Introduction

• Plywood is a type of engineered wood product that consists of thin layers of wood veneer glued together under high pressure and heat.
• Plywood has various applications in construction, furniture, packaging, flooring, and transportation industries, due to its advantages such as strength, durability, versatility, and cost-effectiveness.
• The global plywood market was valued at $61.4 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 5.2% from 2020 to 2025, reaching $84.2 billion by 2025, according to a market research report by Grand View Research¹.

Market Drivers

• The main factors driving the growth of the global plywood market are:
  • The increasing demand for plywood in the construction sector, especially in emerging economies such as China, India, Brazil, and Southeast Asia, where urbanization, industrialization, and infrastructure development are creating a need for low-cost and high-quality building materials.
  • The rising preference for plywood over other wood products, such as solid wood, particleboard, and medium-density fiberboard (MDF), due to its superior properties, such as resistance to moisture, cracking, warping, and splitting, as well as its environmental benefits, such as lower carbon footprint and recyclability.
  • The technological advancements and innovations in the plywood industry, such as the development of new types of plywood, such as bamboo plywood, composite plywood, and fire-resistant plywood, offer enhanced performance and functionality for various applications.

Market Restraints

• The main factors restraining the growth of the global plywood market are:
  • The fluctuations in the prices and availability of raw materials, such as wood logs, resin, and glue, which are influenced by the supply and demand dynamics, weather conditions, environmental regulations, and trade policies of different countries.
  • The competition from substitute products, such as metal, plastic, and concrete, which may offer lower costs, higher durability, and better aesthetics for some applications.
  • The impact of the COVID-19 pandemic has disrupted the production, distribution, and consumption of plywood, as well as the construction and furniture activities, across the world.

Market Segmentation

• The global plywood market can be segmented by product type, application, and region.
• By product type, the market can be divided into softwood plywood, hardwood plywood, tropical plywood, and decorative plywood. Softwood plywood accounted for the largest market share in 2019, due to its wide usage in structural applications, such as roofing, flooring, and wall sheathing. Hardwood plywood is expected to witness the fastest growth during the forecast period, due to its increasing demand in furniture, cabinetry, and interior decoration applications.
• By application, the market can be categorized into construction, furniture, packaging, flooring, and transportation. Construction was the dominant application segment in 2019, owing to the extensive use of plywood in residential and commercial buildings, as well as in civil engineering projects, such as bridges, dams, and tunnels. Furniture is anticipated to be the most lucrative application segment during the forecast period, due to the rising consumer spending on home improvement and renovation, as well as the growing popularity of modular and customized furniture.
• By region, the market can be classified into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Asia Pacific was the leading regional market in 2019, accounting for more than 60% of the global market share, due to the high production and consumption of plywood in China, India, Japan, and Southeast Asian countries. North America and Europe are expected to witness moderate growth during the forecast period, due to the mature and saturated markets, as well as the stringent environmental regulations on wood harvesting and processing. Latin America and Middle East and Africa are projected to exhibit significant growth during the forecast period, due to the increasing investments in infrastructure and industrial development, as well as the rising disposable income and living standards of the population.

Conclusion

• The global plywood market is expected to witness steady growth from 2020 to 2025, driven by the increasing demand for plywood in the construction and furniture sectors, the rising preference for plywood over other wood products, and the technological advancements and innovations in the plywood industry.
• However, the market growth may be hampered by fluctuations in the prices and availability of raw materials, the competition from substitute products, and the impact of the COVID-19 pandemic.
• The market can be segmented by product type, application, and region, with softwood plywood, construction, and Asia Pacific being the dominant segments in 2019, and hardwood plywood, furniture, and Latin America and Middle East and Africa being the emerging segments during the forecast period.