Particle Board Market- By Raw Materials , By Product Type , By End-use Industry , By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Particle Board Market Overview

The Particle Board Market size is projected to reach US$30.42 billion by 2030, after growing at a CAGR of 3.8% during the forecast period 2024-2030. Particle board, also recognized as low-density fiberboard or chipboard, stands as an engineered wood product crafted from wood chips, synthetic resins like urea formaldehyde-based resins, lignin, and other compatible binders. Its formation involves compressing these materials under high pressure and heat, resulting in a versatile, cost-effective building material. Renowned for its affordability and versatility, particle board finds extensive applications in various industries, predominantly the furniture sector. As consumer preferences shift towards affordable yet durable furniture solutions, particle board emerges as a preferred choice for manufacturers. Its ease of machining, smooth surface finish, and suitability for various finishes and laminates make it an attractive option for both residential and commercial furniture. Furthermore, the escalating activities in maintenance, remodeling, renovation, and repair sectors contribute significantly to the surge in demand for particle boards. As urbanization continues to drive the need for housing and infrastructure development, the particle board industry stands to benefit from the increased demand for construction materials suitable for interior applications. Environmental considerations also play a crucial role in shaping the particle board market trends. With a growing emphasis on sustainable practices and eco-friendly materials, there is a rising demand for particleboards made from recycled wood fibers and eco-friendly binders. Manufacturers are increasingly focusing on adopting greener production processes and sourcing sustainable raw materials to meet these evolving consumer preferences. This particle board market is witnessing robust growth driven by factors such as the expanding furniture industry, heightened construction activities, and growing environmental consciousness.

Report Coverage

The “Particle Board Market Report – Forecast (2024 - 2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Particle Board industry.

By Raw Materials: Wood, Bagasse and Others.

By Product Type: Fire-Resistant Particle Board, Moisture-Resistant Particle Board and Raw Particle Board.

By Application: New Construction and Renovation/Remodeling.

By End-use Industry: Furniture and Building & Construction (Residential Construction, Commercial Construction, Industrial and Infrastructure).

By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

• The Asia-Pacific region dominates the Particle Board Market share of 42.4%, owing to the rising growth in the building & construction industry. For instance, according to Invest India, by 2025, the building and construction industry is estimated to reach US$1.4 trillion.
• Rapidly rising demand for Particle Boards in the furniture industry for wooden furniture has driven the growth of the Particle Board Market.
• The increasing demand for Particle Boards in the maintenance, remodeling, renovation and repair activities, due to its usage in wooden applications such as flooring, paneling and other applications has been a critical factor driving the growth of the Particle Board Market in the upcoming years.

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Particle Board Market Segment Analysis – by Application

The new construction segment held the largest Particle Board Market share in 2023 and is expected to grow at a CAGR of 3.9% during the forecast period 2024-2030. This is due to a significant rise in the building of new residential, commercial, and industrial establishments across the globe. Particle board, also known as low-density fiberboard, is utilized in new construction interior cupboards, furniture, and work surfaces. It is also used in the panels of walls and floors. In 2019, Larsen & Toubro, in India, won contracts for building hospitals, commercial complexes, and manufacturing capacity. The orders ranged from Rs.2,500 crores (US$336.6 million) to Rs.5000 crores (US$673.2 million). Moreover, in 2021, Parque Arauco-subsidiary Inversiones Colombianas Arauco, signed a term sheet with the real estate developer and contractor IC Constructora (IC) to build a new residential property in Colombia. Thus, such rising new constructions would drive the demand for Particle Boards in various applications and would raise the growth of the market over the forecast period.

Particle Board Market Segment Analysis – by End-use Industry

The building & construction industry held the largest Particle Board Market share in 2023 and is estimated to grow at a CAGR of 4.2% during the forecast period 2024-2030. In the building & construction industry, particle board produced from wood chips, synthetic resin such as lignin and other suitable binders is used as false ceiling material, as a base for doors, flooring, flooring underlayment, partitions, storage units, cabinets, tables, racks, and other applications. According to the U.S Department of Commerce, the privately-owned housing units authorized by building permits in March 2022 were around 1,873,000 which was 0.4% above 1,865,000 units in February 2022. Moreover, Construction investment in Japan continues to thrive, with a projected 0.6% increase to $582.52 billion, in FY2022, as per the Ministry of Land, Infrastructure and Transport. Thus, the growing building & construction industry would require more particle boards for wooden applications, which would drive the demand for Particle Board Market growth during the forecast period.

