MELAMINE FORMALDEHYDE MARKET ANALYSIS

Melamine formaldehyde is a hard polymer that appears white in colour. It is one of the hardest polymers due to its thermosetting plastic properties. It has excellent UV, chemical, moisture, and thermal resistance properties. Table tops, wood adhesives, surface coatings and laminated countertops are some of the major applications of the melamine formaldehyde.

Global melamine formaldehyde market was valued at US$ 26.72 Billion in 2022 in terms of revenue, exhibiting a CAGR of 7.7% during the forecast period (2023 to 2030).

Drivers

High demand for melamine formaldehyde

Robust growth in the construction industry is a prime factor propelling the market growth of the melamine formaldehyde. It is used as concrete plasticizer in the construction of rising buildings and other durable structures. Moreover, it helps to comply with green building standards when added to wood waste products which are widely used in the construction industry. Thus, growth in the construction industry is expected to augment the market growth of the melamine formaldehyde.

Rapid growth in the housing projects coupled with the tremendous growth in the population is again anticipated to foster the market growth of the melamine formaldehyde. High demand for melamine formaldehyde from China is expected to accelerate the market growth.

Figure 1. Global Melamine Formaldehyde Market Value Share (%), By Region, 2022

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On the basis of region in 2022, the Asia Pacific region has accounted the largest market share of 40% in terms of value, followed North America and Europe. The growing market in Asia pacific region is result of growing construction market in countries like China, India, and Japan.

Market Restraints

The fluctuating price of raw materials used in the production of the melamine-formaldehyde

The fluctuating price of raw materials used in the production of the melamine-formaldehyde is expected to hinder the market growth. Melamine formaldehyde is manufactured by natural gas or urea feedstock.

Limited application of melamine  formaldehyde as they are used only for surface coatings is leading to slow down of the global consumption of melamine formaldehyde.

Market Trends

Expanding production capacity of the manufacturer is a key trend in the market. For instance, in March 2022, BASF SA, provides melamine-based coatings that are applied to wood to improve its appearance and durability. Its molding components also make the surface robust, with properties including hardness, heat resistance, and chemical resistance, making it ideal for making wiring equipment and serving trays. A growing merger and acquisition among manufacturer for business expansion is the current trend.

COVID-19 Impact Analysis

The COVID-19 outbreak impacted the melamine formaldehyde market negatively. The market witnessed a sharp decline in demand for melamine formaldehyde from various industries, such as furniture, paper and construction industry. The COVID-19 pandemic caused a ban on imports and export, thereby disrupting the supply chain and hampering the melamine formaldehyde market growth. 

Figure 2. Global Melamine Formaldehyde Market Value Share (%), By Application, 2022

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On the basis of application in 2022, the laminates segment has accounted the largest market share of 32% in terms of value, followed adhesives and paints & coatings respectively

Competitive Section

Major players operating in the global melamine formaldehyde market include BASF SE, Chang Chun Plastics Co. Ltd., Georgia Pacific Chemical LLC, Chemiplastica SPA, MPC Ferrostaal GmbH, Chemisol Italia Srl, Mitsui Chemicals Inc., INEOS Group Holdings SA, Nissan Chemical Industries Ltd., Borealis Agrolinz Melamine GmbH, Momentive Specialty Chemicals, Inc., Panasonic Corporation, and OCI Nitrogen BV, Allnex Belgium SA, Eurotecnica, Chimica Pomponesco SPA, Qatar Melamine Company, Hexza Corporation Board