Wood Chipping in New Zealand - Industry Market Research Report

Out of the woods: After a volatile thicket, chipper harvests and pricing kindle revenue stability

The Wood Chipping industry in New Zealand heavily depends on exporting woodchips to Japanese paper manufacturers, with approximately two-thirds of its revenue generated from international markets. Japan, one of the world's largest paper producers, is a primary market for New Zealand woodchippers. The industry is influenced by factors like production, prices and demand, resulting in high revenue volatility. Further, the industry has faced challenges in recent years, when woodchip production and export demand declined, as a result of weaker overall demand and the lingering negative effects of the COVID-19 pandemic. Domestic paper manufacturing activity is low, and most local paper-producing companies use domestic woodchips and recycled materials in their paper and cardboard production processes. Industry revenue is expected to expand at an annualised 0.8% over the five years through 2023-24, reaching $112.8 million. This includes an anticipated 1.2% drop in 2023-24.

This industry predominantly manufactures and exports hardwood and softwood woodchips, mainly to Japanese paper manufacturers, while also supplying a smaller domestic market, mainly from logging and sawmilling residues.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.