Global Wood Based Panel Market By Product (Particleboard, Oriented Strand Board (OSB), Medium density fiberboard (MDF), Hardboard, Soft board, Plywood, High density fiberboard (HDF)) By Application (Furniture, Packaging and Construction), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2022-2032

Wood-Based Panel Market Overview

The 2021 global Wood Based Panel Market was valued at US$ 153.8 million. It is projected to increase at a 6.3% CAGR based on revenue from 2023-2032.

Panels made from wood are trendy because of their cost-effectiveness and superior properties. These panels can also be used as roofing, flooring, or furniture.

Global Wood-Based Panel Market

Product Analysis

Wood-based panels Market is expected to grow due to their outstanding properties like strength, durability, fire, and chemical resistance. Particleboard is denser than plywood and traditional wood products and will positively influence the market in the forecast period. Particleboards come in various grades, and they are highly in demand for flooring, roofing, and furniture.  In 2021, the MDF wood-based panel segment was valued at US$ 2,55,600 million. It is predicted to grow at 6.4% CAGR in the forecast period. Because it does not contain rings or knots, this product can be considered a better option than traditional products. Due to its consistent particle size, strength, and high demand, this product will see increased sales. The OSB panel market will see a 7.8% CAGR in terms of revenue during the forecast period. These products use rectangular-shaped wooden strips and heat-cured waterproof adhesives. Cross-oriented layers offer greater strength and product performance than plywood.

Application Analysis

Wood-based panels can be used for long-distance transport as they are strong and resilient to impact. The increasing use of wood-based panels as an environmentally friendly packaging material will drive the market over the forecast period. The market will see a rise in traditional furniture being used in living rooms and bedrooms over the forecast. The market will see a significant increase in the demand for small accent pieces and ready-to-assemble (RTA), furniture.

In 2021, China’s Wood Based Panel Market generated UD$ 19,230 million in revenue. This figure is expected to increase at a CAGR of 9.8% during the forecast period. Due to the availability of a wide range of sizes, colors, as well as grades of the wood-based panel, there will be a strong demand over the next few years. Construction applications are expected to grow at an average of 8% in terms of revenue over the forecast period. The rising demand for construction applications in emerging countries can be attributed to both low-interest rates and increasing consumer purchasing power. Investing more in commercial space construction is expected to stimulate market growth.

Key Market Segments

By Product

• Medium-density fiberboard (MDF)
• Hardboard
• High-density fiberboard (HDF)
• Plywood
• Oriented Strand Board (OSB)
• Particleboard
• Softboard

By Application

• Packaging
• Furniture
• Construction

Market Dynamics

Increasing investments in residential and commercial buildings across all major geopolitics will increase demand for wood-based panels. This market will be supported through increasing public-private partnerships in the development of the construction industry of emerging economies like India, China, and Saudi Arabia.

The U.S. dominated North America in 2021 for wood-based products, accounting for 85.52% of the market. This is due to strong domestic construction spending growth. Other factors that will increase regional product demand include rising consumer spending on attractive furniture items and significant growth in single-family house builds. Log merchants and sawmills supply the raw materials necessary for the production of the wood-based panel, which includes fiber wood and lumber. Market participants should be cautious about fluctuations in prices and inconsistency of raw material supplies. Market leaders are focusing their efforts to expand capacity in order to meet the growing demand of end-use industries. This will enable them to compete in a highly competitive market. Dongwha Group acquired a new MDF production line in Vietnam in 2021 in order to meet rising domestic demand. The market’s growth will be limited by growing concerns like dust, organic matter, formaldehyde, and product manufacturing. Manufacturers’ increased efforts to improve manufacturing processes, reduce environmental impact and increase market share will likely be of benefit to the market.

Regional Analysis

The Asia Pacific was the market leader with a 54.3% share in 2021. It is expected to grow at a 7.9% CAGR over the forecast. China, India, Japan, and other emerging economies will drive demand for the product in packaging and construction. China is Asia Pacific’s largest producer and user of wood-based boards. China’s high growth is because of its wood-based panels. Increasing packaging applications is supporting product demand due to increasing industrial exports. Europe was responsible for more than 24.12% of the market share in 2019. Germany is the largest furniture country in the region, driving demand. The future growth of the regional furniture industry will have a positive effect on the demand. Market growth will be enhanced by the increased R&D activity in Africa and the Middle East for high-performance, affordable wood-based panels. Distribution costs in Middle Eastern countries tend to be higher than those in North America, Asia Pacific, and North America due to low levels of production.

Key Regions and Countries covered in the report:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share Analysis

This market is highly competitive, due to the number of players. North America is the largest market for players. Europe is second. Product quality and production volume are two of the key criteria for companies competing in these markets. Market competition and rising wood costs will have an impact on profit margins. Integration throughout the value chain is key for key players. This includes mergers and acquisitions along with joint ventures. CanWel Building Materials Group Ltd. purchased Lignum Forest Products LLP (April 2021) to increase its North American distribution.

Key Market Players

• Norbord Inc.
• Kronospan Limited
• West Fraser Timber Co. Ltd.
• Timber Products Company
• Georgia-Pacific LLC
• Dongwha Enterprise Co., Ltd.
• Duratex
• Freres Lumber Co., Inc.
• Other Key Players

For the Wood Based Panel Market research study, the following years have been considered to estimate the market size: