Global Fiberboard Market - 2023-2030

Global Fiberboard Market - 2023-2030

Global Fiberboard Market reached US$ 24.9 billion in 2022 and is expected to reach US$ 53.8 billion by 2030, growing with a CAGR of 7.8% during the forecast period 2023-2030.

All fiberboards are bound with formaldehyde resins, most often urea or phenol formaldehyde resins. To make the product more sustainable, new raw materials such as straw and bamboo are being used, which are gaining popular due to their rapid growth as a renewable resource. Increasing furniture sales support the growth of the medium density fiberboard market.

During the forecast years, demand for fiberboard products is expected to expand due to its exceptional attributes, such as high strength and durability, as well as resistance to moisture and fire. Furthermore, technological advancements and improvements in the manufacturing process have resulted in the creation of these products with higher durability and a longer lifespan. Superior adhesion techniques using low-emission formaldehyde-based resins have fueled product innovation in the sector.

In 2022, Asia-Pacific is expected to be the fastest growing region holding more than 1/3rd of the global fiberboard market. Increased construction activity in China, India and Japan is driving up regional demand. China contributed for over 40% of total world share. The rapid expansion in consumption of fiberboard in China has been primarily driven by numerous expansions in the residential and commercial construction areas, that are being supported by the developing economy.

Dynamics

Growing Demand for Sustainable Furniture

Concerns about sustainability and the carbon footprint of furniture have prompted the rapid development of new ways and inventive uses for wood. MDF is used to produce a variety of low-cost furniture, including bookcases, entertainment centres and tabletops. It is also used to make prefabricated furniture. MDF reduces the cost of furniture manufacture because it is inexpensive and easy to create. MDF is often utilised in flat-pack furniture due to its low cost and customisable aspect.

IKEA, the furniture giant, makes substantial use of MDF, particularly in cabinets. According to a PricewaterhouseCoopers study, three-quarters of consumers prioritise sustainability when purchasing furniture. MDF wood fibre can be made from a variety of materials, including wood, forest thinning, straw, bamboo, recycled paper, carbon fibres, sawdust and so on. MDF is created mostly from wood fibre, sawdust, wood shavings and other parts of the wood that would otherwise be thrown; these wastes are instead recycled into MDF.

According to Furniture Today, expenditure on furniture and bedding will increase by 20.8% over the next five years, reaching US$ 145 billion in 2026. As consumers become more aware of the type of furniture they purchase, sales of sustainable furniture will increase, driving the medium density fiberboard industry.

An Increase in Residential Construction

The need for branded, ready-made and low-maintenance furniture is expanding on a daily basis, driving up the demand for fiberboard in residential building. In India, extensive support at the national level for the housing industry is reflected in the allocation of sizeable funding for housing in the national 2021 Budget, such as Rs 50,000 crore allocated to the Ministry of Housing and Urban Development (MoHUA) and the creation of a US$ 3.5 billion fund to support the completion of stalled housing projects.

The Pradhan Mantri Awas Yojana programme, which aims to offer reasonably priced housing to all urban poor by 2022 through initiatives such as financial assistance, is likely to continue to underpin India's solid rebound in residential construction growth. According to Commerce Department, Housing & Urban Development data, home starts increased 1.4% to 1.70 million annualized from 1.68 million in November. In 2021, 1.6 million dwellings were started, a 15.6% increase over 2020 and the highest since 2006.

As the value of residential building rises, more houses will be erected, increasing the demand for MDF. The value of residential construction is predicted to rise significantly in 2022 as a result of low mortgage rates and interest on house loans, which constitute an opportunity for the industry. Thus, the rise of the residential construction industry supports the fiberboard market.

Hazardous Impact of Formaldehyde

One major disadvantage of fiberboard, particularly MDF, is the use of urea formaldehyde resins to bind the microscopic wood particles together. As a result, the boards emit dangerous volatile organic chemicals into the environment for a period of time. As a result, it is strongly advised to exercise extreme caution when cutting, sanding or working with MDF to avoid inhaling minute wood particles and volatile organic compounds. VOCs can trigger allergies, migraines and asthma.

According to a European Respiratory Review research, the potential health effects of indoor VOC exposure are cause for concern, especially since people in general and children in particular, now spend the majority of their time indoors. When MDF is chopped, sanded, moulded or machined, it produces formaldehyde-coated dust particles. The particles are substantially smaller than those emitted by most other regularly used woods and can be inhaled deeply into the lungs.

EU classified formaldehyde as a cancer-causing chemical and wood goods containing formaldehyde are subject to severe controls. The element presents a difficulty to the medium density fiberboard business. MDF composed of wood, phenolic resins and zinc borate does not contain urea formaldehyde resins. Such types of MDFs help overcome this restraint.

Segment Analysis

The global fiberboard market is segmented based on type, application, end-user and region.

Rising Home Furnishings Drive the Growth of Furniture

Furniture is expected to be the fastest growing segment with 1/3rd of the market during the forecast period 2023-2030. Fiberboards are reconstituted wood-based panel products. It is created by breaking down hardwood or softwood residuals into wood fibers, usually in a furnace, mixing them with wax and a resin binder and producing panels using high temperature and pressure.

