Wood-based Panel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Wood-based Panel Market is segmented by Product Type (Medium Density Fiberboard/High Density Fiberboard, Oriented Strand Board, Particleboard, Softboard, Plywood, and Other Product Types), Application (Furniture, Construction, Packaging, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Wood-based Panel Market Bar Graph
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >6 %
Wood-based Panel Market Top Companies

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Market Overview

The wood-based panel market was estimated at over 1000 million cubic meters in 2020, and the market is projected to register a CAGR of over 6% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Owing to the COVID-19 scenario, several countries around the world went into lockdown, which led to complete disruption in the supply chain. Several countries have imposed anti-dumping duty on the import of a certain variety of fiberboard used in furniture in order to aid domestic producers. For instance, in India, domestic producers, like Greenply Industries, Greenpanel Industries, Century Plyboards, and Rushil Décor, have alleged that they are being impacted due to dumped imports from foreign players. Thus, the slowing down of exporting activities due to the economic slowdown caused by the COVID-19 outbreak is expected to have a negative impact on the growth of the market studied in the short/mid-term. All the construction work and other activities were put on hold to curb the spreading of the virus, thereby negatively affecting the market. However, conditions are expected to recover in 2021, which is expected to restore the growth trajectory of the market during the forecast period.

  • Over the medium term, increasing demand from the infrastructure sector in Asia-Pacific is driving the market's growth. For instance, in India, in November 2019, the Union Cabinet approved to set up an Alternative Investment Fund (AIF) of INR 25,000 crore (USD 3.58 billion) to revive about 1,600 delayed housing projects across the top cities in the country. Besides, Puravankara Ltd planned investment of about INR 850 crore (USD 121.6 million) for the development of three ultra-luxury residential projects in Chennai, Bengaluru, and Mumbai, over the next four years.
  • On the flip side, stringent government regulations and the impact of COVID-19 on the global economy are likely to hinder the market's growth.
  • Potential growth in residential construction in developing economies is projected to act as an opportunity for the market’s growth in the future.
  • Asia-Pacific is estimated to witness healthy growth over the assessment period in the wood-based panel market due to the wide usage of wood-based panels in end-use application segments, such as furniture, construction, and packaging, due to their desirable properties.

Scope of the Report

The wood-based panel is a general term referring to a variety of different board products, having an impressive range of engineering properties. Wood-based panel products are flat, sometimes curved, sheets made from wood-based materials that are bonded together with an adhesive. The wood-base panel market is segmented by product type, application, and geography. By product type, the market is segmented into medium-density fiberboard/high-density fiberboard, oriented strand board, particleboard, softboard, plywood, and other product types. By application, the market is segmented into furniture, construction, packaging, and other applications. The report also covers the market size and forecasts for the wood-based panel 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).

Product Type
Medium Density Fiberboard (MDF)/High Density Fiberboard (HDF)
Oriented Strand Board (OSB)
Particleboard
Softboard
Plywood
Other Product Types
Application
Furniture
Residential
Commercial
Construction
Floor and Roof
Wall
Door
Column and Beam
Staircase
Other Constructions
Packaging
Food and Beverage
Industrial
Pharmaceutical
Cosmetics
Other Packaging
Other Applications
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand from the Construction Industry

  • Wood-based panels are crucial to the construction industry, providing high structural durability to roofs and floors, walls, beams, doors, staircases, etc.
  • The building and construction industry are currently a thriving industry in several emerging economies of Asia-Pacific and the South American region, and this is expected to drive the use of wood-based panels, minimizing infrastructure failures.
  • Oriented strand boards are a cost-effective alternative for home construction. As per the National Association of Certified Home Inspectors (NACHI), OSB costs USD 700 less than plywood for a typical 2400-square foot home.
  • In OSB panels, they produce a stronger and stiffer panel than other products used in similar types of construction projects. The material eliminates rings and knots, which makes it more uniform. Its structure provides OSB a great deal of strength, which means it can be used in a broad range of applications, particularly for load-bearing applications.
  • The factors driving the building and construction industry are the ever-increasing populations, rapid urbanization, and the rise in purchasing power. As a result of the aforementioned factors, investments in infrastructure are being made and are included in plans.
  • The Chinese government has rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next ten years, creating a major scope for the market studied.
  • In Germany, the increasing migration to the country has been stimulating the current demand for new residential construction. ​About 3.6 million migrants were expected to arrive in Germany by the end of 2020-2021, which will require at least 350,000 new dwellings per year.
  • France’s development policy falls within 2030’s Agenda for Sustainable Development. Under this scheme, the country decided to increase the funding of the French Development Agency (Agence Française de Développement- AFD) by EUR 4 billion (~USD 4.6 billion) by the end of 2020 to develop new, affordable community houses across the country.
  • Moreover, according to the survey ‘Non-residential building spending to grow through 2020’ by the American Institute of Architects, the overall non-residential sector is expected to increase by 0.9% in 2020 and 1.5% in 2021 in the United States. However, the construction of hotels is expected to dip by 1% in 2020 and 0.7% in 2021. On an optimistic note, the construction of office spaces is expected to increase by 0.5% in 2020 and further by 3% in 2021. According to the same survey, the industrial sector is expected to rise by 0.5% in 2020 and by 0.3% in 2021.
  • All the above-mentioned factors are expected to drive the market for wood-based panels market in the coming years.
Wood-based Panel Market Share

