Wood Based Panel Market Size, Share & Trends Analysis Report By Product (Plywood, MDF, HDF, OSB, Particleboard, Hardboard), By Application (Furniture, Construction), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global wood based panel market size to be valued at USD 247.23 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 6.9% during the forecast period. Low product cost coupled with superior properties including strength and durability is the key factor driving the demand for wood based panels for ceiling, cladding, roofing, flooring and furniture applications. Increasing investments in residential and commercial construction activities across the major geographies are expected to propel the demand for wood based panels. Moreover, increasing public-private partnerships for the development of the construction sector in emerging economies such as India, China, and Saudi Arabia are likely to support the market growth.

U.S. dominated the North America market for wood based panels in 2019 with a share of 85.52% owing to the robust growth in residential construction spending in the country. Rising consumer spending on aesthetically appealing furniture products and significant growth in single-family housing constructions are other factors likely to drive the regional product demand over the projected period.

Raw materials essential for manufacturing wood-based panels including fiber wood and timber are procured from sawmills, log merchants, and recycled fiber brokers. Price fluctuations and inconsistency in the supply of raw materials are expected to be key areas of concern for the market participants.

Key market players are focusing on capacity expansion to cater to the rising demand for wood-based products from end-use industries and to gain a competitive edge. For instance, in 2017, Dongwha Group invested in a new MDF production line in Vietnam to meet the increasing domestic demand for wood based panels.

Rising concerns such as dust, total organic carbon, and formaldehyde emission during product manufacturing are anticipated to hamper the growth to an extent. However, increasing efforts made by the manufacturers to develop innovative manufacturing processes and to reduce the environmental impact is likely to favor the market growth.

Wood Based Panel Market Trends

Growing investments in domestic and commercial development activities across major areas are likely to fuel demand for wood-based panels. In North America, the U.S. has led the market for wood-based panels in the past few years due to a strong rise in residential building investment in the region.

Inexpensive commodity costs combined with high qualities like robustness and durability are driving the market of wood-based panels for roofing, flooring, and ceiling.Growing consumer spending on visually appealing furniture items, as well as robust growth in nuclear family house building, is predicted to accelerate product demand during the forecast period.

As the market's growth potential has been recognized, various wooden structure verification projects are being launched.Conceptual design construction projects, such as Dingchi Wood Industry Co. Ltd’s plans for a sixty-story wooden premise that will get complete by the end of the year and will be China’s tallest timber building. Despite the fact that timber buildings are still in trend in China, demand for structural and customized wood products has enormous growth potential.

The significant increase in the price of petroleum-based fuels continue to have an impact on the manufacturing and distribution of wood-based panel products. It has increased the cost of production and transportation. The competitive price for wood-based panels is increasing as the cost of energy-intensive metals, plastics, and polyester replacements is rising. This is anticipated to restrain the market growth.

Product Insights

Plywood emerged as the most popular category of products in 2019. It is manufactured by gluing multiple thin layers of veneer. Superior properties, such as high strength, durability, and impact, chemical, fire, and moisture resistance offered by the product are expected to drive the wood based panel market over the forecast period.

Particleboard is denser and more uniform than traditional wood products and plywood, which is expected to have a positive impact on the demand over the forecast period. Particleboards are available in various grades and are gaining high demand in various applications including furniture, flooring, roofing, and an insulation material.

MDF wood-based panel segment was valued at USD 25.6 billion in 2019 and is likely to progress at a CAGR of 6.4% over the forecast period. The product is considered to be a better alternative to traditional products as it is free from rings and knots, which makes it uniform. The product is expected to witness a rise in demand as it has a consistent particle size and good strength.

OSB panel segment is likely to ascend at a CAGR of 7.8%, in terms of revenue, over the projected period. These products are manufactured using rectangular-shaped wood strands and waterproof heat-cured adhesives. The strands are arranged in cross-oriented layers, enabling more strength and better product performance as compared to plywood.

