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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.
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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.
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.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
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.
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:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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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.
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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.
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Melamine Formaldehyde Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.49% |
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Market growth 2021-2025 |
1218.03 thousand tons |
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Market structure |
Fragmented |
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YoY growth (%) |
3.30 |
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Regional analysis |
North America, Europe, APAC, South America, and MEA |
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Performing market contribution |
APAC at 71% |
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Key consumer countries |
China, US, Russian Federation, India, and Germany |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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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 |
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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 |
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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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Application
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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