The global plywood market size was USD 84 Bn in 2022 and is likely to surpass USD 154 Bn by 2031, expanding at a CAGR of 6.5 % during the forecast period, 2023–2031. Numerous beneficial qualities of plywood and the rising usage of furniture are expected to boost the market.
Plywood is used in construction materials as it offers excellent strength, safety, and durability. Plywood is an engineered wood product, which is synthesized by piling up thin layers of wood veneers. It is a combination of piles or fine layers of wood that are glued together with strong adhesive or combined with urea-formaldehyde resin or phenol. It is a sheet of wood manufactured in a factory with specific measurements and dimensions.
A thin outer layer of material consisting of plastic, resin-saturated paper, fabric, or plastic phenolic resins (formica) that are attached to the face and lower back veneers to improve the sturdiness and provide high binding of paint. Plywood is a cost-effective and durable material. Thus, it is widely used in interior layouts of office and home furniture.
Woods of maple, pine, mahogany, cedar, oak, and spruce trees or a combination of these woods are used to manufacture different types of plywood. It offers flexibility, reusability, easy installation, and resistance to chemicals, moisture, fire, and other physical environments. Moreover, it is crack resistant. The properties of plywood depend on the type of wood being used, the number of plies it consists of, and the quality standards it passes.
The COVID-19 pandemic slowed down the overall revenue of the plywood market, due to the sharp decline in demand and reduction in the manufacturing of furniture. As a part of preventive measures, governments across countries imposed an emergency lockdown and restrictions on import and export activities to curb the virus spread. However, the irregular supply of raw materials such as wood, chemicals, and glue forced manufacturers to either delay their production plans or reschedule their existing projects, which disrupted the overall supply chain of the market.
Plywood Market Dynamics
Major Drivers
Increasing sales of flat-pack furniture, also known as ready-to-assemble furniture is projected to drive the market in the coming years. This furniture is made up of medium-density fiberboard (MDF) and particle board. In developing countries, numerous industrial & infrastructural development activities are taking place, which is likely to boost the market.
Rising disposable income of consumers is anticipated to increase demand for the customization of plywood in terms of designs, color, and textures. In addition, the growing requirement to increase the production of plywood, due to the increasing demand for sustainable and green building materials is further likely to propel the market.
Existing Restraints
The availability of other sustainable alternatives is expected to restrain the growth of the market. Various low-cost goods are utilized to replace plywood. Moreover, excessive cutting of trees for wood results in deforestation, which affects the environment. These factors are projected to restrain the market during the forecast period.
Emerging Opportunities
Rising investments to increase the properties and durability of plywood for recycling and reuse are expected to create lucrative opportunities in the market. Plywood is flexible and chemical & fire resistant. Thus, it is widely used in manufacturing boat cabinetry, floors, and wall for enhanced safety regulations. The increasing trend of interior designing and the rising adoption of creative furniture in homes, offices, and institutions are further anticipated to fuel the market.
Scope of Plywood Market Report
The report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Plywood Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Softwood and Hardwood), Grade (MR Grade, Fire-Resistant Grade, Structural Grade, BWR Grade, and BWP Grade), Size (3x6 Feet, 4x6 Feet, 4x8 Feet, 4x10 Feet, and Others), Thickness (Less Than 8mm, 8 mm to 18 mm, and More Than 18 mm), Application (Flooring, Furniture, Automotive Interior, Marine, Packaging, and Others), and Use (New Construction and Rehabilitation)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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West Fraser; UPM; Boise Cascade; Subur Tiasa Holdings Berhad; Metsä Group; PotlatchDeltic Corporation; Georgia-Pacific; Timber Products Company; BlueLinx; and Eksons Corporation Berhad
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Plywood Market Segment Insights
Based on type, the plywood market is bifurcated into softwood and hardwood. The hardwood segment is expected to expand at a considerable CAGR during the projection period, as they are heavy, thick, and durable. It is mainly used in flooring, paneling, cabinets, and outdoor decking. They have a complicated, rigid, and strong structure as compared to softwood. Growing demand for durable furniture is likely to boost the segment.
