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Report Overview: Medium Density Fiberboard MarketThe global medium density fiberboard market size was valued at USD 50.2 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 5.5% from 2021 to 2027. The rising product application in the furniture and construction applications is expected to increase the product demand over the forecast period 2021-2027. Consistent economic growth coupled with low-interest rates has led to an increase in building project approvals across the globe. The expansion of office infrastructure by companies to compete in the global market is driving the demand for furniture and interior design materials thereby, having a positive impact on the product demand. In the U.S., the market is lead by standard medium density fiberboard (MDF) owing to its widespread utilization in the structural and non-structural applications within the construction industry. Furthermore, relatively low prices and high durability associated with the product are expected to generate the demand for standard MDF. Technical innovations and improvements in the production process have resulted in the manufacturing of medium density fiberboard with superior durability and extended lifespan. Superior adhesion techniques with the use of low formaldehyde resins such as phenol-formaldehyde have surged product innovations in the industry. The medium density fiberboard industry is actively focusing on reducing its dependence on the naturally-derived wood fiber as a source of raw material. Discarded MDF, sugarcane bagasse, and rice have emerged as possible alternatives. Technological advancements towards the use of these alternative raw materials are expected to bring down the manufacturing cost and reduce the environmental footprint of the overall industry. The medium density fiberboard is a low-cost substitute for the natural wood and wood-based panels such as plywood and oriented strand boards. However, the presence of external substitutes including wood-plastic composites, glass, and fiber in high-end applications is expected to hamper industry growth.
Product Insights: Medium Density Fiberboard MarketIn 2019, the standard MDF segment accounted for the revenue share of 80.5% and is anticipated to accelerate at a CAGR of 6.4% over the forecast period. Growing product applications in the construction industry, as well as the furniture manufacturing sector, are projected to be the primary factors driving the segment. Standard MDF has the ability to be painted over to give them a wood-like appearance and, hence, can be used as a substitute for wood. They have a high demand in the furniture industry owing to their low costs. The aforementioned factors are expected to increase the demand for standard MDFs during the forecast period. Standard MDFs are highly susceptible to damages when exposed to moisture or damp conditions. As a result, these products have limited applications in outdoor settings. To overcome this shortcoming of standard MDFs, manufacturers have developed moisture resistant MDF using moisture-repellent resins. There has been a rising demand for the fire-rated furniture and interior decoration products on account of growing worldwide emphasis on improving fire safety and reducing fire-related fatalities. As a result, the fire-resistant MDF segment is anticipated to witness the highest volume-based CAGR of 6.8% till the year 2027.
Type Insights: Medium Density Fiberboard MarketE1 type MDF led the market and accounted for more than 78.0% share of the global revenue in 2019.E0 is the fastest-growing type of medium density fiberboard globally. This particular type of medium density fiberboard is manufactured using Polymeric Methylene Diphenyl Diisocyanate (polymeric MDI) resin. Furthermore, the E0 medium density fiberboard gives out zero levels of formaldehyde during the product lifecycle. Adoption of stringent formaldehyde emission norms in countries such as the U.S., Canada, Japan, Denmark, and Austria are proving to be the primary factor driving the global demand for the E0 medium density fiberboard panels. However, the product has witnessed a lower penetration level in emerging countries such as India, China, Brazil owing to the higher cost associated with it. E2 medium density fiberboard was the second-largest type of medium density fiberboard, accounting for 15.4% of total market revenue in 2019. However, the segment is expected to witness a gradual erosion in its market share over the forecast period owing to progressive the adoption of stringent formaldehyde emission norms across the world. E1 medium density fiberboard boards are manufactured by using phenol-formaldehyde resin as a binding material. This type of medium density fiberboard emits about 90.0% less formaldehyde than the E2 type medium density fiberboard. The moderate pricing associated with the product, as well as growing consumer demand for the furniture with low formaldehyde levels, are expected to propel the demand for the E1 MDF.
Application Insights: Medium Density Fiberboard MarketFurniture application lead the medium density fiberboard market with a revenue share of 60.2% in 2019. Factors such as the substitution of wood with the medium density fiberboard panels and extensive use in the production residential and commercial furniture, ready-to-assemble (RTA) products were primarily responsible for this increase in demand. Medium density fiberboard panels are widely used in manufacturing furniture pieces for use in homes, hotels, and workplaces. The panels can be carved into attractive designs to provide an aesthetic appeal to the aforementioned spaces. These factors are likely to drive the product demand in furniture applications over the forecast period. The interior decoration segment is projected to witness a revenue-based CAGR of 6.1%.over the upcoming period. Medium-density fiberboard is widely gaining traction in interior decoration applications owing to their durability and fine carving ability. The products are used widely for making decorative boards and large size walling applications. The rise in a number of commercial spaces including hotels, restaurants, cafes, lodging spaces is anticipated to increase the demand for decorative materials in order to attract more customers. In addition, rising spending on renovations and interior decoration activities are anticipated to ascend the demand for MDF based decorative materials.
Regional Insights: Medium Density Fiberboard MarketAsia Pacific lead the MDF market and accounted for the largest market share of 61.0% in 2019. Increasing construction spending in the emerging markets in order to meet rising residential housing is expected to be a major factor driving the demand for MDF panels in the construction industry over the forecast period. China was the largest consumer of MDF panels owing to high product penetration in the construction and furniture manufacturing industry. The MDF demand within India is projected to expand at a CAGR of 10.7% over the forecast period. Factors such as, the rapid expansion of domestic manufacturing capacity, growing product adoption as an effective alternative to plywood coupled with the growth of furniture manufacturing industry are expected to propel the MDF demand within India. Europe was the second-largest market for medium density fiberboard and accounted for more than 20.0% of the market revenue in 2019. Growing product utilization in the residential renovation and modular construction activities is expected to drive the European market growth over the upcoming period. ‘The Toxic Substances Control Act (TSCA) Title VI, Act 2017, has effectively banned the use and production of E2 MDF in the U.S. Furthermore, the high level of consumer awareness is pertaining negative health effects caused due to formaldehyde fumes is projected to generate the demand for E0 MDF within U.S. Hence, the E0 segment is anticipated to witness a volume-based CAGR of 6.2% in the U.S. over the upcoming period.
Key Companies & Market Share Insights: Medium Density Fiberboard MarketThese players compete based on product differentiation, prices, and geographical reach. Moreover, these players are focusing on securing long term supply of wood fibers in order to ensure uninterrupted production. The key players in the MDF industry are engaged in establishing a strong distribution network in order to sustain the business. The majority of the manufacturers have established their own distribution channels in order to reduce the final product cost. Warehouses, distribution centers, and retail shops are managed by these players to supply their products to the end consumers. Some of the prominent players in the medium density fiberboard market include:
Key companies Profiled: Medium Density Fiberboard Market Report
Product Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2016 - 2027)
- Standard MDF
- Moisture Resistant MDF
- Fire Resistant MDF
Type Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2016 - 2027)
- E0 MDF
- E1 MDF
- E2 MDF
Application Outlook (Volume, Thousand Cubic Meters; Revenue, USD Million, 2016 - 2027)
- Interior Decoration
Table of Contents Chapter 1. Methodology and Scope 1.1. Research Methodology 1.2. Research Scope & Assumption 1.3. Information Procurement 1.3.1. Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.3.2. IFF Internal Database 1.3.3. Secondary Sources & Third-Party Perspectives 1.3.4. Primary Research 1.4. Information Analysis 1.4.1. Data Analysis Models 1.5. Market Formulation & Data Visualiz | read more...