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Latest Market Report on European Wood-based Panel Industry ---
The Current Situation and Outlook of European Wood-based Panel Industry

[April 7, 2023]

The European Board Association expressed its hope to create a new era of sustainable development in the construction, furniture, packaging and other markets through innovative artificial board products.

According to the 2021-2022 annual report data of European wood-based panels, the total production of wood-based panels in Europe in 2021 was 63.7 million M3, Increase by 10%. Compared with 2019 before the COVID-19, the total output of wood-based panels increased by 7.6%. Compared with 2019, the production of various types of artificial boards has increased in 2021. Among them, the output of particle board reached 34 million M3, Increase by 12%; The production of medium density fiberboard has reached 12.9 million M3, Growth of 7.6%; The output of oriented particle board reaches 7.2 million M3, 2% increase; The production of lightweight fiberboard has reached 5.6 million M3, Increase by 12.6%; The production of plywood has reached 3.2 million M3, An increase of 12.2%.

In terms of the wood-based panel market prospect, the Russia-Ukraine conflict and the derived economic sanctions mean that now they are more inclined to burn wood for energy, thus competing with the wood-based panel industry for wood raw materials; The shortage of wood and the unstable supply of chemical raw materials have made it difficult for some factories to maintain normal production.

It is expected that the demand for particle board will continue to decline from 2022 to 2023 before rebounding. In 2021, Türkiye promoted the recovery of demand for MDF in Eastern Europe (an increase of 500000 M3), However, high inflation and the Russia-Ukraine conflict will lead to a sharp decline in demand from 2022 to 2023.

The demand for oriented particle board will be strong from 2019 to 2021, mainly in China and Western Europe. Affected by the decline in construction activities, the demand for oriented particle board in Western Europe will shrink, and there will be a sharp decline in Eastern Europe. The shortage of birch plywood and the limited potential of alternative tree species will hinder the development of demand for plywood. Overall, there are many uncertainties in the short term, which test both supply and demand. But in the medium to long term, the artificial board industry will become even stronger after coming out of the recession.

The wood supply in the wood-based panel industry will face various challenges, and the energy transformation has generated competition for wood in the energy industry. At the same time, new industries such as biomass fuels and biomass chemicals also require wood. It is expected that the demand for artificial board will decrease from 2022 to 2023, but it will begin to rebound and repair in areas such as construction and furniture.