ALBANY, New York, According to a new report published by Transparency Market Research "Melamine Formaldehyde Market for Tableware, Laminates, Adhesives, Paints & Coatings, Sanitary Ware, Electricals & Household Appliances and Other Applications - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019", the global demand for the melamine formaldehyde was valued at USD 13.45 billion in 2012 and is expected to reach USD 20.62 billion in 2019, growing at a CAGR of 6.3% between 2013 and 2019.
Growing demand for melamine formaldehyde from end-use industries such as construction, furniture, textile, automobile and paper among others is expected to boost the overall market. In addition, the rising demand from China, especially for manufacturing secondary processed products has augmented the growth of melamine formaldehyde market. However, volatility of melamine prices which is an essential raw material required in manufacturing melamine formaldehyde is one of the crucial factors that is expected to hinder the growth of the market. The development of various technologies that help in cross-linking melamine formaldehyde with other chemicals is expected to boost the demand for melamine formaldehyde in paints and coatings which would be used especially in the automobile sector in the coming years. Thus, the growing automobile sector is expected to have an imperative effect on the growth of melamine formaldehyde market.
The laminate industry was the largest consumer of melamine formaldehyde in the last few years. Laminates manufactured using melamine formaldehyde offer high resistance to light, UV, fire and water making it highly suitable for wide range of applications. Laminates is expected to grow at a CAGR of 5.6% from 2013 to 2019. Adhesive was the second largest consumer of melamine formaldehyde in 2012. With the growth of construction and furniture industry there was an increase in the consumption of laminates and adhesives which in turn played a pivotal role in driving the overall melamine formaldehyde market. Owing to the increase in the use of melamine formaldehyde in paints and coatings especially used in the automobile sector is expected to boost the melamine formaldehyde market which is expected to grow at a CAGR of 6.2% between 2013 and 2019.
The tableware application is expected to exhibit the quickest growth rates with increasing consumption of melamine formaldehyde in the future. The U.S. Food and Drug Administration (FDA) approval to use melamine formaldehyde in manufacturing food packaging and other tableware is anticipated to increase the consumption of melamine formaldehyde in this application. The consumption of melamine formaldehyde in sanitaryware, electrical and household appliances is also expected to increase in future thus boosting the growth of the overall melamine formaldehyde market.
Asia Pacific emerged as a leading consumer of melamine formaldehyde in 2012 and it accounted for over 40% of the market in 2012. China being the world's largest exporter of secondary processed products plays a key role in driving the market in this region. Europe is expected to grow at a CAGR of 5.6% between 2013 and 2019, thus making it a major consumer of melamine formaldehyde by 2019. The Rest of the World (RoW) market is expected to show the maximum growth figures by 2019 and is expected to capture a market share of approximately 8%. North America's consumption of melamine formaldehyde is expected to reduce owing to the presence of stringent regulations regarding the emission of formaldehyde.
The global melamine formaldehyde market is highly fragmented as top five companies account for approximately 23% of the total market in 2012. Entry of new players especially in Asia Pacific is expected to boost the supply of melamine formaldehyde such that it would help in reducing the supply and demand gap to a great extent.
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