Global Wood-Based Panel Market - 2021-2028

Global Wood-Based Panel Market - 2021-2028

Market Overview

The global wood-based panel market size was worth US$ XX million in 2020 and is estimated to reach US$ XX million by 2028, growing at a CAGR of XX% during the forecast period (2021-2028).

Wood-based panels are produced by chopping wood or similar raw material and then collecting it into a panel-shaped end product. Wood-based panels are an essential material for the wood and furniture industry globally. The market has various types of wood-based materials based on the applications.

Wood-based panel products are sheet materials that include a substantial amount of wood in the form of strips, chips, strands or fibers. The categories included in the wood-based panels are high-density fiberboard, medium-density fiberboard, oriented strand board, particleboard, soft board, veneer plywood, core plywood and others. The wood-based panels can be used for construction applications such as sheathing for sub-flooring, roofs and walls. Similarly, wood-based panels can also be utilized in light-frame construction for several single-layer floor applications.

Market Dynamics

The global wood-based panel market growth is driven by the construction industry's rising need for sustainable products.

Rising need for sustainable products in the construction industry

Buildings and construction sectors employ between 20% and 50% of environmental resources. It is the duty of architects, builders, material manufacturers, etc., to end wasting natural resources and advance the use of materials, such as sustainable wood panels, which assist reduce the environmental impact of a building. The new green architecture, eco-friendly architecture, considers the application of resources (energy, natural resources), environmental impact and the particular risks.

Sustainable wood panels are doomed to be the leading figures in the new, more environmentally friendly architecture and resources. Wood is the material with the lightest environmental impact in its production and life cycle and it is easily recyclable. The wood panel has also been developed, ensuring that an FSC or PEFC chain of custody system is supported right through to the end product. The certifications assure that the wood used comes from sustainably managed forests.

Strict government regulations on certain products

Some wood-based panels release small amounts of formaldehyde, which is not safe for human health. Governments have also implied various regulations on certain products to restrain the wood-based panel market's growth. For instance, in 2007, CARB approved a regulation to reduce formaldehyde emissions from composite wood products manufactured, sold, supplied and used for sale in California.

The regulation focuses on hardwood plywood, particleboard and medium-density fiberboard. The regulation requires that PB, HWPW and MDF and new finished goods that include these composite wood products meet stringent formaldehyde emission standards and be labeled as such. Examples of finished goods include cabinets, flooring, photo frames, desks and countertops.

Moreover, In 2021, Health Canada has published its final formaldehyde regulations for composite panels. The formaldehyde rules cover particleboard, MDF, hardwood plywood and laminated products under development for several years. The rules are modeled on U.S. EPA regulations, with the emission standards mirroring TSCA Title VI. Third-party testing and certification requirements have been added and differ slightly from the U.S regulations due to the authority following the Canadian Environmental Protection Act.

COVID-19 Impact Analysis

The wood-based panels market was hindered during the months of the COVID-19 pandemic, owing to less demand and government regulations. For instance, U.S wood panel manufacturers have revealed concern about potential production disruption coming from President Joe Biden's proclamation specifying mandatory COVID-19 vaccinations for all U.S companies with more than 100 employees. In September, the Composite Panel Association circulated a survey to members to assess the possible impact of such a mandate on member operations. More than 75% of reacting CPA member companies do not presently have a vaccine mandate for employees, though several indicated that they have actively encouraged employees to get vaccinated.

After initial disruption in the market, the market has been recovering rapidly. MDI producer Huntsman recorded improved revenues in Q2, 2021, largely due to higher MDI average selling prices and higher sales volumes than 2020. According to the company, the MDI sales have grown, with panel manufacturers realizing the product's performance, cost and environmental benefits. MDI resins are utilized in the production of particleboard, MDF and OSB. MDI average selling prices increased mostly in China and Europe. Moreover, CenturyPly, a Leading Indian plywood manufacturer, has anticipated returning its pre-pandemic revenue levels in 2021.

Segment Analysis

By type, the wood-based panel market is segmented into high-density fiberboard, medium-density fiberboard, oriented strand board, particleboard, soft board, veneer plywood, core plywood and others.

