thus, this led to an increase in the demand for laminates, wood adhesives, and paints and coatings, which,in turn, stimulates the demand in the melamine market.
Therefore, the aforementioned factors are expected to show a 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 occupy the major market for 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.
China accounted for more than one-fourth of the global coatings market presently. According to the China National Coatings Industry Association, the industry has registered a growth of 7% through recent years. In 2019, the construction of at least ten large coatings investment projects in China was reported publicly. Nippon has been tapping into this market situation by upgrading its coatings production process in its new plants in China. ?
In China, the government rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities, over the next ten years. Furthermore, according to the National Bureau of Statistics of China, the construction industry in China was valued at about USD 1,049 billion in 2020. It is estimated to reach approximately USD 1,117 billion by 2021, registering a growth rate of about 6.5%.
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, this led to a 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.
Construction is India’s second-largest industry, with a GDP contribution of about 9%. It is predicted to emerge as the third-largest market in the world, with a value of almost USD 1 trillion by the end of the forecast period. ??
Furthermore, In the residential segment, the government planned considerable projects in the next few years. Its Housing for All initiative aims to build more than 20 million affordable homes for the urban poor by 2022. ?
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 future.
Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
The global melamine market is fragmented, and the top five players account for a market share of around 40% of the total production capacity. These companies include OCI NV, Borealis AG, Prefere Resins Holding GmbH, Grupa Azoty, and Henan Xinlianxin Chemicals Group Co., Ltd, among others.
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