Wood Processing Global Market Report 2024

The wood processing market size has grown strongly in recent years. It will grow from $153.44 billion in 2023 to $163.9 billion in 2024 at a compound annual growth rate (CAGR) of 6.8%. The expansion observed in the historical period can be attributed to factors such as strong economic growth in emerging markets, low interest rates in most developed countries, an increasing demand for cruise ships, and growth in residential construction activity.

The wood processing market size is expected to see strong growth in the next few years. It will grow to $211.44 billion in 2028 at a compound annual growth rate (CAGR) of 6.6%. The anticipated growth in the forecast period can be attributed to factors such as the increasing construction of wooden buildings, a growing demand for wooden furniture, and increased construction and infrastructure activities globally, which will drive market growth. Potential factors hindering the growth of the wood processing market in the future include stringent laws and regulations on deforestation, reductions in free trade, geopolitical tensions, an increasing use of alternate construction materials, and labor shortages in the forestry and logging industry. Major trends in the forecast period include the use of tracking and tracing technology in timber processing, the use of artificial intelligence (AI) in wood processing, the adoption of image processing systems in factories, new product launches, a focus on strategic partnerships, and an emphasis on investments and mergers and acquisitions.

The wood processing market is poised to benefit from the anticipated steady economic growth in both developed and developing countries, as indicated by the International Monetary Fund (IMF) reporting a global GDP growth of 3.3% in 2020 and 3.4% in 2021. The recovery of commodity prices post a historical decline is expected to further drive economic growth. The US economy is projected to maintain stable growth during the forecast period, with emerging markets expected to outpace developed markets slightly. This positive economic outlook is likely to stimulate public and private investments, joint ventures, and foreign direct investments in end-user markets, contributing to the growth of the wood processing market.

The growth of the wood processing market is expected to be propelled by the increasing residential sector. The residential sector encompasses housing units and properties designed primarily for residential purposes. Wood, with its blend of aesthetic, environmental, and functional advantages, is a popular choice in the residential sector. Its natural beauty, sustainability, versatility, and durability make it a favored material for creating comfortable and visually appealing living spaces. For instance, in September 2023, the United States Census Bureau reported a seasonally adjusted yearly rate of 1,524,000 privately owned housing units approved by building permits in February. This represents a 13.8% increase over the corrected January rate of 1,339,000. Thus, the growing residential sector is a key driver for the wood processing market.

The increasing demand for supply chain transparency and the imposition of stringent government regulations on the wood industry have led to the adoption of tracking and tracing technologies. Wood companies are implementing their tracking systems to ensure transparency in their timber supply chains. Electronic tracking, including technologies such as radio-frequency identification chips, barcodes, and advanced traceability software, is replacing paper-based systems. For example, the Forest Stewardship Council has developed the Online Claims Platform to provide timely information about FSC-certified products and the companies producing them. This facilitates a digital connection between FSC-certified suppliers and customers.

Major companies in the wood processing market are prioritizing innovative products to enhance customer services. Sveza, a Russia-based birch plywood manufacturing company, launched Sveza Wood Perspective in June 2021. This informational product serves as a resource for tech firms contributing knowledge to the wood processing industry. It focuses on sustainability and low-waste plywood production goals, providing partners with expert evaluations of innovative technologies and digital products, along with production testing of prototypes.

Major companies operating in the wood processing market report are Canfor Corporation, West Fraser Timber Co. Ltd., Interfor Corporation, UPM-Kymmene Oyj, Weyerhaeuser Company, Sierra Pacific Industries, Inc., Western Forest Products Inc., UFP Industries, Inc., Georgia Pacific, Svenska Cellulosa Aktiebolaget, Kitply, Amandus Kahl Gmbh & Co. Kg, Hangzhou Lin`an Wood-Working Machinery Co.Ltd., Hebei Xinju Furniture Co. Ltd., Qingdao From-Wood New Energy Equipment Co.Ltd., Omni-Tsuda Inc., Izumi Corporation Co.Ltd., Koohei Bussan Co., Ltd., Shreeji Woodcraft Pvt. Ltd., Century Plyboards Ltd., Forestry Corporation of NSW, China Inner Mongolia Forestry Industry Group, Singla Timbers, Oji Group, Luli Group, China Longjiang Forest Industry, EGGER Limited, RTS Forestry, James Jones and Sons Limited, Metsähallitus Forestry Ltd., ATA Timber, Bergs Timber AB, Scottish Woodlands Ltd., Tilhill Forestry, Holmen Timber, Holzindustrie Maresch GmbH, Stora Enso Oyj, Russia Forest Products, LST a.s, Wotan Forest a.s, UNILES Inc., Segezha Group, KPPD-Szczecinek SA, Ilim Timber LLC, Pacific Woodtech, Celulosa Arauco y Constitución, Suzano Papel e Celulose, Toll Maderas SRL, Forestal Las Marías SA, Benevides Madeiras, Valdivia Sawmill, Dafaf Wood Industry LLC, Al Garib Wood Industry LLC, Interpro Wood Industries LLC, Woodworks Factory, The Building Company (Pty) Ltd., Riversdalse Handelshuis Kooperatief Ltd., Macrall Timbers, The F X Group (Pty) Ltd.

Asia-Pacific was the largest region in the wood processing market in 2023. North America was the second largest region in the wood processing market. The regions covered in the wood processing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the wood processing market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa. The wood processing market includes revenues earned by entities by producing sawdust and a collection of bark, branches, and leaves or needles. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The primary types of wood processing include sawmills and wood preservation. Wood preservation involves the pressure or thermal impregnation of chemicals into wood. This process achieves long-term resistance to fungus, bacteria, insects, and marine borers. The different sectors utilizing wood processing include residential, commercial, infrastructural, and other end-user industries.

The wood processing market research report is one of a series of new reports that provides wood processing market statistics, including wood processing industry global market size, regional shares, competitors with a wood processing market share, detailed wood processing market segments, market trends and opportunities, and any further data you may need to thrive in the wood processing industry. This wood processing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.