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Melamine Formaldehyde Market by Application and Geography - Forecast and Analysis 2021-2025

Melamine Formaldehyde Market by Application and Geography - Forecast and Analysis 2021-2025

Published: Oct 2021 120 Pages SKU: IRTNTR45639

Market Overview at a Glance

$1218.03 thousand tons
Market Opportunity
6.49%
CAGR
YoY growth 2020-2021(%)

The melamine formaldehyde market share is expected to increase by 1218.03 thousand tons from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 6.49%.

This melamine formaldehyde market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers melamine formaldehyde market segmentation by application (laminates, adhesives, molding powder, coatings, and others) and geography (North America, Europe, APAC, South America, and MEA). The melamine formaldehyde market report also offers information on several market vendors, including Allnex Netherlands BV, Arclin Inc., BASF SE, Chemiplastica SA, Hexion Inc., HEXZA Corp. Berhad, Mitsui Chemicals Inc., OCI NV, Prefere Resins Holding GmbH, and The Dovechem Group among others.

What will the Melamine Formaldehyde Market Size be During the Forecast Period?

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Melamine Formaldehyde Market: Key Drivers, Trends, and Challenges

The growing use of plastics in the automotive industry is notably driving the melamine formaldehyde market growth, although factors such as volatility in raw material prices may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the melamine formaldehyde industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Melamine Formaldehyde Market Driver

The growing use of plastics in the automotive industry is a major driver fueling the melamine formaldehyde market growth.  Formaldehyde is of critical importance in the automotive industry as it helps in increasing the fuel efficiency of vehicles by reducing the weight of automotive parts and components. Major derivatives of formaldehyde, like melamine-formaldehyde, phenol-formaldehyde, polyoxymethylene, hexamine, and others, are used in the automotive industry. With the growing automotive industry globally, the demand for formaldehyde and its derivatives is also expected to rise.  The automotive industry will grow significantly at a CAGR of 5% during the forecast period. Automotive ancillary industries, including those engaged in manufacturing wheel covers, dashboards, lights, and door handles, use a substantial amount of molded plastics as they offer better strength and lightweight characteristics when compared with conventionally used metals. The increased emphasis on the production of lightweight fuel-efficient automobiles is one of the major factors that are increasing the adoption of molded plastics in the place of metals within the automotive industry. The global automotive plastics market was estimated at 8.98 million metric tons in 2019. It is likely to reach 13.13 million metric tons by 2024. 

Key Melamine Formaldehyde Market Trend

Advances in technology are a major trend influencing the melamine formaldehyde market growth. The manufacturers in the global melamine formaldehyde market have increased their expenditure on R&D to develop production processes that decrease the production cost owing to the increasing production in APAC and reducing prices of formaldehyde derivatives globally. Lenient regulations, availability of cheap labor, and easy availability of raw materials can be attributed to the lower production cost in APAC.  Governments of countries in the Americas and Europe have implemented stringent regulations regarding the use of and exposure to formaldehyde in the workplace. Manufacturers are being compelled to explore and develop safer methods for producing formaldehyde. Such stringent regulations have resulted in the development of new production processes with low operating costs, making it easier for manufacturers to maintain their profit margins. For instance, the turbocharger concept for formaldehyde production, developed by FORMOX, a subsidiary of Johnson Matthey, consumes less electricity, thereby reducing the overall operating cost. 

Key Melamine Formaldehyde Market Challenge

Volatility in raw material prices is a major hindrance to the formaldehyde market growth. The price volatility of raw materials used for manufacturing melamine is a major restraint faced by the vendors in the global melamine formaldehyde market. Melamine is formed from methane, which is produced as a byproduct of petroleum refining. Volatility in the prices of crude oil affects the prices of its downstream products. Vendors are not able to increase raw material costs as they are forced to keep the prices low due to market competition. In addition, manufacturers in many regions depend on imported raw materials, which expose them to international market risks such as increased prices and uncertainty in supply.  The price of methanol, the primary raw material used for the production of formaldehyde, is volatile. This factor poses difficulties for the producers in the market to increase their profit margins. The price of methanol, consequently the cost of formaldehyde end-products, increased in 2015. In addition, a major rift has been formed between the production costs and sales value for manufacturers owing to a decline in the price of formaldehyde in the market. The increasing price of methanol has been a major concern for the producers in the market. 