Particle Board Market Segment Analysis – by Geography

The Asia-Pacific region dominated the Particle Board Market with a 42.4% share in the year 2023. This was due to the increasing requirement for particle boards in developing countries such as China, Japan, India and South Korea. China is expected to continue its dominance in the Particle Board Market during the forecast period. This is due to the growth of the building & construction industry in the country. For instance, according to the International Trade Administration (ITA), China is the world’s largest construction market and is forecasted to grow at an annual average growth of 8.6% between 2022 and 2030. Moreover, according to the Australian Government, the building & construction sector remains healthy in Singapore, with strong government spending on public infrastructure of about US$2 billion (US$1.43 billion) in contracts being awarded each month. Such increasing building & construction activities in the APAC countries are anticipated to increase the demand for Particle Board applications in the forecasted period and are proving to be a market booster for the Particle Board Market size in this region.

Particle Board Market Drivers

Growing Furniture Industry:

Due to the changing lifestyle, the preference for furniture style and concepts related to interiors of homes, offices and flats are changing continuously. This is expected to increase the production of furniture, globally. In the new and renovated buildings, particle boards (also known as low-density fiberboard) are utilized in wall paneling, flooring underlayment, cubical partitioning and furniture. Industrial, residential and commercial facilities are increasing, which is driving the demand for furniture. According to Invest India, The Indian furniture market is projected to grow at a CAGR of 10.9% from 2023-2028, reaching $32.7 billion by 2026. Import duty rose from 20% to 25% to spur local manufacturing. BIS Standards for modular furniture aim to improve standardization and product safety. Also, in January 2022, Ashley Furniture Industries acquired the western division assets of Springfield, Missouri-based Wilson Logistics. Moreover, according to the National Bureau of Statistics, major Chinese furniture-making enterprises reported a total profit of 34.42 billion yuan (4.88 billion U.S. dollars) during January-October 2022, marking a 3.8 percent year-on-year increase. Thus, the growing furniture industry would drive the demand for Particle Board, utilized for furniture manufacturing. This would drive the growth of the Particle Board industry.

Growing Activities of Maintenance, Remodeling, Renovation and Repair:

Particle boards are used excessively for maintenance, remodeling, renovation, and repair, in residential and non-residential buildings, such as independent homes, row homes, and commercial and industrial buildings. They are utilized in flat-pack furniture, interior cupboards, work surfaces, and for the paneling of walls and floors. The activities of renovation, remodeling, and maintenance are increasing. According to the National Bureau of Statistics of China, in 2022, 1.34 million housing units were started to be rebuilt in rundown urban areas nationwide and 1.81 million were completed. Thus, such initiatives for the maintenance, remodeling, renovation, and repair activities, are driving the market growth.

Particle Board Market Challenges

Problems Associated with Particle Board:

Particle Board has various advantages. However, it has low strength as compared to other fiberboards. It also comprises low density. Therefore, it can get damaged easily. In presence of moisture, particle board warps and expands and extreme conditions can create discoloration. These boards have less durability and low life as compared to plywood and medium-density fiberboard. It cannot support heavy loads as it is weak in strength and can be toxic, as they are produced using a synthetic resin such as urea formaldehyde resin and lignin, which is the source of formaldehyde gas. The resin can break down and release formaldehyde gas, even after years of installation, which are carcinogenic for humans. Thus, the problems associated with Particle Boards would create hurdles for the market's growth.

Particle Board Market Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the Particle Board Markets. The top 10 companies in the Particle Board Market are: Timber Products Company, Greenlam, Uniboard, Dakota Premium Hardwoods, EGGER, Roseburg Forest Products, Kastamonu Entegre, Krifour Industries Pvt. Ltd., Boise Cascade, Century Prowud, among Others.

Recent Developments

• in September 2023, the Egger Group signed an agreement to acquire the Rauch particleboard plant in Markt Bibart, Germany, further expanding its presence and reinforcing its growth strategy in the industry.
• In July 2022, Kastamonu Entegre partners with Siempelkamp for a new particleboard facility in Kastamonu, Turkey. The collaboration signifies advancements in sustainable materials production, integrating expertise from both entities for enhanced quality and efficiency.