Wood-based Panel Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 3.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Wood-based Panel Market Analysis
The Wood-based Panel Market size is estimated at 403.87 Million cubic meters in 2024, and is expected to reach 474.36 Million cubic meters by 2029, growing at a CAGR of greater than 3% during the forecast period (2024-2029).
The market studied was negatively impacted by COVID-19 in 2020. Several countries imposed anti-dumping duty on the import of a certain variety of fiberboard used in furniture in order to aid domestic producers. All the construction work and other activities were put on hold to curb the spreading of the virus, thereby negatively affecting the market. However, the market studied is projected to grow steadily, owing to increased building and construction activities since 2021.
- Over the short term, bullish growth trends in residential and commercial construction, coupled with increasing demand from the furniture industry, are major factors driving the growth of the market studied.
- However, formaldehyde emission from wood-based panels is a key factor anticipated to restrain the growth of the market studied over the forecast period.
- Nevertheless, the increasing application of OSB in structural insulated panels (SIPS) is expected to create lucrative growth opportunities for the global market soon.
- The Asia-Pacific region is estimated to experience 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.
Wood-based Panel Market Trends
Increasing Demand from the Furniture Industry
- Due to their several benefits, wood-based panels are extensively used in residential furniture. There are various alternatives to wooden furniture, but the demand for it is still at its peak. Wooden panels are long-lasting, economically friendly, easy to clean, and highly versatile.
- The global furniture market comprises 65% of domestic home furniture, followed by commercials (including offices, hotels, and others). Asia-Pacific is the world's largest home furniture producer, among which China, India, Japan, and others are the leading producers.
- IKEA is one of the largest furniture manufacturers globally. According to public data published by the company, its annual revenue in 2023 increased by about 6.73% and was valued at EUR 47.6 billion (~USD 50.29 billion).
- China is the leading producer of home furniture globally. Due to the growing trend of urbanization, new brands have emerged in the Chinese furniture industry. Their most dedicated customers are younger people who adopt new trends and have tremendous purchasing power. Moreover, the growing technological advancement in the country has brought up a new generation in the furniture industry.
- The Indian furniture industry's largest segment is home furniture. Bedroom furniture has the highest share of the Indian home furniture market, followed by living room furniture. However, wardrobes and kitchens are the most expensive purchases, with customers spending around USD 7,000-10,000 on kitchen furniture.
- The European home furniture industry is heavily dependent on products imported from Asian countries, and recent supply chain interruptions complicate their sourcing strategies. As a result, retailers have increased their share of imports from neighboring countries compared to Asian countries to reduce transportation costs and delivery times.
- In October 2022, MoKo Home + Living raised USD 6.5 billion in a Series B debt-equity funding round, co-led by US-based investment fund Talanton and Swiss investor AlphaMundi Group. The aim is to increase home furniture production and maintain good quality. This initiative has driven the growth of the home furniture segment.
- The ongoing working pattern, such as work-from-home, has increased the demand for compact, durable, and easy-to-handle home furniture. The shift from office workspaces to house settings has increased the demand for more functional and flexible home furniture. Several manufacturers have started offering efficient furniture using wood panels. Whether it is an ergonomic chair, office desk, or study table, working from home puts the focus back on home décor, increasing the growth of the furniture segment.
- All the above factors are expected to drive the market for wood-based panels in the coming years.
Asia-Pacific to Dominate the Market
- The Asia-Pacific region held a major share of the global market. With growing construction activities and the increasing demand for furniture in countries such as China, India, and Japan, the demand for wood-based panels is increasing in the region.
- According to the International Tropical Timber Organisation (ITTO), the production of formaldehyde-free wood-based panel products in China increased by about 36% in 2022 as compared to the previous year and stood at about 8.1 million cubic meters, including formaldehyde-free plywood (1.6 million cubic meters), fibreboard (0.2 million cubic meters) and particleboard (6.3 million cubic meters).
- China's wood-based paneling production is concentrated in the Shandong, Jiangsu, and Guangxi provinces, which account for about 60% of the total production. According to the China Timber and Wood Products Distribution Association, around 44% of China's wood-based panels were used for furniture manufacturing, decoration, or renovation last year.
