Valued over $16 billion in 2015, the global wood based panel market size is anticipated to grow at CAGR of over 13% and exceed $35 billion by 2023.
In 2014, China wood based panel market accounted for more than 50,000 products for manufacturing and trading enterprises, employing more than 10 million workforce and generating an output of USD155 billion. The utilization by these enterprises exceeds 520 million and the value of exports was USD75 billion in 2014. However, the sector suffers from a poor image due to quality scandals. In 2015, Italy has recorded gain of 7%, with an optimistic business climate for the third consecutive quarter.
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 U.S., where it exports around 15% of its total panel, accounting for 55% of the U.S. 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. China significantly strengthened its position in the global export structure, from 31% in 2007 to 39% in 2014.
Increasing deforestation has lead towards the global warming which has boosted the demand growth for efficient and effective utilization of timber. This is expected to fuel the industry demandover the forecast period. In addition, technological innovation and advancement along with the mounting efficiency in manufacturing is likely to bolster the demand from 2016 to 2023. However, rapid increases in the cost pertaining to the petroleum based fuel and products continue to amplify the marketing and production cost of the industry, which in turn obstructing its growth over the forecast period.