Southeast Asia Melamine Market

Southeast Asia Melamine Market Analysis

The Southeast Asia Melamine Market is expected to register a CAGR of greater than 5% during the forecast period.

The COVID-19 pandemic has significantly impacted the melamine market by directly affecting production and demand, creating supply chain and market disruptions, and having a financial impact on firms and financial markets. However, the market recovered significantly in 2021, owing to rising demand from various end-use applications, including laminates, wood adhesives, and others.

• Over the short term, growing demand for laminates, coatings, and wood adhesives from the construction industry is expected to drive the market's growth.
• However, the availability of alternatives such as liquid wood, soy, and powder coatings is likely to hinder the expansion of the studied market.
• Nevertheless, the focus on the rising use of melamine-based foams is likely to act as an opportunity in the future for the surveyed market and is. It is expected to create lucrative growth opportunities for the studied market over the forecast period.

Southeast Asia Melamine Market Trends

Laminates Segment to Dominate the Market

• Melamine resins are the preferred polymers for the outer or decorative layer of laminates, as well as for the production of counter and tabletops, kitchen cabinets, flooring, furniture, and so on.
• Melamine resins provide hardness, clarity, stain resistance, discolor resistance, and general durability. The resin used to saturate the overlay or ornamental sheet for this application is made by reacting about two moles of formaldehyde per mole of melamine.
• Melamine is a low-cost laminate due to the lower industrial manufacturing needed, making it far less expensive than other laminates. Melamine laminates provide excellent value for money due to their durability and functionality.
• Another advantage of utilizing melamine sheets is their ease of cleaning. Compared to stiff textured materials like hardwood, its smooth surface makes cleaning easier.
• Melamine laminates can survive humid climatic conditions and be crack, abrasion, and scratch-resistant. They can reproduce any design and have excellent color translation. The laminates are stained-resistant and made for rough use.
• The most common use for melamine furniture is for display counters. They provide a smooth, sleek surface that makes them an ideal choice for home decoration. According to the Malaysian Timber Industry Board, in 2021, the export value of wooden furniture from Malaysia was MYR 10.42 billion (USD 2.35 billion), a decline from MYR 10.63 billion (USD 2.4 billion) the year before.
• According to the Ministry of Commerce (Thailand), In the first quarter of 2022, the domestic sales volume of wooden furniture in Thailand amounted to roughly 290 thousand pieces. During the same period, the manufacture of such furniture declined.
• According to the Philippine Statistics Authority (PSA), the gross value added generated by furniture manufacturing in the Philippines amounted to PHP 19.63 billion (USD 350 million) in 2021. This is an increase over the previous year's value added of around PHP 18.43 billion (USD 330 million).
• All the factors above are expected to drive the laminates, enhancing the demand for melamine during the forecast period.

Indonesia is Anticipated to Hold a Major Share of Southeast Asia

• In Southeast Asia, Indonesia dominated the overall market share. Melamine consumption is expanding in Indonesia as construction activities expand and the demand for laminates, wood adhesives, paints, and coatings rises.
• In 2021, Indonesia had roughly 203.4 thousand active construction firms. Indonesia's construction sector was expanding due to increasing infrastructural development.
• According to Statistics Indonesia, the GDP of Indonesia's construction sector in 2021 was IDR 1.77 quadrillion (USD 11.3 billion). For the past several years, Indonesian President Joko Widodo has prioritized the development of infrastructure to improve connectivity. Following agriculture and retail, the construction industry is a significant contribution to Indonesia's GDP.
• According to Statistics Indonesia, in 2021, the export volume of wooden furniture in Indonesia amounted to roughly 508.7 thousand metric tons. Indonesia is a top supplier of wood goods in the world, with production plantations producing the majority of the wood used in the industry.
• According to Statistics Indonesia, in 2021, the export value of wooden furniture in Indonesia was over USD 2 billion. Indonesia is a top supplier of wood goods in the world, with production plantations producing the majority of the wood used in the sector.
• Indonesia is the largest paint and coating market in Southeast Asia. Some of the key consumers of Indonesian Paints and Coatings are construction, automotive, and others. Major manufacturers of paints and coatings in Indonesia are PT Propan Raya Industrial Coating Chemicals, Akzo Nobel N.V., and Boxer Paints.
• Thus, all the above-mentioned factors are likely to provide the increasing demand for the Southeast Asia melamine market during the forecast period.

Southeast Asia Melamine Industry Overview

The Southeast Asia Melamine market is fragmented in nature. The major manufacturers in the market (in no particular order) include Nissan Chemical Corporation, Borealis Agrolinz Melamine GmbH, Mitsui Chemicals Asia-Pacific Ltd., and Wakomas Chemical Sdn. Bhd., Petronas Chemicals Group Berhad (PCG), followed by other prominent players.

Southeast Asia Melamine Market Leaders

Southeast Asia Melamine Market News

• In August 2022, PETRONAS Chemicals Group Berhad (PCG) launched its melamine plant project in the area of its PETRONAS Chemicals Fertiliser Kedah Sdn Bhd (PC FK) complex here. With a capacity of 60,000 tons per year, the factory is expected to be operational in 2024, making PCG the sole melamine manufacturer in Southeast Asia.
• In August 2022, Kedah was set to become the leading exporter of melamine for Southeast Asia by 2024 with the commissioning of Petronas Chemicals Group Bhd's (PCG) first melamine production plant here.