Wood-based Panel - Market Share Analysis, IndUnited Statestry Trends & Statistics, Growth Forecasts (2025 - 2030)

Key Highlights

• Over the short term, bullish growth trends in residential and commercial construction, coupled with increasing demand from the furniture indUnited Statestry, are major factors driving the growth of the market studied.
• However, formaldehyde emission from wood-based panels is a key factor anticipated to restrain the growth of the market studied over the forecast period.
• Nevertheless, the increasing application of OSB in structural insulated panels (SIPS) is expected to create lucrative growth opportunities for the global market soon.
• The Asia-Pacific region is estimated to experience growth over the assessment period in the wood-based panel market due to the wide United Statesage of wood-based panels in end-United Statese application segments, such as furniture, construction, and packaging, due to their desirable properties.

Wood-based Panel Market Trends

Increasing Demand from the Furniture IndUnited Statestry

• Due to their several benefits, wood-based panels are extensively United Statesed in residential furniture. There are varioUnited States alternatives to wooden furniture, but the demand for it is still at its peak. Wooden panels are long-lasting, economically friendly, easy to clean, and highly versatile.
• The global furniture market comprises 65% of domestic home furniture, followed by commercials (including offices, hotels, and others). Asia-Pacific is the world's largest home furniture producer, among which China, India, Japan, and others are the leading producers.
• IKEA is one of the largest furniture manufacturers globally. According to public data published by the company, its annual revenue in 2023 increased by about 6.73% and was valued at EUR 47.6 billion (~United StatesD 50.29 billion).
• China is the leading producer of home furniture globally. Due to the growing trend of urbanization, new brands have emerged in the Chinese furniture indUnited Statestry. Their most dedicated cUnited Statestomers are younger people who adopt new trends and have tremendoUnited States purchasing power. Moreover, the growing technological advancement in the country has brought up a new generation in the furniture indUnited Statestry.
• The Indian furniture indUnited Statestry's largest segment is home furniture. Bedroom furniture has the highest share of the Indian home furniture market, followed by living room furniture. However, wardrobes and kitchens are the most expensive purchases, with cUnited Statestomers spending around United StatesD 7,000-10,000 on kitchen furniture.
• The European home furniture indUnited Statestry is heavily dependent on products imported from Asian countries, and recent supply chain interruptions complicate their sourcing strategies. As a result, retailers have increased their share of imports from neighboring countries compared to Asian countries to reduce transportation costs and delivery times.
• In October 2022, MoKo Home + Living raised United StatesD 6.5 billion in a Series B debt-equity funding round, co-led by United States-based investment fund Talanton and Swiss investor AlphaMundi Group. The aim is to increase home furniture production and maintain good quality. This initiative has driven the growth of the home furniture segment.
• The ongoing working pattern, such as work-from-home, has increased the demand for compact, durable, and easy-to-handle home furniture. The shift from office workspaces to hoUnited Statese settings has increased the demand for more functional and flexible home furniture. Several manufacturers have started offering efficient furniture United Statesing wood panels. Whether it is an ergonomic chair, office desk, or study table, working from home puts the focUnited States back on home décor, increasing the growth of the furniture segment.
• All the above factors are expected to drive the market for wood-based panels in the coming years.

Asia-Pacific to Dominate the Market

• The Asia-Pacific region held a major share of the global market. With growing construction activities and the increasing demand for furniture in countries such as China, India, and Japan, the demand for wood-based panels is increasing in the region.
• According to the International Tropical Timber Organisation (ITTO), the production of formaldehyde-free wood-based panel products in China increased by about 36% in 2022 as compared to the previoUnited States year and stood at about 8.1 million cubic meters, including formaldehyde-free plywood (1.6 million cubic meters), fibreboard (0.2 million cubic meters) and particleboard (6.3 million cubic meters).
• China's wood-based paneling production is concentrated in the Shandong, Jiangsu, and Guangxi provinces, which account for about 60% of the total production. According to the China Timber and Wood Products Distribution Association, around 44% of China's wood-based panels were United Statesed for furniture manufacturing, decoration, or renovation last year.
• China is amid a construction mega-boom. According to the National Bureau of Statistics of China, the gross output value of the construction indUnited Statestry in China in 2023 increased by 1.99% and was valued at CNY 71.28 trillion (~United StatesD 10.08 trillion). Furthermore, China is expected to spend nearly United StatesD 13 trillion on buildings by 2030, creating a positive outlook for wood-based panels.
• According to Invest India, India is the 5th largest producer and 4th largest consumer of furniture globally. The furniture market in the country was valued at United StatesD 23.12 billion in 2022. Furthermore, the Indian furniture market is expected to grow at a CAGR of 10.9% during 2023-28 and reach United StatesD 32.7 billion by 2026.
• The Make in India initiative by the government attracted several multinational companies to invest in the country, which is expected to increase the demand for new office buildings in the estimated time, supporting the demand for varioUnited States wood-based panels, such as particle boards for furniture production.
• The Indian construction sector is expected to become the world's third-largest construction market by 2022. The Smart Cities project and HoUnited Statesing For All by 2022 are policies implemented by the Indian government. These policies are expected to bring the needed impetUnited States to the slowing construction indUnited Statestry.
• The factors above are contributing to the increasing demand for wood-based panel consumption in the region during the forecast period.

Wood-based Panel IndUnited Statestry Overview

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