Wood Manufacturing Market Size to worth USD 626.77 Billion by 2032, Growing at 2.3% CAGR, Coherent Market Insights
Burlingame, CA, Oct. 10, 2025 (GLOBE NEWSWIRE) -- The Global Wood Manufacturing Market is estimated to be valued at USD 534.54 Bn in 2025 and is expected to reach USD 626.77 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 2.3% from 2025 to 2032.Current market trends reveal a strong shift toward sustainable, renewable, and eco-friendly building materials, fueled by increasing environmental consciousness and strict regulations on carbon emissions. Advancements in wood processing technologies and the growing adoption of engineered wood products are improving durability and cost efficiency, further accelerating market expansion.
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Global Wood Manufacturing Market Key Takeaways
Lumber is set to remain a highly sought-after product type, accounting for a market share of 34.3% by 2025.
Based on wood processing method, sawing category is set to dominate the industry, capturing nearly one-third of the global wood manufacturing market share in 2025.
Furniture remains the most lucrative application, representing 29.7% of the global wood manufacturing market in 2025.
Asia Pacific, with an estimated market share of 38.2% in 2025, is expected to retain its dominance during the assessment period.
Europe is poised to create lucrative growth opportunities for wood manufacturing market companies during the forecast period.
Increasing Construction Activities Driving Wood Manufacturing Market Growth
Coherent Market Insights’ latest wood manufacturing market analysis outlines key factors driving industry growth. One such prominent growth factor is the increasing construction activities.
There is a surge in construction activities, especially urban housing and infrastructure, across nations like China and the United States. This is due to rapid urbanization and increased government spending on public infrastructure development.
For instance, the United States Census Bureau reported that construction spending in the U.S. reached about $2,139.1 billion in July 2025. This rising construction activity is boosting demand for wood products, thereby fueling growth in the wood manufacturing market.
Environmental Concerns and Alternative Materials Limiting Market Growth
The global wood manufacturing market outlook appears promising due to increasing usage in construction and furniture sectors. However, rising concerns about deforestation and increasing use of alternative materials may limit market growth to some extent.
Many countries are enforcing policies to restrict large-scale timber extraction due to deforestation concerns. This is expected to slow down growth in the wood manufacturing market during the forecast period.
In addition, there is a growing trend of using plastic, steel, aluminum, and concrete in construction, furniture, and packaging because they offer benefits like cost-effectiveness and durability. This shift may reduce global wood manufacturing market demand in the coming years.
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Rising Demand for Wooden Furniture Creating Growth Opportunities
The furniture industry is becoming a leading end user of wooden products. According to Coherent Market Insights (CMI), the furniture segment will likely account for 29.7% of the global wood manufacturing industry in 2025. This is due to growing demand for wooden furniture.
Consumers in the contemporary world are shifting their preference towards wooden furniture due to its aesthetic appeal and durability. This, in turn, is expected to unlock various revenue streams for wood manufacturing companies during the forecast period.
Emerging Wood Manufacturing Market Trends
Shift towards sustainable and engineered wood products is a key growth-shaping trend in the wood manufacturing market. There is a rising preference for engineered wood products like plywood and cross-laminated timber (CLT), thanks to their eco-friendly properties as well as suitability for modern construction methods. This is providing impetus for the growth of wood manufacturing industry.
Growing Do-It-Yourself (DIY) trend is providing a strong push to the target market. DIY projects, modular furniture, and home renovation are becoming popular globally, leading to increased demand for wood products.
Rising demand for wood products from packaging industry is expected to boost the wood manufacturing market value. This is because wood products are often used for pallets, crates, and specialized packaging solutions.
Advancements in wood manufacturing technologies are breathing new life into the target market. There is a growing trend of using digital technologies like automation, robotics, and computer-aided design (CAD) because these advanced technologies enhance efficiency, precision, and customization in wood manufacturing processes.
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Analyst’s View
“The global wood manufacturing industry is set to register moderate growth, owing to increasing construction activities, booming furniture sector, rising demand for sustainable and eco-friendly building materials, and adoption of advanced technologies in wood manufacturing,” said a senior CMI analyst.
Current Events and Their Impact on the Wood Manufacturing Market
| Event | Description and Impact |
| Housing Market Dynamics and Construction Sector Trends |
|
| Technology Advancement and Digital Transformation |
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| Sustainable and Eco-Friendly Wood Products |
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Competitor Insights
Key companies in the wood manufacturing market report:
- West Fraser Timber Co. Ltd.
- Norbord Inc.
- Weyerhaeuser Company
- Georgia-Pacific LLC
- Klausner Group
- Stora Enso
- LP Building Solutions
- Canfor Corporation
- Metsa Group
- Drax Group plc
- Suzano S.A.
- Södra Skogsägarna
- Tembec Inc.
- Interfor Corporation
- Pinnacle Renewable Energy Inc.
Key Developments
In May 2025, InventWood announced it would start mass-producing Superwood, a material stronger than steel for its weight. The company raised $15 million in the first part of its Series A funding to build a production facility for it.
In November 2024, Weyerhaeuser Company announced plans to invest about $500 million for building a new state-of-the art TimberStrand facility in Arkansas. The new facility will expand the company’s engineered wood products portfolio.
In October 2024, Stora Enso acquired Junnikkala Oy, a prominent Finnish sawmill company. This move is meant to boost Stora Enso’s wood supply for its packaging board plant in Oulu.
Market Segmentation
Product Type Insights (Revenue, USD Bn, 2020 - 2032)
- Lumber
- Plywood
- Particle Board
- Medium Density Fiberboard (MDF)
- Wood Panels
- Others
Wood Processing Method Insights (Revenue, USD Bn, 2020 - 2032)
- Sawing
- Planing
- Joinery
- Veneering
- Wood Preservation
Application Insights (Revenue, USD Bn, 2020 - 2032)
- Furniture
- Construction
- Cabinetry
- Flooring
- Others
Distribution Channel Insights (Revenue, USD Bn, 2020 - 2032)
- Wholesale Distributors
- Retail Suppliers
Regional Insights (Revenue, USD Bn, 2020 - 2032)
- North America
- U.S.
- Canada
- Latin America
- Brazil
- Argentina
- Mexico
- Rest of Latin America
- Europe
- Germany
- U.K.
- Spain
- France
- Italy
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- ASEAN
- Rest of Asia Pacific
- Middle East
- GCC Countries
- Israel
- Rest of Middle East
- Africa
- South Africa
- North Africa
- Central Africa
Related Reports:
Wood Products Market Size, Share & Trend Analysis Report for 2025-2032
Engineered Wood Market Size, Share, Trends & Opportunities for 2025-2032
Wood Recycling Market Analysis & Forecast for 2025-2032
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About Us: Coherent Market Insights leads into data and analytics, audience measurement, consumer behaviors, and market trend analysis. From shorter dispatch to in-depth insights, CMI has exceled in offering research, analytics, and consumer-focused shifts for nearly a decade. With cutting-edge syndicated tools and custom-made research services, we empower businesses to move in the direction of growth. We are multifunctional in our work scope and have 450+ seasoned consultants, analysts, and researchers across 26+ industries spread out in 32+ countries. Contact Us: Mr. Shah Coherent Market Insights 533 Airport Boulevard, Suite 400, Burlingame, CA 94010, United States US: + 12524771362 UK: +442039578553 AUS: +61-8-7924-7805 India: +91-848-285-0837 Email: sales@coherentmarketinsights.com Website: https://www.coherentmarketinsights.com For Latest Update Follow Us: LinkedIn | Facebook | Twitter
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