Melamine Formaldehyde Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Melamine Formaldehyde Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The melamine formaldehyde market is expected to reach 1,700.06 kilotons, recording a CAGR of 4.81% during the forecast period (2021-2026). The major factors driving the market studied are the growing demand for laminated furniture and high growth in the construction industry. On the flip side, a slowdown in automotive production, along with the impact of COVID-19, is likely to hamper the growth of the market studied.

The use of melamine formaldehyde for the treatment of an organic fraction of municipal solid waste (OFMSW) is likely to act as an opportunity for the market studied in the coming years.

By application, the decorative laminated furniture segment will dominate the market, which is expected to grow further during the forecast period.

The Asia-Pacific region is estimated to dominate the global market, owing to the increasing demand from the furniture industry in China and India.

Key Market TrendsLaminates Segment to Dominate the Market

Melamine formaldehyde resins are majorly applied in manufacturing high-pressure laminates, which are used in tabletops, kitchen cabinets, flooring, furniture, etc. The melamine resins impart hardness, transparency, stain resistance, freedom from discoloration, and overall durability. Melamine formaldehyde resin is clear, transparent, and wear-resistant, which makes it more suitable for decorative applications than phenolic resins, which are brown-yellow and non-transparent.

Melamine laminated sheet is in a multilayer structure, including surface paper, decoration paper, and bottom paper. The surface paper is to protect patterns and designs on the decorative paper, to make the surface brighter, solider, and harder, and to provide it with better wear-resistance and corrosion resistance. Melamine formaldehyde laminated sheet is made of thermosetting plastic, so it has superior heat-resistance and does not get softened, cracked, or bubbled at a temperature over 100°C. It is well resistant to ironing and fire. High durability and ease of installation are some of the major factors driving the demand for laminated flooring and thereby the demand for melamine formaldehyde resins.

Globally, there has been a significant undersupply to meet the demand for housing in the Asia-Pacific region. For example, in China, residential investment grew by about 13.9% during the first eleven months of 2019, reaching CNY 9,707.1 billion. The area under residential construction during the period was recorded to have reached 6,276.73 million square meters, indicating a 10.1% growth. However, in countries like the United States, the value of new private residential buildings put in place has decreased from USD 5,39,607 million in 2018 to USD 5,14,629 million in 2019. Additionally, the COVID-19 has negatively affected the growth of the global residential construction sector in 2020. These trends in the global residential construction industry are likely to affect the demand for laminate flooring, kitchen cabinets, furniture and thereby are likely to affect the demand for melamine formaldehyde.

China to Dominate the Global Market

The growth rate of the GDP in China was 6.7% in 2018 and 6.1% in 2019. The trade war with the United States has a significant impact on trade. Moreover, the COVID-19 pandemic is estimated to have a huge impact on the economy, and the economic growth of China has slowed down to 1.90% in 2020. The Chinese furniture industry is one of the biggest furniture industries in the world. It is also one of the leading producers, consumers, and exporters of furniture. The production side of the Chinese furniture industry accounts for nearly 40% of the world’s furniture production.

China’s furniture retail sales also maintained a steady growth trend from 2018 to 2020, with the retail sales of furniture in China amounting to nearly CNY 19.5 billion in 2019. Residential furniture sales dominated retail sales due to the availability and innovation of a large number of new residential furniture products in varied designs and material combinations. Among residential furniture, the demand for living and dining room furniture has shown steady growth in China. The living room and dining room furniture dominated the market with a share of nearly 38% in the overall furniture market, followed by a dining room & kitchen furniture in 2019. All these factors have been driving the demand for lamination, wood adhesives, and wood coatings in China, providing impetus to wood adhesives and wood coatings products in the country.

China’s wood adhesive industry is fragmented, dominated by a large number of local players. The industry’s sales are expected to grow at a CAGR of over 5% during the next 5 years. China is the largest market for melamine formaldehyde resins, owing to its large-scale production capacities of wood adhesives and wood coatings. Additionally, the growing demand for Particleboard and Medium-density fiberboard in the country is expected to drive the market for wood adhesives production in the country. All these factors are expected to drive the demand for Melamine Formaldehyde in the country.

Competitive Landscape

The global melamine formaldehyde market is highly fragmented, where the major players account for a negligible share of the global market demand. The market includes both global and local players. The leading players are well-established, and they are operating to acquire a larger share in the market through innovative products that meet all the necessities and achieve inorganic growth. Some of the major companies in the market are BASF SE, Hexion, Arclin, Inc., Prefere Resins Holding GmbH, and Georgia Pacific Chemicals, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
AkzoNobel NV
ALLNEX NETHERLANDS BV
Arclin, Inc.
BASF SE
Cornerstone
Frati Luigi SpA
Georgia Pacific Chemicals
Hexion
Melamin kemina tovarna d.d. Koevje
Metadynea Metafrax Group
Monomer
Polymer & Dajac Labs (Entegris)
Pacific Texchem Private Limited
Prefere Resins Holding GmbH
Sprea Misr

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