Global wood-based panel market was valued at around USD 16 billion in 2015. This market is projected to grow at an approximate CAGR of 13% from 2016 to 2024. This market is driven by growth in new commercial and residential constructions in developed as well as developing countries.
Repair & renovation activities across the world also have a positive impact on the wood-based panel market. Stringent rules & regulations implemented on deforestation activities has encouraged the need for efficient timber utilization, which in turn is driving the wood-based panels market.
The wood-based panel market according to product type is segmented into plywood (softwood & hardwood), particle board, fiberboard (MDF & hardboard), oriented strand board (OSB), laminated veneer lumber (LVL), wafer board, block board, and other composite structural panels.
Rapid industrialization and increasing infrastructural activities in Asia-Pacific are likely to bolster the demand for wood-based panels in this region. The demand is also triggered by the requirement of structural panels in the construction industry.
Asia Pacific is projected to grow at the highest CAGR during the forecast period on account of increasing construction and infrastructural activities in China, India, South Korea, and other developing countries. Countries such as Thailand, Malaysia, and Indonesia are observing rapid growth in Medium Density Fiberboard (MDF) and particleboard panels owing to increasing demand for high-quality furniture.
Countries such as the U.S., The Netherlands, Germany, and South Korea were the leading importers, accounting for around half of the global imports of wood-based panels, in 2014. China and Indonesia were the leading exporters of wood-based panels, and accounted for around half of the global exports, in 2014.
The increasing application of wood-based panels in the manufacture of sidings, flooring & decking, and windows & doors in the construction segment are expected to impact the growth of this market directly. Also, growing demand of furniture such as cabinets, shelves, cupboards, and desks are anticipated to drive this market. Wood-based panels are also used in the packaging industry for the manufacture of wooden boxes and containers used in shipping & logistics.
The countries with maximum production and consumption of wood-based panels are China and the U.S. The demand for wood-based panels in European countries is also projected to increase on account of favorable governmental policies.
The European Commission has invested huge amounts in R&D activities to come up with processes that ease the production of wood-based panels. Wood-based panel manufacturing companies in Europe are opting for vertical integrations to establish control over its value chain.
Eastern Europe is projected to grow at a high CAGR on account of increasing production facilities in Russia and Turkey. Russia is expected to overtake Germany and become the largest particle board market in Europe.
The European market for wood-based panels has shown tremendous profitability on account of increased consumption in application segments such as construction, furniture, and packaging. The rising cost of inputs such as wood, resins, adhesives, and timber will have an adverse impact on panel makers across the Europe as it reduces their profit margins to a great extent.
Stringent disposal regulations and increasing raw material prices are expected to be the major restraining factors for the wood-based panel market. According to EU, plywood generates around 300-kilo tons of waste which are disposed into landfills every year. Plywood contains toxic resins and adhesives which can dig deeper into the soil and damage the environment. Therefore, the EU aims at reducing production of plywood and increasing production of other wood-based panels like Oriented Strand Boards (OSB) and Medium Density Fiberboard (MDF).
Repair & renovation activities are projected to increase the demand for furniture and other modular constructions which are further expected to drive the structural as well as non-structural wood-based panel industry, mainly in the developed areas of Europe and North America such as the U.S., the UK, Germany, France, and Poland.
Companies such as Noranda Forest Inc. (Canada), which is engaged in the production of OSB, have entered into joint ventures and acquisitions to increase their production capacity, product portfolio, and expand into emerging markets.
Mergers are also prevalent in the market which is mainly undertaken to increase market share and gain access to developing wood-based panel markets. Kronospan Ltd. (Austria), engaged in the production of different wood-based panels acquired Clarion Boards Inc. (U.S.), which manufactures Medium Density Fiberboard (MDF), high-density fiberboard, and laminated veneer lumber. This strategy was undertaken to enter the North American market and supplement the company's European facilities.
The major manufacturers of wood-based panels across the world are Kronospan Worldwide, Weyerhaeuser, Georgia Pacific, Sierra Pacific, West Fraser Timber Company Limited, Canfor, Tolco Industries Limited, Hampton Affiliates, Resolute Forest Products, Interfor, Timber Products Company, Shanghai Jechen Group Company, Schweighofer, Stora Enso, Arauco, Sodra Timber, Klausner-Group, Pheifer Gruppe, Idaho Forest Group, Ante-Halz gmbH, Rettenmeier Group, Klenk Holz AG, and Linyi Guangsha Wood Industry Company Limited among others.
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