Melamine Formaldehyde Market Expected to Reach $1,160.1 Million by 2030-Allied Market Research

According to a new report published by Allied Market Research titled, “Melamine Formaldehyde Industry Market by Form and Application: Global Opportunity Analysis and Industry Forecast, 2021–2030” The melamine formaldehyde market size was valued at $652.6 million in 2020 and is projected to reach $1,160.1 million by 2030, growing at a CAGR of 6.0% from 2021 to 2030.

Melamine formaldehyde (MF) or melamine resin is an aminoplast formed via the polymerization of melamine and formaldehyde. It is durable, hard, and versatile thermosetting plastic possessing enhanced fire, and thermal resistance, as well as protection against moisture, scratch, and chemicals. It is applicable in different industries, such as furniture, automobile, construction, textile, paper, electrical, household, and others. Moreover, it can be modified into foam and used as a soundproofing material.

Building and construction industries grow rapidly in emerging economies such as India, China, and Brazil due to an upsurge in infrastructural development and industrialization. For instance, according to the India Brand Equity Foundation (IBEF), in the 2021 Union Budget, the government of India allocated $32.02 billion to enhance the infrastructure in the country. A steady increment in construction industries is also reported in the developed regions of Europe and North America for meeting the purpose of renovation. For example, the U.S. government spent around $600 billion in January 2020, and around $730 billion in January 2021 on residential construction, and spent $830 billion in January 2020, and $810 billion in January 2021 on non-residential construction as per the data obtained from the U.S. Census Bureau.

These factors clearly indicate the definite growth of the global residential and non-residential construction industries. This is expected to lead to increase in application of products related to paints & coatings, sanitary ware, laminates, adhesives, tableware, and electrical appliances at a large scale owing to the necessity of these in new residential & industrial setups. The above-mentioned factors support the expansion of the melamine formaldehyde market as nearly all the application products consist of the thermosetting polymer as one of its raw materials. Hence, the growth of the global construction industry is one of the key drivers for promoting the melamine formaldehyde market. The global furniture market is flourishing at a considerable rate owing to increase in requirement for luxury furniture, trends for home offices, and the popularity of multi-functional versatile furniture. For instance, the shipments of furniture & related products in the U.S. were reported to be $75.5 billion in 2019, based on the statistics of the Census Bureau. The rise in disposable income, which promotes a luxury lifestyle and influences people to do business startups & open home offices is the major factor that affects growth in this sector. These subsequently result in increased business & sales of adhesives, laminates, and paints & coatings.

China is an economically emerging country owing to the flourishing industrialization and growing exports. It is the leading region in terms of plastic production and conversion. This is due to the low production costs of plastic conversions, which have triggered investments in the polymer industry. The aforementioned facts indicate towards high demand for different types of polymers in the country. Melamine formaldehyde is one of the highly demanded thermosetting polymers in China, serving a wide range of applications. Its end-use industries include, construction, automobile, furniture, packaging, and others. All these are progressing at a high growth rate in the global market, subsequently increasing the demand for melamine formaldehyde. These factors have led to the improved manufacturing capacity of this polymer in the country.

By form, the powder segment is expected to have a market share of 53.6% in 2020 and is projected to grow at a CAGR of 5.3% over the forecast period. The liquid melamine formaldehyde is used for glazing, lamination on particleboard, and flooring.

By application, the laminate segment dominated the global market with share of 43.0% in 2020, and is expected to show lucrative growth during the forecast period and is expected to grow with a CAGR of 6.3% from 2021 to 2030. The melamine laminates act as an economic alternative to more expensive surfaces resulting in reduced material costs and quick turn-around time subsequently lessening labor costs.

By region, Asia-Pacific is dominating in the region segment and expected to grow at CAGR 5.0% during the forecast period. China, Japan, and Korea are the leading countries in the region owing to strong demand from various end-user industries and ease of availability of melamine resin.

The key players operating in the global melamine formaldehyde market include Allnex GMBH, Arclin Inc., BASF SE, Georgia-Pacific Chemicals LLC, Hexion, Hexza Corporation Berhad, Mitsui Chemicals, Inc., Pacific Texchem Private Limited, Prefere Resins Holding GmbH, and Sprea Misr.

Key Findings Of Study

• By application, surface coating is anticipated to be the fastest-growing application segment in terms of value, growing at a CAGR of 7.0%, throughout 2021–2030. The laminates segment occupied the maximum share of the market with xx% of the total volume in 2020.
• By form, the powder segment emerged as the global leader by acquiring around 5.3% market share in 2020 in terms of revenue and is anticipated to show a significant growth rate over the forecast period.
• Region-wise, Asia-Pacific is the major consumer of melamine formaldehyde among other regions. It accounted for around 52.4% of the global market share in 2020 as a result of rapid growth in the construction sector across the region.

COVID-19 Impact on Market

• During COVID-19 pandemic, the melamine formaldehyde market was impacted in terms of distribution and logistics due to lockdown across the globe. Melamine formaldehyde production and distribution came to a halt because of the economic downturn due to the pandemic.
• The COVID-19 pandemic also disrupted the construction, furniture, and automotive industries, resulting in reduced usage of melamine formaldehyde in these industries.
• The global COVID-19 pandemic hindered inter-country activity and import and export of melamine formaldehyde due to varied economic and legal limitations globally. As a result, the melamine formaldehyde market suffered a downfall in 2020. However, by the beginning of 2021, all the industries started their operation, due to which the demand for melamine formaldehyde improved in the construction and furniture industries.