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Key players in wood based panel market

Europe’s wood based panel market has generated huge profitability and strong growth in the last few years on account of the growth of the furniture sector and rising construction industry. Source: The Camping Canuck

However, the increasing cost of a range of inputs such as wood, energy and resin is expected to challenge panel manufacturers across the Europe over the forecast period.

In addition, the European panel producers are competing with the biomass industry for the procurement of wood.

Wood based panel market size was valued over USD$16 billion in 2015 and is anticipated to grow at CAGR of over 13% and exceed USD$35 billion by 2023.

In 2014, China’s wood based panel market accounted for more than 50,000 products for manufacturing and trading enterprises, employing more than 10 million people and generating an output of USD$155 billion.

China exported 5.8 million tons of wood based panels which cost around USD$5,813 million in 2014, growing at a CAGR of 15% over the previous year.

China trades with the US, where it exports around 15% of its total panel, accounting for 55% of the US total imports.

One of the challenges that both the North American and European panel makers are facing is the increasing imports from China. In 2014, China and Indonesia are identified as the foremost global suppliers of the panels with a combined share of over 55% of total exports.

The changes in incorporating newer definitions of structural use panels by American Plywood Association (APA) is likely to boost the global demand in South America as well as in North America region.

Modernization in infrastructure and rapid industrialization in developing economies of Asia Pacific is likely to be a chief industry driver for the global wood based panel market over the next few years.

The wood based panel industry can be segmented on the basis of product which includes veneers and sheets less than 6mm thick, plywood, oriented strand board, veneered panels and related, particle board & wafer board, insulation boards, hardboards and fiberboard.

Moreover, the industry can be further split on the basis of region which includes North America, Europe, Asia Pacific, Latin America and MEA.

In the US, plywood and OSB are the leading panels that are being employed and the huge capacity augment in OSB has declined the prices for panels, which impacts the margins of the panel makers over the coming few years.

Major manufacturers for the global wood based panel market share include Lin Shi Tong Wood Co Ltd, China Foma, Xinxiel Groupt Co, Caihong Wood Co Ltd, Timber Products Company, Yalian machinery Co, DIVA Aluminium Products, Changzhou Hengyi Wood Products Co Ltd, Qingdao Nianlum Wood Processing Co Ltd, SKLEJKA PISZ PAGED SA, Jechen Group, Daregroup, Linyi Guangsha Wood Industry Co Ltd, Shanghai Wood-Based Panel Machinery Co, Mebelny Kombinat Rassvet and Main Land Trading Company among others.