CLEVELAND , Dec. 23, 2020 /PRNewswire/ — Demand for oriented strand board (OSB) wood panels is forecast to increase 1.0% annually through 2024 to 21.4 million square feet, as measured on a 3/8 inch basis, despite weak construction activity amid the Covid-19 pandemic. A new Freedonia Group analysis projects demand will return to growth beginning in 2021 and continue to expand through 2024, driven by growth in new single-family home construction and rising spending on home renovation projects:
- Roofing and subflooring will remain the leading applications for OSB panels, accounting for almost two-thirds of demand gains through 2024.
- Demand for OSB in engineered wood products is forecast to grow at an above average pace as OSB takes share from medium density fiberboard and particleboard on the strength of its significantly lower cost.
- Although from a small base, finish flooring will be the fastest growing application for OSB, boosted by the growing popularity of engineered wood flooring due to its better aesthetics than many LVT and laminate products and lower cost and better performance than natural wood.
OSB Industry to Remain Heavily Concentrated
In 2019, the top six suppliers of OSB to the US accounted for over 75% of demand and an even greater amount of US production of these products. The leading manufacturers have extensive resources devoted to product development, manufacturing techniques, marketing, and distribution.
In November 2019 , the industry consolidated even further when West Fraser Timber Company, a leading supplier of lumber and wood building products, announced its acquisition of Norbord , the leading global producer of OSB and a key supplier of engineered wood products, such as plywood. The transaction, which is expected to be completed in the first quarter of 2021, will create an integrated global wood building products manufacturer with annual sales of about US$6 billion .
Want to Learn More?
Oriented Strand Board , part of the Wood Panels series, is now available from the Freedonia Group. This study examines the US market for oriented strand board (OSB) wood panels. Historical data for 2009, 2014, and 2019 and forecasts to the years 2024 and 2029 are provided for OSB production and demand in square feet and current dollars.
Markets for these products encompass construction and industrial uses. Construction uses include:
- roofing
- siding
- wall sheathing
- flooring (subflooring and finish flooring)
Industrial applications include:
- engineered wood products
- material handling products
- furniture and fixtures
- transportation equipment
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com .
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SOURCE The Freedonia Group
