Global Reclaimed Lumber Market - 2024-2031

Global Reclaimed Lumber Market - 2024-2031

Global Reclaimed Lumber Market reached US$ 54.2 billion in 2023 and is expected to reach US$ 77.1 billion by 2031, growing with a CAGR of 4.5% during the forecast period 2024-2031.

The degree of customization now available in the market is rivaling that of traditional hardwood and plywood products. To differentiate themselves in an increasingly crowded marketplace, many new entrants are embarking upon a ‘made-to-order’ strategy to increase consumer interest in their products.

Another notable trend that has become prominent in recent years is the usage of industrial automation. Automation has allowed producers to drastically lower production costs and increase the affordability of their products. For ensuring steady market growth in the future, more producers need to switch over to an automated production process.

Dynamics

Rising Concerns About Deforestation

The demand for lumber has become one of the major causes of deforestation over the past decade, with the pace of deforestation accelerating sharply from 2010 onwards. If UN Food and Agricultural Organization data is to be believed, then nearly 10 million hectares of forests are cut down every year. The growing concerns about deforestation have prompted a shift in consumer behaviors towards wooden home furnishing articles.

Surveys indicate that western consumers are prepared to pay a premium for reclaimed lumber products if it means that deforestation can be slowed down. Given the appeal of sustainability, many consumers in the high-income bracket are exclusively opting for furniture and fittings made from reclaimed lumber.

Consumer Shift Away from Plywood

For many decades, furniture and fittings were mainly marketed as mass market products manufactured cheaply from average grades of plywood. However, such furniture is not very durable and many consumers are opting for more durable options. The demand for solid wood fittings has increased noticeably over the past decade.

However, since good quality hardwoods are difficult to source, the price of solid wood home fitting articles is very expensive. So, reclaimed lumber offers a much more economical alternative for consumers looking to shift away from plywood. The trend is more noticeable in developed countries, where higher per capita incomes makes the shift away from plywood much more feasible.

High Cost of Production

Inspite of their growing popularity, reclaimed lumber products face a number of challenges in production. The most important challenge is to source good quality used wood. Far too often, most wood is rotten and contaminated with bacteria and fungi. Sourcing high quality of old wood is a difficult and time consuming process, which adds to the production cost.

The production of reclaimed lumber articles requires the usage of skilled tradesmen who are adept at identifying and processing wood. Since this is a niche skill, many industries are facing labor shortages and wages in the sector are relatively higher compared to other trades. The higher cost of production translates to higher products for finished products and ultimately limits the reach of the global market.

Segment Analysis

The global reclaimed lumber market is segmented based on source, application, end-user and region.

Consumers Mainly Prefer Flooring Made From Reclaimed Lumber

Out of all applications, flooring made from reclaimed lumber remains the most popular with consumers. It also offers certain advantages for manufacturers as well, since flooring has a smaller form factor, making it relatively easy to manufacture. In fact, the first product offering of new entrants in the market is flooring. Many established wooden home furnishing manufacturers are gradually switching towards using reclaimed lumber, since it is less energy intensive to manufacture.

Even though flooring is the most popular application for reclaimed lumber, there is also a sizeable market demand for paneling and siding. But due to its relatively higher price, it is relegated among upper middle class consumers. Many reclaimed lumber companies are also increasingly developing their own lines of wooden furniture, such as tables and chairs.

Geographical Penetration

New Government Initiatives Will Propel Market Growth in North America

The reclaimed lumber industry has taken off in North America, as the region has a much larger concentration of high-income consumers. Furthermore, wood remains an essential material for architectural design in North America, given the harsh cold climate in large parts of the region. Despite growing consumer interest, it is government support that is really propelling the industry forward.

The U.S. Forest Service has published a large amount of free knowledge resources on its website to aid consumers in making an informed choice about purchasing reclaimed lumber articles. Similarly, some government agencies have also rolled out financial aids for companies manufacturing reclaimed lumber. A recent instance of this is U.S. environmental protection agency making a capital investment of US$ 4 million in November 2023, in the reclaimed lumber industry of Seattle in western U.S.

COVID-19 Impact Analysis

The pandemic created very tough times for the reclaimed lumber industry. Many producers had to temporarily halt operations as sourcing lumber became difficult due to lockdowns and other movement restrictions. Many labor-intensive reclaimed lumber companies had to suspend operations due to labor shortages. Some smaller companies were forced into bankruptcy due to difficult economic situation created by the pandemic.

Even in the aftermath of the pandemic, many of the small player in the market struggled to raise their business. However, with a noticeable global shift towards sustainability, demand for reclaimed lumber is once again swinging upwards. It is expected that the manufacturing of reclaimed lumber will become more popular in emerging countries as well.

Russia-Ukraine War Impact Analysis

Even before the war in Ukraine, Russia’s reclaimed lumber industry was struggling. Given the large area that is under forest cover, lumber is widely and cheaply available. Reclaimed lumber is especially expensive due to bureaucratic regulations and corruption. Illegal logging and smuggling of lumber further complicates the full-fledged development of a local reclaimed lumber industry.

With most western countries imposing tough economic sanctions on Russia, most western technology companies which were engaged in developing the local sector left the country. Without western investment, the Russian reclaimed lumber industry is likely to stagnate over the coming years.

By Source
• Post-industrial Reclaimed
• Post-consumer Reclaimed
• Water Reclaimed
• Orchard Salvage Reclaimed
• Forest Floor Salvage Reclaimed
• Others

By Application
• Beams & Boards
• Flooring
• Paneling and Siding
• Furniture
• Others

By End-User
• Commercial
• Residential
• Industrial

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In October 2023, Urban Machine, a robot manufacturer based in California, U.S., unveiled a new automated system for assisting the reclamation of lumber during processing of waste wooden articles.
• In November 2023, U.S. environmental protection agency announced a grant of US$ 4 million to convert old wood into reclaimed lumber for housing construction in the western city of Seattle.
• In February 2024, Fortnum and Mason, one of UK’s iconic grocery stores, announced that it had used reclaimed lumber to remodel its historic store in St. James’s, London.

Competitive Landscape

The major global players in the market include Longleaf Lumber Inc., Jarmak Corporation, Elmwood Reclaimed Timber, Recycling The Past, LLC, Altruwood, Vintage Timberworks Inc., Carpentier, Imondi Flooring, Olde Wood Limited and TerraMai.

Why Purchase the Report?
• To visualize the global reclaimed lumber market segmentation based on source, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of pouch tapes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global reclaimed lumber market report would provide approximately 69 tables, 62 figures and 199 Pages.

Target Audience 2024
• Construction Companies
• Furniture Manufacturers
• Industry Investors/Investment Bankers
• Research Professionals