This melamine formaldehyde market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global melamine formaldehyde market as a part of the global specialty chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the melamine formaldehyde market during the forecast period.

Who are the Major Melamine Formaldehyde Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

  • Allnex Netherlands BV
  • Arclin Inc.
  • BASF SE
  • Chemiplastica SA
  • Hexion Inc.
  • HEXZA Corp. Berhad
  • Mitsui Chemicals Inc.
  • OCI NV
  • Prefere Resins Holding GmbH
  • The Dovechem Group

 

This statistical study of the melamine formaldehyde market encompasses successful business strategies deployed by the key vendors. The melamine formaldehyde market is fragmented and the vendors are deploying organic and inorganic strategies to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The melamine formaldehyde market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Melamine Formaldehyde Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the melamine formaldehyde market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of specialty chemicals includes the following core components:

  • Inputs
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
  • Service
  • Support activities
  • Innovation

The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

 

Which are the Key Regions for Melamine Formaldehyde Market?

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71% of the market’s growth will originate from APAC during the forecast period. China and India are the key markets for melamine formaldehyde in the region. Market growth in this region will be faster than the growth of the market in regions.

Increased demand for melamine formaldehyde from emerging economies will facilitate the melamine formaldehyde market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 affected the growth of several industries in the region, including the construction industry, as several construction projects were delayed or canceled due to the economic downturn, disruptions in supply chains, and uncertainties in the growth of the construction industry. Moreover, in March 2020, Toyota Motor and Mitsubishi Motors announced the suspension of their vehicle production operations in Japan due to the COVID-19 pandemic. These factors affected the demand for melamine formaldehyde in 2020. Furthermore, construction activities in India were halted due to the outbreak of the second wave of COVID-19 in Q2 2021. Several states in the country were under either a partial or complete lockdown, which disrupted construction activities. These factors further negatively impacted the demand for melamine formaldehyde in the region during the first half of 2021. However, the ongoing COVID-19 vaccination drives are expected to reduce the number of COVID-19 cases during the forecast period. This will support the complete resumption of operations in melamine formaldehyde manufacturing facilities by market vendors and also in end-user industries such as automobile and furniture manufacturing. This is likely to increase the demand for melamine formaldehyde across end-user industries in APAC during the forecast period.

What are the Revenue-generating Application Segments in the Melamine Formaldehyde Market?

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The melamine formaldehyde market share growth in the laminates segment will be significant during the forecast period. The application of melamine-formaldehyde on laminated products exhibits superior properties such as strong resistance to heat and stain. It is also used in housing applications such as furniture manufacturing and remodeling. In the construction industry, it is used for both residential and non-residential applications.  

This report provides an accurate prediction of the contribution of all the segments to the growth of the melamine formaldehyde market size and actionable market insights on post COVID-19 impact on each segment.

 

Melamine Formaldehyde Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 6.49%

Market growth 2021-2025

1218.03 thousand tons

Market structure

Fragmented

YoY growth (%)

3.30

Regional analysis

North America, Europe, APAC, South America, and MEA

Performing market contribution

APAC at 71%

Key consumer countries

China, US, Russian Federation, India, and Germany

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Allnex Netherlands BV, Arclin Inc., BASF SE, Chemiplastica SA, Hexion Inc., HEXZA Corp. Berhad, Mitsui Chemicals Inc., OCI NV, Prefere Resins Holding GmbH, and The Dovechem Group

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Melamine Formaldehyde Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive melamine formaldehyde market growth during the next five years
  • Precise estimation of the melamine formaldehyde market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the melamine formaldehyde industry across North America, Europe, APAC, South America, and MEA
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of melamine formaldehyde market vendors

We can help! Our analysts can customize this report to meet your requirements. Get in touch

Table of Contents not available.

Research Methodology

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Frequently Asked Questions

Melamine Formaldehyde market growth will increase by 1218.03 thousand tons during 2021-2025.

The Melamine Formaldehyde market is expected to grow at a CAGR of 6.49% during 2021-2025.

