Finished Wood Products Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Finished Wood Products Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • January 2021 •
  • 300 pages •
  • Report ID: 6009733 •
  • Format: PDF
Major companies in the finished wood products market include LIXIL Group; JELD-WEN Inc; Masonite International Corporation; Pella Corporation and Stora Enso Oyj.

The global finished wood products market is expected to grow from $251.38 billion in 2020 to $265.61 billion in 2021 at a compound annual growth rate (CAGR) of 5.7%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $341.85 billion in 2025 at a CAGR of 7%.

The finished wood products market consists of sales of finished wood products by entities (organizations, sole traders and partnerships) that produce finished wood products including wood products such as wooden windows and doors, cabinets, kitchenware and wooden mobile homes, and other products. The finished wood products market is segmented into millwork; wood pallets & skids; prefabricated home and other finished wood products.

Asia Pacific was the largest region in the global finished wood products market, accounting for 32% of the market in 2020. North America was the second largest region accounting for 28% of the global finished wood products market. South America was the smallest region in the global finished wood products market.

Companies in the finished wood products market are using 3D printing to develop light weight structural as well as non-structural wooden products. 3D printing creates a three-dimensional physical object using a digital design. The technology creates three-dimensional objects using models which are constructed using a brown, very fine, granular powder made from wood chips. 3D printing is used to manufacture wooden products with complex geometries quickly at low cost. 3D printing helps in rapid prototyping, increases assembly line efficiency, lowers turnaround time, improves flexibility in design and reduces wastage of materials thus indicating high potential for this technology. For instance, in 2019, ORNL and UMaine 3D printed a large mold used to fabricate yatch using wood flour, cellulose nanofibrils and PLA.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the finished wood products market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in halting of manufacturing activities and a decline in economic activity with countries entering a state of ’lock down’ and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the finished wood products market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.

The finished wood products manufacturing market is expected to benefit from steady economic growth forecasted for many developed and developing countries. The International Monetary Fund (IMF) predicts that the global GDP growth will be 3.3% in 2020 and 3.4% in 2021. Recovering commodity prices, after a decline in the historic period is further expected to be a significant factor driving economic growth. The US economy is expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. Greater economic growth is likely to drive public and private investments, joint ventures, foreign direct investments in the end-user markets, thereby driving the market during forecast period.