Plywood Market Report 2026

The plywood market size has grown strongly in recent years. It will grow from $131.63 billion in 2025 to $138.33 billion in 2026 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to expansion of residential construction activities, growth in furniture manufacturing, increasing use of plywood in interior applications, availability of affordable wood-based panels, rising urbanization trends.

The plywood market size is expected to see strong growth in the next few years. It will grow to $173.48 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to increasing demand for sustainable building materials, rising focus on green construction practices, expansion of modular furniture production, growing investments in engineered wood products, increasing preference for durable interior materials. Major trends in the forecast period include increasing demand for moisture-resistant plywood, rising use of engineered wood panels, growing adoption of eco-certified plywood, expansion of furniture-grade plywood applications, enhanced focus on structural strength.

The increase in construction activities is expected to drive the growth of the plywood market in the coming years. Construction involves assembling various components to develop structures at specific locations based on detailed designs and plans. Plywood is widely used in construction due to its structural strength, versatility, and cost efficiency. For example, in August 2024, according to the Sunshine Coast Council, an Australia-based local government body, the value of construction building approvals in the region reached a record $2.3 billion, representing an increase of $100 million compared with 2022-23. This milestone highlights the strong momentum in construction activity and reflects robust demand for building projects. Consequently, rising construction activities are fueling the growth of the plywood market.

Companies operating in the plywood market are increasingly focusing on the development of eco-friendly fire-retardant plywood to improve safety, durability, and structural performance. Eco-friendly fire-retardant plywood is a treated wood panel designed to achieve Class A fire resistance without the use of toxic chemicals, while retaining high mechanical strength. This enables enhanced fire protection, long-term durability, and reduced environmental impact. For instance, in April 2025, T2EARTH, a US-based sustainable wood technology company, introduced OnWood Plywood, an environmentally friendly fire-retardant plywood developed for fire-prone and high-humidity environments. The product features ICC-certified Class A fire performance, independently verified strength up to 91% higher than conventional treated plywood, and non-toxic, sustainably sourced materials. OnWood Plywood enhances safety compliance, structural reliability, and long-term cost efficiency in construction applications.

In March 2024, Richelieu Hardware, a Canada-based hardware manufacturing and distribution company, acquired Allegheny Plywood Company for an undisclosed amount. Through this acquisition, Richelieu sought to strengthen its market position by establishing distribution centers in Pittsburgh and Allentown, Pennsylvania, as well as Cleveland, Ohio. This move is intended to expand the company’s US operations and enhance its product portfolio in specialized panels and decorative surfaces, supporting its broader regional growth strategy. Allegheny Plywood Company is a US-based wholesale distributor specializing in cabinet-grade hardwood, plywood, and industrial panel products.

Major companies operating in the plywood market are UPM-Kymmene Oyj, Boise Cascade Company, Metsä Group, West Fraser Timber Co Ltd, Weyerhaeuser Company, Georgia-Pacific LLC, Greenply Industries Limited, Sveza-Les LLC, Austal Plywoods Private Limited, Century Plyboards India Ltd, Kitply, Sarda Plywood, National Plywood, Kamdhenu Plywood, Oriental Veneer Products Ltd, Luli Group, Yingang Wood Based Panel Co Ltd, Shandong Xingang Group, Xinle Plywood Group, Jiangsu Shengyang Industrial Joint Stock Co Ltd, Specialized Panel Products Ltd, Ply-Tek, Caledonian Plywood Company, Holdex Plywood Ltd, Sydenhams Plywood & Panel Products, Viking Plywood & Timber Ltd, Timb Ply Ltd, Stora Enso, Segezha Group, KPPD-Szczecinek SA, Ilim Timber LLC, Sierra Pacific, Berneck.

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

The plywood market consists of sales of off-core plywood, lumber plywood, and marine plywood. 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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