Global Balsa Wood Market Is Predicted to Grow Around USD 0.28 Billion By 2030

Global Balsa Wood Market is Likely to Grow at a CAGR Value of 6.01% by 2030

The global balsa wood market size was worth around USD 150 Million in 2022 and is predicted to grow to around USD 280 Million by 2030 with a compound annual growth rate (CAGR) of roughly 6.01% between 2023 and 2030.

The Balsa tree also known as Ochroma pyramidale is found in tropical areas and is a fast-growing tree that forms a part of the mallow family or Malvceae. Wood is known in the commercial world for its lightweight structure along with being extremely light in color. The balsa wood can be found in areas stretching between Bolivia and Mexico and is extremely common in these regions. The wood is used extensively in projects involving insulation, packing, and model-building along with being used for manufacturing floating devices like rafts. Following the tendencies of tropical trees, balsa wood does not exhibit any annual growth rings and is pale bark in color.

The leaf structure of balsa wood leaves is heart-shaped at the bottom and pointed at the tip. Although the wood occurs naturally in certain parts of the world, driven by the high demand for the wood, the trees are commercially cultivated in densely packed areas with around 1000 trees being planted per hectare. The harvest period for balsa trees is between 6 to 10 years

The global balsa wood market is projected to grow owing to its several applications of it in various end-user verticals that are registering high growth. It is the softest and lightest timber available for commercial applications. The increasing demand for wood in the aerospace industry is a major global industry propeller. In this sector, balsa wood plays a significant role in the production of lightweight aircraft since the wood has an excellent strength-to-weight ratio. Furthermore, the construction sector is another significant contributor to the global sales volume.

The wood is used in activities related to flooring, wall panels, and insulation. The growing demand in the wind sector, where balsa wood is used in the production of blades of wind turbines is the reason that has high demand during the growth period. In addition to this, the world is slowly but steadily shifting toward renewable energy with the mass installation of wind turbines across developed and developing nations. These applications are examples of the importance of balsa wood in the construction sector and as the world moves towards urbanization, the demand is expected to continue reaching new heights.

Despite being extremely popular in large-scale sectors, there are several growth restraints for the balsa wood industry. One such restriction is the limited availability of wood. Currently, almost 95% of the wood is exported from the countries of Peru, Colombia, and Ecuador. No other country has mass reserves of balsa wood. This increases the world's dependency on certain countries for the transportation of balsa wood. Furthermore, changing market demand poses a critical threat to global market expansion. The fluctuations range in terms of raw material availability and prices making the product highly volatile.

The growing need for composite materials may provide growth opportunities whereas substitute availability could challenge the market expansion.

The global balsa wood market is segmented based on application, type, and region

Based on application, the global market divisions are defense & aerospace, industrial construction, renewable energy, rail-road-marine, and others

• In 2022, the global market registered the highest growth in the defense & aerospace segment and it may generate a revenue of 0.07 billion by the end of 2023
• The primary reason that propels the demand for balsa wood in the segment is the lightweight nature of the wood making it an ideal choice to manufacture different parts of airplanes and other units used in the industry
• Since the structure is similar to the core of the honeycomb and has commercial availability across thickness, finish, and density, the wood is high in demand

Based on type, the balsa wood industry is segmented into grain C, grain B, and grain A

• In 2022, the highest sales were registered in the grain B segment since it has the widest end-user applications
• In the same year, the segment gained a market share of almost 41.1%
• Grain B, on multiple occasions, has been classified as an all-purpose wood which is a primary reason for the high demand for the grain structure

Asia-Pacific is anticipated to lead the global balsa wood market owing to the high consumption of the product and rising import value. China, India, Malaysia, and Singapore are the largest regional consumers of wood. However, the dominant producer of balsa wood is Ecuador. It is the largest holder and supplier of the product. The government of Ecuador is responsible for regulating the trade aspects of the wood and the country's leaders have managed to develop sustainable harvesting practices for a continuous and fair supply of the wood. Growth in Europe and the US is driven by the increasing demand in the aerospace segment along with rising investments in the wind energy sector. However, a lot of the regions are registering a lag in the required supply of the product owing to various geo-political factors.

This review is based on a report by Zion Market Research, titled “Balsa Wood Market By Application (Defense & Aerospace, Industrial Construction, Renewable Energy, Rail-Road-Marine, and Others), By Type (Grain C, Grain B, and Grain A), By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2030.”- Report at https://www.zionmarketresearch.com/report/balsa-wood-market

Recent Developments:

• In February 2021, scholars from the University of Maryland claimed that they have developed a new method to improve the strength and durability of balsa wood. The method involves the treatment of the wood with a solution of sodium hydroxide which impacts the wood’s density
• In June 2021, Gurit registered an updated financial book for the year 2021 influenced by the reduced demand for balsa wood in China along with wind blades. The company has initiated relocation and restructuring measures to navigate through the financial changes

The global balsa wood market is led by players like:

• CoreLite Inc
• Gurit
• Guangzhou Sinokiko Balsa Co. Ltd
• The Gill Corporation
• 3A Composites
• DIAB International AB.

The global balsa wood market is segmented as follows:

By Application

• Defense & Aerospace
• Industrial Construction
• Renewable Energy
• Rail-Road-Marine
• Others

By Type

• Grain C
• Grain B
• Grain A

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

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