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. With growing construction activities and the increasing demand for furniture in the countries such as China, India, and Japan, the demand for wood-based panels is increasing in the region.
  • India is one of the largest markets for wood-based panels in the region. The construction sector in the country has been growing rapidly, with increased investment by the government. The Indian government's ‘Housing for All by 2022’ is also a major game-changer for the industry.
  • The country is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, during which the country is likely to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise around by 70% by 2024.
  • In global comparison, the country is among the top three largest furniture markets. India’s total revenue generated from the furniture industry was projected to be USD 194 billion in 2019. The furniture market in the country is further predicted to generated revenue of USD 238 billion by 2023.
  • China 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.
  • The country has the largest building market in the world, making up to 20% of all construction investments globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030. According to the National Bureau of Statistics of China, the construction output value in the country increased from CNY 9.6 trillion in 2010 to CNY 24.84 trillion in 2019.
  • The construction sector in Indonesia is estimated to have recorded a growth of 6.2% in 2019, as compared to 2018. The construction sector has witnessed healthy growth, owing to the infrastructure budget of IDR 420.5 trillion allocated by the government in 2019, greater than the 2018 budget of IDR 410.7 trillion.
  • However, due to the outbreak of COVID-19, many construction projects were halted and faced supply chain disruptions, in turn affecting the market temporarily across the region. But the condition is expected to recover in 2021, thereby driving the market studied.
  • The aforementioned factors are contributing to the increasing demand for wood-based panel consumption in the region during the forecast period.
Wood-based Panel Market Growth  By Region

Competitive Landscape

The wood-based panels market is fragmented, with numerous players. The major players include Kronoplus Limited, Binderholz GmbH, West Fraser, Georgia-Pacific Wood Products LLC, and EGGER Group, among others.

Recent Developments

  • In February 2021, West Fraser announced the acquisition of all of the issued and outstanding common shares of Norbord, which led to strengthening the company's product portfolio.
  • 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.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand from the Infrastructure Sector in Asia-Pacific

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Stringent Government Regulations

      2. 4.2.2 Impact of COVID-19 on the Global Economy

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Medium Density Fiberboard (MDF)/High Density Fiberboard (HDF)

      2. 5.1.2 Oriented Strand Board (OSB)

      3. 5.1.3 Particleboard

      4. 5.1.4 Softboard

      5. 5.1.5 Plywood

      6. 5.1.6 Other Product Types

    2. 5.2 Application

      1. 5.2.1 Furniture

        1. 5.2.1.1 Residential

        2. 5.2.1.2 Commercial

      2. 5.2.2 Construction

        1. 5.2.2.1 Floor and Roof

        2. 5.2.2.2 Wall

        3. 5.2.2.3 Door

        4. 5.2.2.4 Column and Beam

        5. 5.2.2.5 Staircase

        6. 5.2.2.6 Other Constructions

      3. 5.2.3 Packaging

        1. 5.2.3.1 Food and Beverage

        2. 5.2.3.2 Industrial

        3. 5.2.3.3 Pharmaceutical

        4. 5.2.3.4 Cosmetics

        5. 5.2.3.5 Other Packaging

      4. 5.2.4 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 ARAUCO

      2. 6.4.2 Binderholz GmbH

      3. 6.4.3 Dongwha Group

      4. 6.4.4 EGGER Group

      5. 6.4.5 Georgia-Pacific Wood Products LLC

      6. 6.4.6 Kastamonu Entegre

      7. 6.4.7 Kronoplus Limited

      8. 6.4.8 Lin Shi Tong Wood Co. Ltd

      9. 6.4.9 Louisiana-Pacific Corporation

      10. 6.4.10 Sonae Arauco

      11. 6.4.11 West Fraser

      12. 6.4.12 Weyerhaeuser Company

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Growing Prominence for the Production of Specialty MDF

    2. 7.2 Increasing Application of OSB in Structural Insulated Panels (SIPS)

**Subject to Availability

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Frequently Asked Questions

The Wood-based Panel Market market is studied from 2016 - 2026.

The Wood-based Panel Market is growing at a CAGR of >6% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Kronoplus Limited, West Fraser, Georgia-Pacific Wood Products LLC, EGGER Group, Binderjolz GmbH are the major companies operating in Wood-based Panel Market.

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