Plywood Market Size 2024-2028

The plywood market size is forecast to increase by USD 13.47 billion at a CAGR of 4.36% between 2023 and 2028. The demand for wooden furniture is fueling market expansion, particularly in the production of wooden furniture and sustainable manufacturing processes. Plywood is a preferred choice for high-performance applications in both residential and commercial projects, including walls and floor coverings. This trend is being driven by infrastructure development and a growing focus on recyclability and reuse in construction materials. The construction industry is placing increasing importance on eco-friendly practices and energy efficiency, making plywood a popular and sustainable option for builders and contractors. With a strong emphasis on sustainability and performance, the use of plywood is expected to continue growing in the coming years.

What will be the Plywood Market Size During the Forecast Period?

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In the plywood industry, manufacturers adapt to fluctuating feedstock prices while prioritizing sustainability. This focus includes promoting recycling and reuse, making plywood an ideal solution for infrastructure development, residential and commercial projects, and furniture construction within the plastics sector, specifically hardwood for construction materials such as walls. The plywood market is extensive, incorporating marine plywood and medium-density fiberboard (MDF), renowned for their resistance to fire, moisture, and abrasion. These materials provide insulation against sound, excessive heating, and corrosion, contributing to a decrease in greenhouse gas (GHG) emissions. With exceptional screw holding capacity, they are utilized in various applications, including doors, stringers, external cladding, interior rails, balustrades, internal paneling, and timber joinery products. High-performance applications draw niche manufacturers to this market.

The plywood industry's diversity extends to marine plywood and medium-density fiberboard (MDF), which boast impressive resistance to fire, moisture, and abrasion. These materials offer significant advantages, such as sound insulation, temperature control, and corrosion resistance, thereby reducing greenhouse gas (GHG) emissions. As a result, they are highly sought after for infrastructure development, residential and commercial projects, and furniture construction within the plastics sector, particularly the hardwood segment for construction materials like walls. The plywood market caters to various applications, including doors, stringers, external cladding, interior rails, balustrades, internal paneling, and timber joinery products, thanks to their exceptional screw holding capacity. High performance applications attract niche manufacturers to this market.

Plywood Market Segmentation

The plywood market forecasting report market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Type Outlook 
  • Hardwood
  • Softwood

• Sector Outlook
  • New construction
  • Replacement

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Additionally, the plywood market research and growth report extensively covers market segmentation Type (Hardwood and Softwood), Sector (New Construction and Replacement) and Geography (North America, Europe, Asia, and Rest of World (ROW)).  Furthermore, the plywood market growth analysis report includes historic market data from 2017 to 2021. In the hardwood segment of the Global Plywood Market, engineered wood products, including hardwood plywood, are essential for diverse applications such as furniture, floor coverings, and construction. With urbanization and infrastructure projects on the rise, demand is increasing. Advanced manufacturing techniques create innovative plywood varieties for specialized uses, meeting high-performance needs. Online platforms aid product differentiation, ensuring compliance with environmental standards for sustainable manufacturing.

By Type

The market share growth by the hardwood segment will be significant during the forecast period. Hardwood is a type of plywood that is significantly used for furniture, cabinets, and other decorative applications owing to its strength, stability, and convenience. Hardwood plywood majorly comprises a core made from either softwood or hardwood, which is faced and backed with a veneer of finish or stain-grade hardwood.

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The hardwood was the largest segment and was valued at USD 35.31 billion in 2018. The rising demand for wooden furniture for home decor applications and the growing need for cost-effective wooden furniture, such as wardrobes, living room furniture, and residential home decor, are significantly driving the hardwood plywood segment. Moreover, the market growth and trends of the real-estate sector, especially the growing demand for residential housing units, are boosting the growth of the hardwood plywood segment. Such factors are expected to fuel the demand for the hardwood plywood segment during the forecast period, thereby driving the growth of the hardwood plywood segment of the plywood market during the projection period.

Regional Analysis

APAC is estimated to contribute 63% to the growth of the global plywood market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the plywood market's trajectory throughout the forecast period.

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The Asian Pacific region is projected to experience significant growth in wood product sales over the forecast period. This expansion is attributed to the increasing urbanization and rising disposable incomes in emerging economies, particularly in countries like India. Government initiatives such as the Smart Cities Mission, Swachh Bharat Mission (SBM), Sardar Patel National Urban Housing Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and the Heritage City Development, and Augmentation Yojana (HRIDAY) are driving this growth. In India, for instance, the urbanization rate has reached approximately 65% by 2022, leading to an increase in the number of urban households and a subsequent rise in purchasing power among people. This trend is expected to significantly impact the wood products market in the region.

Moreover, companies are actively pursuing mergers and acquisitions to secure their market position. China, one of the world's leading producers and exporters of wood products, is a significant player in this industry. With a focus on export-driven industrial production and high foreign investments, China has experienced remarkable growth in the last two decades. The market in China is substantial, employing over 5 million people, exporting over 35% of its total wood production, and fulfilling nearly 100% of its domestic demand. In summary, the Asian Pacific region, with countries like India and China at the forefront, is experiencing significant growth in the wood products market due to urbanization, rising disposable incomes, and government initiatives. Companies are also actively engaging in mergers and acquisitions to maintain their market position.

