Melamine Market is Expected to Reach $2.5 Billion by 2030

According to a new report published by Allied Market Research, titled, “Global Melamine Market: Opportunity Analysis and Industry Forecast, 2021–2030,”

The global melamine market was valued at $1.7 billion in 2020, and is projected to reach $2.5 billion by 2030, growing at a CAGR of 4.3% from 2021 to 2030.

Melamine is defined as a type of chemical compound that finds its application in a number of industrial and consumer goods & services. These organic compounds are utilized in the production of various laminates, dinnerware, coatings, flame retardants, and adhesives. It is characterized as having a white crystalline form.

Demand for melamine has witnessed tremendous growth driven by increased penetration in applications such as laminates, thermoset plastics, wood adhesives, and surface coatings. All industry players invest heavily to find new commercial avenues for their product segments via strategic production and business expansion. Some of the major factors that drive the demand for melamine include growth in demand for laminates across the globe, rise in consumption of melamine in wood adhesive industry, and increased construction activities across the globe. However, harmful effects of melamine due to their toxicity are expected to hamper the growth of the melamine market during the forecast period. Furthermore, surge in demand for decorative laminates is expected to provide growth opportunities for the melamine market during the forecast period.

By type, the global melamine market size is studied melamine foam and melamine resin. The melamine resin segment accounted for the largest market share in 2020, owing to significant increase in demand for melamine resin from various industries, such as construction, automotive, furniture, chemical, and packaging. The melamine resin segment dominated the global melamine market with more than two-third of the total market share in 2020.

By application, the melamine market is fragmented into laminates, thermoset plastics, wood adhesives, surface coatings, and others. The laminates segment accounted for the largest market share in 2020, owing to surge in its demand from global residential construction industry for flooring, kitchen cabinets, and furniture. The laminates segment dominated the global melamine market with more than one-third of the total market share in 2020.

Region-wise, the melamine market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the major melamine market share in 2020, and dominated the global market with half of the total market share in 2020.

The major players studied and profiled in the global melamine market are Haohua Junhua Group Co, Ltd., OCI Nitrogen, BASF SE, Cornerstone Chemical Company, Qatar Melamine Company, Sichuan Golden Elephant Chemical, Mitsui Chemicals, Inc., Nissan Chemical Industries. Ltd., Methanol Holdings Limited, and Borealis AG.

COVID-19 Analysis:

• According to the International Monetary Fund (IMF), owing to the outbreak of novel coronavirus (COVID-19), the global economy shrunk by 3.0% in 2020. Many countries were under strict lockdowns, which forced several sectors to shut down their operations. This halted manufacturing activities and reduced the demand and production of melamine.
• According to the United Nations Industrial Development Organization (UNIDO), the Micro, Small & Medium Enterprises (MSME) sector across developing economies, such as India, has been worst affected due to the COVID-19 outbreak and the lockdown imposed thereafter. This declined the demand for melamine from various end-use industries such as building & construction, automotive, and paints & coatings. In addition, in the second half of 2020, some countries started to lift restrictions and gradually started business operations in various sectors. Even with gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the melamine market growth in the coming years.
• According to the UNIDO, 30%–70 of pre-COVID-19 workforce of various manufacturing industries, such as automotive, building & construction, paints & coatings, and electrical & electronics, migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce is expected to directly affect production activities of these industries, thereby resulting in decline in demand for melamine. This is expected to decline growth of the market during the forecast period.
• Attributed to the COVID-19 pandemic, the paints & coatings manufacturing units across various countries have been shut down amid lockdown imposed by governments of various countries across the globe. As a result, demand for melamine that are widely used in production of surface coatings has decreased significantly, which is expected to decline the growth of the market during the forecast period.
• Melamine is widely used in production of laminate used in the building & construction industry in items such as kitchen cabinets, countertops, partitions, flooring, and furniture. Owing to the outbreak of COVID-19, the construction of various residential projects was halted amid lockdown. As a result, the demand for melamine from laminates manufacturers across the globe declined.

Key findings of the study

• In 2020, Asia-Pacific dominated the global melamine market with around 50.0% share, in terms of revenue. In addition, it is projected to grow at the highest CAGR of 4.7% in terms of value.
• The melamine resin segment dominated the global melamine market with around 69.9% of the share in terms of revenue. In addition, it is projected to grow at the highest CAGR of 4.6% in terms of value.
• The laminates segment dominated the global melamine market with around 35.9% of the share in terms of revenue.
• The wood adhesive segment is projected to grow at the highest CAGR of 5.0% in terms of revenue.