Wood Bio-Products Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The wood bio-products market size has grown strongly in recent years. It will grow from $279.96 billion in 2024 to $305.26 billion in 2025 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to growing demand for sustainable and eco-friendly products, government support for the development of wood bio-products, increasing awareness of the environmental benefits of using manufactured wood products, increasing research and development activities.

The wood bio-products market size is expected to see strong growth in the next few years. It will grow to $430.15 billion in 2029 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to increasing demand for furniture and flooring products, geographic expansion, increasing investments in the wood bio-products, environmental awareness. Major trends in the forecast period include advanced wood conversion technologies, biorefinery development, technological innovation, collaboration and partnerships, sustainability initiatives.

The wood bio-products market is poised for growth, driven by increasing demand for furniture and flooring products. Furniture and flooring products encompass a wide range of interior furnishings, including chairs, tables, sofas, and various materials used for floor coverings like hardwood, laminate, and carpet. These products play a significant role in enhancing both the aesthetic and functional aspects of interior spaces. Wood bio-products offer an environmentally friendly alternative for creating furniture and flooring materials, contributing to sustainability efforts and reducing reliance on conventional materials. Utilizing wood bio-products for furniture and flooring maintenance also promotes a natural and aesthetically pleasing finish. As an illustration, according to data from the U.S. Census Bureau, a government agency based in the United States, retail sales in furniture and home furnishings solutions increased from $11.73 billion in January 2021 to $12.53 billion in January 2023. Therefore, the growing demand for furniture and flooring products is expected to be a key driver for the expansion of the wood bio-products market.

The rising utilization of wood bio-products in construction activities is expected to drive the growth of the wood-bio products market in the future. Construction involves assembling various components to create a structure based on detailed designs and plans for a specific location. Wood bio-products provide a sustainable, eco-friendly, and versatile alternative to conventional construction materials, promoting more environmentally responsible and energy-efficient building practices. For example, in July 2022, Biomass Magazine, a US-based monthly trade publication dedicated to the biomass industry, reported that the European Union is projected to export 2.25 million metric tons of wood pellets in 2022, up from 2.21 million metric tons in 2021. Consequently, the increasing use of wood-bio products in construction activities is fueling the growth of the wood-bio products market.

Leading companies in the wood bio-products market are concentrating on the development of advanced lignin-based materials to reduce ecological impact, decrease waste, and satisfy the growing demand for sustainable packaging solutions. For example, in June 2024, Lignin Industries AB, a greentech company based in Sweden, introduced Renol, a renewable alternative to fossil fuel-based plastics. This versatile material is suitable for various industrial applications, including ABS, PE, and PP, and serves multiple sectors, from automotive to consumer electronics. After five years of development, Renol's production is designed to be scalable and resource-efficient, effectively minimizing CO2 emissions. Produced in Sweden, it aligns with industry demands for sustainable, high-performance materials.

In January 2022, Exxon Mobil Corporation, a U.S.-based natural gas company, completed the acquisition of a 49.9% stake in Biojet AS for an undisclosed sum. This strategic move by ExxonMobil was aimed at expanding its production of lower-emission biofuels derived from wood waste. The acquisition reinforces ExxonMobil's commitment to offering sustainable transportation solutions and reducing greenhouse gas emissions within the transportation sector. Biojet AS is a Norway-based biofuel company with expertise in producing biofuels and components derived from wood sources.

Major companies operating in the wood bio-products market are Stora Enso Oyj, UPM-Kymmene Oyj, Weyerhaeuser Company, West Fraser Timber Co. Ltd., Suzano S.A., UFP Industries Inc., Drax Group PLC, Georgia-Pacific LLC, Mondi Group, Sappi Limited, Canfor Corporation, Arauco Wood Products Inc., JELD-WEN Holding Inc., Domtar Corporation, BillerudKorsnäs AB, Metsä Group, Ekman & Co AB, Holmen AB, Kruger Inc., Enviva Partners LP, Södra Skogsägarna ekonomisk förening, Borregaard ASA, HS Timber Group GmbH, Verdo Renewables Ltd., Bio Diversity LLC.

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

The wood bio-products market consists of sales of wood pellets, wood chips, wood-based textiles and fibers, wood-based chemicals, biochar and wood adhesives. 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.

Wood bio-products are materials and commodities obtained from wood and its components using environmentally sustainable processes. These products harness the inherent qualities of wood, including cellulose, lignin, and hemicellulose, to manufacture a variety of items suitable for both residential and commercial purposes. Wood bio-products are eco-friendly, utilizing renewable resources and decreasing reliance on fossil fuels.

The key categories of wood bio-products encompass biofuels, bioplastics, biochemicals, biocomposites, and pulp and paper. Biofuels are sustainable fuels produced from biomass sources, which can include plant-based materials like wood, agricultural residues, or algae. These fuels serve multiple purposes, from heating and electricity generation to transportation. They are distributed through both offline and online channels and have applications in energy, packaging, construction, automotive, and chemical industries. These products cater to diverse end-use sectors, including residential, commercial, industrial, infrastructure, and more.

The wood bio-products market research report is one of a series of new reports that provides wood bio-products market statistics, including wood bio-products industry global market size, regional shares, competitors with a wood bio-products market share, detailed wood bio-products market segments, market trends and opportunities and any further data you may need to thrive in the wood bio-products industry. This wood bio-products 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.

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