Particle Board Market - Forecast(2024 - 2030)

Report Code: CMR 35615 Report Format: PDF + Excel

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

Particle Board Market Report Coverage

The “Particle 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).

Key Takeaways

  • 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.

Figure: Particle Board Market Revenue Share, By Geography, 2021 (%)
Particle Board Market
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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 forecast period.

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

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:

  1. Timber Products Company
  2. Greenlam
  3. Uniboard
  4. Dakota Premium Hardwoods
  5. EGGER
  6. Boise Cascade, D&R Henderson Pty. Ltd.
  7. Green Land Particle Board
  8. Century Plyboards India Ltd.
  9. Krifor Industries
  10. Shell Laminates Pvt. Ltd.

Recent Developments

  • 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.

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1. Particle Board Market - Market Overview
    1.1 Definitions and Scope
2. Particle Board Market - Executive Summary
    2.1 Key Trends by Raw Materials
    2.2 Key Trends by Product Type
    2.3 Key Trends by Application
    2.4 Key Trends by End-use Industry
    2.5 Key Trends by Geography
3. Particle Board Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Particle Board Market - Startup Companies Scenario Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Particle Board Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Particle Board Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Particle Board Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Particle Board Market – by Raw Materials (Market Size - US$ Million/Billion)
    8.1 Wood
    8.2 Bagasse
    8.3 Others
9. Particle Board Market - by Product Type (Market Size - US$ Million/Billion)
    9.1 Fire-Resistant Particle Board
    9.2 Moisture-Resistant Particle Board
    9.3 Raw Particle Board
10. Particle Board Market - by Application (Market Size - US$ Million/Billion)
    10.1 New Construction
    10.2 Renovation/Remodeling
11. Particle Board Market - by End-use Industry (Market Size - US$ Million/Billion)
    11.1 Furniture
    11.2 Building & Construction
        11.2.1 Residential Construction
   Independent homes
   Row homes
   Large apartment buildings
        11.2.2 Commercial Construction
   Healthcare Facilities
   Educational Institutes
   Hotels and Restaurants
   Shopping Malls
        11.2.3 Industrial
        11.2.4 Infrastructure
12. Particle Board Market – Entropy
    12.1 New Product Launches
    12.2 M&As, Collaborations, JVs and Partnerships
13. Particle Board Market – Industry/Segment Competition Landscape Premium
    13.1 Company Benchmarking Matrix – Major Companies
    13.2 Market Share at Global Level - Major companies
    13.3 Market Share at Country Level - Major companies
    13.4 Market Share by Key Geography - Major companies
    13.5 Market Share by Key Application - Major companies
    13.6 Market Share by Key Product - Major companies
14. Particle Board Market – Key Company List by Country Premium Premium
15. Particle Board Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."
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