Wood-Based Panel Market To Exceed US$35 Billion by 2023

Delaware, US:The wood-based panel market size, valued at over US$16 billion in 2015, is anticipated to grow at a compound annual growth rate (CAGR) of over 13 percent and exceed US$35 billion by 2023, according to a report by Global Market Insights. 

The increased interest in effective timber utilisation fuelled by concern over increasing deforestation is expected to boost demand over the forecast period. In addition, advancements in technology and manufacturing efficiency are likely to bolster demand from 2016 to 2023. 

However, rapid increases in the cost of petroleum-based fuel and products continue to amplify the marketing and production cost of the industry, hampering growth over this period. Modernisation of infrastructure and rapid industrialisation in developing countries in the Asia Pacific is likely to be a chief industry driver for the global wood-based panel market over the next few years.

 In Europe, the wood-based panel market has shown huge profitability and strong growth in the last few years on account of the growth of the furniture sector and construction industry. However, the increasing cost of a range of inputs such as wood, energy and resin is expected to pose as a challenge to the panel manufacturers across the Europe. European panel producers are also competing with the biomass industry for the procurement of wood.

In 2014, China and Indonesia are identified as the foremost global suppliers of panels with a combined share of over 55 percent of total exports. China has significantly strengthened its position in the global export structure; its share of global exports increased from 31 percent in 2007 to 39 percent in 2014. 

China exported 5.8 million tonnes of wood based panels worth around US$5,813 million in 2014. It also exports around 15 percent of its panels to the U.-S, accounting for 55 percent of the country’s total imports. One of the challenges that both the North American and European panel makers are facing is the increasing imports from China. 

 

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