Wood Bio-Products Market

Wood Bio-Products Market

The global wood bio-products market was valued at USD 260.0 billion in 2022 and is projected to reach USD 435.9 billion by 2028, growing at a cagr 9.0% from 2023 to 2028. The demand for wood bio-products is being driven by the increasing awareness of the environmental benefits of using manufactured wood products is a significant driver for the market. Consumers are becoming more aware of the impact of their choices on the environment and are increasingly choosing eco-friendly products. The manufacturing process of engineered wood products uses smaller-diameter logs and wood waste, reducing the amount of waste that goes to landfills.  This eco-friendly aspect of manufactured wood products is particularly appealing to environmentally conscious consumers, architects, and builders, thus driving demand for these products.

Global Wood Bio-Products Market Trends

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Wood Bio-Products Market Dynamics

Driver: Growing preference for engineered wood products over traditional solid wood due to their dimensional stability and cost-effectiveness

Engineered wood products are becoming increasingly popular in the construction industry due to their numerous advantages over traditional solid wood products. One of the main advantages is their superior dimensional stability, which means that they are less prone to warping, twisting, or splitting when exposed to moisture and temperature changes. This makes them a more reliable and long-lasting option for flooring, structural support, and other applications.

In addition, engineered wood products are often more cost-effective than traditional solid wood products, as they are made from lower-grade wood and can be manufactured in large quantities using advanced production techniques. This makes them a more affordable option for both residential and commercial construction projects.

Restraint: Competition from other materials, such as plastics, metals, and concrete

Competition from other materials is one of the primary restraints experienced by the Wood Bioproducts Industry. There are various materials that can serve as alternatives to wood bio-products, such as plastics, metals, and concrete. These materials can be produced at a lower cost and may offer similar or superior properties to wood bio-products, which can limit the growth of the market. For example, plastics have been widely used in the packaging industry due to their low cost, durability, and ease of manufacturing. Similarly, metals are widely used in the construction industry due to their strength and durability. Concrete is another widely used material that is highly durable and cost-effective.

In addition to these traditional materials, emerging sustainable materials such as bamboo and hemp are also competing with wood bio-products. These materials offer similar or superior properties to wood bio-products and can be produced at a lower cost, which can limit the growth of the market.

Opportunity: Expansion into emerging markets

The demand for wood bio-products is not limited to developed countries. Emerging markets, such as China and India, are also experiencing growth in demand for sustainable products. This creates opportunities for companies to expand their operations and reach new customers.

The Asia Pacific region is expected to be a key driver of demand for wood bio-products in the coming years due to rapid urbanization and infrastructure development in countries such as China and India. There is also increasing interest in sustainable and eco-friendly materials in this region, which could drive demand for wood bio-products.

Latin America is home to some of the world's largest and most diverse forests, which could offer significant opportunities for the wood bio-products market. In addition, there is a growing demand for sustainable and renewable materials in countries such as Brazil and Mexico, which could drive the demand for wood bio-products.

Challenges: High capital cost

One of the major challenges for the wood bio-products market is the high capital cost required for setting up manufacturing facilities. The production of wood bio-products requires specialized equipment and processes, which can be expensive to install and maintain. For example, the production of engineered wood products, such as cross-laminated timber, requires specialized equipment and facilities that can be costly to set up.

Wood Bio-Products Market: Ecosystem

By type, finished wood product is estimated to be the largest segment during the forecast period in the wood bio-products market

The construction and housing sectors are significant drivers of the demand for finished wood products. As economies grow and urbanization continues, there is a greater need for residential and commercial buildings, leading to increased demand for wood products such as flooring, doors, windows, and furniture. In addition, the proliferation of e-commerce platforms has facilitated the global trade of finished wood products. Consumers have access to a wide range of wood products from different regions, expanding the market and increasing overall demand. E-commerce platforms have also made it easier for small and medium-sized wood product manufacturers to reach a broader customer base.

By distribution channel, offline is estimated to be the largest segment during the forecast period

Wood bio-products are often considered high-value items, and customers prefer to inspect the quality, texture, and finish before making a purchase. Offline distribution channels, such as physical retail stores, provide customers with the opportunity to see, touch, and feel wood products, which enhances their buying experience and instills confidence in the product's quality. The wood bio-products market has long-standing relationships with offline distribution channels, including wholesalers, retailers, and distributors. These relationships have been built over time, and there is a level of trust and reliability between manufacturers and the offline channel partners. Manufacturers often rely on these established networks to reach a wider customer base and maintain consistent sales volumes.

Asia Pacific is projected to be the largest and fastest growing amongst other regions in the wood bio-products market, in terms of value

The Asia Pacific region has been experiencing significant economic growth, with countries like China, India, and Southeast Asian nations driving this expansion. Economic growth translates into increased construction activities, infrastructure development, and urbanization, leading to a surge in demand for wood bio-products in various applications, including building materials, furniture, and interior decor.

In addition, the Asia Pacific region has witnessed significant developments in its wood processing industry. There has been a rise in the establishment of sawmills, plywood mills, and other wood processing facilities. This expansion supports local manufacturing capabilities, enhances supply chain efficiency, and fosters the growth of the wood bio-products market in the region.

Source: Secondary Research, Primary Interviews, and MarketsandMarkets Analysis

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Key Market Players

The key players in the wood bio-products market include UPM-Kymmene Corporation (Finland), Stora Enso (Finland), Lixil Group (Japan), West Fraser (Canada), Weyerhaeuser (US), UFP Industries Inc. (US), Canfor (Canada), Sappi (South Africa), Metsä Group (Finland), and JELD-WEN (US) among others. The wood bio-products market report analyzes the key growth strategies, such as new product launches, expansions, agreements, and acquisitions adopted by the leading market players between 2018 and 2022.

Wood Bio-Products Market Report Scope

This report categorizes the global wood bio-products market based on type, distribution channel, application, and region.

On the basis of type, the wood bio-products market has been segmented as follows:

• Finished Wood Product
• Manufactured Wood Material
• Wood Processing

On the basis of distribution channel, the wood bio-products market has been segmented as follows:

• Online
• Offline

On the basis of application, the wood bio-products market has been segmented as follows:

• Residential
  • Barrier Systems
  • Flooring Systems
  • Lumber
  • Roof Sheath
  • Doors & Windows
  • Other Residential Applications
• Commercial
  • Furniture
  • Packaging
  • Stationary
  • Utensils & Hand tools
  • Transportation
  • Artwork
  • Musical Instruments
  • Toys
  • Other Commercial Applications

On the basis of region, the wood bio-products market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• 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.
• 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.

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