Little has changed in the fortunes of the UK chipboard market in 2025, with demand continuing low and some businesses struggling. As for 2026, little improvement is anticipated, as TTJ markets editor Mike Botting reports
Several manufacturers, importers and traders in chipboard were interviewed by TTJ in mid-December/early January for this report to gauge latest market dynamics.
One UK manufacturer said that the current market showed flat demand, much the same as it was early in 2025 when interviewed for a previous chipboard report (TTJ September 2025).
The spokesman also said that he saw the same situation being maintained for at least the first half of 2026. He added that his company has been able to maintain its factory at full capacity, in spite of the lacklustre market, through “diversification of our product mix and presence in the markets.”
Moving on to prices, the manufacturer said that they had been flat in 2025 but that various manufacturers were talking of price increases. He expected prices to rise in early 2026, but by no more than 5%.
The company was also not optimistic about a rise in housebuilding, feeling that an upturn in the spring was unlikely. This mood continues in the industry in spite of the current government’s insistence on its half-million-unit increase.
Asked about the effect of Chancellor Rachel Reeves’ November Budget on housebuilding and RMI (Repair, Maintenance and Improvement) markets, the spokesman said that he felt that “lack of support remains and that there is no real stimulus in the market.”
Another major UK chipboard manufacturer said that everybody was hoping for a miracle in the market but there was no sign of one on the horizon. Meanwhile, he said manufacturers seemed to be chasing each other down hill in pursuit of sales at ever lower prices. As the spokesman said, this clearly cannot continue and his company intended to increase prices on P5 and laminated boards by 5% in early 2026.
“There is no choice. Costs are going up but prices are going down – the whole chain has no margin.
The spokesman was also not optimistic about the future of several furniture makers in the UK, whom he described as “on the brink” (TTJ reported on Moores Furniture Group going into administration on January 19)
Builders’ merchants are also suffering. One reported that he was selling chipboard at £7.25 a sheet in 2020, £18 a sheet in 2021, £7.60 in August 2025 and £8.40 in November.
“There are no pips left to squeeze,” he said. “Prices have to go up in 2026.”
A more comprehensive version of this Chipboard market update will appear in the next printed edition of TTJ
