The Rising Demand for Plywood will Boost the Asia Pacific Market
The Rising Demand for Plywood will Boost the Asia Pacific Market
Blog Article
Plywood is a engineered wood product manufactured from thin layers or "plies" of wood veneer that are glued together with adjacent layers having their wood grain rotated up to 90 degrees to one another. It is one of the most widely used wood products globally owing to its wide availability and cost-effectiveness compared to solid wood boards.
The plywood market is estimated to be valued at USD 61.47 Bn in 2024 and is expected to reach USD 95.53 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.5% from 2024 to 2031.
Plywood Market Demand helps reduce wastage of wood in construction and furniture making as it utilizes wood from both the inner and outer rings of trees. It provides greater strength and stability compared to other timber panels due to its cross-laminated structure. The COVID-19 pandemic boosted demand for DIY and home renovation activities, fueling sales of plywood globally. Rising infrastructure development and commercial construction in Asia Pacific nations such as China, India, and Vietnam is a key driver of plywood consumption.
Key Takeaways
Key players operating in the plywood market are Greenply Industries, SVEZA, Georgia-Pacific, Swanson Group, PotlatchDeltic Corp, Rimbunan Hijau, Samling Group, Syktyvkar Plywood Mill, UPM, and West Fraser.
Growing demand for residential and commercial construction in emerging nations of Asia Pacific and Africa is boosting sales of plywood. The market value is projected to cross US$ 150 billion by 2031.
Technological advancements such as waterproof, fireproof and exterior grade plywood variants are gaining popularity in applications such as roofing, wall sheathing, and concrete formwork.
Market Trends
Increasing adoption of bamboo-based plywood: Bamboo-based plywood is gaining popularity as a sustainable alternative to hardwood plywood due to the fast growth of bamboo and its comparable strength.
Rise of e-commerce channels: Marketing of plywood products through e-commerce websites is growing, helping vendors reach wider customer segments globally. This is improving visibility of newer variants.
Market Opportunities
Growing "Do-It-Yourself" (DIY) home improvement trend: Rise of DIY culture especially during the pandemic is driving demand for plywood in home renovation, repairs, and construction activities worldwide.
Infrastructure-led growth in emerging regions: Major infrastructure projects in Asia Pacific and African countries offer immense growth potential for plywood consumption in the construction of roads, bridges, airports and sea ports.
The COVID-19 pandemic has significantly impacted the plywood market. During the initial outbreak, demand declined sharply as construction activities were halted to curb virus spread. Supply chains were disrupted due to lockdowns and movement restrictions imposed worldwide. This led to shortages of raw materials like wood for plywood manufacturers. Those engaged in exports faced challenges of shipping delays and cancelled orders from clients. Social distancing protocols also affected workforce availability and operational efficiency at production facilities.
However, as lockdowns eased, supply chains resumed operations with safety protocols. The market is witnessing a steady recovery backed by increasing construction of residential and commercial projects. There is high demand for single family homes as people prefer larger living spaces due to work from home trends. This is driving demand from the housing sector. Infrastructure projects related to roads, railways and utilities are restarting. Renovation and remodeling activities have picked up the pace. Manufacturers are focusing on developing sustainable and eco-friendly plywood variants utilizing alternative raw materials. The market is expected to normalize and sustain growth in the coming years.
In terms of geographical concentration, Asia Pacific accounts for the largest value share in the global plywood market. Countries like China, India and Indonesia have emerged as major production and consumption hubs owing to expanding construction activities. Abundant availability of wood resources and large consumer base make APAC ideal for plywood production. North America is another substantial regional market driven by residential construction and R&D investments in product innovation. Meanwhile, Africa and Middle East are fastest growing regions with rising infrastructure spends and growing population. Countries like Saudi Arabia, UAE, Kenya are witnessing rapid urbanization and infrastructure modernization.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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