Plywood Market Size, Share, Growth Report 2032

Industry Prospective:

The global plywood market size was valued at USD 105.9 million in 2021 and is projected to reach USD 146.7 million by 2030 with a compound annual growth rate (CAGR) of 6.1% during the forecast period of 2022-2030. The report consists of the overall market aspects including the overview, market drivers, opportunities, restraints/challenges, and the impact that the plywood market is likely to create during the forecast period. 

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Plywood Market: Overview 

Plywood is used in lots of construction materials to offer greater power and lengthy durability. Plywoods are the product of softwoods or hardwoods or a combination of both. These piles are connected with the use of strong adhesive glues along with urea-formaldehyde resin or phenol. Plywood are used in the production zone to form the mild partition or outside partitions. It is also used for the production of mild doors, shutters, cupboards, and kitchen cabinets. Plywood represents an engineered wood product. It is synthesized through the pile-up of thin layers of wood veneers bonded together with the use of sturdy adhesives. Several wood varieties, consisting of maple, mahogany, oak, pine, cedar, spruce, etc., are utilized in a mixture to supply plywood.

Plywood gives several benefits such as stronger flexibility, advanced reusability, smooth installation, excessive resistance to chemicals, moisture, fire, etc. As a result, it reveals numerous applications in flooring, roofing, furniture, doors, indoor walls, outside cladding, etc. Moreover, a skinny outer layer of extra materials, consisting of resin-impregnated paper, plastic, fabric, or Formica, is brought to the face and lower back veneers to enhance the sturdiness and facilitate higher binding of paint. Plywood is widely utilized in interior layout and furniture work. 

Key insights 

• The global plywood market was estimated at USD 105.9 million in 2021 and is projected to reach USD 146.7 million by 2030
• The plywood market is expected to grow at a compound annual growth rate (CAGR) of 6.1% during the forecast period (2022-2030).
• Plywood is utilized in furniture production due to its energy and durability, and additionally in furniture making due to its versatility. The increased demand for plywood across different regions propels the market growth.
• Based on type, the decorative segment has dominated the market in 2021.
• Based on an application, furniture segment was the largest revenue-generating segment in 2021.
• Asia-Pacific dominates the plywood market, due to growth in the production activities within the region. According to Investors in India, the development industry is anticipated to reach $1.4 trillion by 2025.

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Plywood Market: Growth Drivers

An increase in sales of flat-pack furniture propels the market growth

Most of the flat pack furniture is usually made of plywood, particle board, and medium-density fiberboard. Flat-pack furniture is famous for its affordability and simplicity of transport. It is likewise extraordinarily flexible and can be custom-made. The interest in domestic-associated initiatives with people spending more time at home in the course of the pandemic drove up the sales for furniture. For instance, the D2C home furnished brand’s article shared that April 2020 turned into their maximum sales month to date, with sales up 200% as compared to April 2019.

Conversion of areas into domestic workplaces and home classrooms additionally has pushed the income of fixtures. This fashion additionally persevered in 2021. Currently, across the world, ‘green living, green thinking’ is the order. Consumers emerge as extra aware of their carbon footprint and like sustainable products. As such, green homes have emerged as popular. Green sustainable production makes space for green designs and green homes which can be much less detrimental to humans and the environment. Solid wood usage is a big concern for the environment leading to deforestation issues.

Plywood Market: Restraints

Replacement of the existing product hampers the market growth

The availability of substitute products is the main factor limiting the growth of the global plywood market. A variety of low-cost goods are utilized as fictitious material for plywood. The growth of the plywood market is hampered by the fluctuation of the cost of the raw substances. Apart from that, the lack of proper knowledge and awareness associated with plywood usage and production can harm market growth. There are many places where people still cut trees in huge amounts and extract the wood which creates an alarming situation for the environment as well. Over the forecast period, the plywood market is likely to be affected by the development of better alternatives.

