Wood Bio-Products Market Forecasts to 2028 – Global Analysis By Products (Manufactured Wood Material, Finished Wood Product and Wood Processing), Distribution Channel, Application and By Geography

Wood Bio-Products Market Forecasts to 2028 – Global Analysis By Products (Manufactured Wood Material, Finished Wood Product and Wood Processing), Distribution Channel, Application and By Geography

According to Stratistics MRC, the Global Wood Bio-Products Market is accounted for $260.0 billion in 2022 and is expected to reach $486.3 billion by 2028 growing at a CAGR of 11.0% during the forecast period. The industry that encompasses the manufacture and use of various goods generated from wood and its by-products is known as the wood bio-products market. These goods are often produced using procedures that transform wood fibre, including sawdust, chips, and bark, into chemicals and materials with additional value. Growing interest in engineered wood products over traditional solid wood due to increased awareness of the environmental advantages of employing made wood materials, as well as an ever-increasing demand for wood bio-products in emerging countries.

According to an industry group, the construction market as a whole was worth USD 8.2 trillion in 2021 and is expected to be worth USD 14.4 trillion by 2030. This huge growth in the building industry will be a big reason why people want to buy wooden formwork systems.

Market Dynamics

Driver

Increasing preference for engineered wood products

Engineered wood products have several benefits over conventional solid wood products, which is the reason they are becoming more and more popular in the construction sector. As a result, they are a more dependable and durable solution for flooring, structural support, and other uses. This makes them a more cost-effective choice for construction projects, both residential and commercial. Hence, this is the factor driving the market growth.

Restraint

Competition from other materials

One of the main challenges facing the industry for wood bioproducts is competition from alternative materials. Concrete, metals, and plastics are a few materials that can be used in place of wood bioproducts. These materials can be made more affordably and might have qualities that are comparable to or better than those found in wood bioproducts, which could restrain the market's expansion. Because they can be manufactured more cheaply and have qualities that are comparable to or better than those of wood bioproducts, their use may be restricted.

Opportunity

Expansion into emerging markets

Beyond industrialised nations, there is a need for wood bioproducts. The demand for sustainable products is also rising in emerging economies. This gives businesses the chance to grow their operations and attract new clients. Some of the largest and most diversified forests in the world are found, which may present substantial prospects for the market for wood bio-products. The market for wood bio-products may also be influenced by the rising need for sustainable and renewable materials in nations like Brazil and Mexico.

Threat

High capital cost

The significant capital expenditure needed to set up production facilities is one of the biggest obstacles facing the market for wood bioproducts. Specialised machinery and methods are needed to produce wood bio-products, and they can be expensive to install and maintain. For instance, it can be expensive to put up the facilities and equipment needed to produce engineered wood products like cross-laminated timber.

Covid-19 Impact

The COVID-19 epidemic has had a significant impact on the market for wood products production in 2022, as supply chains were disrupted by trade restrictions and demand fell as a result of lockdowns imposed by governments around the world. The availability of raw materials, the supply chain, production, and product sales have all been adversely impacted locally and globally by the epidemic in the forest products business. Societies and the world economy have been impacted by the epidemic brought on by a novel coronavirus. Additionally, the markets for sanitary paper suddenly became active. Other developments occurred and had an impact on how practically all businesses operated and played a part in world trade.

The finished wood product segment is expected to be the largest during the forecast period

The finished wood product segment is estimated to have a lucrative growth. The demand for finished wood products is primarily driven by the housing and construction industries. More people require homes and businesses as economies develop and urbanisation keeps going, which raises the need for wood items like flooring, doors, windows, and furniture. Additionally, the growth of e-commerce sites has aided in the international trading of finished wood goods.

The offline segment is expected to have the highest CAGR during the forecast period

The offline segment is anticipated to witness the fastest CAGR growth during the forecast period. Customers tend to check out the quality, texture, and finish before making a purchase of wood bio-products because they are frequently regarded as high-value goods. Customers may see, touch, and feel wood products in offline distribution channels like real retail locations, which improves their shopping experiences and gives them trust in the quality of the goods. The market for wood bioproducts has a history of working with offline distribution channels.

Region with highest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to the increasing demand for wood bio-products has expanded for a variety of uses, including building materials, furniture, and interior decoration, as a result of increased construction activities, infrastructure development, and urbanisation. The wood processing industry has also undergone tremendous development. This rise promotes regional demand for wood bio-products, strengthens the efficiency of the supply chain, and supports local manufacturing skills.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to the region’s demand for wood-based panels is rising as the construction industry expands. The adoption of certified wood-based panels is a result of the nation's strict emission requirements and safety laws. The two industries that use wood-based panels the most in Germany are the construction and furniture industries.

Key players in the market

Some of the key players profiled in the Wood Bio-Products Market include Upm-Kymmene Corporation, Lixil Group, Stora Enso, UFP Industries Inc., West Fraser, Weyerhaeuser Company, Jeld-Wen Inc., Canfor, Metsä Group, Sappi, Rayonier Advanced Materials Inc., Domtar Corporation, Billerud Americas Corporation, Södra Skogsudden, Ekman & Co AB and Holzindustrie Schweighofer Timber Group.

Key Developments

In December 2022, Lixil Group acquired Basco on 14 December 2022. Basco is a leading manufacturer of showers and has a strong presence in the Southeast, Midwest, and East Coast regions. Through this acquisition, Lixil Group has expanded its reach in bathroom products.

In December 2022, Weyerhaeuser partnered with American Forests. This partnership helped American Forests' Tree Equity program to expand into smaller communities & provide environmental education to the urban youth. This program helped Weyerhaeuser to address the differences in tree canopy coverage in three communities where Weyerhaeuser resides and worked.

In October 2022, UFP Industries launched wood composite decking under deckorators brand. Deckorators produces deck railing, composite decking, balusters, and post caps. It helped UFP Industries Inc. to provide affordable, low maintenance and distinctive wood composite decking.

Types Covered
• Manufactured Wood Material
• Finished Wood Product
• Wood Processing

Distribution Channels Covered
• Offline
• Online

Applications Covered
• Commercial
• Residential
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements