Wood is a raw material gathered from the trees in our ecosystem. It is comprised of multiple substances, mainly cellulose, hemicellulose, and lignin, which contribute to 97% of all wood. Other substances that contribute to the characteristics of the wood, such as hardwood or softwood, are the different minerals or “extractive” chemicals gathered, which make up about 3% of the wood. The main product from raw wood is lumber, which is made of pieces of wood that are crafted into boards or beams used for the manufacturing of different products. Wood is also used as a source for energy by being burned as firewood or transformed into charcoal for heating homes or generating electricity.
Wood is primarily used as lumber, which is mainly used in the construction industry. This includes homes, commercial buildings, furniture, tools, and outdoor applications such as fencing. The uses of wood are diverse and continuously evolving, being the foundational material for over 1,000 products we use today that are classified as wood products.
The Asia-Pacific was the largest region in wood products in 2022, with North America being the second largest region in the wood products market share. The United States is one of the leading producers and exporters of wood products. The global wood products market size will grow from about $697 billion in 2022 to about $748 billion in 2023 at a compound annual growth rate (CAGR) of 7.4%. The size of the wood products market is expected to grow to about $964 billion in 2027 at a CAGR of 6.6%. In the United States, the largest wood suppliers are based in Oregon, California, and Georgia. A few trends in this industry are technological advancements for manufacturing techniques, sustainable practices such as forest management or conservation, and global economic factors like housing market trends or exchange rates.
There are many different businesses in this competitive market, and one of the largest market share companies is Weyerhaeuser Company. This company, which started in Tacoma, Washington, is the largest private owner of timberlands globally, with substantial land assets totaling over millions of acres. Weyerhaeuser had a revenue of $7.7 billion with a market cap of $25 billion in 2023. West Fraser Timber Co. is another major competitor in the wood industry that specializes in acquiring mills and forest assets as well as producing bioproducts. In 2023, West Fraser Timber Co. earned a revenue of $6.5 billion, and had a market cap of $7.1 billion. The last company I will mention is Louisiana-Pacific Corporation which specializes in wood products like outdoor living products, home manufacturing materials, and more. The annual revenue made in 2023 for this company was $2.6 billion, with a market cap of $5.1 billion. There are many different vendors in the United States and beyond that hold a large inventory of wood products. These vendors include Home Depot, Lowe’s, Menards, Lumber Liquidators, Forest Products Supply, and many more.
As mentioned earlier, wood’s main benefit is its renewability. The source of wood from the forests around the globe can be endless if the proper environmental management techniques are implemented. This aspect makes this material a highly valued source that can be accessed more than other raw materials. Wood that is not going to be used for manufacturing products can be used as firewood or fuel to generate electricity instead of being put in a landfill, as well as manufacturing paper. Wood is easy to store for future use and does not take much to process. The chemicals in wood like cellulose are used for cosmetics, food additives, and even fillers for plastics.
Wood is one of the most resourceful and renewable materials around the globe. Over 1,000 products are made from wood, like building materials, furniture, paper, musical instruments, crates, pallets, boats, and much more. Wood can be recycled or reused in many ways, mainly for fuel or paper production. The global wood products market size will grow from about $697 billion in 2022 to about $748 billion in 2023, at a compound annual growth rate of 7.4%. The size of the wood products market is expected to grow to about $964 billion in 2027 at a CAGR of 6.6%. As long as forest management initiatives are properly implemented, the wood product industry will always be stable.