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Plywood Market Dynamics 

The increasing use of softwood in furniture manufacturing contributes significantly to market growth. The global wood market is driven by a strong economy and a flourishing real estate sector. Population growth and urbanization lead to annual market expansion. Furthermore, the rise of e-commerce enables significant online sales of wooden furniture. The emergence of mixed-use structures also impacts market trends. Population density, industrialization, and commercialization are key factors driving the demand for mixed-use structures. Wood is often preferred over traditional materials like steel and concrete for affordable, high-density housing. Additionally, the production of metal-laminated plywood is on the rise in construction.

However, the substitution of wood products poses a significant challenge to the market. Manufacturers must adapt to evolving consumer preferences and the increasing demand for alternatives with superior qualities. Global forest depletion, down by approximately 25%, has led to the adoption of substitutes such as glass or metal for plywood. This trend reflects growing concerns about sustainability and environmental standards in construction practices.

Key Market Driver

Increasing consumption of softwood in furniture manufacturing is notably driving plywood market growth. The global wood market is influenced by an expanding global economy and a growing real estate industry. Population explosion and the expanding real-estate industry have led to the year-over-year growth of the global market. Furthermore, the growing internet penetration will enhance the online platform sales of wooden furniture.

Moreover, many companies, such as Greenply Industries Ltd. and METSA GROUP, are offering furniture through online portals. Consumers can easily shop from their homes, and the products are delivered to their doorsteps. Thus, the online sales of plywood, in turn, are driving the sales, which is enhancing the growth of the market during the forecast period.

Significant Market Trends

The origination of mixed-use structures is an emerging trend shaping plywood market growth. Population density, growing industrialization, and commercialization have increased the need for mixed-use structures. Wood is being sought as an alternative to construction materials, such as steel and concrete, in low-cost, high-density housing to accommodate several individuals within a given area. Moreover, the production of metal overlaid plywood is significantly rising in construction activities.

However, constructions with mid-rise podiums consisting of two to five stories of wood framing above a non-residential concrete structure are also becoming popular. Furthermore, a wood podium reduces the overall construction time and costs, creating a more sustainable and less massive building. Such developments are expected to boost market growth during the forecast period.

Majaor Market Challenge

Substitutes for wood products is a significant challenge hindering plywood market growth. The timber and wood products industry intends to cater to the changing needs of consumers who are shifting to other substitutes that offer advanced properties compared with wood products. Global forest cover has been significantly compromised; the green cover is down by almost 25% compared with the past few years. According to the United Nations Food and Agriculture Organization (FAO), an estimated 19 million acres of forest are lost each year. This has resulted in substituting plywood with glass or metal in many applications.

Additionally, wood is being replaced by metals and glass in most applications, including tables, storage units, chairs, and other furniture. Customers also prefer a new range of materials, finishes, and textures in their homes. Such factors are challenging the growth of the market during the forecast years. Furthermore, in manufacturing processes, the industry relies on adhesives, chemicals, humidity, and environmental temperature, which may have environmental consequences. Additionally, the disposal of plywood and the associated environmental impacts raise about sustainability and waste management. Hence this is affecting the market growth during the forecast period.

Key Plywood Market Players

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.

Boise Cascade Co - The company offers plywood such as Boise Cascade plywood which are designed specifically for residential and other light frame applications.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: Boise Cascade Co., Century Plyboards Ltd., Columbia Forest Products Inc., Duroply Industries Ltd., Evergreen Plywood Industries, Ganahl Lumber Co., Greenply Industries Ltd., Kitply Industries Ltd., Koch Industries Inc., Kronospan Ltd., METSA GROUP, MJB Wood Group LLC, PotlatchDeltic Corp., Roseburg Forest Products Co., Subur Tiasa Holdings Berhad, SVEZA, SWANSON GROUP, Tolko Industries Ltd., UPM Kymmene Corp., and Weyerhaeuser Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The plywood industry is a thriving sector influenced by numerous factors, including manufacturers, the plastics market, and feedstock prices. Plywood's versatility and growing emphasis on sustainability make it an essential component in infrastructure development, with applications ranging from residential to commercial projects. This engineered wood product offers a multitude of uses, from wall coverings and flooring to concrete shuttering in the marine industry and various applications in the construction of stairs, seatings, and interior fixtures.

Plywood's resistance to chemicals, fire, moisture, and abrasion, coupled with its eco-friendly nature and minimal carbon footprint, make it an environmentally sound choice. Advanced manufacturing techniques enable the market to introduce innovative plywood products and specialized varieties, such as those designed for modular construction and high-performance applications, further solidifying plywood's role in infrastructure projects and beyond. Plywood comes in a variety of sizes, shapes, designs, colors, and patterns, offering both lightweight and durable solutions. Its diverse range of materials includes wood veneer, plastic, resin-impregnated paper, and fabric, providing options like Formica and various types, such as structural plywood, external plywood, and internal plywood. With a focus on recycling and reuse, plywood's versatility and adaptability make it an indispensable resource in the construction industry.

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What are the Key Data Covered in this Plywood Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market growth analysis and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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