Particle Board Market Overview
The Particle Board
Market size is projected to reach US$27.2 billion by 2027, after growing at a
CAGR of 3.8% during the forecast period 2022-2027. Particle board, also known as low-density fiberboard or chipboard, is
an engineered wood product produced from wood chips, synthetic resin such as urea
formaldehyde-based resins and lignin and other suitable binders. The growing furniture
industry is anticipated to drive the demand for particle boards. Moreover, the increasing
maintenance, remodeling, renovation and repair activities are anticipated to
boost the growth of the particle board industry in the forecast period. The
global economic downturn caused by the COVID-19 pandemic resulted in a huge
drop in building & construction, furniture and other end-use industries all
across the world, which had a significant impact on the growth of the Particle Board Market size.
Particle Board Market Report Coverage
Board Market Report – Forecast (2022 - 2027)” 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).
- The Asia-Pacific region dominates the Particle Board Market, 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.
- However, the problems associated with Particle Boards such as low strength and low density as compared to other fiberboards can hinder the growth of the Particle Board Market.
Particle Board Market Segment Analysis – by Application
The new construction segment held
the largest Particle Board Market share in 2021 and is expected to grow at a
CAGR of 3.9% during the forecast period 2022-2027. 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
Particle Board Market Segment Analysis – by End-use Industry
The building & construction industry held the largest Particle Board Market share in 2021 and is estimated to grow at a CAGR of 4.2% during the forecast period 2022-2027. 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 unit, 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 and 6.7% above 1,755,000 units (approximately) in March 2021. Moreover, according to Statistics of Japan, the number of construction contract orders went from 60,046,960 units in 2020 to 63,610,223 in 2021 and witnessed a growth in 2021 (Jan-July) compared to 2020(Jan-July). 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% share in the year 2021. 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 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 was valued at US$17.4 billion in 2021. It is
predicted to reach US$37.7 billion by 2026, growing at a double-digit CAGR of
13.37% during 2020-2026. Also, in January 2022, Ashley furniture industries
acquired the western division assets of Springfield, Missouri-based Wilson
Logistics. Moreover, in 2021, according to the government of Mexico, the
revenue in the furniture industry is estimated to reach US$1,868 million in
2022. 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 the purpose of 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, for instance, in 2021, PPG Industries Inc. invested US$111.2
million in products and services, for the renovation project at Guardian Angel
Autism Rehabilitation Center in Tianjin, China. Moreover, in 2021, according to the government of Canada, in over 360 projects, the
governments of Canada and Alberta invested US$31.9 million, for the maintenance of housing for seniors and families
in 95 communities. 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
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
- Dakota Premium Hardwoods
- Boise Cascade, D&R Henderson Pty. Ltd.
- Green Land Particle Board
- Century Plyboards India Ltd.
- Krifor Industries
- Shell Laminates Pvt. Ltd.
- In December 2021, Greenlam invested Rs.950 crore (US$118 million) in a new plant for plywood and Particle Board. The investments in the new laminate plant and Particle Board would be done by Greenlam South Ltd., an Andhra Pradesh (India)-based, fully owned subsidiary of Greenlam Industries.
- In December 2020, Maple Panel launched a new range of Treelogy Particle Boards and Swiss Ply, which is 2.5% virus free and has a special anti-bacterial coating that provides protection against bacteria as well as other microorganisms.
- In September 2020, EGGER completed its first raw Particle Board production, marking the start of operations at its new manufacturing facility in Lexington, United States.