Melamine Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Melamine Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The melamine market size was evaluated at more than 1,600 kiloton in 2021. It is projected to register a CAGR of around 4% during the forecast period.

The market improved in 2021. With construction and automotive manufacturing activities recovering from the lockdown, the demand for construction materials such as laminates, paints and coatings, and wood adhesives increased. Thus, this demand surge boosted the melamine market in 2021. The construction industry is recovering rapidly and is estimated to grow further in the coming years, which may boost the demand for melamine.

Key Highlights

• 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.
• The availability of substitutes like liquefied wood, soy, and powder coatings is expected to hinder the market’s growth.
• 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 China and India.

Key Market TrendsLaminates 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 used to saturate the overlay or decorative sheet is prepared by reacting approximately two moles of formaldehyde per mole of melamine.
• These sheets are commonly applied to the surface decoration projects, such as walls, columns, tabletops, furniture, and suspended ceilings.
• According to the US Census data, the total construction spending in February 2022 was around USD 1,704.4 billion compared to USD 1,695.5 billion in January 2022.
• Therefore, such factors are expected to significantly impact the melamine market in the coming years.

Asia-Pacific to Dominate the Market

• The Asia-Pacific region dominated the overall market share. With growing construction activities and the increasing demand for laminates, wood adhesives, and paints and coatings in China, India, and Japan, the usage of melamine is increasing in the region.
• China accounts for more than one-fourth of the global coatings market. According to the China National Coatings Industry Association, the industry registered a 7% growth in recent years.
• The Chinese government rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next 10 years. Such plans will increase the demand for paints where melamine is used to prepare paints.
• According to the Civil Aviation Administration of China, the government has resumed construction work on more than 80% of total airport projects, representing 65 airport projects across the country. Out of these, 27 airports are the national major airport projects. Such projects are expected to increase the demand for melamine.
• Therefore, the abovementioned factors are expected to significantly impact the market in the coming years.

Competitive Landscape

The melamine market is fragmented, and the top five players account for around 40% of the total production capacity. These companies include (not in any particular order) OCI NV, Borealis AG, Henan Xinlianxin Chemicals Group Co. Ltd, Prefere Resins Holding GmbH, and Grupa Azoty.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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