Europe Wood Based Panel Market Analysis By Product (MDF, HDF, Particleboard, OSB, Softboard, Hardboard, Plywood), By Application (Furniture, Construction, Packaging), And Segment Forecasts, 2018 - 2025

Industry Insights

The Europe wood based panel market size was estimated at USD 16.85 billion in 2016. Wood based products have been dominating the furniture and construction sector in the region and this trend is expected to continue over the projected period, thus impacting the industry on a positive note.

The European wood based panel industry is governed by the stringent regulatory framework. The products offered by the manufacturers need to comply with the quality standards given by the European Union. As a result, manufacturers are likely to focus more on R&D and product quality. Changing consumer preference from the use of ceramic and glass to wood products in furniture, and construction applications is expected to hamper product demand.

The product is bio-derived and is expected to witness significant growth in the construction application owing to recyclability. Traditionally, wood products have been dominating the European construction sector and this trend is likely to continue over the projected period. Growing demand for the product for manufacturing floorings, decking, windows, and doors in residential and commercial buildings is likely to have a positive impact on industry growth.

The Construction 2020 Action Plan established by the European government with an objective to stabilize the construction industry growth in the region is expected to have a positive impact on the industry over the forecast period. Product quality and pricing are expected to be the key factors influencing the buyer’s decision. As a result, the manufacturers are expected to lower their product cost in order to tap then consumer attention.

The manufacturing process of wood based panels releases dust, formaldehyde emission, and total organic carbon which raises concern about environmental emission. The government regulations for the emission is expected to hamper the Europe wood based panel market growth over the forecast period. In addition, the growing demand for the raw materials for the biomass industry is likely to lower the availability of wood based panel manufacturing.

Growing demand for recyclable, lightweight, high strength, and sturdy products in the packaging and construction application is expected to propel growth. However, the industry is likely to witness internal substitution over the projected period as the majority of the products cater to similar applications.

Application Insights

The demand for the wood based panel in Europe was dominated by the furniture segment, which accounted for 56.1% of the overall application demand. The increasing demand for wooden ethnic design furniture for living rooms and bedrooms in the region is expected to drive growth over the projected period.

The demand for cabinets for personal computers at home and the workplace is growing in Europe. Traditionally, wood has been a key material of choice in the European furniture industry and this trend is expected to continue over the forecast period. Furthermore, the growing demand for space-saving, multifunctional, flat-pack furniture is likely to open new avenues for industry growth.

The wood products are bio-derived and recyclable, they are expected to witness significant growth in the packaging application over the forecast period. The demand for the product in packaging application is expected to grow at a CAGR of 8.1% from 2017 to 2025. The wide range of sizes, color, and grade of the wood based panel available in the market is likely to propel the market growth.

Wood based panels offer high strength and impact resistance, which in turn makes them a preferred packaging material, especially for long-distance transports. The increasing demand for environmental-friendly packaging products to replace non-recyclable packaging materials is expected to have a positive impact on industry growth.

Product Insights

Softboard is expected to grow at a CAGR of 9.6% from 2017 to 2025 owing to its multipurpose application scope across the end-use industries. The product is easy to handle and transport as it offers lightweight and low density. Increasing product penetration in the industry is likely to have a positive impact on industry growth over the projected period.

MDF offers consistent shape, strength, and size which is likely to drive the product demand in furniture manufacturing applications. However, it offers poor water resistance and is susceptible to humid atmospheric conditions, which is expected to hamper the industry growth in external applications over the forecast period.

HDF is majorly used in non-load-bearing interior applications. It finds application in manufacturing interior designs, cupboard backs, furniture components, shutters, doors, and packaging products. Various characteristics offered by the product, including high stability, easy processing, smooth surface, and increased density, are expected to have a positive impact on industry growth.

Particleboard has an ability to substitute its latter parts, such as plywood, owing to its lower cost. In addition, it is denser and more uniform as compared to traditional wood products and plywood, which is expected to have a positive impact on market growth over the forecast period.

Country Insights

Spain is expected to grow at a CAGR of 7.2% from 2017 to 2025 owing to the recovery of the construction sector in the region. The country has several small and medium-sized players in the market, which compete on the basis of price and geographical area covered in terms of distribution.

Germany is expected to grow at a CAGR of 4.5% in terms of revenue from 2017 to 2025 owing to the growing use of the soft board product in the country. Furniture accounts for the highest share in the region, however, the construction industry is the fastest growing owing to rising focus on it to stabilize the economy.

In France, increasing demand for the wood based panel for manufacturing interiors of the residential and commercial building is expected to drive industry growth over the projected period. Moreover, the rising investment in the construction application for the wood based panel is likely to fuel the demand for the market.

With the rising furniture industry growth and increasing investment in the manufacturing sector, product demand is expected to grow. With the recovering economy of the region, the retail products are witnessing a higher consumption growth rate due to which the packaging industry is being positively affected, thus impacting the market.

Competitive Insights

The industry is highly competitive, and dynamic. Investment, divestment, and regional expansion are expected to be the key strategies for industry players to strengthen their presence in the industry. Moreover, the companies launch various grades and designs of the panels to garner market share.

The surging raw material price is expected to be a key factor for the industry players over the forecast period. Moreover, the lack of technological innovation in the industry is likely to increase the threat of competition. The key players are adopting strategies including merger and acquisition of land to increase their presence.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global Europe wood based panel market on the basis of product, application, and country:

• Product Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2014 - 2025)

  • MDF

    • Standard MDF

    • Thin MDF

  • HDF

  • Particleboard

  • OSB

  • Softboard

  • Hardboard

  • Plywood

• Application Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2014 - 2025)

  • Furniture

  • Construction

    • Windows & Doors

    • Flooring & Decking

    • Siding

    • Others

  • Packaging

• Country Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2014 - 2025)

  • Europe

    • Germany

    • France

    • The U.K.

    • Belgium

    • The Netherlands

    • Spain

    • Portugal

    • Rest of Europe