Wood Processing Market Size, Share, Trends, Growth 2032

Wood Processing Industry Prospective:

The global wood processing market size was worth around USD 139.55 billion in 2023 and is predicted to grow to around USD 211.71 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5.35% between 2024 and 2032.

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Wood Processing Market: Overview

Wood processing deals with procedures involved in transforming raw wood or lumbar into more useful products. Wood processing ensures that wood can be transformed either into a single structural component with extensive applications or becomes a segment of a different larger component. The processes involved in wood manufacturing are planning, sawing, sanding, shaping, drilling, and finishing. Each step has a crucial role to play and the skills of the craftsmen are tested during these processes. For instance, sawing requires human aid to cut the raw wood into the desired format, shape, and size. It can either be carried out by hand or using advanced mechanical tools such as sawmills.

Planning, on the other hand, is the process of smoothening the area or creating even surfaces. The wood processing industry has been a part of the global commercial world for centuries. The technique and the technologies involved in the process have evolved over the years. During the forecast period, the industry for wood processing is expected to register a significant growth rate while dealing with critical challenges.

Key Insights:

• As per the analysis shared by our research analyst, the global wood processing market is estimated to grow annually at a CAGR of around 5.35% over the forecast period (2024-2032)
• In terms of revenue, the global wood processing market size was valued at around USD 139.55 billion in 2023 and is projected to reach USD 211.71 billion, by 2032.
• The wood processing market is projected to grow at a significant rate due to the growing rate of urbanization
• Based on formulation segmentation, residential was predicted to show maximum market share in the year 2023
• Based on type segmentation, sawmills were the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

Wood Processing Market: Growth Drivers

Growing rate of urbanization may affect the demand for wood processing

The global wood processing market is projected to benefit from the increasing urbanization rate across the globe. As more people are moving to urban cities with modern housing facilities, the demand for wood-based furniture and decorative items is projected to increase rapidly. For instance, in most homes, the television cabinets are placed around a wooden background since it is cost-effective while providing an aesthetically pleasing experience. Furthermore, consumers in urban areas have higher disposable income which allows them to spend more on home improvement projects.

A recent report suggests that more than 80% of people globally prefer wood for furniture while around 8% may use wood-based objects as decorative items. Several reasons are known to affect the demand for wood furniture in modern homes. For instance, wood is known to be more durable. It also offers excellent strength and since the lifecycle of wood furniture is extremely long, it provides excellent value for the money invested in the products.

Rising use of wood products in commercial facilities may generate high revenue

The demand for wood furniture and decorative items has seen a rise since commercial facilities such as hotels and other forms of eateries as well as corporate offices have started demand for wood-processed units such as tables and chairs. Work Desks at many corporate houses are made of wooden furniture. The trend is further aided by an increase in the rate of innovation adopted by companies producing wooden furniture for commercial facilities. They are experimenting with product designs and final appearance while working on improving product application.

In July 2023, India-based Knock on Wood, a leading producer of wooden furniture, announced the launch of its latest collection of workplace fixtures offering ergonomically and aesthetically pleasing designs.

Wood Processing Market: Restraints

Harmful impact of wood processing on the health of living organisms may restrict market expansion

The global wood processing market growth will be restricted due to the growing concerns over the harmful impact of wood processing on the health of living organisms including humans and animals. Workers or people constantly exposed to wood dust are at a higher risk of contracting several forms of critical diseases such as respiratory conditions.

Additionally, in some cases, wood processing also deals with harmful chemicals that not only lead to the release of harmful Volatile Organic Compounds (VOCs) but may be dangerous for the people around the paints or varnishes. Wood processing deals with the use of advanced mechanical devices that are deemed as hazardous substances especially if the people in the proximity of the tools do not follow safety protocols or wear appropriate protection gear.

