Medium Density Fibreboard Market Analysis

The MDF is made from a special type of wood, and many companies use it to make their furniture. Because it is inexpensive to make, many furniture companies use it for their product. Low-density fibreboard is a popular choice for prefabricated furniture and big-box stores. MDF is similar to particleboard, but they have some major differences in process. They are both used to make furniture and cabinetry. 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 postpressing operations. The fiber that goes into MDF is derived from shavings or chips, and it consists of individual wood cells.

Market Statistics:

The global medium density fibreboard (MDF) market was valued at US$ 40.0 Bn in 2021 and is forecast to reach a value of US$ 60.2 Bn by 2030 at a CAGR of 4.6% between 2022 and 2030.

Asia Pacific held dominant position in the global medium density fibreboard (MDF) market in 2021, accounting for 61.00% share in terms of volume, followed by North America and Europe, respectively.

Figure 1. Global Medium Density Fibreboard (MDF) Market Value Share (%), By Region, 2021

Recent Developments:

1. In February 2020, the ARAUCO announced the closure of the Bennettsville MDF facility and ceased operations on May 28, 2020, dismissing 118 employees. The closure was related to an imbalance between supply and demand and the fact that the older manufacturing platform was less competitive compared to the company’s other advanced, high-capacity particleboard platforms.
2. In April 2020, ARAUCO Company announced the closure of our Eugene MDF facility and ceased operations on May 1, 2020, dismissing 70 employees. The closure was related to an imbalance between supply and demand and the fact that the older manufacturing platform was less competitive compared to the company’s other advanced, high-capacity particleboard platforms.
3. In October 2021 ARAUCO company was conducting an environmental impact assessment to evaluate the viability of a new MDF production line in Zitácuaro, Michoacán

Medium Density Fibreboard Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 40.0 Bn
Historical Data for:	2017 to 2020	Forecast Period:	2022 to 2030
Forecast Period 2022 to 2030 CAGR:	4.6%	2030 Value Projection:	US$ 60.2 Bn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Application: Cabinet, Flooring, Furniture, Molding, Door, and Millwork, Packaging System, Other Applications By End-User Sector: Residential, Commercial, Institutional By Geography: North America, Latin America, Europe, Asia Pacific, Middle East & Africa
Companies covered:	ARAUCO, Daiken Corporation, Duratex SA (DEXCO), EGGER Group, Eucatex SpA, Masisa SA (Grupo Nueva Company), Fantoni SpA, Kastamonu Entegre, Korosten MDF manufacture, Kronoplus Limited, Nelson Pine Industries Limited, Roseburg, Sonae Indústria, SWISS KRONO, West Fraser, and Weyerheause Company
Growth Drivers:	Growing demand for MDF for from furniture industry Easy availability raw materials
Restraints & Challenges:	Strict environmental regulation Presence of substitute such as wood-plastic composites and eco-board

Market Drivers:

Growing demand for MDF for furniture industry is driving growth of the medium density fibreboard (MDF) market. They exhibit excellent properties such as resistance, durability, dimensional stability, and low production costs. Rapid growth in furniture industry is again fostering market growth. According to a World Bank report, the organized furniture industry is growing at a rate of 20% annually. This is expected to increase the demand for MDF in furniture manufacturing during the forecast period.

Easy availability of raw materials is projected to favour the market growth. Medium density fiberboard (MDF) 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.

Figure 2. Global Medium Density Fibreboard (MDF) Market Value Share (%), By End User, 2021

Market Restraints:

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 United States 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 MDF became effective on January 1, 2012, which limits emissions to no more than 0.13 parts per Billion.

Availability of substitute such as wood-plastic composites, eco-board, and others is again expected to hinder the market growth

Market Opportunities:

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

Increasing application of MDF 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, keyholders, 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 cutouts alphabet, monogram cutouts, and others

Market Trends/Key Takeaways:

Increasing consumer spending on home décor products such as furniture’s, storage utilities, etc. is emerging as a major trend in the market. This is attributed to the increasing disposable income of consumers across developing region.

Growing popularity of wood kitchen cabinet and countertop across developed region is projected to propel the market growth. For instance, according to the Coherent Market Insights analysis, in the United States, the wood kitchen cabinet and countertop manufacturing market is expected to be USD 13.17 billion by 2023.

Competitive Landscape:

ARAUCO, Daiken Corporation, Duratex SA (DEXCO), EGGER Group, Eucatex SpA, Masisa SA (Grupo Nueva Company), Fantoni SpA, Kastamonu Entegre, Korosten MDF manufacture, Kronoplus Limited, Nelson Pine Industries Limited, Roseburg, Sonae Indústria, SWISS KRONO, West Fraser, and Weyerheause Company