The softwood segment is anticipated to expand at a significant growth rate during the forecast period, due to its cost-effectiveness, sustainability, and wide availability. Softwood is easy to produce and is mostly used in making furniture and woodwork. Furthermore, softwood is easier to work with and is environmentally friendly, which further drives the segment.
On the basis of grade, the global market is segregated into MR grade, fire-resistant grade, structural grade, BWR grade, and BWP grade. The MR grade segment is projected to register a robust growth rate during the assessment period, as it is the most commonly used plywood in the construction industry, which is suitable for indoor applications. Kitchen roofs, doors, file cabinets, and wardrobes are some of the indoor applications. Moreover, MR grade has good internal strength.
Based on size, the plywood market is categorized into 3x6 feet, 4x6 feet, 4x8 feet, 4x10 feet, and others. The 4x8 feet segment is expected to expand at a significant growth rate during the projection period, due to its multifunctionality. 4x8 feet plywood is used in applications such as exterior and interior wall sheathing. It is also used for flooring, roofing, and in the construction of cabinets.
On the basis of thickness, the market is fragmented into less than 8mm, 8 mm to 18 mm, and more than 18 mm. The more than 18 mm segment is projected to register a considerable CAGR in the coming years, as it is more durable in nature compared to others. This plywood is stronger than natural wood, which enhanced uniform strength. It is lighter in weight than solid wood. Thus, it is used in making furniture, which further drives the segment.
In terms of application, the plywood market is segmented into flooring, furniture, automotive interior, marine, packaging, and others. The furniture segment is expected to register a robust growth rate during the forecast period, due to the rising adoption of high-quality premium furniture products.
The majority of furniture used by consumers including sofas, doors, and vanities are made of plywood. The segment growth is further attributed to the rising demand for home furniture, owing to the increasing consumers’ disposable income.
Based on use, the global market is segregated into new construction and rehabilitation. The new construction segment is anticipated to hold a key share of the market during the projection period, due to the rising number of construction projects in various sectors such as healthcare, commercial building, offices, logistics, and educational institutes.
Plywood is lightweight, moisture-resistant, and dimensionally strong. Thus, it is used in the production of furniture in new construction projects, which further boosts the segment.
In terms of region, the global plywood market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, owing to the increasing demand for plywood in construction activities and rising renovation activities in developing countries.
Increasing infrastructure development and rapid industrialization are likely to propel the market in the region. Furthermore, the presence of key manufacturers in the region and rapid urbanization is further driving the regional market.
Segments
The plywood market has been segmented on the basis of
Type
Grade
- MR Grade
- Fire-Resistant Grade
- Structural Grade
- BWR Grade, and BWP Grade
Size
- 3x6 Feet
- 4x6 Feet
- 4x8 Feet
- 4x10 Feet
- Others
Thickness
- Less Than 8mm
- 8 mm to 18 mm
- More Than 18 mm
Application
- Flooring
- Furniture
- Automotive Interior
- Marine
- Packaging
- Others
Use
- New Construction
- Rehabilitation
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- West Fraser
- UPM
- Boise Cascade
- Subur Tiasa Holdings Berhad
- Metsä Group
- PotlatchDeltic Corporation
- Georgia-Pacific
- Timber Products Company
- BlueLinx
- Eksons Corporation Berhad
Competitive Landscape
Key players competing in the global plywood market are West Fraser; UPM; Boise Cascade; Subur Tiasa Holdings Berhad; Metsä Group; PotlatchDeltic Corporation; Georgia-Pacific; Timber Products Company; BlueLinx; and Eksons Corporation Berhad.
These companies adopt various strategies such as mergers, acquisitions, partnerships, collaboration, and product launches to boost their market share. For instance,
- On 23 January 2023, Boise Cascade, a US-based plywood manufacturer introduced its tenth door shop in Kansas. The new 150,000 sq. ft. mill facility is projected to start manufacturing in June 2023.
- In January 2022, Boise Cascade, a US-based plywood manufacturer partnered with Simpson Door Company a manufacturer of exterior, interior, and customized wood doors. This partnership helped Boise Cascade to expand its quality door services to its customers in Atlanta.
- In February 2021, West Fraser, a plywood manufacturer in Canada acquired Norbord, a Canada-based plywood manufacturer, for producing sustainable goods essential for a low-carbon economy position.
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