Melamine Market is projected to grow at CAGR of more than 4% during forecast period 2019 to 2027

Melamine Market is projected to grow at CAGR of more than 4% during forecast period 2019 to 2027

Melamine-based resins are used extensively in multiple end-use industries. Some of the key applications of products in the melamine market are adhesives sealants, laminates, molding compounds, and paints coatings. These applications harness the numerous attractive properties of melamine in making resins that are hard and moisture-resistant.

Manufacturers of Laminated Wooden Panels Widely Utilize Melamine Resin

Of the various key applications, the melamine market has thrived from the growing requirement of high-performance resins, such as melamine-formaldehyde (MF) resins and melamine-urea-formaldehyde (MUF). The demand has thrived notably from the resin manufacturing industry. A large chunk of demand comes from industries that use laminated wooden panels made of MF resins, notably in construction and electrical industry. They are used in making specialties laminates for the latter. Apart from these applications, high-pressure and low-pressure laminates are used to make a range of materials for the consumer markets.

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Construction Industry Major Contributor

The high resistance to heat and chemicals is a key trend attracting the construction sector to take notice. bolstering the expansion of the melamine market. Owing to extensive demand for MF resins-made laminates in the construction sector, the laminates segment held more than 50% shares of the global melamine market.

The demand in the sector has proliferated on back of growing use of melamine resins in floors, wall cladding, furniture, and chemicals.

Apart from the construction sector, melamine is used to make wide range of translucent and heat-resistant plastics that find demand in consumer markets. All these trends have expanded the avenue for players in the melamine market.

Automotive Industry also Witnessing Substantial Demand

The use of melamine resin in making adhesives sealants is also expected to above-average. The use of these in the automotive sector has risen stinkingly.

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Relentless urge to reduce the weight of vehicles has led automakers to shift toward materials that are lightweight and also environmentally friendly. They are thus viewed as an attractive replacement for heavy bolts and fasteners used in automotive manufacturing. This factor is expected to offer value-grab opportunities for chemical companies in the melamine market. Over the years, the demand for lightweight resin materials will gain fillip, the reason having to do with automakers focusing on developing vehicle bodies that can help meet fuel emission norms. Melamine is thus used in adhesives to replace heavy fasteners and bolts. Thus, melamine is used in making interior component assemblies in the automotive industry.

Asia Pacific Leading Market

Of the various regional markets, Asia Pacific held the majority of share in the global market in 2018. Countries at the forefront of production and consumption of melamine are India, China, Indonesia, New Zealand, and Malaysia. China has been a major consumer of melamine as well as producer. The Asia Pacific melamine market on the whole is a prominent exporter of melamine. This is expected to help the region retain its stronghold in the global market. Western Europe and the U.S. are the key consumers.

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Another trend underpinning the growth of the regional market is the strides being made by the automotive sector.

A major challenge faced by the melamine market players is reducing the impacts of the variability of the prices of one of the key feedstocks—urea. In recent years, frequent fluctuations have been hampering the bottom line of manufacturers of melamine. The supply side fluctuations are increasingly drawing the attention of market players.

Competitive Landscape Increasingly Fragmented

The global melamine market landscape is characterized by a fair degree of fragmentation. The leading seven players contributed more than 35% share in the global market in 2018. Some of the key players in the melamine market are Xinji Jiuyuan Chemical Co. Ltd., Cornerstone Chemical Company, Qatar Melamine Company (QMC), Methanol Holdings (Trinidad) Limited (MHTL), Grupa Azoty Zaklady Azotowe Pulawy S.A. (ZAP), BASF SE, and OCI N.V.

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