Wood Manufacturing Market Report 2025

The wood manufacturing market size has grown marginally in recent years. It will grow from $473 billion in 2024 to $482.11 billion in 2025 at a compound annual growth rate (CAGR) of 1.9%. The growth in the historic period can be attributed to sustainable practices and certification, innovations in wood finishing, urbanization and construction boom, government policies and regulations, consumer preferences for wooden products.

The wood manufacturing market size is expected to see steady growth in the next few years. It will grow to $549.71 billion in 2029 at a compound annual growth rate (CAGR) of 3.3%. The growth in the forecast period can be attributed to circular economy practices, mass timber construction trends, e-commerce impact on wood furniture manufacturing, energy efficiency in wood processing, resilience and adaptation to climate change. Major trends in the forecast period include sustainable practices and certification, advanced manufacturing technologies, innovations in wood-based materials, digitalization in supply chain management, circular economy practices, global market expansion.

The anticipated surge in the demand for wooden furniture is poised to drive the growth of the wood manufacturing market in the future. Wooden furniture encompasses items primarily or entirely crafted from wood, available in diverse styles, designs, and finishes - ranging from traditional to modern, and rustic to contemporary. Wood manufacturing plays a pivotal role in crafting various types of wooden furniture, including indoor and outdoor pieces, lumber, timber of specific sizes, and others. For example, as of June 2022, the United States International Trade Commission (USITC), a US-based governing agency, reported that the US import of wooden furniture amounted to $2.3 billion, reflecting a 5.7% increase compared to June 2021. Year-on-year, US imports of wood furniture reached $13.7 billion in the initial six months of 2022, marking a 10.6% increase. Consequently, the escalating demand for wooden furniture stands as a driving force for the future growth of the wood manufacturing market.

The increase in construction activities is expected to drive the growth of the wood manufacturing market in the future. Construction activities encompass the various operations and processes involved in building, renovating, and maintaining structures, infrastructure, and facilities. The wood manufacturing industry is vital to the construction sector, supplying a wide array of wood products essential for building and infrastructure development. For example, in July 2024, the Bureau of National Statistics, a government agency in Kazakhstan, reported that in 2023, the total value of construction services reached 7.61 trillion tenge, marking a 15.1% increase compared to 2022. Thus, the rise in construction activities is fueling the growth of the wood manufacturing market.

Major companies in the wood manufacturing market are forming strategic partnerships to provide a comprehensive range of sustainable solutions, enhancing environmental stewardship and meeting consumer demand. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. For example, in July 2024, TimberHP, a US-based manufacturer specializing in advanced wood insulation products for energy-efficient construction, partnered with Saint-Gobain, a manufacturing company based in France. This collaboration aims to improve distribution capabilities by granting CertainTeed Inc. the rights to distribute TimberHP’s insulation products across North America, including exclusive distribution rights. The immediate focus is on maximizing the capacity of the Madison plant, with TimberBoard expected to be produced by the end of the year. TimberBatt and TimberFill have already been in production for several months, establishing them as innovative offerings in the market.

Major companies in the wood manufacturing market are prioritizing the development of advanced products featuring hydraulic and servo drive systems to enhance operational efficiency, minimize downtime, and improve the precision of wood processing. These systems are advantageous in wood manufacturing as they increase accuracy, accelerate operational speed, and boost machinery efficiency, leading to higher productivity and better product quality. For example, in June 2024, Wood-Mizer, a US-based machinery company, introduced the WM2500 industrial sawmill, designed for high production of pallet boards, grade lumber, and dimensional lumber. With a powerful 30 HP motor, robust construction, and efficient hydraulic log handling, this sawmill significantly improves operational effectiveness. Its competitive pricing makes the WM2500 a key player in the wood manufacturing market, enabling businesses to maximize production and log yield without compromising quality.

In December 2022, Metrie, a Canadian-based manufacturer and distributor of interior millwork, made a strategic move by acquiring the Hemlock and Alder manufacturing and distribution business of Fred Tebb & Sons, Inc. for an undisclosed amount. This acquisition aims to strengthen the solid wood product manufacturing and service offerings for both companies, benefitting new and existing customers. Fred Tebb & Sons, Inc. is a US-based company specializing in solid wood manufacturing and distribution.

Major companies operating in the wood manufacturing market include Stora Enso Inc., Binderholz Inc., KLH Massivholz GmbH, HASSLACHER Holding GmbH, Lignotrend Inc., Eugen Decker Holzindustrie KG, Schilliger Holz AG, Structurlam Mass Timber Corporation, Moser Woods Products LLC, Holzwerke Bullinger GmbH & Co., SCHNEIDE GmbH, Pfeifer Holz GmbH, Weyerhaeuser Company, Novawood AS, Andersen Corporation, Arauco North America, Boise Cascade Company, Canfor Corporation, Columbia Forest Products Inc., Georgia-Pacific LLC, Hampton Lumber, Huber Engineered Woods LLC, Interfor Corporation, Louisiana-Pacific Corporation, LP Building Solutions, Moelven Industrier ASA, Murphy Company, Norbord Inc., PotlatchDeltic Corporation, Rayonier Advanced Materials Inc., Resolute Forest Products Inc., Roseburg Forest Products, Sierra Pacific Industries, Svenska Cellulosa Aktiebolaget SCA, Timber Products Company, Tolko Industries Ltd., Universal Forest Products Inc., West Fraser Timber Co. Ltd.

Asia-Pacific was the largest region in the wood manufacturing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global wood manufacturing market report during the forecast period. The regions covered in the wood manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the wood manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Wood manufacturing is the process of converting raw wood materials into finished wood products through multiple production stages. This entails utilizing machinery, equipment, and skilled labor to transform wood logs, lumber, or other wood materials into a diverse range of wood products serving various purposes.

The primary categories of wood manufacturing include millwork, veneers, engineered wood products, wood containers and pallets, manufactured homes, and others. Millwork involves the manufacturing and installation of wooden products, typically utilized for finishing or decorative purposes in buildings. It finds application in domestic and commercial settings within industries such as construction, furniture, packaging, joinery, and others.

The wood manufacturing market research report is one of a series of new reports that provides wood manufacturing market statistics, including the wood manufacturing industry's global market size, regional shares, competitors with a wood manufacturing market share, detailed wood manufacturing market segments, market trends, and opportunities, and any further data you may need to thrive in the wood manufacturing industry. This wood manufacturing 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 wood manufacturing market consists of sales of plywood, sawn wood, and fiberboard. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators 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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