Wood Processing Market: Opportunities

Adopting environmentally and socially responsible practices may create high-growth opportunities

The global wood processing market can gain higher growth momentum by integrating socially and environmentally responsible practices in the manufacturing process. Consumers are actively seeking companies that ensure environmentally friendly processes are incorporated into business protocols. For instance, Australia-based One for Hundred is a wood furniture company that is known to plant more trees than it uses for the production of its inventory. The company is known to plant 100 trees for every piece of wood furniture that is sold in the market.

In December 2020, Hardman Design, a sustainable furniture maker, announced that it would plant 700 trees after the sales it made during the year’s Green Friday transactions. Such initiatives improve brand perception among consumers.

Increasing investments in enhancing wood processing technology will generate higher growth opportunities

The global wood processing industry is projected to be further impacted positively by the rising investments toward making improvements in wood processing technologies. Companies are working toward ensuring that the new tools are efficient and do not pose a physical threat to the workers.

In September 2023, Bruks Siwertell, a leading producer of wood manufacturing tools, announced the launch of the Bruks 1006.3 RT industrial mobile wood chipper offering a novel flexible design along with several other applications.

Wood Processing Market: Challenges

Effects of the wood industry on the environment may challenge the market growth rate

The global wood processing market is expected to be challenged by the severe impact on the environment because of the excessive dependence on wood. For instance, deforestation is one of the most common and significant impacts of wood manufacturing. Removal of trees leads to changes in forest structure that are known to affect the nutrient content of the surrounding areas.

Wood Processing Market: Segmentation

The global wood processing market is segmented based on formulation, type, and region.

Based on formulation, the global market is divided into commercial & industrial, residential, infrastructural, and others. In 2022, the highest growth was witnessed in the residential and commercial & industrial segments. The main reason for higher segmental growth is the growing use of wooden decorative items and furniture in these settings. As per market research, a 6-foot sofa can be produced using 32 board feet of lumber.

Based on type, the global market is divided into wood preservation and sawmills. In 2022, the highest demand was witnessed in the sawmills segment. It accounted for more than 77.87% of the total revenue. These are the facilities for safely storing timber or wood logs. The initial scaling and sorting of logs is carried out in these facilities. Sawmills can also be used to produce other essential by-products such as sawdust and wood chips.

Wood Processing Market: Report Scope

Wood Processing Market: Regional Analysis

Asia-Pacific to lead with the highest market growth rate during the forecast period

The global wood processing market will be led by Asia-Pacific during the projection period. In 2022, around 32% of the global revenue was registered in Asia-Pacific. The presence of several wood processing companies in India, China, Japan, and other Asian countries is the leading reason for higher growth. As per official findings, China registered a sharp increase in its timber industry in 2023. Furthermore, Asian countries are some of the largest exporters of finished wooden goods. In 2021, China exported more than USD 20 billion worth of wooden products. In 2023, India, Vietnam, and China were reported as the leading Asian exporters of wooden items. Additionally, the rising investments in regional infrastructure development projects and the growing number of commercial facilities with state-of-the-art furnishing will drive market demand.

Latin America is expected to be dominated by Brazil. It is the world’s leading country in terms of wood exports. It accounts for nearly 3% of the global timber exports. North America is an important market for wood processing. Most homes in the US and Canada regions have wooden flooring since they are durable and cost-effective. The growing focus on improving wood processing technology is equally crucial for the regional market expansion.

Wood Processing Market: Competitive Analysis

The global wood processing market is led by players like:

• UPM-Kymmene Corporation
• Weyerhaeuser Company
• Georgia-Pacific LLC
• West Fraser Timber Co. Ltd.
• Boise Cascade Company
• International Paper Company
• Rayonier Advanced Materials Inc.
• Stora Enso Oyj
• Interfor Corporation
• Canfor Corporation
• Södra
• Resolute Forest Products Inc.
• Kronospan
• Arauco
• PotlatchDeltic Corporation.

The global wood processing market is segmented as follows:

By Formulation

• Commercial & Industrial
• Residential
• Infrastructural
• Others

By Type

• Wood Preservation
• Sawmills

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