Wood-based panels primarily include plywood, fiberboard, particleboard, and other engineered wood products. As a foundational industry for the national economy, the wood-based panel manufacturing sector is currently in a phase of low-speed development, with its focus shifting from quantity expansion to quality improvement.

The panel industry is characterized as a "large industry with small companies," resulting in a fragmented competitive landscape. As the world’s largest producer, trader, and consumer of wood-based panels, China faces a shortage of per capita timber resources. Both industry demand and supply growth are gradually slowing, leading the market to transition from a period of rapid development to a plateau. Intense homogenized competition has caused net profits to decline year by year. By the end of 2021, there were over 13,200 wood-based panel manufacturers in China, including nearly 190 large-scale producers and corporate groups. Among them, nine corporate groups had an annual production capacity exceeding 1 million cubic meters, indicating a rising trend in market concentration.

• The wood-based panel manufacturing industry operates in a highly competitive market with numerous enterprises and intense rivalry.
• The industry is shifting from quantity to quality, accelerating the elimination of outdated capacity, which moderates the threat of new entrants.
• Complementary products, such as raw timber, are more expensive and command a smaller market share, limiting their competitiveness and thus posing minimal threat to the wood-based panel industry.
• The low concentration of wood-based panel manufacturers and the relatively decentralized raw material supply chain result in moderate supplier bargaining power.
• The abundance of wood-based panel manufacturers and severe product homogenization grant buyers stronger bargaining power.