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  • The major applications of melamine include construction/remodeling, original equipment manufacturer (OEM) and automotive production. The industry is greatly influenced by general economic condition of individual country.
  • The global melamine market is projected to grow at a CAGR of more than 4% between 2019 and 2027 and likely to cross US$ 2.8 Bn by 2027. Major demand from laminates used in furniture, kitchen counter tops, cabinets, floors, etc. are anticipated to drive the market.
  •  Melamine is a white crystalline powder with 99.8% purity and is commonly used in the production of melamine-formaldehyde (MF) resins. Melamine-based resins are moisture-resistant and hard.
  • Rapid urbanization, increase in disposable income, and rise in standard of living are key factors contributing to robust growth of the building and construction industry. This serves as one of the key drivers for the melamine market.

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Global Melamine Market: Laminates to Lead Melamine Market

  • MF resins are widely employed in the manufacture of laminated wooden panels. These resins exhibit strong resistance to heat, stain, abrasion, and chemical reaction; thus, these are extensively employed in construction applications.
  • Laminates application segment accounted for more than 50% share in global melamine market in 2018. The segment is followed by adhesives & sealants owing to high demand of melamine based wood based adhesives found in various wood products such as particleboard, plywood and medium-density fiberboard (MDF). These adhesives are known for its durability and moisture resistance.
  • Melamine-based adhesives are largely used in hotline fixing of car seats, panel laminations, headlamps, and other interior component assemblies in the automotive industry.


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Global Melamine Market: Key Challenges Faced by Industry

  • Urea is the key feedstock used in the manufacture of melamine. Of late, the prices of urea have been subject to a high degree of volatility owing to wide fluctuations in the short term supply and demand. The supply side fluctuation is ascribed to unstable oil & gas prices, which affect the total production cost and affecting the overall melamine market growth.
  • Increasing public awareness and rising demand for non-hazardous products are some of the key factors hampering the melamine market for molding compounds application. However, continuous efforts to reduce formaldehyde emissions across the globe is likely to benefit melamine market as ‘low-formaldehyde’ boards use high amount of melamine based adhesives indirectly contributing to the growth of melamine market.

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Global Melamine Market: Regional Highlights

  • In terms of volume, Asia Pacific accounted for more than 50% share in the global melamine market in 2018. The region is likely to remain the largest consumer by 2027. China is the largest manufacturer and consumer of melamine along with India, Indonesia, New Zealand, and Malaysia in Asia Pacific. It is also the largest exporter and export melamine to the U.S. and countries in Western Europe.
  • Demand from China is largely dominated by domestic real estate market. It is mainly consumed in laminates and wood panels which has high demand in domestic China market and for exports.
  • Europe accounted for significant share in global melamine market in 2018. Increased production of laminates and wood adhesives in the region is likely to boost melamine consumption over the forecast period.

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Key Developments in Global Melamine Market

  • In December 2019, OCI N.V. Dakota Gasification Company and Dyno Nobel Enter into Exclusive Marketing Agreement for DEF, Urea Liquor and Automotive Grade Urea in North America.
  • In January 2019, 1st batch of melamine was manufactured using Casale LEM process, basic design and and proprietary equipment. In 2015, GSFC and Casale has signed a contract for new 40 kilo tons plant.
  • In April 2017, Japan’s Mitsui Chemicals restarted its melamine production plant which was shut down for due to technical issue.
  • In April 2015, BASF SE announced expansion of its Basotect melamine resin foam range with the addition of Basotect B. This product is specifically designed for usage as a sound absorber for optimizing acoustics of rooms.

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Global Melamine Market: Competition Landscape

  • The global melamine market is fragmented. The top seven players in the global melamine market accounted for more than 35% share in 2018. Key players operating in the market include OCI N.V., Borealis AG, BASF SE, Grupa Azoty Zaklady Azotowe Pulawy S.A. (ZAP), Methanol Holdings (Trinidad) Limited (MHTL), Qatar Melamine Company (QMC), Cornerstone Chemical Company, and Xinji Jiuyuan Chemical Co. Ltd.

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