Application Insights

High impact resistance and strength offered by wood based panels make them an ideal packaging material, especially for long-distance transportation. Rising product utilization as environment-friendly packaging material to replace non-recyclable packaging materials such as plastics is expected to drive the market over the forecast period. Furthermore, the rising preference for traditional furniture for bedrooms and living rooms is expected to propel the demand for the products over the forecast period. Increasing product demand for manufacturing small accent pieces and Ready-to-Assemble (RTA) furniture is expected to boost the growth in the forthcoming years.

The application of wood based panels in the construction industry in China was valued at USD 19.23 billion in 2019 and is likely to ascend at a CAGR of 9.8% during the forecast period. The availability of wood based panel products in a wide range of colors, grades, and sizes is expected to have a positive impact on the demand in the forthcoming years.

The demand in construction application is likely to progress at a CAGR of 8%, in terms of revenue, over the forecast period. Increasing consumer purchasing power coupled with low interest rates has led to an increase in building projects in emerging economies. Furthermore, increasing investments in the construction of new commercial spaces are likely to spur the market growth in the near future.

Regional Insights

Asia Pacific accounted for the largest market share of 54.34% in 2019 and is estimated to expand at a CAGR of 7.9% over the projected period. Emerging economies, such as China, India, and Japan, are estimated to fuel demand for the product in packaging and construction applications. China is the largest producer and consumer for wood based panels in the Asia Pacific on account of population growth, which demands high investments in the construction. A rise in packaging applications is supporting the demand for the products owing to increasing industrial exports from the country.

Europe accounted for over 24.12 % of the total market share in 2019. The regional demand is mainly driven by Germany, which is the leading furniture market in the region. The growth of the furniture industry in the region is also anticipated to positively influence the demand for particleboard in the forthcoming years.

Increasing R&D activities by regional players in the Middle East and Africa to develop cost-effective and high-performance wood-based panels are estimated to boost market growth. The distribution cost in Middle Eastern countries is higher than that of the countries in the Asia Pacific and North America, owing to low production.

Key Companies & Market Share Insights

The market is highly competitive in nature, on account of the presence of numerous manufacturers. The players are primarily concentrated in North America and Europe. The companies compete based on production volumes and product quality. Increasing market rivalry and continuously ascending wood prices are likely to affect the profit margins. The key players focus on integration across the value chain through mergers and acquisitions as well as joint ventures. For instance, in April 2019, CanWel Building Materials Group Ltd. acquired Lignum Forest Products LLP, a distributor of lumber and forest products in U.S. and western Canada, to strengthen its distribution network in North America.

Recent Developments

• In December 2021, West Fraser, a multi-national wood products corporation with 60+ locations across different regions like U.K., U.S., Canada and Europe, acquired the oriented strand board (OSB) mill near Allendale, South Carolina

• In April 2022, Weyerhaeuser announced a USD 265 million contract to acquire 80,800 acres of premium quality timberlands in North and South Carolina from a Campbell Global-managed fund. Inside the company's Southern Timberlands segment, the acquisition is expected to produce harvest tons per acre and portfolio-leading cash flow

• In January 2022, Kronospan signed a five-year partnership framework agreement with the Luxembourg Institute of Science and Technology (LIST). This Partnership Framework Agreement prioritizes sustainability and the environment along with Activities linked to the fabrication of wood-based panels that are part of a PhD collaborative training program

Wood Based Panel Market Report Scope

Global Wood Based Panel Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global wood based panel market report based on product, application, and region:

• Product Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2016 - 2027)

  • Medium density fiberboard (MDF)

  • High density fiberboard (HDF)

  • Particleboard

  • Oriented Strand Board (OSB)

  • Softboard

  • Hardboard

  • Plywood

• Application Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2016 - 2027)

  • Furniture

  • Construction

  • Packaging

• Regional Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million; 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

    • Russia

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Singapore

    • Australia

    • Malaysia

    • Thailand

    • Indonesia

    • Vietnam

    • Philippines

    • Pakistan

    • Taiwan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • SouthAfrica

    • Saudi Arabia

    • Qatar

    • UAE

    • Kuwait

    • Oman

    • Iran

    • Israel

    • Algeria

    • Egypt

    • Lebanon