NEW YORK, July 15, 2024 /PRNewswire/ -- The global plywood market size is estimated to grow by USD 13.47 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.36%  during the forecast period. Increasing residential and commercial construction activities is driving market growth, with a trend towards rising wages in manufacturing hubs. However, moisture and humidity concerns of plywood  poses a challenge. Key market players include 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..

Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report

Market Driver

The global plywood market is experiencing a significant trend with rising wages in manufacturing hubs, particularly in countries like China and India. This development weakens the labor cost advantage for vendors in these regions. The primary causes of this wage increase include urbanization and industrialization in emerging economies, such as China, India, the Philippines, Vietnam, and Indonesia. The expansion of the global economy, fueled by the growing GDP of countries like China and India, contributes to the wage rise. Additionally, urbanization leads to a higher standard of living for people in low-income nations, driving wage growth. In India and Indonesia, for example, wage growth has been double-digit in recent years. Government initiatives, like India's Smart Cities Mission and Sardar Patel National Urban Housing Mission, aim to enhance living standards, which is anticipated to result in further wage increases. Consequently, the rising wages, particularly in manufacturing hubs, is projected to negatively impact the global plywood market during the forecast period. 

Plywood market trends include smooth surface finishes for improved aesthetics in doors, stairs, and interior fixtures. Water damage prevention is crucial with specialized plywood varieties for concrete shuttering and external cladding. Screw holding capability is essential for framing and timber joinery products. Urbanization and infrastructure projects drive demand for advanced manufacturing techniques and innovative products. Hardwood plywood, such as Uniply and Greenply, lead the market in high-performance applications. Sustainability is key with recycling and reuse, sustainable manufacturing, and environmental standards. Niche manufacturers focus on specialized plywood varieties for furniture, modular construction, and interior paneling. Feedstock prices impact the market, with a shift towards online platforms for sales and distribution. Product differentiation continues with softwood and hardwood segment offerings, including wood veneer and interior rails, balustrades, and external cladding. 

Discover 360° analysis of this market. For complete information, schedule your consultation - Book Here!

Market Challenges

•         Plywood market growth may be influenced by the proper conditioning of areas intended for plywood flooring. Manufacturers provide guidelines specifying a relative humidity range of 35%-55% for most plywood installations, although this can vary. For instance, engineered wooden flooring may require a slightly different range. Failure to maintain these ranges can lead to damage. Humidity levels can fluctuate from room to room or floor to floor, influenced by appliances like humidifiers, moisture-generating appliances, dryers, steam radiators, or combustion appliances. Plywood, including softwood varieties, requires moisture content management to prevent damage. Wood products absorb moisture from the air, so it's crucial to allow the moisture content to reach equilibrium with the prescribed conditions. Plywood's performance depends on its core and wear layer's moisture content at the time of manufacture, thickness, and core construction types. Installing plywood without considering these factors can lead to damage and potentially hinder the growth of the global plywood market.

•         The Plywood market faces several challenges in various sectors. In Construction, affordability and availability of feedstock prices impact the industry. Recycling and reuse are key sustainability concerns, with a focus on eco-friendly practices. The Hardwood segment faces competition from Plastic, Resin-impregnated paper, Fabric, Formica, and Medium-density fiberboard (MDF) in Residential and Commercial projects. Product differentiation through sizes, shapes, designs, colors, patterns, and textures is essential for Plywood in Furniture production. For Construction materials, durability, flexibility, stability, strength, and cost-effectiveness are crucial factors. Structural plywood, External plywood, Internal plywood, Marine plywood, and various plywood types offer resistance to chemicals, fire, sound, moisture, abrasion, and corrosion. Sustainability, including carbon footprint, is a growing concern, making eco-friendly practices essential. In the Plywood market, competition comes from various sources, including Softwood and Hardwood alternatives. Product differentiation, cost-effectiveness, and meeting specific project requirements are essential for success. Plywood's lightweight, cost-effective, and versatile nature makes it a popular choice for Walls, Floor coverings, and various applications.

For more insights on driver and challenges - Request a sample report!

