Wood Processing Global Market Report 2022

Major companies in the wood processing market include West Fraser Timber Co. Ltd., Canfor Corporation, upm-kymmene oyj, UFP Industries, Inc., Interfor Corporation, Sierra Pacific Industries, Inc, Koppers Inc., Northwest Hardwoods, Inc., Svenska Cellulosa Aktiebolaget, and Marubeni.

The global wood processing market is expected to grow from $129.48 billion in 2021 to $141.53 billion in 2022 at a compound annual growth rate (CAGR) of 9.3%. The market is expected to grow to $192.66 billion in 2026 at a compound annual growth rate (CAGR) of 8.0%.

The wood processing market consists of sales of processed wood by entities (organizations, sole traders and partnerships) that saw dimension lumber, boards, beams, timbers, poles, ties, shingles, shakes, siding, and wood chips from logs or bolts. This industry also includes establishments that treat planed, sawed and shaped wood with creosote or other preservatives such as alkaline copper quat, copper azole, and sodium borates, to prevent decay and to protect against fire and insects.

The main wood processing types are sawmills and wood preservation.Wood preservation is referred as the pressure or thermal impregnation of chemicals into wood.

Long-term resistance to fungus, bacteria, insects, and marine borers is achieved by this procedure. The different sectors include residential, commercial, infrastructural, other Eend-user industries.

Asia Pacific was the largest region in the wood processing market in 2021.North America was the second largest region in the wood processing market.

The regions covered in the wood processing market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The wood processing market is expected to benefit from steady economic growth forecasted for many developed and developing countries. The International Monetary Fund (IMF) stated that the global GDP growth was 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.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the wood processing market in 2021 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 had a negative impact on businesses throughout 2020 and into 2021.

However, it is expected that the wood processing 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 increasing demand for supply chain transparency and stringent government regulations on the wood industry has led to the implementation of tracking and tracing technologies.Many wood companies are implementing their own tracking systems to maintain transparency in their timber supply chain.

Electronic tracking is being adopted by wood companies and government agencies over paper-based systems and technologies such as radio-frequency identification chips, barcodes and advanced traceability software are being used.For instance, the Forest Stewardship Council, a leading non-profit organization has developed Online Claims Platform for providing timely information about the FSC’s products and the companies that produce them for free of charge to the FSC Certificate holders.

This enables digital connection between FSC certified suppliers and customers.

The countries covered in the wood processing market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela and Vietnam.