MEDIUM DENSITY FIBREBOARD MARKET ANALYSIS

Global medium density Fiberboard market was valued at US$ 41.8 Bn in 2023, and is expected to exhibit a CAGR of 5.6%, over the forecast period (2023-2030) to reach US$ 61.1 Bn by 2030. Medium density fiberboard (MEDIUM DENSITY FIBERBOARD) is commercially known as medium density fiberboard panels or medium density fiberboard products. MEDIUM DENSITY FIBERBOARD is an engineered wood. It is made by compressing uniformly sized wood particles at high temperature. The particulates are then bound together by resin and wax. It is used in all applications related to plywood, including plywood flooring, plywood furniture, plywood cabinets, plywood speaker boxes, plywood temporary construction, and other applications.

Global Medium Density Fiberboard Market - Impact of Coronavirus (COVID-19) Pandemic

Due to lockdown, the production of MEDIUM DENSITY FIBERBOARD came to a standstill during the pandemic. Initially, the economic slowdown led to a decrease in the spending of residential and commercial users on various applications of MEDIUM DENSITY FIBERBOARD. However, with the introduction of different vaccines, the pandemic has significantly decreased in severity. By mid-2022, the number of cases has significantly decreased. This has allowed MEDIUM DENSITY FIBERBOARD manufacturing companies to resume production at full capacity. Moreover, it has been over two years since the start of the pandemic and many companies have started to show signs of recovery. The Medium Density Fiberboard market is expected to be positively impacted by rising living standards and increasing spending on home remodeling, particularly in high income countries.

Global Medium Density Fiberboard Market: Drivers

• Growing demand for MEDIUM DENSITY FIBERBOARD for furniture industry: Growing demand for MEDIUM DENSITY FIBERBOARD for the furniture industry is driving growth of the medium density Fiberboard (MEDIUM DENSITY FIBERBOARD) market. It exhibits excellent properties, such as resistance, durability, dimensional stability, and low production costs. Rapid growth of the furniture industry is fostering the market growth. According to World Bank report, the organized furniture industry is growing at a rate of 20% annually in India. This is expected to increase the demand for MEDIUM DENSITY FIBERBOARD in furniture manufacturing during the forecast period.
• Easy availability raw materials: Easy availability of raw materials is projected to favor the market growth. Medium density fiberboard is a reconstituted wood-based panel product. It is produced by breaking down hardwood or softwood residuals into wood fibers, often in a defibrillator, combining it with wax and a resin binder, and forming panels by applying high temperature and pressure.

Global Medium Density Fiberboard Market: Restraints

• Strict environmental regulations: Strict environmental regulations is expected to curtail the market growth. For instance, in 2007, the California Air Resources Board (CARB) issued regulations to cap formaldehyde emissions from composite panels used in finished consumer products. Most of the manufacturers in the U.S. are following the CARB rules. The limit for Phase I of the regulation was not more than 0.21 parts per Billion. The CARB regulations Phase II limits for thin MEDIUM DENSITY FIBERBOARD, which became effective on January 1, 2012, which limits emissions to not more than 0.13 parts per Billion.
• Presence of substitute such as wood-plastic composites and eco-board: Wood plastic composites (WPCs) are composites manufactured from predominantly (typically synthetic) thermoplastic resins and wood flour filler, though thermoset resins and naturally derived resin systems may also be used. WPCs have been developed over the last 40 years, and their application areas have expanded to both structural and non-structural applications.Counterbalance: Factors like resin, wood species of the fibre, the pressing temperature, and time elapsed since manufacture, and ambient conditions need to be taken into consideration before selection of MEDIUM DENSITY FIBERBOARD in order to reduce emissions from MEDIUM DENSITY FIBERBOARD.

Market Opportunities:

Growing prominence of production of speciality MEDIUM DENSITY FIBERBOARD in Europe is expected to serve major growth opportunities over the forecast period. For instance, according to the European Panel Federation’s (EPF), the MEDIUM DENSITY FIBERBOARD manufacturing plants in Europe, are majorly located in Russia, Turkey, Ukraine, and Belarus. All European MEDIUM DENSITY FIBERBOARD manufacturers produced standard grade, while many MEDIUM DENSITY FIBERBOARD mills fabricated various grades of special products. Around 75% of the mills also produce moisture-resistant MEDIUM DENSITY FIBERBOARD, and 65% produce melamine-faced MEDIUM DENSITY FIBERBOARD.

