Wood Based Panel Market Size, Share & Trends Report

Wood Based Panel Market Size, Share & Trends Analysis Report By Product (Plywood, MDF, Particleboard, Softboard, Hardboard), By Application (Furniture, Construction, Packaging), And Segment Forecasts, 2018 - 2025

  • Published Date: May, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-180-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 141

Industry Outlook

The global wood based panel market size was estimated at USD 91.05 billion in 2016. Low cost of the product coupled with superior properties such as high strength and durability are resulting in its high demand from the construction sector for wall cladding, ceiling, roofing, and flooring applications.

U.S. wood based panel market

The demand for wood panels is increasing, owing to high investments in residential and commercial construction, across developing economies of the world including China, India, Brazil, and Saudi Arabia. In addition, growing public-private partnerships in the construction sector in developing economies is expected to be one of the key trends stoking market growth.

The demand for the product in the U.S. was valued at USD 11.62 billion in 2016. The U.S. is the largest producer of agricultural products, which demand high volumes of wood based panels for packaging. The presence of major end-users in the country and their well-established distribution networks across the globe are also supporting the growth of the market in the country.

Wood-based panel manufacturers procure raw materials such as wood fiber and timber from various suppliers including timber owners, recycled fiber brokers, and independent log merchants and brokers. A majority of manufacturers have short-term contracts with raw material suppliers.

Companies in the industry are indulging in capacity expansion strategies in order to cater to rising demand for wood-based panels from end-use industries, and to gain a competitive edge. For instance, Dongwha Group invested in a new medium density fiberboard (MDF) production line in Vietnam worth USD 140 million. The decision was taken owing to abundance of rubber trees in Vietnam and is anticipated to increase profits, thereby helping the company expand its global presence.

The U.S. Department of Housing and Urban Development (HUD) Manufactured Home Construction and Safety Standard and California Air Resources Board (CARB) Air Toxic Control Measure for Composite Wood Products govern emission levels of formaldehyde from wood based panel manufacturing processes. Manufacturers in the industry have to adhere to guidelines set by the aforementioned organizations.

Product Insights

Surging demand for MDF for manufacturing furniture, flooring, and cabinetry is likely to drive the market over the forecast period. The product has higher demand than normal wood as it eliminates rings and knots, which makes it more uniform. The product has consistent particle size, shape, and strength, which is projected to fuel its demand in furniture manufacturing application.

Increasing demand for oriented strand board (OSB) as an alternative to plywood and solid boards, on account of its favorable mechanical properties coupled with its ability to resist delamination and deflection, is poised to contribute to the growth of the segment during the forecast period. The OSB product segment is expected to expand at a noteworthy CAGR of 8.3% over the forecast period.

Softboard offers several advantages such as enhanced sound absorbing capabilities owing to which it is used for making acoustic boards. Softboards are also used for wall lining and ceilings to reduce reflection of sound. As a result, there is a high demand for the product in the construction and furniture industries for ceiling, partition, and flooring applications.

Hardboard is estimated to exhibit a CAGR of 6.0% over the forecast period. The growth of the segment can be attributed to enhanced properties such as moisture resistance, abrasion resistance, higher strength, and durability. Its superior properties make it the most preferred choice for wall paneling, underlayment, perforated boards, and molded door skins.

Application Insights

Wood based panels find application in the furniture, construction, and packaging industries. The product finds high demand in application areas such as doors, exterior staircases, external cladding, flooring, interior staircases, shear walls, and timber porter frames. Excellent stability & high chemical resistance offered by the product is anticipated to benefit the industry.

The product demand in furniture application is likely to rise at a CAGR of 7.3% in terms of revenue from 2017 to 2025. Unlike glass, wood based panels can be used to manufacture sturdy and durable interior decoration items, as they are light in weight, well-finished, and more durable as compared to traditional wood. This factor is projected to have a positive impact on market growth.

Global wood based panel market

Rising demand for ethnic furniture for living rooms and bedrooms is poised to drive the demand for the product over the forecast period. Burgeoning product demand to manufacture residential and commercial furniture, ready-to-assemble (RTA) products, and small accent pieces are expected to bolster the growth of the wood based panel market over the forecast period.

Increasing consumer demand for green products, owing to increasing environmental awareness, is estimated to trigger the adoption of the product in construction applications. As wood products are bio-derived and recyclable, they are anticipated to witness a significant demand in construction application over the forecast period.

The product demand in packaging is likely to progress at a CAGR of 7.2% over the forecast period owing to spiraling demand for wood based panels to pack bulky and heavy products. They also being increasingly used for the protection of glass and ceramic products and delicate instruments, which is supplementing the growth of the packaging segment.

Regional Insights

Europe is a mature market for wood based panels and is projected to post a moderate CAGR of 5.9% from 2017 to 2025. Wood has been a traditional construction material in the region. As a result, with flourishing construction sector in the region, the demand for the product is poised to experience upsurge over the coming years.

Asia Pacific was the leading market in terms of value in 2016, accounting over 58.0% of the global market. China was at forefront of the growth of the regional market. Rapid population growth in the country, which demands high investments in the construction sector, is expected to be a key factor influencing the demand for wood-based panels.

The recent natural disasters in 2017, including hurricanes Irma and Harvey, caused a lot of destruction a major part of North America. The Category 5 storms that hit the region adversely affected hundreds of commercial and industrial holdings. The U.S. Federal Emergency Management Agency (FEMA) procured wood based panels to provide shelter to victims of the aforementioned disasters, thereby leading to a considerable rise in product demand in the region in 2017.

Australia, India, Germany, Norway, Sweden, and Canada have augmented spending on construction and infrastructure significantly over past few years. This trend is estimated to continue over the forecast period. Consistent economic growth coupled with low interest rates are leading to an increase in building project approvals across the globe, which is thereby anticipated to stimulate the growth of the market.

Wood Based Panel Market Share Insights

The market is highly competitive in nature owing to presence of numerous manufacturers, concentrated primarily in North America and Europe. Market players compete on the basis of production volumes, quality, and product. Increasing industry rivalry, coupled with rising raw material prices, are likely to shrink profit margins of industry players.

Major manufacturers present in the market include Dongwha Group, Klenk Holz AG, Kronospan, and FormaCare. The market is characterized by companies seeking integration across the value chain to assure constant raw material supply and easy product distribution. For instance, Klenk Holz AG, a Germany-based company, is integrated across the value chain from raw material supply to product distribution.

Some manufacturers are projected to undergo consolidation in order to sustain in competitive environment. For instance, in April 2016, Canfor fully acquired the assets of Wynndel Box & Lumber Ltd. to expand its specialty woods portfolio. Acquisition of small-scale companies is projected to enable major players to cater to increasing product demand from end-use sectors.

Products such as MDF, HDF, OSB, particleboard, and plywood are marketed by several companies under various brand names. Market players offer their products in different sizes and at competitive prices in order to attract consumers. Companies such as Georgia-Pacific and Canfor offer additional services such as maintenance & repairing along with product supply in order to gain market share.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                

Volume is Thousand Cubic Meters, Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and The Middle East & Africa

Country scope

U.S., Germany, France, U.K., Belgium, The Netherlands, Spain, Portugal, China, India, Brazil

Report coverage      

Revenue forecast, company share, competitive landscape, and growth factors and trends

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis on 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 wood based panel market report on the basis of product, application, and region.

  • 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

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

    • North America

      • U.S.

    • Europe

      • Germany

      • France

      • U.K.

      • Belgium

      • Netherlands

      • Spain

      • Portugal

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • The Middle East & Africa

Key questions answered by the report
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