Plywood Market: Opportunities

Plywood market in various industries to provide growth opportunities 

The usage of plywood products in various industries is ensuring the growth of the global plywood market. The benefits of plywood are one of the main factors that create growth opportunities. Its capabilities include flexibility and sturdiness for the long term along with resistance to chemical & fire and simple installation while shielding the construction from heat and sound. Due to these properties, plywood is extensively utilized in the manufacturing of boats in the marine industries. They are used for the manufacture of stringers, floor, transom, boat cabinetry, walls, seating moreover interior constructions. Such factors create ample opportunities for the growth of the plywood market.

Plywood Market: Challenges

Plywood market products demand raw substances

The growth in the usage of plywood products has brought about the demand for raw substances in the production groups. The excessive usage along with the limitation of raw materials can challenge market growth. Also, due to the spread of the pandemic, there has been unavailability of raw substances. So the manufacturing groups are focused to hold their marketplace cost by getting assistance from traders. The investors can get returned to their function in the market through the generation of a huge variety of products. Rapid production is quite challenging for the market.

Plywood Market: Segmentation 

The global plywood market is segmented based on product, application, and region.

Based on product type, the plywood market is segmented as hardwood, softwood, decorative, and tropical plywood. The decorative section is anticipated to expand at a CAGR of 4% and is likely to showcase splendid capacity for the future increase of the section. Plywood is a new alternative to wood-based products. These are used for industrial and home packages and are made up of a sheet of wood veneer. Plywood is of different types such as water-resistant plywood, ornamental plywood, industrial plywood, and lots of others.

Based on application, the market is segmented into construction, furniture, packaging, transportation, flooring and others. It is stated that there’s an excessive demand for plywood and laminates for the production of furniture to promote the increase of the furniture segment. Construction and furniture together accounts for more than 55% of the total market share. The main areas of plywood use in construction and furniture segment are interior cladding, indoor furniture, stables, roof linings, and other. Plywood and laminate provide an ornamental appearance to the furniture. As such, consumers prefer the usage of plywood and laminate as substitutes for raw wood-based products.

Recent Developments 

• In December 2021, UPM was introduced to invest EUR 10 million for the improvement of UPM Plywood’s mill in Joensuu. UPM Joensuu manufactures plywood and plywood additives for greater demand across industrial sectors.
• In March 2021, Green ply Industries Ltd. divulged that it will make investments of around INR 75 crores to set up plywood and allied products production unit via a wholly-owned subsidiary at Sandila Industrial Area in Hardoi, Uttar Pradesh. The new project is expected to be operational through Q4 2021-22.

Plywood Market Report Scope:

Plywood Market: Regional Analysis

North America dominated the market growth during the forecast period 

North American region dominated the global plywood market in 2021, with a share of 85.52%, attributable to the strong increase in residential construction spending in the country. The rise in consumer expenditure on aesthetically attractive furniture products and the sizeable increase in the single-own circle of relatives’ housing constructions are different elements that possibly trigger the nearby product demand over the projected period. Flameproof companies, hoover treated wood products, Lonza, Viance, Metsä wood, etc. are the key providers within the marketplace.

The market across Europe and Asia-Pacific is also expected to grow at a moderate compound annual growth rate (CAGR) during the forecast period of 2022-2030. This can be attributed to the increased construction and building activities across developing countries. 

Plywood Market: Competitive analysis

The global plywood market is dominated by players like:

• Austal Plywoods Private Limited
• Boise Cascade Company
• Eksons Corporation Berhad
• Georgia Pacific LLC
• Latvijas Fineries AS
• Meta's Wood
• Potlatch Deltic Corporation
• SVEZA Forest
• UPM Kymmene Oyj.

The global plywood market is segmented as follows: 

 By application 

• Construction
• Furniture
• Packaging
• Transportation
• Flooring
• Others

By product

• Hardwood plywood
• Softwood plywood
• Decorative plywood
• Tropical plywood
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa