Particle Board

The global particle board market is estimated at around 114.3 million m3 for 2023, and the market is expected to grow at a CAGR of 4.95 percent between 2023 and 2025

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    Particle Board market report transcript

    Particle Board Global Market Outlook

    • The global particle board market is estimated at around 114.3 million m3 for 2023, and the market is expected to grow at a CAGR of 4.95 percent between 2023 and 2025

    • The construction industry, inclusive of interior fit-outs, is the major end-user for particle board

    Particle Board Market: Global

    • The demand for global particle board is expected to increase at a CAGR 4.95 percent between 2022 and 202

    • In 2023 the demand  will increase as compared to 2022, as global market has recovered from Corona and Construction and Interior, renovation work is in full swing.

    • In terms of volume, the global particle board market was estimated to be at 115 million cubic meter in 2023, and it is expected to grow at a CAGR of 4.95 percent by the end of 2027 from 2022 onwards

    • China accounts for more than 33 million m3 of the global particle board market, US 13 million m3, and Canada 9.2 million m3. China and North America are the highest consumers of particle board. China is the largest producer as well as consumer of particle board

    • The demand for particle board in 2023 is expected to increase, due to strong demand from the construction, packaging, and transportation sectors while global economies continue to recover from the COVID-19 pandemic

    • The Asia Pacific region is expected to constitute around 50 percent of global particle board demand by end of  2023

    Global Particle Board: Market Drivers and Constraints

    • The construction sector’s growth, increasing urbanization, growth in disposal income among middle-income group resulted in building interior and furniture upgradation, which is expected to drive the particle board market. Supply chain constraints and increased shipping and processing charges turned as negative.


    • Increased spending on the uplift in housing interiors and steady growth in construction activities are driving particle board market growth and demand. Commercial and arctician developmental factors are also contributing positively for particle board usage

    • Smoot texture and ease of wood carving made particle board an optimal selection for building project’s interior works as well as for light furniture, where wear and tear are less. Particle board laminated with melamine is in high demand

    • Sustainable sourcing practices are resulting in positive growth for particle board. During construction activities, dust pollution from particle board is lesser compared to other boards, this is playing a key factor in particle board growth as a part of green building practices across the globe


    • Supply chain constraints are continuing post-COVID spread, these logistical congestions inflated chemical prices across the globe tremendously. Rising prices of chemical glues and polymer adhesives are concerned for manufacturers, in recent times supply shortages of certain specialty chemicals, like urea formaldehyde (UF), is also affecting particle board production negatively

    • The COVID-19 pandemic negatively impacted particle board manufacturing activities worldwide, in addition to travel restrictions resulting in supply chain and transportation issues impacting material movements

    • Stringent environmental norms, changes in regulations, and new energy conservation policies across the globe might demand for new investments in technological advancement and upgrades in particle boards, which might again increase prices

    Cost Structure of Particle Board

    • Raw material residual wood particles and chips contribute to over 55–60 percent of the total particle board production cost. Thermal treating and mechanical pressing cost approximately 20 percent, including labor costs for particle board manufacturing. Raw materials prices, particle board density, and additional features, like fire retarding, moisture resistant features, etc., are the major factors that impact the particle board processing costs.

    Major Cost Components

    • Wooden residuals, glue, and adhesives, including urea-formaldehyde, as raw materials attributes to over 60–70 percent of the total manufacturing cost of particle board. Labor constitutes approximately 20 percent of the total production costs. Highly workmanship of labor is not significant for operations at the particle board manufacturing facility

    • Additionally, enhanced features, like moisture resistance, fire retarding seeks additional chemical processing, which will further increase the total production costs. Depending on chemical dosages, raw material costs will range between 55 and 70 percent of the total cost

    • Thermal treating of wooden particles for fiber extraction is not a very energy-efficient process and energy losses are significant in this defibrillator processing. Hence, any change in energy prices in the market will also impact the overall production costs


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