
Udeesha Tomar
AVP - Strategy and Solutions
Leading procurement research solutions across chemicals, materials, and food & beverages, with expertise in price forecasting and market analytics.
During 2025, the particle board market exhibited a generally firm to upward trend, shaped by regulatory changes, raw material dynamics, and evolving downstream demand. In the first half of the year, the implementation of mandatory BIS certification in India reduced the presence of non-compliant manufacturers and limited low-cost imports, tightening supply and supporting domestic producers. While timber availability improved due to redirected supplies, elevated costs of adhesives, chemicals, energy, and freight kept production expenses high. Demand showed gradual improvement, driven by housing, office expansion, and government-led infrastructure projects.
In the second half of 2025, prices strengthened further as rising formaldehyde-based resin costs increased the overall manufacturing cost structure. Producers responded with price revisions, while some temporarily withheld orders to align with updated pricing levels. Supply remained controlled amid cost pressures, and buyers adopted cautious procurement strategies. Demand from furniture, interior decoration, and construction sectors remained steady, providing consistent support to the market despite slower inventory turnover in certain regions.
Analyst Insight
According to Procurement Resource, particle board prices are expected to remain firm, influenced by input cost trends and steady demand from furniture and construction sectors.
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The prices of Particle Board observed an oscillating trajectory during the second half of 2024. The commodity is a cost-effective engineered wood plywood utilized in various sectors, such as making furniture, such as cabinets, desks, tables, and shelving units. Along with this, it is also used in floor laying and insulation boards in buildings. The demand for particle board remained moderate due to underperformance in the construction sectors in different parts of the world, especially Europe.
However, the prices of Particle Board remained elevated in both quarters of the said period. The prices of plywood, a major feedstock, increased due to supply shortages as weather disruptions, such as hurricanes in North America, destroyed the southern forests in the region. This, in turn, increased the manufacturing costs of the particle boards. Therefore, the prices of Particle Board moved up during the H2'24.

AVP - Strategy and Solutions
Leading procurement research solutions across chemicals, materials, and food & beverages, with expertise in price forecasting and market analytics.
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