Market Trends of Europe Medium-Density Fiberboard Industry
The Residential Segment is Anticipated to Hold a Significant Share
- Due to its superior grade, MDF is considered more stable than solid wood. It has better resistivity toward changes in heat and humidity and is hence preferred for furniture, cabinetry, and flooring. MDF is further used in decorative doors and panels, sculptures and moldings, beds, sofas, etc. The growing construction of residential projects across the region is expected to drive the market for MDF through the forecast period.
- As MDF is lightweight and an effective alternative to solid wood or plywood, it finds numerous applications in the residential sector, wherein it is used in embossing and furniture panels.
- Improvements in living standards and consumer disposable income have significantly boosted the residential sector in developing countries around Europe.
- Population growth, migration from hometowns to service sector clusters, and the nuclear family trend are some factors driving residential construction worldwide.
- According to Eurostat, the building permits index for residential buildings in Europe was 142.3 index points in 2021, compared to 122.6 index points in 2020.
- To address the UK's housing supply crisis, Manchester City Council collaborated with other developers to build 500 sites across Greater Manchester and Liverpool through individual development programs.
- Furthermore, the decreasing land-to-population ratio and the growing trend of constructing high-rise residential buildings and townships have fueled the MDF used in the residential construction segment. Again, the decreasing land-to-population percentage and the increasing trend of making high-rise residential buildings and townships have been driving the use of MDF in the residential construction segment worldwide.
- All the factors above are expected to drive the residential segment, enhancing the demand for medium-density fiberboard in Europe during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
United Kingdom to Dominate the Market
- The United Kingdom dominates the Europe Medium-Density Fiberboard market in terms of market share and market revenue. The country will continue flourishing in its dominance over the forecast period.
- The UK's construction industry had an almost 2.5% year-over-year gain, led by a 0.7% increase in renovation and repair work and a 3.4% increase in new work.
- Between 2020 and 2050, the government intends to spend 1% to 2% of the GDP on infrastructure. The National Productivity Investment Fund supports this. In addition, the government wants to use the NPIF to invest in housing, the 5G network, transportation, science, and innovation.
- Additionally, there will be an increase in demand for MDF materials in the UK due to investments in significant housing and redevelopment projects and vital infrastructures, including hospitals, prisons, and schools.
- The largest furniture market in Europe is found in Germany. The Association of the German Furniture Industry (VDM) estimates that the global furniture market will generate EUR 17.2 billion (USD 18.31 billion) in revenue in 2020. Additionally, according to VDM, in the first nine months of 2021, German furniture exports increased by 17% yearly and totaled EUR 6.2 billion (USD 7 billion).
- MDF is used in schools, hospitals, libraries, and laboratories for computer tables and workstations, tables and desktops, shelves, cabinets, whiteboards, doors, and so on. The increasing development of schools and hospitals will likely aid MDF growth in the institutional sector.
- The education sector is rapidly developing as the school-age population grows. This element aided in establishing an increasing number of educational institutes in recent years. Both the public and commercial sectors are expanding their investments in education. This factor is projected to propel the MDF industry forward.
- An additional 24,287 classrooms are estimated to be needed in the United Kingdom to meet this expanding student population. According to a Department of Education spokesman, an investment of around USD 9.2 billion in new projects was projected by 2021.
- Europe is expanding its retail segment by constructing malls across the continent. Some of the most recent malls built in Europe include the Metropol Mall in Turkey, Vegas Kuntsevo in Russia, Mall of Scandinavia in Sweden, Westfield Bradford in the United Kingdom, Weberzeile Ried in Austria, Mall of Europe in Belgium, and Lublin Mall in Poland.
- According to the UK Economic & Real Estate Briefing, commercial real estate investment volume was GBP 51 billion (USD 63.28 billion), compared to GBP 46.27 billion (USD 57.41 billion) in 2020.
- Thus, all the factors mentioned above and some airport expansion projects will likely increase the demand for the Europe medium-density fiberboard market during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
