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The wood recycling market is estimated to grow at a CAGR of 7.32% between 2022 and 2027. The size of the market is forecasted to increase by USD 10.69 billion. The growth of the market depends on several factors, including the increasing use of biomass fuels, growing urbanization and literacy rate, and regulations for reducing GHG emissions.
This report extensively covers market segmentation by application (wood panels, energy generation, and others), material (paper, cardboard, and waste wood), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing use of biomass fuels is notably driving the market growth, although factors such as logistical challenges in recycling waste wood may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Wood Recycling Market Driver
The increasing use of biomass fuels is notably driving the wood recycling market growth. Governments across the world are focusing on reducing GHG emissions. The US Environmental Protection Agency (EPA), the Intergovernmental Panel on Climate Change, and the Climate Change Act of 2008 have set targets for reducing emissions. These regulations have led to the use of alternatives such as bioenergy. Biomass is derived from wood and wood processing wastes. It is carbon-neutral, which helps reduce environmental pollution.
Favorable policies, subsidies, and tax incentives have encouraged the development of biomass as a fuel. The growing need for renewable energy sources has led governments to improve biogas production, as fossil fuels are depleting gradually. The adoption of wood-based biomass energy has increased, as it is a renewable and sustainable energy source. Thus, the increasing use of biomass fuel for power generation worldwide will fuel the growth of the global wood recycling market during the forecast period.
Significant Wood Recycling Market Trend
The change in recycling targets of wood packaging in Europe is a key trend influencing the wood recycling market growth. Wood packaging materials include pallets, pallet collars, boxes, containers, bins, drums, reels, load boards, dunnage, cases, crates, and skids. These materials are used across industries such as food and heavy machinery for transportation purposes. Wood packaging materials can be reused and recycled, which reduces the number of trees being cut.
The EU has set targets for the recycling of wood packaging materials for other types of waste. The target for recycling wood packaging materials was set at 60% of the overall wood packaging material waste by 2025 and 75% by 2030. However, according to the latest proposals in March 2018, the targets were reduced significantly. The change in targets was influenced by several countries in the EU, which reuse wood packaging materials multiple times and then recover the energy during the end-of-life of these materials. Moreover, biomass producers receive subsidies for energy generation using waste products, including wood packaging materials. These factors will affect the growth of the market during the forecast period.
Major Wood Recycling Market Challenge
Logistical challenges in recycling waste wood may impede the wood recycling market growth. Recycling wood and wood products is complex when compared to other available alternatives, such as dumping wood, paper, and cardboard after usage. Recovered wood, paper, and cardboard do not yield high-profit margins. In countries such as the US and Australia, transportation accounts for a large share of the recycling process, which further reduces profit margins.
Road transport is the primary mode of transportation for wood recycling, which is time-consuming and has low capacity. Waste wood and wood products are prone to moisture, dampness, or insect attacks during storage or transportation. Protection from these conditions can lead to further degradation in quality, which directly affects the quality of the output. Therefore, logistical issues as well as storage and transportation complexities associated with waste wood product recycling are expected to hinder the growth of the global wood recycling market during the forecast period.
Key Wood Recycling Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Wood Recycling Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the wood panels segment will be significant during the forecast period. The popularity of wood recycling is increasing, as it helps reduce waste and promote environmental sustainability. Wood panels made from recycled wood are used in the construction and furniture industries. The growth of the segment is attributed to factors such as the low cost of recycled wood and the growing awareness about the environmental advantages of using such products.
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The wood panels segment was valued at USD 12.49 billion in 2017 and continued to grow until 2021. Key players are investing significantly in R&D as well as in partnerships and collaborations with other players. This is expected to increase the demand for recycled wood panels during the forecast period. The use of recycled wood panels reduces the need for virgin wood. Hence, the rise in demand for recycled wood panels will be fueled by the increasing demand for eco-friendly goods. These factors will drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in APAC is driven by factors such as a large population base and the increase in purchasing power of people in developing countries such as China and India. Rapid urbanization and a significant increase in literacy rate have fueled the demand for paper, including recycled paper. Moreover, owing to the high consumption of paper, cardboard, and wood products, the growth potential for the wood recycling market in the region is high. These factors will positively impact the growth of the market in APAC.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The COVID-19 pandemic negatively impacted the regional wood recycling industry in 2020, which led to disruptions in supply chains, a decline in demand for recycled products of wood, and a halt in production activities. However, the market started to rebound with the rise in vaccination rates from 2021. In 2021 and 2022, the demand for recycled wood products increased owing to the resumption of business activities in sectors such as packaging, household goods, and newsprint. The focus on sustainability and environmental awareness are also driving the demand for these products. Such factors are expected to drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The reports categorize the global wood recycling market as a part of the Environmental & Facilities Services market, which covers service companies providing environmental and facilities maintenance services, including waste management, facilities management, and pollution control services. Technavio calculates the global environmental and facilities services market size based on the combined revenue generated by companies providing environmental and facilities maintenance services, which also include waste management, facilities management, and pollution control services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Wood Recycling Market Scope |
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Report Coverage |
Details |
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Page number |
157 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.32% |
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Market growth 2023-2027 |
USD 10.69 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023 (%) |
6.66 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alliance Forest Products, Brewer Farms Inc., Canadian Wood Waste Recycling Business Group, Enva, FOMEX group, Green-O-Tech India, JB Recycling Ltd., Kruger Inc., LEDR Recycling, Mid America Paper Recycling, Northstar Recycling Co. Inc., Rainier Wood Recyclers, Sappi Ltd., Spencer Wood Recycling, Swanson Bark and Wood Products Inc., Sylvagen Ltd., Takeei Corp., Todco Inc., Tomra Systems ASA, and Veolia Environnement SA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Material
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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