The global Melamine market size was valued at USD 1,632.1 million in 2019 and is anticipated to grow at a CAGR of 4.5% during the forecast period. The growth of the construction industry in Asia Pacific region is benefitting the regional market growth. Construction sector in Asia Pacific is growing due to a variety of reasons such as drop in prices, rise in disposable income, improving economic conditions, and increased government spending. This scenario is contributing to the growth of the regional market.
Melamine manufacturing companies work in close contact with their clients to cater to the customized requirements which suit their production processes. Companies nowadays provide a wide product portfolio having products with different specifications in order to suit the customized needs of the clients. Companies are also optimizing their overall Melamine manufacturing process to provide with products within a narrow range of compositions.
In short term, Russia is expected to open two new melamine manufacturing plants by 2021 and India is set to open up a new plant to counter the uneven supply of melamine from China. The end user applications have remained considerably steady over the past few years and hence has prompted end users to search for more reliant suppliers. This scenario greatly benefitted the European suppliers.
Know more about this report: request for sample pages
The market was well supplied particularly in the first quarter of 2019. There were quite a few price rollovers, a deviation from initial negotiations for supply contracts particularly in the first half of 2019. These price rollovers were particularly provided for buyers who were willing to agree to increase their quantity of purchase. Cost plays a key role in the overall Melamine dynamics.
The next few years are anticipated to be buyer’s market and it is expected that the year-on-year Y-O-Y growth of prices will considerably decrease owing to oversupply of the product and mixed demand scenario. The market currently is significantly oversupplied, and this can be ratified through the fact that there was a local production issue, but still this did not lead to a substantial price rise in the region. One more factor was that imports significantly reduced from China in 2019, but this also did not affect the prices as such.
Melamine prices are also expected to soften over the next few years. The primary reasons for the same are deflating demand and oversupply. Smooth functioning of factories, higher production rates, and competition offered from overseas has resulted in companies adopting competitive pricing strategies. In 2019, at the end of year, prices softened due to declining demand because of holiday season.
The market is primarily segmented on the basis of type, application, end-use, and by geographic region.
Know more about this report: request for sample pages
Melamine resin emerged as the largest market segment in the year 2019. It is used in wide range of applications to avoid water contact with the product. These are abrasion-resistant, hard, rigid materials. The product has strong resistance against creep and possess excellent dimensional stability. The superior electrical resistance and self-extinguishing properties of the product enhances the overall quality, thereby boosting the demand. The product is also used in manufacturing cabinet and furniture. Increasing construction spending across the globe will fuel the product demand over the coming years.
The melamine foam is a foam like structure an example of which is the one manufactured by BASF under the brand name of Basotect. The product is used in various applications such as ductwork, pipes, and insulation material. The insulation materials are used for sound proofing materials in structures such as auditorium, sound stage and studios. The product is also used as a cleaner. Increasing sound proofing applications across the globe will fuel the foam demand in the coming time.
In terms of application, the market has been segmented into laminates, wood adhesives, molding Compounds, paints & coatings, and others. In terms of demand, the laminates segment is expected to grow at an anticipated CAGR of 4.1% over the forecast period. The segment also dominated the global market both in terms of volume and revenue. Melamine when used as a laminate provides excellent durability as it is waterproof and also provides shatter as well as scratch resistance.
The product is also low in cost when compared to other options and can cover relatively inexpensive MDF and plywood. The product can be manufactured in a wide variety of finishes and colors and hence can be used to suit the customized client requirements. Such trends have benefitted the market demand in the past and is expected to do so over the forecast period.
Wood adhesive application segment generated a revenue of USD 431.3 million in 2019. The segment is likely to grow at an anticipated CAGR of 5.7% over the forecast period. Wood adhesive manufactured using melamine are particularly used for exterior grade as well as semi-exterior grade particleboard and plywood. They provide a high-water resistance as compared to their other counterparts such as urea-formaldehyde resins (UF resins). However, the melamine wood adhesives are priced a bit higher thus restraining their market growth.
On the basis of end-uses, the market has been classified into construction, automotive, chemical, textile, and others. Construction dominated the market both in terms of volume and revenue and is expected to do so from 2020 to 2030. The demand for construction application for melamine is expected to grow at an expected CAGR of 3.8% over the forecast period.
Melamine in the construction industry is utilized in products such as kitchen cabinets, countertops, walls, flooring, and furniture. Laminates manufactured by using melamine are extensively used in construction industry. Global construction industry has expanded rapidly with growth opportunities in commercial infrastructure, residential, and non-residential sector in almost every part of the world thus fueling the overall melamine market growth.
Asia Pacific emerged as the largest market in 2019 and this trend is expected to continue till the end of the forecast period. The demand is mainly driven by China. Wood panel industry is a major consumer of the overall melamine production. The product finds wide applications in other end user industries such as construction, furniture as well as automobile among others. These end use industries have a significant presence in China as well as in other countries such as India, Indonesia and Malaysia. All these factors are expected to significantly boost the overall Asia Pacific melamine market growth.
China alone accounts for maximum of the global consumption and holds significant stake in the total production, exports, and capacity. In China, the domestic consumption is primarily driven by the real estate market. Europe is anticipated to be the second largest player followed by North America. Melamine growth is on the rise in Europe due to increased production of wood adhesive and laminates along with the strong growth of laminate flooring due to its increased popularity among the European consumers.
The problem with Chinese supplies resulted in European manufacturers increasing their production capacity and expansion of the same. The global market also witnessed a steady rise in supply from particularly unexpected sources such as producers from Qatar. Thus, the overall market coped favorably with Chinese volatility in supply and this trend is expected to benefit the overall global market growth.
Companies such as OCI N.V., BASF SE, Borealis AG, Sichuan Golden Elephant Chemical Co., Qatar Melamine Co, Allnex Belgium S.A., Chemiplastica SPA, Ineos Melamines., Haohua Junhua Group Co., Ltd., Cornerstone Chemical Company, and Nissan Chemical Industries. Ltd. are some of the key players operating in the Melamine market.