Wood And Timber Products Industry

The global wood and timber products market size is anticipated to reach USD 1,251.26 billion by 2030 and is anticipated to grow at a CAGR of 4.7% from 2025 to 2030, according to a new report by Grand View Research, Inc. The rising demand for wood and timber products is a result of multiple interlinked factors, from population-driven housing needs to sustainable product innovations. While the market continues to expand, challenges such as deforestation concerns, trade restrictions, and climate change impacts must be managed to ensure long-term sustainability. The shift toward certified and engineered wood products will likely shape the industry's future growth, with key players focusing on balancing economic and environmental priorities.

The timber industry is also benefiting from technological improvements that increase yield and efficiency. Precision forestry, AI-driven sawmills, and improved adhesives for engineered wood products are helping maximize wood utilization while reducing waste. These innovations enable companies to meet growing demand more sustainably.

Beyond traditional uses, wood and timber are also gaining traction in bioenergy and biomaterials. Wood pellets and biomass energy are being adopted as alternatives to fossil fuels in Europe, North America, and parts of Asia. Meanwhile, wood-derived chemicals, textiles (such as lyocell and viscose), and bio-based plastics are finding new applications, expanding the overall demand for timber resources.

The shift towards sustainable and biodegradable materials is increasing the demand for paper-based packaging solutions. With many governments and corporations pushing for eco-friendly alternatives to plastic, wood-derived products such as kraft paper, cardboard, and linerless labels are gaining traction. The direct thermal paper industry, for example, relies heavily on wood pulp, and growing logistics, e-commerce, and food packaging sectors are further driving its expansion.

The rising demand for wood and timber products is a result of multiple interlinked factors, from population-driven housing needs to sustainable product innovations. While the market continues to expand, challenges such as deforestation concerns, trade restrictions, and climate change impacts must be managed to ensure long-term sustainability. The shift toward certified and engineered wood products will likely shape the industry's future growth, with key players focusing on balancing economic and environmental priorities.

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Wood And Timber Products Market Segments Highlights:

• Based on application, paper dominated the industry with a major revenue share of 58.9% in 2024 and is forecasted to grow rapidly from 2025 to 2030. The global demand for wood-based paper products is undergoing a transformation, with declining demand for traditional printing and writing paper but rising demand for packaging materials and hygiene products.
• The demand for wood in the furniture industry is being driven by urbanization, rising disposable incomes, and shifting consumer preferences toward natural and sustainable materials. As more people move to cities, the demand for home and office furniture continues to rise, particularly in fast-growing economies like China, India, and Southeast Asia.
• The textile industry is experiencing a surge in demand for wood-based fibers, particularly as consumers and brands seek alternatives to synthetic fibers like polyester, which contribute to microplastic pollution. Viscose, lyocell, and modal fibers, derived from wood pulp (mainly from eucalyptus, beech, and pine trees), are being widely adopted in the fashion and textile industries. These fibers offer softness, breathability, and biodegradability, making them an attractive choice for sustainable clothing, home textiles, and even industrial applications.
• Wood-derived bio-chemicals are becoming increasingly important in sustainable manufacturing, pharmaceuticals, and industrial applications. The shift away from petroleum-based chemicals is driving demand for wood-based alternatives. With stricter environmental regulations on petrochemicals, industries are turning to bio-based solutions, increasing demand for wood-derived chemicals. Companies are investing in advanced processing technologies to extract high-value chemicals from wood byproducts, further integrating wood into green supply chains.
• Forestry production in Southeast Asia is largely focused on tropical hardwoods, with countries like Malaysia and Vietnam being major exporters. However, concerns over deforestation and illegal logging have led to stricter regulations, encouraging the adoption of certified and legally sourced wood products. The Asia-Pacific region is also witnessing rising investment in wood-based textiles, with manufacturers producing viscose and lyocell fibers for the fashion industry.

Wood And Timber Products Market Report Segmentation

Grand View Research has segmented global wood and timber products market based on the application, and region:

Wood And Timber Products Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Furniture
• Paper
• Lumber
• Textiles
• Bio Chemicals
• Others

Wood And Timber Products Region Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
• Central & South America
• Middle East & Africa

Key Wood And Timber Products Company Insights

• Ogonek Custom Hardwoods, Inc.
• PotlatchDeltic Corporation
• Resolute Forest Products
• RSG Forest Products, Inc.
• Sierra Forest Products, Inc.
• Southern Pine Timber Products, Inc.
• Stora Enso Oyj
• Timbeck Architecture
• Timber Products Co. Limited Partnership
• Georgia-Pacific LLC
• West Fraser Timber Co. Ltd.,
• Sterling Solutions LLC
• Weyerhaeuser Company

Order a free sample PDF of the Wood And Timber Products Market Intelligence Study, published by Grand View Research.