China's man-made board surface decoration methods include decorative paper finish (impregnated film paper, high-pressure decorative panels, etc.), decorative film finish (PVC, PP, etc.), decorative veneer + coated finish, direct printing + coated finish, etc., of which the decorative paper finish is dominated by about 70% of the medium-density fiberboard and particleboard, 20% of the plywood with decorative paper finish.

In 2021, China's decorative paper and veneer industry chain presents many common characteristics, market demand first rise and then decline, overall moderate growth.

Production and sales volume to maintain sustained growth. Decorative paper sales of about 1,149,700 tons, a year-on-year increase of 3.27%, decorative paper and decorative panel production to maintain a global market share of more than 60%.

Industry concentration steadily increased. The head enterprise brand, technology, management and capital advantages to further deepen, driven by industrial competition level upgrading, polarization is more and more significant, the annual output of more than 200,000 tons of decorative paper enterprises reached three.

Supply chain uncertainty is significant. Pulp, titanium dioxide, melamine, synthetic board and other raw material prices fluctuate in turn up, energy and logistics costs rise, the shortage of export containers, all-round test of the supply chain resilience, resulting in higher costs, declining profit margins, and some enterprises even stage losses.

In 2022, the market started the year on a flat note, and market demand is expected to maintain a moderate growth trend throughout the year. However, new uncertainties in the supply chain at home and abroad are fermenting, further polarizing the impact on individual enterprises. European chemical giants have issued production shutdown warnings, and the Russia-Ukraine conflict may trigger a shortage of upstream raw materials such as synthetic ammonia in the international market, leading to renewed tightness and price volatility in the domestic supply of corresponding raw materials. The global new crown epidemic pandemic will affect the supply and sales to varying degrees, testing the ability of business operations and management.

In the face of increasing complexity, instability and uncertainty of the international environment, decorative paper and veneer industry chain risks and opportunities co-exist, supply and demand pattern of instantaneous changes in the possibility. First, we should rationally view the "weird" boom. Under the new crown epidemic, "market demand" is artificially amplified probability, suggest that enterprises to strengthen the sense of risk prevention and control, to prevent "bubble orders", to protect the bottom line, stable cash flow. Secondly, we should actively deal with the pressure and risk of rising costs. It is recommended that small and medium-sized enterprises to explore the group warmth of the competition model, seeking strategic cooperation with upstream suppliers, to avoid supply cuts, enhance the ability to resist cost fluctuations, to protect the stability of production and operation. Third, to strengthen order management, household end products in recent years, retail low, engineering and export strong, high-intensity risk aggregation and the probability of upstream transmission increased, while a variety of uncertainties may affect the delivery on schedule, it is recommended to explore effective ways to share risk with customers, rational planning of production, procurement and logistics, maintain a prudent and vigilant attitude to control orders.