Wood Based Panel Market Report 2026

The wood based panel market size has grown strongly in recent years. It will grow from $188.17 billion in 2025 to $202.99 billion in 2026 at a compound annual growth rate (CAGR) of 7.9%. The growth in the historic period can be attributed to expansion of residential construction activities, growth in furniture manufacturing demand, rising use of cost-effective building materials, availability of large-scale wood processing facilities, increased urban housing development.

The wood based panel market size is expected to see strong growth in the next few years. It will grow to $277.22 billion in 2030 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to increasing adoption of sustainable construction materials, rising investments in green building projects, expansion of modular construction practices, growing demand for high-performance wood panels, increasing focus on recyclable building products. Major trends in the forecast period include increasing use of engineered wood panels, rising demand for moisture-resistant boards, expansion of fire-retardant panel applications, growing adoption of prefabricated construction materials, enhanced focus on lightweight and durable panels.

The surge in demand for home furniture is anticipated to drive the growth of the wood-based panel market in the foreseeable future. Home furniture encompasses a broad spectrum of items, including beds, mattresses, living room sets, office/gaming packages, coffee tables, dining sets, and more, all tailored to furnish homes and create functional and comfortable living spaces. Wood-based panels play a pivotal role in home furniture by offering durability and flexibility, with Medium Density Fiberboard (MDF) particularly renowned for its smooth surface and paint-friendly properties. For instance, as per the Australian Bureau of Statistics in October 2023, Australian household expenditure demonstrated a 2.7% increase, marked by discernible trends across different categories. Expenditure on services notably surged by 7% compared to the previous year, while spending on goods experienced a 1.9% decline year-on-year. The breakdown highlighted a substantial 7% increase in non-discretionary spending, emphasizing the importance of essential items. Hence, the uptick in demand for home furniture stands as a driving force behind the growth of the wood-based panel market.

Leading companies in the wood-based panels market are prioritizing strategic collaborations to deliver dependable services to their customers. Strategic collaboration involves a mutually beneficial partnership between two or more independent entities working together to achieve shared goals aligned with their individual strategic objectives. For example, in April 2023, BASF SE, a Germany-based chemical company, joined forces with Swiss Krono Group, a Switzerland-based provider of wood-based materials, to pioneer innovative wood-based panels. Both companies are dedicated to reducing the carbon footprint of the wood-based panel industry through their collaboration.

In May 2024, Kronospan, an Austria-based producer of wood-based panels, acquired Woodgrain’s particleboard facility located in Island City, Oregon. This strategic acquisition aims to bolster Kronospan’s presence in the North American wood panel market and highlights the company's dedication to its growth strategy. The incorporation of the Island City plant aligns with Kronospan’s initiatives to enhance its production capabilities and expand its product offerings within the region. Woodgrain Inc. is a US-based manufacturer of wood products, including wood-based panels.

Major companies operating in the wood based panel market are Georgia-Pacific LLC, Weyerhaeuser Company, West Fraser Timber Co Ltd., Boise Cascade Company, Sonae Industria SGPS SA, Celulosa Arauco y Constitucion, Canfor Corporation, Egger Group, Louisiana-Pacific Corporation, Duratex S.A., UPM Plywood, Kastamonu Entegre Agac A.S., Roseburg Forest Products Co, Swiss Krono Group, Dongwha Group, Masisa S.A., Century Plyboards Limited, Evergreen Fibreboard Berhad, Pfeifer Group, Klenk Holz AG, Greenply Industries Limited, Timber Products Company, Metsä Wood, Green River Holding Co Ltd., Sveza Group, Kronoplus Limited, Mieco Chipboard Berhad, Starbank Panel Products Ltd., DARE panel group Co ltd., Segezha Group, Sodra Wood Ltd., Tolko Industries Ltd., Daiken Corporation, Fantoni Group.

Asia-Pacific was the largest region in the wood based panels market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global wood based panel market during the forecast period. The regions covered in the wood based panel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the wood based panel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The wood based panel market consists of sales of T-beam panels, lumber panels, and stress-skin panels. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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