Plywood Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, India, Japan, Germany - Size and Forecast 2024-2028

Plywood Market Size 2024-2028

The global plywood market size is forecast to increase by USD 13.47 billion at a CAGR of 4.36% between 2023 and 2028. Market growth is driven by the surge in softwood consumption for manufacturing wooden furniture and sustainable manufacturing practices. Plywood is used extensively in residential and commercial projects for high-performance applications, walls, and floor coverings, driven by infrastructure development and an emphasis on recyclability and reuse in construction materials.

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

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In the plywood market, manufacturers respond to feedstock prices while considering sustainability, emphasizing recycling and reuse to meet the demands of infrastructure development, residential and commercial projects, and furniture construction within the plastics market, particularly targeting the hardwood segment for construction materials like walls. The plywood market is diverse, encompassing marine plywood and medium-density fiberboard (MDF) known for resistance to fire, moisture, and abrasion. These materials offer insulation against sound, excessive heating, and corrosion, reducing greenhouse gas (GHG) emissions. With excellent screw holding capability, they are used in doors, stringers, external cladding, interior rails, balustrades, internal paneling, and timber joinery products. High-performance applications attract niche manufacturers like Uniply.

Plywood Market Segmentation

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 Market 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 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 market in APAC is estimated to witness growth in sales during the forecast period, owing to the rise in urbanization and the increasing disposable incomes in emerging economies, especially due to various government policies and initiatives such as the Smart Cities Mission, the Swachh Bharat Mission (SBM), the Sardar Patel National Urban Housing Mission, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and the Heritage City Development, and Augmentation Yojana (HRIDAY) in India. China is one of the largest producers and exporters of wood products across the world. The country is focused on export-driven industrial production and high foreign investments. It has witnessed unmatched growth in the last two decades. The market in China is large, with more than 5 million employees, exporting beyond 35% of its total wood production and satisfying 99% of the domestic demand.

Furthermore, companies are engaging in merger and acquisition activities to maintain their market position. Countries such as Vietnam, Indonesia, China, and India are some of the world's fastest-growing economies. For instance, China reached an urbanization rate of around 65% by 2022, with a significant proportion of the rural population migrating to urban areas. This is estimated to increase the number of urban households and lead to a rise in purchasing power among people, which will become a key driver for the market in the region during the forecast period.

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Plywood Market Dynamics 

The surge in softwood utilization for furniture production significantly propels market expansion. Global wood demand is spurred by a thriving economy and burgeoning real estate sector. Rapid population growth and urbanization fuel consistent market escalation annually. Additionally, increasing internet access boosts online wooden furniture sales. The emergence of mixed-use structures influences market dynamics. Population density, industrialization, and commercialization drive mixed-use structure demand. Wood is favored over conventional materials like steel and concrete for affordable, high-density housing. Moreover, metal overlaid plywood production surges in construction.

However, wood product substitution poses a notable market challenge. Manufacturers strive to meet evolving consumer preferences amidst rising demand for alternatives with superior qualities. Global forest depletion, down by nearly 25%, prompts substitutions like glass or metal for plywood. This trend reflects concerns about sustainability and environmental standards in construction practices.. 

Key Market Driver

Increasing consumption of softwood in furniture manufacturing is notably driving the 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 the 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 the 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 Market is a dynamic industry driven by various factors such as manufacturers, plastics market, and feedstock prices. With a focus on recycling and reuse, plywood finds extensive use in infrastructure development, spanning residential projects and commercial projects alike.

From walls to floor coverings, plywood offers diverse applications thanks to its product differentiation and status as an engineered wood product. It encompasses a range of materials, including wood veneer, plastic, resin-impregnated paper, and fabric, providing options like Formica and various types like structural plywood, external plywood, and internal plywood. Plywood comes in different sizes, shapes, designs, colors, and patterns, boasting lightweight, durability, and flexibility. It serves a myriad of purposes, from concrete shuttering in the marine industry to stairs, seatings, and interior fixtures.

With its resistance to chemicals, fire, moisture, and abrasion, along with its eco-friendly nature and low carbon footprint, plywood meets environmental standards while offering a smooth surface and water damage prevention. Leveraging advanced manufacturing techniques, the market continually introduces innovative products and specialized plywood varieties for modular construction and high-performance applications, making it a cornerstone in infrastructure projects and beyond.

Segment Overview

The report forecasts 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

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What are the Key Data Covered in this Plywood Market 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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