The 54th China International Furniture Fair (Shanghai)
September 11-14, 2024

CIFF Shanghai Expo 2024 | Analysis of the Current Situation and Development Trends of China's Artificial Board Industry

2024-06-24 18:53:59

Artificial board generally refers to the board formed by using wood or other non wood plants as raw materials, mechanically processing and separating them into various unit materials, applying adhesives, and then combining and pressing them. Artificial board can improve the comprehensive utilization rate of wood. 1 cubic meter of artificial board can replace 3-4 cubic meters of raw wood, which is more in line with the concept of green and environmental protection. It combines the advantages of low price, good quality, beautiful appearance, and high processability, and is widely used in industries such as construction, furniture, and packaging.

CIFF Shanghai Expo 2024 got information that The development of artificial boards in China has gone through six stages from scratch: starting, emerging, developing, accelerating, prospering, and innovating and upgrading. From 1949 to 1952, plywood was the only artificial board variety that could be produced in China during the same period, until fiberboard and particleboard began production in 1959 and 1961, respectively. After entering 2018, the supply side structural reform of the industry has entered a new stage of innovation and upgrading. By 2018, there were more than 6200 artificial board enterprises in China, with an increase in technology, environmental protection level, and industry concentration.

1Analysis of the current situation of the artificial board industry

1. Artificial board production

According to the China Artificial Board Industry Report, the year-on-year growth in production in 2021 reached a new five-year high. From 2016 to 2021, the production of artificial boards increased from 300 million cubic meters to 340 million cubic meters, with a year-on-year increase of 8.3% and a CAGR of 2.0% in 2021.

2. Structure of artificial board products

CIFF Shanghai Expo 2024 got information that Artificial boards are mainly divided into plywood, particleboard, and fiberboard. According to data statistics, in 2021, plywood products accounted for 62.3% of the total consumption of artificial board products, fiberboard accounted for 18.6%, particle board products accounted for 12.5%, and other artificial board products accounted for 6.6%.

3. Consumption of artificial boards

With the increasing awareness of environmental protection among consumers, the demand for customized furniture in the market has increased; The continuous improvement of production capacity and technology for particleboard, the increase in the proportion of high-quality particleboard, and the increase in consumption of particleboard products are the main factors driving the growth of total consumption. From 2016 to 2021, the consumption of artificial boards in China increased from 281 million cubic meters to 320 million cubic meters, with a year-on-year increase of 7.5% and a CAGR of 2.1%.

2The Future Development Trends of Artificial Board Industry

1. The concentration of the artificial board industry is relatively low, and small and medium-sized enterprises have weak risk resistance and bargaining power

CIFF Shanghai Expo 2024 got information that For a long time, China's artificial board industry has developed rapidly, but the technological and financial barriers are relatively low. The industry is still mainly composed of small and medium-sized enterprises, and the concentration is low, making it difficult to achieve economies of scale. The outdated production capacity of China's artificial board industry is accelerating its elimination, and the industrial structure is continuously optimizing. According to the China Artificial Board Industry Report 2022, there were over 13000 artificial board production enterprises in China by the end of 2021, a decrease of about 3000 compared to 2020; There are nearly 190 large-scale production enterprises and groups, with a total annual production capacity accounting for 18.1% of the total production capacity; The number of enterprises with an annual production capacity exceeding 1 million cubic meters has increased from 6 in 2020 to 9, indicating a clear trend of increasing industry concentration.

2. In the long run, the demand for artificial boards in China will maintain a steady growth trend

The downstream industries of the artificial board industry mainly include furniture manufacturing, building decoration, and flooring. The prosperity of these industries is closely related to the real estate industry, so the artificial board industry is more significantly affected by macroeconomic and real estate cycles. However, in recent years, with the increasing demand for customized panel furniture and prefabricated materials, as well as the continuous improvement of domestic urbanization level, the second-hand and existing housing renovation and decoration markets have steadily developed. Therefore, in the long run, the demand for artificial boards in China will maintain a stable growth trend, and the impact of cyclical changes in the real estate market will gradually weaken.

Article source: Huajing Intelligence Network

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