According to U.S. Census Bureau, in U.S., in November 2021, furniture and home furnishing store sales were expected to be around US$ 13.31 billion, up from US$ 12.44 billion the previous month. Furthermore, the transition away from corporate settings has increased demand for more functional and adaptable home furnishings. If it is an ergonomic chair, office desk or study table, those who work from home will concentrate on home décor, driving the furniture segment, resulting in an increase in the fiberboard market during the forecast period.

Geographical Penetration

Growing Spending on Residential Construction in Asia-Pacific

Asia-Pacific is the dominant region in the global fiberboard market covering about 1/3rd of the market. Increased spending on residential development to meet rising housing demand is propelling the fiberboard market. According to the Indian Brand Equity Fund, 55,907 newly constructed houses were sold in eight micro-markets throughout India between July and September 2021, representing a 59% YoY gain. In India, the availability of affordable housing is predicted to increase by approximately 70% by 2024.

The Indian government's 'Housing for All by 2022' initiative is also a significant game changer for the business. By 2022, the plan hopes to have built more than 20 million affordable dwellings for the urban poor. The Japanese construction industry is expected to grow as the country prepares to host the World Expo in Osaka, Japan, in 2025. Rising investments will increase the demand for fiberboard in the region.

Competitive Landscape

The major global players in the market include Evergreen Fibreboard Berhad, KRONOSPAN Verwaltungs-und mbH, Kastam/onu Entegre Agac Sanayi ve Ticaaret A.S., UAB Grigeo Baltwood, Georgia Pacific Building Products LLC, Jining Best Star Wood Co Ltd., Coillte Group, Finsa Forest Products S.A., Norbord Inc. and Dongwha Malaysia Holdings Sdn. Bhd.

COVID-19 Impact Analysis

The COVID-19 pandemic has impacted the global market extensively. In the initial phase of the pandemic, as people were confined to their houses, the demand for flooring, furniture and various decorative panels helped the market recover. According to a study by Harvard University researchers, in U.S. spending on home improvements and repairs grew more than 3%, to nearly US$ 420 billion, as households modified living spaces for work, school and leisure in response to the COVID-19 pandemic.

CouponFollow, a homeowner savings resource, conducted a survey of more than 1,000 Americans about the DIY projects they took up during the pandemic. According to the survey, the five most common and successful projects during the pandemic were building/installing shelving and cabinetry, house painting, building/enhancing the garden, bathroom decoration and bedroom decoration. Also, during the lockdown, many people purchased new homes, which in itself calls for home improvement projects. It contributed to the sales of medium density fiberboards.

AI Impact

AI is employed to optimize supply chain management, improving the efficiency of raw material sourcing, production processes and distribution. The optimization lead to cost savings and better overall performance within the fiberboard industry. AI-powered predictive maintenance systems can be implemented in manufacturing facilities, including those producing fiberboard.

The systems use data analytics and machine learning algorithms to predict equipment failures, reducing downtime and increasing operational efficiency. AI-based image recognition and machine vision systems can enhance the quality control processes in fiberboard manufacturing. Automated systems can quickly identify defects or inconsistencies in the production line, ensuring a higher-quality end product.

Russia-Ukraine War Impact

The Russia-Ukraine War has significantly impacted the global fiberboard market, resulting in various consequences. The conflict has disrupted supply chains, causing shortages in raw materials and leading to increased prices. It has prompted manufacturers to explore alternative sourcing options to ensure uninterrupted production.

Additionally, the war has risen uncertainties and geopolitical tensions, reducing foreign investments in the region. The construction sector, a significant consumer of fiberboard, can be directly affected by geopolitical events. Investments in infrastructure projects may be delayed or reassessed due to economic and political uncertainties.

By Type
• Hardboard
• Medium/Hard Density Fiberboard
• Others

By Application
• Furniture
• Construction
• Doors
• Flooring
• Packaging
• Others

By End-User
• Residential
• Commercial
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In June 2022, Kronoplus, A leading maker of wood-based panels invested US$ 473.26 million to develop a new manufacturing plant in Tortosa. The project covers 25 hectares and is expected to produce 720,000 m³ per year. It will increase the company's business in the medium density fiberboard (MDF) industry.
• In January 2022, Kastamonu, Russia's leading wood processing company, has introduced new decors for its Evogloss line of MDF boards. Evogloss panels are necessary for decorating the walls of any living space, including the kitchen, bedroom, bathroom, dressing room and other common rooms.
• In July 2021, Roseburg Forest Products, a privately-owned wood products firm situated in Springfield oregon, has released Armorite Exterior MDF. Armorite is an MDF panel with no added formaldehyde that is resistant to dampness, rot, decay and insects.

Why Purchase the Report?
• To visualize the global fiberboard market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of fiberboard market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global fiberboard market report would provide approximately 62 tables, 56 figures and 192 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies