Melamine Market

Growing demand from wood adhesives and laminates applications to boost the market growth

The rise in the levels of demand from the automotive industry is a vital factor escalating the market growth, also the rise in the growth of demand from wood adhesives and laminates application and the increase in the levels of disposable income and changes in preferences and lifestyles of consumers are the major factors among others driving the melamine industry. Moreover, a rise in research and development activities and an increase in the demand from emerging economies will further create new opportunities for the melamine market over the forecast period.

Further, the growing use of melamine in high-resistance concrete and carbon nanotubes is anticipated to increase market growth. Laminates & wood adhesives accounted for the largest share of the market, followed by molding powder. Laminates & wood adhesives are expected to be the fastest-growing market for melamine owing to growing demand from consumers. One of the key upcoming trends in this market is the growing demand for melamine in the automotive industry due to its increasing use in various automotive applications.

Additionally, melamine has many applications in household activities and will further offer various growth opportunities for the market over the forecast period. Also, the growing demand for soundproof transportation in trains is also highly impacting the market's growth. Likewise, the growing concern towards household hygiene is also expected to enhance the melamine market CAGR across the globe in recent years.

However, the rise in concern amongst users regarding the emissions of melamine in molding applications and the rise in the presence of various substitute compounds and materials for different applications is the major driving the growth of the melamine market revenue.

The Global Melamine Market Industry is benefiting from the expansion of various end-use industries, including furniture, textiles, and electronics. These sectors increasingly utilize melamine for its durability and aesthetic appeal. For instance, melamine-coated surfaces are prevalent in furniture manufacturing, providing a cost-effective solution without compromising quality. As these industries continue to grow, the demand for melamine is likely to rise correspondingly. This trend may contribute to the overall market growth, positioning melamine as a critical component across diverse applications, thereby enhancing its market presence.

The Global Melamine Market Industry is witnessing an increase in applications within the automotive sector. Melamine-based resins are utilized in manufacturing various automotive components, including interior parts and coatings, due to their excellent thermal stability and chemical resistance. As the automotive industry evolves towards lightweight materials and enhanced performance, melamine's properties align well with these requirements. The anticipated growth in this sector may bolster the market, contributing to the overall valuation expected to reach 16.8 USD Billion by 2035. This trend indicates a promising future for melamine in automotive applications, potentially enhancing its market share.

The Global Melamine Market Industry is experiencing a surge in demand driven by the construction sector. Melamine is extensively utilized in producing laminates, adhesives, and coatings, which are essential for modern construction projects. As urbanization accelerates, particularly in developing regions, the need for durable and aesthetically pleasing materials increases. This trend is reflected in the projected market value of 10.1 USD Billion in 2024, indicating a robust growth trajectory. The construction industry's expansion, coupled with melamine's versatility, suggests a sustained demand that could significantly contribute to the overall market growth.

Technological advancements in the production processes of melamine are significantly influencing the Global Melamine Market Industry. Innovations aimed at improving efficiency and reducing costs are emerging, enabling manufacturers to meet the growing demand effectively. Enhanced production techniques may lead to higher yields and lower environmental impacts, aligning with global sustainability goals. As a result, the market could witness a compound annual growth rate of 4.72% from 2025 to 2035. This growth is indicative of the industry's adaptability and commitment to innovation, which may further solidify melamine's position in various applications.

The Global Melamine Market Industry is increasingly shaped by consumer awareness regarding sustainability. As consumers become more environmentally conscious, there is a growing preference for products that are eco-friendly and sustainable. Melamine, being a versatile material with potential for recycling, is gaining traction in markets that prioritize sustainability. This shift in consumer behavior may drive manufacturers to innovate and develop melamine products that align with these values. Consequently, the market could see a notable increase in demand, further contributing to the projected growth and reinforcing melamine's role in sustainable product offerings.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America melamine market accounted for USD 3.80 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is owing to the increasing demand for products in the construction and automotive industry across the region.

Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  MELAMINE MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe melamine market accounts for the second-largest market share due owing to the increasing demand for laminates, wood adhesives, and paints and coatings the usage of melamine is growing in the region. Further, the Germany melamine market held the largest market share, and the UK melamine market was the fastest-growing market in the European region.

The Asia-Pacific melamine Market is expected to grow at the fastest CAGR from 2022 to 2030 due to the existence of key developing economies along with rapid urbanization in countries such as China and India. Furthermore, the rising construction industry owing to the rise in disposable income and standard of living, is also expected to boost the product demand in this region. Moreover, China melamine market held the largest market share, and the Indian melamine market was the fastest-growing market in the Asia-Pacific region.

Major market players are spending a lot of money on R&D to enhance their product lines, which will help the melamine market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, mergers and acquisitions, contractual agreements, increased investments, and collaboration with other organizations. Competitors in the melamine industry must offer cost-effective items to expand and survive in an increasingly competitive and growing market environment.

One of the primary business strategies manufacturers adopt in the melamine industry to benefit clients and expand the market sector is manufacturing locally to reduce operating expenses. The melamine markets major players, such as China Haohua Chemical Group Co. Ltd, OCI Nitrogen, BASF SE, Cornerstone, and others, are working to enhance the market demand by investing in research and development activities.

Borealis is a  leader in delivering ground-breaking chemical and polyolefin solutions. The firm has designated itself as a reliable partner and a  brand that constructs ever more value for its consumers and partners by creating new approaches, technologies and products for essential industries. In July 2021 Borealis, has announced the commercialization of its nitrogen business in a deal for potentially 500–600 million euros, or approximately USD591–USD709 mln.

The company is collaborating with Barclays on selling its Nitro division, which includes its technical nitrogen, melamine, and fertilizer activities and may draw interest from companies including Fertiberia, Agrofert, Acron, Eurochem, and OCI, according to the sources.

Also, Prefere Resins is a leading European manufacturer of phenolic, specialty urea and melamine resins. The company also produces high-quality derivatives of methanol-(C1)-chemistry from such as paraformaldehyde, formaldehyde, and hexamethylene tetramine. As one of the market leaders, they supply customers with a wide range of resins, basic chemical raw materials and additives quickly and reliably from 14 production sites ly. The Prefere Resins Group employs approximately 600 people.

In April 2019, Prefere Resins declared that Prefere Resins Holding GmbH, a Fund II portfolio enterprise, has decided to buy INEOS Melamines & Paraform Business, which was part of the INEOS Enterprises portfolio.