Forestry Market Report 2026

The forestry market size has grown strongly in recent years. It will grow from $7.68 billion in 2025 to $8.22 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to expansion of timber based industrial demand, growth of paper and pulp consumption, traditional logging and harvesting practices, increase in construction material usage, development of organized forestry plantations.

The forestry market size is expected to see strong growth in the next few years. It will grow to $10.93 billion by 2030 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to rising demand for sustainable and certified wood products, expansion of carbon credit and offset forestry programs, adoption of smart forest monitoring technologies, increasing use of biomass energy sources, stricter global deforestation regulations. Major trends in the forecast period include expansion of sustainable forest management and certification practices, rising adoption of remote sensing and satellite based forest monitoring, increasing demand for certified timber and traceable wood supply chains, growth of biomass based energy and renewable wood fuel applications, shift toward reforestation and afforestation driven carbon offset projects.

The increasing construction activities are anticipated to drive the expansion of the forestry market in the forecast period. Construction activities include all processes involved in planning, developing, and completing structures and infrastructure such as buildings, roads, and bridges. The rise in construction activities is largely attributed to rapid urbanization, which increases the demand for housing, commercial infrastructure, and public facilities to accommodate expanding populations and support economic development. Forestry contributes to construction activities by providing timber and wood-based materials used in structural frameworks, building components, and finishing applications. It ensures a consistent supply of raw materials for sustainable construction development. For instance, in August 2024, according to Eurostat, a Luxembourg-based government agency, in June 2024, seasonally adjusted construction production rose by 1.7% in the euro area and by 1.4% in the EU compared to May 2024. Therefore, the increasing construction activities are driving the growth of the forestry market.

Key companies operating in the forestry market are focusing on developing innovative solutions, such as geospatial forest monitoring systems, to enable real-time tracking of forest resources, improve sustainable management, and enhance deforestation detection and compliance monitoring. A geospatial forest monitoring system is a digital system that uses spatial data from satellites and mapping tools to track forest conditions, changes, and sustainability over time. For example, in February 2025, Olam Agri Holdings Pte. Ltd., a Singapore-based food, feed, and agribusiness company, launched a Digital Forestry Solution, a paperless system that uses tablets and smartphones to capture harvest data in real time across its forest concessions in the Republic of Congo. It improves timber traceability, reduces manual errors, and supports compliance, transparency, and sustainable forest management.

In March 2026, Komatsu Forest AB, a Sweden-based manufacturing company, acquired Malwa Forest AB for an undisclosed amount. Through this acquisition, Komatsu Forest aims to expand its forestry machinery portfolio with Malwa's lightweight CTL machines for thinning operations, enhance sustainable low-impact forestry practices, and utilize global networks to support growth. Malwa Forest AB is a Sweden-based manufacturing company that provides forestry products.

Major companies operating in the forestry market are Deere & Company, Komatsu Ltd., International Paper Company, Sumitomo Forestry Co. Ltd., Oji Holdings Corporation, UPM-Kymmene Corporation, BTG Pactual Timberland Investment Group, Nippon Paper Industries Co. Ltd., Mondi Group, Suzano S.A., Weyerhaeuser Company, West Fraser Timber Co. Ltd., Canfor Corporation, Holmen AB, Metsä Group, Mercer International Inc., Svenska Cellulosa Aktiebolaget (SCA), Sierra Pacific Industries, Rayonier Inc., Ponsse Plc, Södra, Green Diamond Resource Company, New Forests Pty Limited, Stora Enso Oyj, Tigercat International Inc.

North America was the largest region in the forestry market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the forestry market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the forestry market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The forestry market consists of sales of plywood, veneer sheets, particle boards, fiberboards, wooden poles, charcoal, cork, bark products, essential oils from trees, and ornamental wood products. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the producers or harvesters of the goods, whether to other entities (including downstream processors, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the producers of the goods.

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.

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