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Strategic Forecast for the Wood Bio-Products Industry: Market Outlook 2025-2034
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shiftsWood Bio-Products Market Size Growth Forecast: What to Expect by 2025?
The market size for wood bio-products has seen significant growth in the recent past. It is projected to expand from a value of $279.96 billion in 2024 to $305.26 billion in 2025, a compound annual growth rate (CAGR) of 9.0%. The notable growth during the historical period is a result of an increase in demand for sustainable and green products, government efforts to boost wood bio-products, heightened awareness of the environmental advantages of manufactured wood products, and a rise in research and development initiatives.
How Will the Wood Bio-Products Market Size Evolve and Grow by 2029?
The value of the wood bio-products market is anticipated to witness sturdy progress in the forthcoming years, with an estimated growth to $430.15 billion by 2029 at a CAGR of 9.0%. The expansion during this period can be ascribed to a surge in demand for furniture and flooring items, geographical proliferation, a rise in investments in wood bio-products, and a heightened sense of environmental consciousness. The forecast period will see significant trends such as the evolution of advanced wood conversion technologies, the establishment of biorefineries, advancements in technology, collaborations and partnerships, as well as sustainability initiatives.
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What Drivers Are Propelling the Growth of Wood Bio-Products Market Forward?
The surge in demand for furniture and flooring products is anticipated to spur the expansion of the wood bio-products market. These products, which include interior furniture like chairs, tables, and sofas, as well as flooring materials such as hardwood, laminate, and carpet, enhance both the aesthetics and functionality of indoor spaces. These wood bio-products provide eco-friendly options for furniture and flooring that help promote sustainability and reduce dependence on conventional materials. Additionally, wood bio-products used for furniture and flooring upkeep ensure a natural and attractive finish. For instance, the U.S. Census Bureau reported in August 2023 that retail sales for furniture and home furnishings solutions had risen to $12.53 billion in January 2023 from $11.73 billion in January 2021. As such, this escalating demand for furniture and flooring products is set to propel the wood bio-products market's growth. Another major driver for the wood bio-products market is its growing application in construction activities. Construction involves integrating multiple elements to a structure at a designated location following a comprehensive design and plan. Wood bio-products present an eco-friendly, sustainable, and versatile substitute for regular construction materials, fostering more green and energy-saving construction practices. For example, the Biomass Magazine, a U.S.-based monthly industry publication, projected in July 2022 that the European Union is set to export 2.25 million metric tons of wood pellets in 2022, a slight increase from 2.21 million metric tons in 2021. Therefore, the increased employment of wood bio-products in construction activities is fuelling the growth of the wood bio-products market.
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Which Emerging Trends Are Transforming the Wood Bio-Products Market in 2025?
Main players in the wood bio-products market are devoting their efforts towards creating enhanced materials from Lignin in order to reduce environmental harm, decrease waste, and satisfy the rising consumer demand for eco-friendly packaging solutions. Taking the example of Lignin Industries AB, a greentech enterprise from Sweden, a new product called Renol was launched in June 2024. The new product offers a green alternative to plastics derived from fossil fuels. The versatility of Renol allows it to be used in a variety of industrial contexts, from ABS, PE, and PP, serving diverse sectors spanning automotive to consumer electronics. The development of Renol spanned over five years, with its production process being both scalable and efficient in terms of resource use leading to a reduction in CO2 emissions. Renol, produced in Sweden, satisfies the industry's need for durable, sustainable materials.
What Are the Key Segments in the Wood Bio-Products Market?
The wood bio-products market covered in this report is segmented -
1) By Product Type: Biofuels, Bioplastics, Biochemicals, Biocomposites, Pulp And Papers
2) By Distribution Channel: Offline, Online
3) By Application: Energy, Packaging, Construction, Automotive, Chemicals
4) By End Use Industry: Residential, Commercial, Industrial, Infrastructure, Other End Use Industries
Subsegments:
1) By Biofuels: Wood Pellets, Liquid Biofuels, Biomethane
2) By Bioplastics: Polylactic Acid (PLA), Polyhydroxyalkanoates (PHA), Starch-Based Bioplastics
3) By Biochemicals: Lignin-Based Chemicals, Cellulose Derivatives, Bio-based Solvents
4) By Biocomposites: Wood Plastic Composites (WPC), Natural Fiber Composites
5) By Pulp and Papers: Kraft Pulp, Mechanical Pulp, Recycled Paper Products
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Who Are the Key Players Shaping the Wood Bio-Products Market's Competitive Landscape?
Major companies operating in the wood bio-products market are Stora Enso Oyj, UPM-Kymmene Oyj, Weyerhaeuser Company, West Fraser Timber Co. Ltd., Suzano S.A., UFP Industries Inc., Drax Group PLC, Georgia-Pacific LLC, Mondi Group, Sappi Limited, Canfor Corporation, Arauco Wood Products Inc., JELD-WEN Holding Inc., Domtar Corporation, BillerudKorsnäs AB, Metsä Group, Ekman & Co AB, Holmen AB, Kruger Inc., Enviva Partners LP, Södra Skogsägarna ekonomisk förening, Borregaard ASA, HS Timber Group GmbH, Verdo Renewables Ltd., Bio Diversity LLC.
What Geographic Markets Are Powering Growth in the Wood Bio-Products Market?
Asia-Pacific was the largest region in the wood bio-products market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in wood bio-products market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
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