- China is amid a construction mega-boom. According to the National Bureau of Statistics of China, the gross output value of the construction industry in China in 2023 increased by 1.99% and was valued at CNY 71,284.72 billion (~USD 10,086.78 billion). Furthermore, China is expected to spend nearly USD 13 trillion on buildings by 2030, creating a positive outlook for wood-based panels.
- According to Invest India, India is the 5th largest producer and 4th largest consumer of furniture globally. The furniture market in the country was valued at USD 23.12 billion in 2022. Furthermore, the Indian furniture market is expected to grow at a CAGR of 10.9% during 2023-28 and reach USD 32.7 billion by 2026.
- The Make in India initiative by the government attracted several multinational companies to invest in the country, which is expected to increase the demand for new office buildings in the estimated time, supporting the demand for various wood-based panels, such as particle boards for furniture production.
- The Indian construction sector is expected to become the world's third-largest construction market by 2022. The Smart Cities project and Housing For All by 2022 are policies implemented by the Indian government. These policies are expected to bring the needed impetus to the slowing construction industry.
- The factors above are contributing to the increasing demand for wood-based panel consumption in the region during the forecast period.
Wood-based Panel Industry Overview
The wood based panel market is highly fragmented in nature. The major players (not in any particular order) include Kronoplus Limited, West Fraser, ARAUCO, EGGER, and Kastamonu Entegre.
Wood-based Panel Market Leaders
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Kronoplus Limited
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West Fraser
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ARAUCO
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EGGER
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Kastamonu Entegre
*Disclaimer: Major Players sorted in no particular order
Wood-based Panel Market News
- December 2023: Century Plyboards (India) Ltd inaugurated India's largest integrated wood panel manufacturing plant at Badvel in Andhra Pradesh. The company invested about INR 1,000 crore (~USD 121 million) in the construction of the new plant.
- April 2023: Kronospan announced an investment of USD 350 million for the construction of a new Oriented Strand Board (OSB) manufacturing plant on its 460-acre site in Oxford, Alabama, United States.
- September 2022: LP Building Solutions completed a million-dollar conversion and expansion project to produce LP SmartSide Trim and Siding products at its New Limerick, Maine facility.
Wood Based Panel Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Drivers
- 4.1.1 Bullish Growth Trends in Residential and Commercial Construction
- 4.1.2 Increasing Demand from the Furniture Industry
- 4.1.3 Other Drivers
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4.2 Restraints
- 4.2.1 Formaldehyde Emission from Wood-based Panels
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 Product Type
- 5.1.1 Medium-density Fiberboard (MDF)/High-density Fiberboard (HDF)
- 5.1.2 Oriented Strand Board (OSB)
- 5.1.3 Particleboard
- 5.1.4 Hardboard
- 5.1.5 Plywood
- 5.1.6 Other Product Types (Lumber Panels, Softboard, Chipboard, and Beadboard)
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5.2 Application
- 5.2.1 Furniture
- 5.2.1.1 Residential
- 5.2.1.2 Commercial
- 5.2.2 Construction
- 5.2.2.1 Floor and Roof
- 5.2.2.2 Wall
- 5.2.2.3 Door
- 5.2.2.4 Other Constructions (Decorative Applications, Wooden Frames, and Accessories)
- 5.2.3 Packaging
- 5.2.4 Other Applications (Artistry, Industrial Prototyping, Toys, etc.)
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Malaysia
- 5.3.1.6 Thailand
- 5.3.1.7 Indonesia
- 5.3.1.8 Vietnam
- 5.3.1.9 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Spain
- 5.3.3.6 NORDIC
- 5.3.3.7 Turkey
- 5.3.3.8 Russia
- 5.3.3.9 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Colombia
- 5.3.4.4 Rest of South America
- 5.3.5 Middle East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Nigeria
- 5.3.5.4 Qatar
- 5.3.5.5 Egypt
- 5.3.5.6 United Arab Emirates
- 5.3.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 ARAUCO
- 6.4.2 CenturyPly
- 6.4.3 VRG Dongwha MDF
- 6.4.4 DEXCO
- 6.4.5 EGGER
- 6.4.6 Georgia-Pacific Wood Products LLC
- 6.4.7 GREENPANEL INDUSTRIES LIMITED
- 6.4.8 Kastamonu Entegre
- 6.4.9 Kronoplus Limited
- 6.4.10 Langboard Inc.