Melamine Formaldehyde market is segmented by Application( laminates, adhesives, molding powder, coatings, others)

Allnex Netherlands BV, Arclin Inc., BASF SE, Chemiplastica SA, Hexion Inc., HEXZA Corp. Berhad, Mitsui Chemicals Inc., OCI NV, Prefere Resins Holding GmbH, The Dovechem Group are a few of the key vendors in the Melamine Formaldehyde market.

APAC will register the highest growth rate of 71% among the other regions. Therefore, the Melamine Formaldehyde market in APAC is expected to garner significant business opportunities for the vendors during the forecast period.

China, US, Russian Federation, India, Germany

  • Increasing demand from the construction industryMelamine formaldehyde is mainly used in the production of resins is the driving factor this market.
  • which find use in the construction industry. Resins like urea formaldehyde is the driving factor this market.
  • phenol formaldehyde is the driving factor this market.
  • and melamine formaldehyde are used for manufacturing building materials. The construction industry is the major end-user of formaldehyde globally is the driving factor this market.
  • with a share of more than 65%. Hence is the driving factor this market.
  • the growth of the construction industry is the driving factor this market.
  • which is driven by the emerging economies is the driving factor this market.
  • growing population is the driving factor this market.
  • and increasing disposable income is the driving factor this market.
  • largely drives the global formaldehyde market. Most countries is the driving factor this market.
  • especially the emerging ones in APAC is the driving factor this market.
  • the Middle East is the driving factor this market.
  • and Africa is the driving factor this market.
  • have significantly increased their expenditure on the construction industry. This is attributable to the rise in disposable income is the driving factor this market.
  • improved standards of living is the driving factor this market.
  • and the need for infrastructure development. Melamine-formaldehyde resins are used for manufacturing and processing construction materials is the driving factor this market.
  • including wood is the driving factor this market.
  • glass is the driving factor this market.
  • and plastics. This factor has significantly increased the demand for melamine-formaldehyde resins is the driving factor this market.
  • thereby driving market growth. Some of the noteworthy factors that seem to transform the construction marketplace are:Accelerated globalization: The construction market in emerging economies is projected to be worth $6.7 trillion is the driving factor this market.
  • and the same in developed countries is likely to be worth $5.4 trillion by 2020.Urbanization: The global population is likely to increase; this is expected to boost the construction sector is the driving factor this market.
  • consequently providing new opportunities.Stimulating access to capital: Strong private financing will drive the growth of the construction market globally. Capital investors are also likely to emerge for monetizing lucrative operations with minimum risk and for leveraging revenues.The construction markets of APAC is the driving factor this market.
  • Europe is the driving factor this market.
  • the Middle East is the driving factor this market.
  • and Africa are expected to grow significantly is the driving factor this market.
  • providing prospects for the consumption of formaldehyde in the construction industry. According to the World Economic Forum is the driving factor this market.
  • European countries have been maintaining a top ranking in the quality of infrastructure is the driving factor this market.
  • with Switzerland holding the highest position since 2010. The requirement of quality materials for construction in the region will foster the market for melamine formaldehyde.Furthermore is the driving factor this market.
  • melamine formaldehyde plays a vital role in meeting the needs of the construction industry. The growth in the real estate industry is increasing the demand for melamine formaldehyde in the residential and commercial segments. As a result of increased urbanization is the driving factor this market.
  • there has been a rise in civil construction activities is the driving factor this market.
  • especially in developing countries. This will also boost the demand for adhesive resins for ceiling tiles is the driving factor this market.
  • medium-density fiberboards is the driving factor this market.
  • foams is the driving factor this market.
  • particle boards is the driving factor this market.
  • and plywood is the driving factor this market.
  • which are usually made using melamine formaldehyde. In addition is the driving factor this market.
  • the unique properties of melamine formaldehyde is the driving factor this market.
  • such as strength is the driving factor this market.
  • moisture resistance is the driving factor this market.
  • thermal isolation is the driving factor this market.
  • and sound absorption is the driving factor this market.
  • are also expected to increase the adoption of the product in the construction industry. is the driving factor this market.

The Melamine Formaldehyde market vendors should focus on grabbing business opportunities from the laminates segment as it accounted for the largest market share in the base year.