Market Trends of North America Medium-Density FIberboard Industry
This section covers the major market trends shaping the North America Medium-Density FIberboard Market according to our research experts:
Increasing Usage in the Residential Segment
- MDF, due to its superior grade, is considered more stable than solid wood. MDF has better resistance toward changes in heat and humidity and is hence preferred for furniture, cabinetry, and flooring. MDF is further used in decorative doors and panels, sculptures and moldings, beds, sofas, etc.
- Growth in population, migration from hometowns to service sector clusters, and nuclear family trend are some of the factors that have been driving residential construction across the region. Besides, the decreasing land-to-population ratio and the growing trend of constructing high-rise residential buildings and townships have been driving the application of MDF in the residential construction segment globally.
- According to the US Census, the value of new private construction in the United States accounts for approximately USD 1,245 billion in the current year, and the number of newly built privately owned houses is well around 1.58 million.
- In Canada, investment in residential building construction grew by 1.0% to USD 15.7 billion in July 2022, and multi-unit construction investment increased by 1.8% to USD 7.1 billion for the same month. On an unadjusted basis, new construction for both single-family homes and multi-unit construction combined have been growing notably in the previous months, adding up to a total of 3.9% increment year-on-year in July.
- Thus, the growing construction of residential projects across the region is expected to drive the market for MDF during the forecast period.
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The United States is Expected to Dominate the Market
- The United States is a country that has the largest market share, primarily attributed to the increase in export and consumer spending.
- According to the US Census Bureau, in November 2022, the total construction spending during September 2022 was estimated at a seasonally adjusted annual rate of USD 1,811.1 billion, which is approximately 10.9 % above that of September 2021, considering year-on-year growth. Spending on private construction, however, was at a seasonally adjusted annual rate of USD 1,450.3 billion.
- The total private construction spending on the residential sector (including both new single-family & new multi-unit construction) grew from USD 814,272 million in September 2021 to USD 917,986 million in September 2022, as per the preliminary report released by the US Census Bureau.
- The construction sector in the country is expected to grow at a stable pace through the years to come, thereby boosting the demand for medium-density fiberboard during the forecast period.
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