- 6.4.11 Louisiana-Pacific Corporation
- 6.4.12 Pfleiderer
- 6.4.13 Roseburg Forest Products
- 6.4.14 SWISS KRONO Group
- 6.4.15 West Fraser
- 6.4.16 Weyerhaeuser Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Application of OSB in Structural Insulated Panels (SIPS)
- 7.2 Other Opportunities
Wood-based Panel Industry Segmentation
Wood-based panels are a general term for a variety of different board products with an impressive range of engineering properties. Some of the major types of wood-based panels include plywood, fibreboard, and particleboard.
The wood-based panel market is segmented by product type, application, and geography. By product type, the market is segmented into medium-density fiberboard (MDF)/high-density fiberboard (HDF), oriented strand board (OSB), particleboard, hardboard, plywood, and other product types (lumber panels, softboard, chipboard, beadboard). By application, the market is segmented into furniture, construction, packaging, and other applications (artistry, industrial prototyping, toys, etc). The report also covers the market size and forecasts for the wood-based panel market in 27 countries across major regions. For each segment, the market sizing and forecasts were made on the basis of volume (million cubic meters).
| Product Type | Medium-density Fiberboard (MDF)/High-density Fiberboard (HDF) | |
| Oriented Strand Board (OSB) | ||
| Particleboard | ||
| Hardboard | ||
| Plywood | ||
| Other Product Types (Lumber Panels, Softboard, Chipboard, and Beadboard) | ||
| Application | Furniture | Residential |
| Commercial | ||
| Application | Construction | Floor and Roof |
| Wall | ||
| Door | ||
| Other Constructions (Decorative Applications, Wooden Frames, and Accessories) | ||
| Application | Packaging | |
| Other Applications (Artistry, Industrial Prototyping, Toys, etc.) | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Malaysia | ||
| Thailand | ||
| Indonesia | ||
| Vietnam | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Spain | ||
| NORDIC | ||
| Turkey | ||
| Russia | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Colombia | ||
| Rest of South America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| South Africa | ||
| Nigeria | ||
| Qatar | ||
| Egypt | ||
| United Arab Emirates | ||
| Rest of Middle East and Africa |
Wood Based Panel Market Research FAQs
How big is the Wood-based Panel Market?
The Wood-based Panel Market size is expected to reach 403.87 million cubic meters in 2024 and grow at a CAGR of greater than 3% to reach 474.36 million cubic meters by 2029.
What is the current Wood-based Panel Market size?
In 2024, the Wood-based Panel Market size is expected to reach 403.87 million cubic meters.
Who are the key players in Wood-based Panel Market?
Kronoplus Limited, West Fraser, ARAUCO, EGGER and Kastamonu Entegre are the major companies operating in the Wood-based Panel Market.
Which is the fastest growing region in Wood-based Panel Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Wood-based Panel Market?
In 2024, the Asia Pacific accounts for the largest market share in Wood-based Panel Market.
What years does this Wood-based Panel Market cover, and what was the market size in 2023?
In 2023, the Wood-based Panel Market size was estimated at 391.75 million cubic meters. The report covers the Wood-based Panel Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Wood-based Panel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Wood Based Panel Industry Report
The Wood Based Panels Market Report is segmented by product type, including medium-density fiberboard (MDF)/high-density fiberboard (HDF), oriented strand board (OSB), particleboard, hardboard, plywood, and other product types. The market analysis covers applications such as furniture, construction, packaging, and other applications. The report provides a comprehensive market forecast and offers detailed market size and market share information for all segments.
The market research highlights the growth rate and market trends in various regions, including Asia-Pacific, North America, Europe, South America, and the Middle East & Africa. This industry report offers an in-depth industry overview and industry analysis, providing valuable insights into market growth and market leaders.
The market report includes market data, market segmentation, and market value, ensuring a thorough understanding of the industry's current state and future prospects. The industry information and industry research presented in the report are essential for understanding industry sales, industry size, and industry statistics.
The report example and report pdf provide a detailed market review and market outlook, helping stakeholders make informed decisions. Market predictions and market forecast are crucial for anticipating future market developments, while industry trends and industry outlook offer a broader perspective on the industry's trajectory.
Research companies can benefit from the detailed analysis and market insights provided in this report, which serves as a valuable resource for understanding market dynamics and identifying growth opportunities. The industry reports and industry research included in the report are essential tools for staying updated with the latest market developments and trends.