Segment Overview 

This plywood market report extensively covers market segmentation by  

1. Type 
   • 1.1 Hardwood
   • 1.2 Softwood
2. Sector 
   • 2.1 New construction
   • 2.2 Replacement
3. Geography 
   • 3.1 APAC
   • 3.2 North America
   • 3.3 Europe
   • 3.4 Middle East and Africa
   • 3.5 South America

1.1 Hardwood-  Hardwood plywood is a popular choice for furniture, cabinets, and decorative applications due to its strength, stability, and convenience. The core of hardwood plywood is made from either softwood or hardwood, and is faced and backed with a veneer of finish or stain-grade hardwood. Hardwood plywood is primarily used in cabinetry and furniture design, and is graded by the Decorative Hardwood Association (DHA) based on veneer face quality, with AA being the highest and E the lowest. The rising demand for wooden furniture for home decor and the need for cost-effective options, such as wardrobes, living room furniture, and residential home decor, are major factors driving the hardwood plywood segment. Additionally, the growth of the real estate sector, particularly the demand for residential housing units, is further boosting the hardwood plywood market. These factors are expected to fuel the growth of the hardwood plywood segment within the global plywood market during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2017-2021) - Download a Sample Report

Learn and explore more about Technavio's in-depth research reports

The global cumene market is poised for growth, driven by increasing demand from industries such as automotive, electronics, and pharmaceuticals. Cumene, a key raw material in phenol and acetone production, is experiencing rising consumption in Asia-Pacific due to industrial expansion and infrastructure development. North America and Europe continue to be significant markets with established production facilities. Technological advancements in production processes aim to enhance efficiency and sustainability, addressing environmental concerns. As market players focus on capacity expansions and strategic partnerships, the global cumene market is expected to show steady growth in the coming years.

Research Analysis

Plywood is a popular construction material known for its durability and affordability. The global plywood market is witnessing significant growth due to increasing urbanization and infrastructure projects. Feedstock prices play a crucial role in the production cost of plywood. Sustainability is a key consideration in the plywood industry, with recycling and reuse of waste wood becoming a priority. Innovative products, such as specialized plywood varieties and wood veneers, offer product differentiation. Plywood is used extensively in various applications, including construction materials for walls and floor coverings, furniture, and high-performance applications. Online platforms have made it easier for consumers to purchase plywood, with options for softwood and hardwood varieties available. Manufacturers are focusing on sustainable manufacturing practices and adhering to environmental standards to meet growing demand for eco-friendly products.

Plywood is a popular construction material known for its durability, flexibility, and cost-effectiveness. It is made from thin layers of wood veneer glued together with adhesives, creating a strong and stable material suitable for various applications. Plywood comes in different sizes, shapes, designs, colors, and patterns, making it a versatile option for residential and commercial projects. Feedstock prices significantly impact the plywood market, with softwood and hardwood segments having distinct price points. Recycling and reuse of plywood scraps and waste are essential for sustainability. Sustainability is a growing concern in the plywood industry, with manufacturers focusing on eco-friendly practices, reducing carbon footprint, and adhering to environmental standards. Product differentiation is achieved through various factors such as resistance to chemicals, fire, moisture, abrasion, and corrosion. Structural plywood, external plywood, internal plywood, marine plywood, and specialized plywood varieties cater to various applications. MDF, Formica, fabric, and plastic are alternative materials used in place of plywood for specific applications. Advanced manufacturing techniques and innovative products are driving the plywood market, with modular construction and high-performance applications gaining popularity. Online platforms and niche manufacturers offer customized solutions for urbanization and infrastructure projects. The plywood industry continues to evolve, providing cost-effective, lightweight, and durable solutions for construction materials, walls, floor coverings, doors, stairs, and various other applications.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• • Hardwood
  • Softwood
• Sector
• • New Construction
  • Replacement
• Geography
• • APAC
  • North America
  • Europe
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/plywood-market-size-is-set-to-grow-by-usd-13-47-billion-from-2024-2028--increasing-residential-and-commercial-construction-activities-boost-the-market-technavio-302195693.html

SOURCE Technavio