Increasing application of MEDIUM DENSITY FIBERBOARD in decorative articles is again anticipated to shape the market growth positively in the near future. It is widely used in making various bases such as nameplates, cutlery holders, key holders, tissue boxes, chocolate boxes, trays, wall shelves, jewellery boxes, furniture, shadow boxes,   wall accents, and embellishments frames. In addition, it is also used in the production of various shapes of cut-outs alphabet, monogram cut-outs, and others

Market Trends/Key Takeaways:

• Consumer spending on décor products: Increasing consumer spending on home décor products for storage utilities, and others are emerging as a major trend in the market. This is attributed to the increasing disposable income of consumers across developing regions like Central Africa and China. For instance, according to the U.S. Bureau of Economic Analysis, in 2022, personal consumption expenditures of furniture and furnishings were US $344.79 billion in the U.S.
• Increase in demand for wood kitchen cabinet and countertop: Growing popularity of wood kitchen cabinet and countertop across developed regions is projected to propel the market growth. For instance, according to the Coherent Market Insights’ analysis, in the U.S, the wood kitchen cabinet and countertop manufacturing market is expected to be US$ 13.17 billion by 2023.

Global Medium Density Fiberboard Market: Market Segmentation

On the basis of end user, the global medium density Fiberboard is divided into residential, institutional, and commercial. The residential segment has been dominating the market by carrying the market share value of 70% in 2022, followed by institutional and commercial. As the population increases and cities become more developed, the number of buildings increases. Also, as the population continues to grow and the disposable income of the majority of the population in developing countries such as India and Brazil increases, the demand for MEDIUM DENSITY FIBERBOARD panels increases for furniture, floor, and home interiors applications.

Figure 1: Global Medium Density Fiberboard (MDF) Market Value Share (%), By End User, 2022

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Global Medium Density Fiberboard Market: Regional Analysis

The global medium density Fiberboard market was valued at US$ 41.8 Bn in 2022 and is forecast to reach a value of US$ 61.1 Bn by 2030, growing at a CAGR of 5.6% between 2023 and 2030. Asia Pacific held a dominant position in the global medium density Fiberboard market in 2022, accounting for 60.6% share in terms of volume, followed by North America and Europe. This is attributed to an increase in building construction activities and increasing demand for furniture.

Figure 2: Global Medium Density Fibreboard (MDF) Market Value Share (%), By Region, 2022

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Global Medium Density Fiberboard Market: Recent Developments

• In December 2022, EGGER acquires 60% of the shares in Italian wood-based materials manufacturer SAIB. SAIB, based in Caorso, near Piacenza, has been one of the leading wood-based materials manufacturers in Italy for 60 years, with a strong focus on design and sustainability. For the plant with around 200 employees, the majority shareholding by EGGER opens up further growth and synergies in this globally active group of companies. With this investment, EGGER is confirming its strategy of further growth in its home market of Europe.
• In January 2023, Sustainable management is a significant component of the EGGER Group's corporate behaviour. The company has aspired to act sustainably since its founding. A key requirement is the continuous improvement of its own sustainability management. EGGER has itself therefore regularly assessed by external institutions. EGGER was recently able to achieve two awards in sustainability ratings: Prime status in the ISS ESG Corporate Rating and the EcoVadis silver medal.
• In October 2021, ARAUCO, a manufacturer of forestry, pulp, and wood products, conducted an environmental impact assessment to evaluate the viability of a new MEDIUM DENSITY FIBERBOARD production line in Zitácuaro, Michoacán
• In February 2021, KRONOPLUS LIMITED, a manufacturer of miscellaneous wood products, aimed to invest some US$ 120 million in developing a new MEDIUM DENSITY FIBERBOARD production facility at Zvolen, in central Slovakia. It wanted to increase the factory’s output to the construction and furniture industries. The new plant is expected to produce about 450,000 m3 of MEDIUM DENSITY FIBERBOARD per year, with the MEDIUM DENSITY FIBERBOARD products having widths of between 6mm and 38mm and a density range of 600kg/m3 to 900kg/m3.
• In February 2021, West Fraser, a producer of lumber, laminated veneer lumber, medium-density Fiberboard, oriented strand board, plywood, pulp, newsprint, and wood chips, completed the acquisition of Norbord Inc., which is involved in the production of wood- based panels, particleboard, medium-density fiberboard, and related value-added products.

Global Medium Density Fiberboard Market: Key Companies

Key players active in the global medium density Fiberboard market are ARAUCO, Daiken Corporation, Duratex SA (DEXCO), EGGER Group, Eucatex SpA, Masisa SA (Grupo Nueva Company), Fantoni SpA, Kastamonu Entegre, Korosten MEDIUM DENSITY FIBERBOARD  manufacture, Kronoplus Limited, Nelson Pine Industries Limited, Roseburg, Sonae Indústria, SWISS KRONO, West Fraser, and Weyerheause Company

*Definition: MEDIUM DENSITY FIBERBOARD is made from a special type of wood, and many companies use it to make their furniture. Low-density Fiberboard is a popular choice for prefabricated furniture and big-box stores. MEDIUM DENSITY FIBERBOARD is similar to particleboard, but they have some major differences in process. They are both used to make furniture and cabinets. The process used to make both products differ slightly, and the difference can be found in the way fiber is prepared and dried. They differ primarily in their pressing and post pressing operations. The fiber that goes into MEDIUM DENSITY FIBERBOARD is derived from shavings or chips, and it consists of individual wood cells.