Global market for wood based panels expected to hit US$174 billion
According to a new study published Grand View Research, by 2025, the global market for wood based panels is predicted to hit US$174.55 billion with a 7.7 per cent compound annual growth rate (CAGR).
The report, titled Wood Based Panel Market Size, Share & Trends Analysis Report By Product (Plywood, MDF, Particleboard, Softboard, Hardboard), By Application (Furniture, Construction, Packaging), And Segment Forecast 2018 – 2025, cites high demand is expected to drive market growth for the insulating material for ceiling, flooring, and roofing applications.
According to Trade Arabia, the global industry, dynamic and highly competitive, often sees players deploy key strategies such as divestments, investments and expansions to cement their presence and positioning in the market. However, rising prices of raw materials and a lack of technological innovation are key concerns.
But with companies investing more in R&D for more environmentally-friendly manufactured wood based products, innovations in the traditional woodworking industry are forecasted to boost market growth until 2025, with more sustainable products such as high density fibreboards (HDFs), medium density fibreboards (MDFs), oriented strand boards (OSBs) and particleboards applied to specific areas.
Growing populations, climate change and rapid industrialisation around the world have contributed to deforestation and increasingly low availability of raw materials, in turn driving up prices. Moreover, with stiff competition among players in the industry, lower profit margins are anticipated as well.
Strict regulations that have been imposed on the manufacturing of wood based panels are also expected to threaten players, according to Trade Arabia. On top of that, high operating costs and initial investments for the machinery are forecasted to discourage new entrants.
Source: Trade Arabia