|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The medium density fiberboard (MDF) market size was estimated at more than 100 million cubic meters in 2021, and the market is projected to register a CAGR of greater than 3.5% during the forecast period (2022-2027).
The market was negatively impacted by COVID-19 in 2020. According to the Associated General Contractors of America (AGC), COVID-19 impact has delayed or disrupted projects in the United States. Around 16% of the projects in the United States is likely to experience a shortage of materials, equipment, or parts, 11% of the projects will see a shortage of craft workers, including subcontractors, 18% of the projects will witness a shortage of government workers, and 8% of the projects will be disrupted by an infected worker, who may have a potential to infect a worksite.
- Over the short term, a major factor driving the market studied is the increase in demand for MDF for furniture.
- The furniture segment dominated the market, and it is expected to expand at the fastest rate during the forecast period, owing to the rapid growth in residential construction activities across the world.
- Emissions from building and furnishing materials, such as medium density fiberboard (MDF), are potentially important contributors to indoor VOCs. Stringent government regulations are expected to hinder the growth of the market studied.
- Asia-Pacific dominated the market across the world with the largest consumption, followed by Europe.
Scope of the Report
Medium density fiberboard (MDF) is produced with the help of a wide range of lignocellulosic fibers, including agrofibers, recycled wood, and other low-value wood by-products. Medium-density fiberboard (MDF) or dry-process fiberboards have a fiber moisture content of less than 20% at the stage of forming and a density ≥ 450 kg/m3. These boards are essentially produced under heat and pressure, with the addition of a synthetic adhesive. The market is segmented on the basis of application, end-user sector, and geography. By application, the market is segmented into cabinet, flooring, furniture, molding, door, and millwork, packaging system, and other applications. By end-user sector, the market is segmented into residential, commercial, and institutional. The report also covers the market size and forecasts for the medium density fiberboard (MDF) market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (thousand cubic meters).
|Molding, Door, and Millwork|
Key Market Trends
Increase in the Demand for MDF for Furniture
- Medium density fiberboard (MDF) is the staple of the mass-manufacturing furniture industry and the preferred choice of ready-made furniture manufacturers. The demand for branded, readymade, and low-maintenance furniture is increasing daily, which is propelling the demand for MDF in furniture applications.
- Medium density fiberboard (MDF) is a reconstituted wood-based panel product. It is made by breaking down hardwood or softwood residuals into wood fibers, often in a defibrillator, combining it with wax and a resin binder, and forming panels by applying high temperature and pressure.
- The global furniture market comprises 65% of domestic home furniture, followed by office furniture comprising 15%, and hotels and others include 15% and 5%, respectively.
- According to the US Census Bureau, in the United States, In November 2021, the furniture and home furnishing store sales were estimated to reach approximately USD 13.31 billion, up from the month before in where the sales stood at USD 12.44 billion. The graph shows a slump in the furniture market in the country owing to the impact of the COVID-19 outbreak in the country. However, the country have registered a steady recovery in the furniture market.
- India is the fifth largest producer and fourth larhest consumer of furniture in the world. According to National Investment Promotion and Facilitation Agency, the total rental furniture and appliances market in india reached INR 33,500crores during FY21.
- Germany is the largest market for furniture in the European region. According to the Association of the German Furniture Industry (VDM), the turnover for the furniture industry valued at Euro 17.2 billion in 2020. Furthermore, according to VDM, German exports of furniture increased by 17 percent year-on-year and reached 6.2 billion euros (USD 7 billion) in the first nine months of 2021.
- Overall, the growth in the residential and commercial market is expected to drive the use of MDF in the furniture through the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the global market, holding a share of more than 60%. The increasing construction activities in China, India, and Japan are boosting the demand for MDF in the region.
- China accounted for almost more than 40% of the global share. The rapid growth in consumption of medium density fiberboard (MDF) in China has been majorly driven by the ample developments in the residential and commercial construction sectors, which are being supported by the growing economy.
- The consumption of MDF is likely to witness a positive strides in China, as the country is investing USD 1.43 trillion in the next five years till 2025 in major construction projects. According to National Development and Reform Commission (NDRC), the Shanghai plan includes the investment of USD 38.7 billion in the next three years, whereas Guangzhou has signed 16 new infrastructure projects with an investment of USD 8.09 billion.
- Japanese construction industry is expected to be blooming as the country will host the World Expo in 2025 in Osaka, Japan. Furhtermore, Toranomon Azabudai District Redevelopment project, Yaesu redevelopment project and a 61-storey, 390 m tall office tower due for completion in 2023 and 2027 respectively.
- Furthermore, the furniture market in Indonesia accounts for over 1.23% of the country's total exports as the furniture export in 2020 stood at USD 1.91 billion, registering a growth of 7.7% per annum, thus it will provide huge market for MDF in forecast period.
- Such factors, in turn, are likely to boost the demand in the MDF market in the region.
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The medium density fiberboard (MDF) market is highly fragmented in nature. Some of the major players in the market(not in any particular order) includes Kronoplus Limited, ARAUCO, SWISS KRONO GROUP, Sonae Arauco and Duratex.
SWISS KRONO GROUP
- In Feburary 2021, West Fraser Timber Co. Ltd. (“West Fraser”) and Norbord Inc. have jointly announce that they have completed the previously announced transaction whereby West Fraser has acquired all of the shares of Norbord.
- In July 2019, ARAUCO signed an agreement to acquire Prime-Line Inc., a privately-held manufacturer of medium density fiberboard (MDF) molding and millwork products. The acquisition strengthened Arauco’s presence in the North American molding industry.
- In January 2019, ARAUCO made an agreement for the purchase of MASISA’s industrial assets in Mexico, which involved two industrial complexes located in Durango and Zitácuaro.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Increase in Demand for MDF for Furniture
4.1.2 Easy Availability of Raw Materials
4.2.1 Stringent Government Regulations
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Price Trends
5. MARKET SEGMENTATION
5.1.4 Molding, Door, and Millwork
5.1.5 Packaging System
5.1.6 Other Applications
5.2 End-user Sector
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.2 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
5.3.4 South America
18.104.22.168 Rest of South America
5.3.5 Middle-East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 DAIKEN CORPORATION
6.4.3 Dare Panel Group Co. Ltd
6.4.5 EGGER Group
6.4.7 Fantoni Spa
6.4.8 Kastamonu Entegre
6.4.9 Korosten MDF Manufacture
6.4.10 Kronoplus Limited
6.4.11 Nelson Pine Industries Limited (Sumitomo Forestry Co. Ltd)
6.4.13 Sonae Arauco
6.4.14 SWISS KRONO GROUP
6.4.15 West Fraser
6.4.16 Weyerhaeuser Company
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Prominence for the Production of Specialty MDF
Frequently Asked Questions
What is the study period of this market?
The Medium Density Fiberboard (MDF) Market market is studied from 2017 - 2027.
What is the growth rate of Medium Density Fiberboard (MDF) Market?
The Medium Density Fiberboard (MDF) Market is growing at a CAGR of >3.5% over the next 5 years.
Which region has highest growth rate in Medium Density Fiberboard (MDF) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Medium Density Fiberboard (MDF) Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Medium Density Fiberboard (MDF) Market?
Kronoplus Limited, ARAUCO, SWISS KRONO GROUP, Sonae Arauco, Duratex are the major companies operating in Medium Density Fiberboard (MDF) Market.