Wood Bio-Products Market Report 2026

The wood bio-products market size has grown strongly in recent years. It will grow from $302.89 billion in 2025 to $328.64 billion in 2026 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to increasing environmental sustainability awareness, availability of forestry residues, growth of pulp and paper industry capabilities, early adoption of bio-based chemicals, expansion of renewable energy initiatives.

The wood bio-products market size is expected to see strong growth in the next few years. It will grow to $470.89 billion in 2030 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to increasing investments in bio-refinery technologies, rising demand for low-carbon materials, expansion of bio-based packaging applications, growing use of wood bio-products in automotive components, increasing regulatory support for renewable materials. Major trends in the forecast period include expansion of bio-based material applications, rising demand for renewable alternatives to plastics, growing adoption of lignin and cellulose derivatives, increased focus on circular bioeconomy solutions, development of high-performance biocomposites.

The rising demand for furniture and flooring products is expected to drive the growth of the wood bio-products market in the coming years. Furniture and flooring products include interior furnishings such as chairs, tables, and sofas, as well as floor-covering materials like hardwood, laminate, and carpet, which enhance both the aesthetic and functional aspects of interior spaces. Wood bio-products provide environmentally friendly options for furniture and flooring, supporting sustainability and reducing dependence on traditional materials. Their use in furniture and flooring also promotes a natural and attractive finish. For example, in 2025, according to Federal Reserve Economic Data, a US-based data source, retail sales at furniture and home furnishings stores in the US reached US$12.45 billion in December 2024, up from US$11.49 billion. Therefore, the increasing demand for furniture and flooring products is driving 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 2025, UFP Industries Inc., a US-based manufacturing company, acquired C&L Wood Products, Inc. for an undisclosed amount. Through this acquisition, UFP Industries aims to broaden its product portfolio and enhance its presence in the North American wood products market. C&L Wood Products, Inc. is a US-based manufacturer specializing in high-quality hardwood and softwood products for residential, commercial, and industrial applications.

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 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the wood bio-products market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the wood bio-products market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

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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