Need for moldable materials in a variety of shapes and styles is boosting the sales of medium density fibreboard

Medium Density Fibreboard (MDF) is a wood-based sheet material that bonds wood fibers with a synthetic resin adhesive. MDF is versatile and can be machined and finished to a high standard. MDF panels are an attractive option for the wall covering. MDF is generally denser wood panels and is strong to hold up to minor impacts and dings. Made from resin and wood fibers, MDF wall panels are moldable into many shapes and come in various styles.

The companies have launched new products with superior features to attract an audience. For instance, in 2021, Roseburg Forest Products has launched Armorite Exterior MDF, a no-added formaldehyde MDF panel that resists rot, moisture, decay and insects (including Formosan termites). The new product was engineered with machinability and implemented the best performance in the market for cutting, profiling and custom designs.

In 2021, Turkish panel manufacturer Starwood approved Dieffenbacher to supply an MDF line in Turkey, including a 9-ft wide by 63.5-meter long CPS+ press. Following the engineering phase, installation is scheduled to start in 2Q 2022. The first board is to be manufactured toward the end of the same year.

Geographical Analysis

Growing investments in the construction industry are boosting the market in Asia-Pacific

Asia-Pacific is expected to witness significant growth in the wood-based panel market. Wood-based panels demand increases with expanding construction activity and furniture demand in China, India and Japan. The construction sector has been boosted with growing investment by the government. For instance, Indian has initiated 'Housing for All by 2022', which will act as a major driver for the industry.

The affordable housing segment is anticipated to be the next big growth driver of the Indian economy, with a phenomenal growth rate of over 30% in the medium term. Moreover, the availability of affordable housing is expected to grow by 70% by 2024. In 2019, the construction industry in China created an added value of around 7.09 trillion yuan. Shanghai is expected to spend around US$ 38.1 million in its first batch of 48 major infrastructure projects in the next three years.

Various companies have increased their production levels in response to the growing demand. For instance, in 2021, Wood-based panels equipment supplier Siempelkamp says its customer Dongwha's new plant in Hanoi, Vietnam, produces 20% above the output guaranteed in the contract. Dongwha operates three wood-based panel plants made by Siempelkamp in Vietnam, designed for MDF production.

Competitive Landscape

The global wood-based panel market is consolidated with global companies, followed by a few local companies. The market has robust partnerships throughout the value chain, focusing on innovation. The key players contributing to the market's growth are Unilin Group, Kronoplus Limited, West Fraser Limited, Egger Group, Kupeliler Endustri AS, Dongwha Enterprise, Binderjolz GmbH, Louisiana-Pacific Corporation, Roseburg Forest Products, Century Plyboards Ltd and others. The players are adopting new strategies to dominate the market, such as expanding production, launching new technologies, collaborations, contributing to the global growth of the wood-based panel market.

Unilin Group

Overview: Unilin Group comprises 6 business divisions: Unilin Panels, IVC Group, Unilin Flooring, Unilin Insulation, Unilin Technologies and Godfrey Hirst. The company has over 7,500 employees and has over 105 locations globally. The company is engaged in providing Flooring, Panels, Insulation and Technologies solutions.

Product Portfolio: The company offers various panels, including raw particleboards & MDF, decorative panels, HPL boards and ready-to-paint panels.

Key Development: In 2021, Unilin Group has announced the acquisition of Panneaux de Corrèze. The deal is part of Unilin Group's strategic growth and allows its Unilin Panels division to serve the French market. Panneaux de Corrèze produces about 150,000m3 of raw MDF panels from its production plant located in Corrèze. The division of Unilin Group, Unilin Panels, has MDF panels production plant in France - in Bazeilles.

Why Purchase the Report?

Visualize the global wood-based panel market segmentation by type, thickness, end-user and region, highlighting the key commercial assets and players.

Identify commercial opportunities in the global wood-based panel market by analyzing trends and co-development deals.

Excel data sheet with thousands of data points of global wood-based panel market-level 4/5 segmentation.

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

Product mapping in excel for the key product of all major market players

The global wood-based panel market report would provide an approximate 61 market data table, 61 figures and 180 pages

Target Audience

Raw Material Providers

Buyers

Wood-Based Panel Manufacturers

Distributors

Construction Companies

Interior Designers

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals

Emerging Companies

Distributors