Decorative wood panel demand will be flat through 2024, with demand concentrated in residential market; growth will be restricted by moderation in new homebuilding, lower commercial building, declining use of decorative panels in siding, doors: Freedonia

CLEVELAND, Ohio , April 5, 2022 (press release) –

A new Freedonia Group analysis forecasts demand for decorative wood panels to remain around 4.4 billion square feet, as measured on a 3/8-inch basis, through 2024, restricted by:

• a moderation in new home construction, as many products that utilize decorative panels – such as cabinets and siding – are installed during the construction process
• a decline in commercial building construction in the early part of the forecast period, as losses will not be recovered even after the market begins to rebound
• declining use of decorative wood panels in siding and doors

Preventing declines in decorative wood panel demand will be an increase in their use in finish flooring applications as well as sustained demand for cabinets. Both markets will benefit in the short term from unexpected growth in residential construction, while finish flooring is expected to offer longer term gains due to continued design trends favoring use of hard surface flooring.

Unexpected Interest in Residential Construction Sustains Decorative Wood Panel Demand

Decorative wood panel demand is concentrated in the residential market, where these products are commonly used in such applications as cabinets and finish flooring. Growth in both residential remodeling and new home construction in the second half of 2020 and into 2021 and 2022 helped prevent losses for these products throughout the pandemic.

Although new home construction and residential renovation spending are expected to regress back toward 2019 levels near the end of the forecast period, losses will be offset as the commercial market begins to turn around from prolonged losses, particularly among such buildings as offices, healthcare facilities, and schools and universities, which are intensive users of decorative panels in cabinets and interior wall panels.

Want to Learn More?

Decorative Wood Panels, now available from The Freedonia Group, presents historical data (2009, 2014, 2018, and 2019) and forecasts for 2020, 2021, 2022, 2024 and 2029 for decorative wood panel demand in current US dollars (including inflation) and in square feet on a 3/8-inch basis. Demand is presented by product and applications.

Products:

• hardwood plywood
• particleboard
• hardboard (also called high density fiberboard, or HDF)
• medium density fiberboard (MDF)
• low density fiberboard (softboard)

Applications:

• cabinets
• finish flooring
• doors and windows
• interior paneling
• siding

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