The global plywood market size is projected to reach $73.3 billion by 2027 from $54.2 billion in 2022 growing at a CAGR of 6.2%, according to a recent market research report.
The report, ‘Plywood Market by Type (Hardwood and Softwood), Application (Construction and Industrial), Uses Type (New Construction and Rehabilitation), and Region (North America, Europe, APAC, MEA, South America) – Global Forecast to 2027,’ includes vital projections and trends expected to occur across the concerned market and their impact on the global market scenario.
Based on application, the construction segment is expected to be the largest segment during the forecast period. Over the medium term, construction will be a growth engine for the global economy, with growth averaging 4.4% between 2020 and 2025. The global construction market is expected to grow by US$4.5 trillion between 2020 and 2030, reaching US$15.2 trillion. US$8.9 trillion of this will be in emerging markets in 2030. Growth is projected to be concentrated in a few nations. China, India, the United States, and Indonesia account for 58.3% of worldwide building growth between 2020 and 2030. Over the next decade, ten markets likely contribute to about 70% of the $4.5 trillion in growth.
Based on type, the plywood market is segmented into hardwood and softwood. Softwood is renowned for its versatility and strength. Softwood Plywood is plywood that has a softwood veneer on the front and back rather than a hardwood veneer like Birch, Maple, Oak, and others. Softwood plywood panels are utilized for structural purposes because they have a core made of softwood and are faced and backed with a veneer of softwood. Softwood Plywood is used mainly in the construction industry for structural purposes. Softwood plywood comes in a variety of grades, dimensions, and thicknesses depending on their intended application; nevertheless, the highest grades are occasionally utilized for purely ornamental projects like furniture and cabinetry.
The Asia Pacific region is the largest market for plywood across the globe. The market in the Asia Pacific has been studied for China, India, Japan, South Korea, Taiwan, Thailand, Malaysia, and the Rest of Asia Pacific (Australia, Indonesia, and others). Among these countries, China accounted for the largest share of 80.0% of the Asia Pacific plywood market in terms of value.
India and China have experienced close to double-digit GDP growth in recent years, as well as a population boom. The stable economy and growing building and construction industry have augmented the growth of plywood in India and China. Furthermore, the furniture sector is one of the main consumers of plywood in India. From 2018 to 2023, it is predicted that the India furniture market by commercial sector will have a CAGR of 11.97%. India is the fourth-largest consumer of furniture worldwide and the fifth-largest producer of furniture. The Indian furniture industry is estimated to be worth $8 billion and represents 0.5% of the GDP in 2022 according to IBEF (Indian Brand Equity Foundation). The domestic organized industry has roughly 5,000 businesses, and there are almost 10,500 furniture imports. The industries that contribute most to the growth of the sector include real estate, housing, hospitality, and consumer base growth.
Over the next decade, ten markets including India, China and USA likely contribute to about 70% of the $4.5 trillion in growth.
Softwood segment to hold the largest share in the plywood market over 2030.
Asia Pacific plywood market is estimated to register the highest CAGR during the forecast period.
India is the fourth-largest consumer of furniture worldwide and the fifth-largest producer of furniture. The Indian furniture industry is estimated to be worth $8 billion.