The medium-density fiberboard market size is expected to reach USD 55,791.6 million by 2027. The growing utilization of fiberboard owing to its sustainability and superior product quality will promote healthy growth of the market, mentioned in a report, titled “Medium-Density Fiberboard Market Size, Share & COVID-19 Impact Analysis, By Type (Standard, Moisture Resistant, Fire-Rated), Application (Furniture, Construction & Flooring, Interior Designing, Packaging, and Others), and Regional Forecast, 2020-2027.” The market size stood at USD 39,765.6 million in 2019 and is expected to exhibit a CAGR of 5.5% between 2020 to 2027.
Acquisition of Asia’s Longest MDF Press by Dongwha to Favor Growth
VRG Dongwha, a joint venture of Dongwha International and the Vietnam Rubber Group (VRG), announced that it has ordered two MDF plants from Siempelkamp. Both plants will produce in the greater Saigon in the south of the Vietnam area and thus serving the country’s ever-growing wood-based products market. The extensive investment in the third Siempelkamp plant made by Dongwha as an individual company will achieve specific resource deposits in northern Vietnam in the Hanoi area. Acacia is considered one of the most common tree species – ideal for improving soil quality, filtering pollutants, and enriching the soil with nitrogen. However, the raw material acacia presents board producers with challenges due to its demanding fiber geometry.
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Moreover, the increasing construction of MDF production plants by major companies will improve the prospects of the in the forthcoming years. For instance, in March 2020, Rushil Décor one of the leading companies in the Laminate and MDF panel boards industry in India completed the construction of its 800 CBM/day MDF production plant which was announced in December 2017 but postponed the start of regular commercial production due to the outbreak of Covid-19. The new plant is projected to expand the production capability of the company from 108 thousand CBM per annum to 396 thousand CBM per annum.
Inclination towards Robust Wood Flooring to Incite Development
The development of and public and residential infrastructure in India, China, Brazil, and the U.S will facilitate the growth of the market. The increased spending capacity of people will spur demand for aesthetically pleasing products for living space will improve the prospects of the market. The emphasis on smart houses and aesthetically designed interiors will contribute positively to the market. The clear structure of MDF makes it knot and ring resistant, thus imperative and strong to support the weight. The superior quality of fireboard compared to other wood subsurfaces such as particleboards and plywood will further create opportunities for the market.
Enhancement of Distribution Networks by Major Companies to Reinforce Market
The key players in the market are focused on enhancing its relationship with major distributors to achieve sales target. The companies are also adopting strategies to maintain their strong point in the market. For instance, Arauco, a leading player also known for manufacturing advanced wood composite panels using an automated manufacturing platform The company operates from multiple production facilities in North and South America and serves customers across 3,500 destinations across the globe. It provides over 35 MDF grades under its brand, Trupan, including a variety of specialty grades such as moisture resistant and ‘VESTA’, a panel formulated using low-emitting technologies. Also, the ongoing technological innovations and advancements in MDF will subsequently foster the healthy growth of the market.