Plywood dealers’ global market was worth US$ 43.3 Billion in 2019. Plywood is a wood panel made up of multiple sheets called veneers which are glued together through various resins. It is inexpensive, durable and reusable. It is used for various applications making it a dominant material in the construction industry. The use of various resins makes it water-resistant thus increasing its use in marine activities.
Market Growth
The instant growth of the furniture industry and the increasing urbanisation have made a positive impact on the growth of plywood in the construction industry. The rising construction market particularly residential housing, fancy renovation, remodelling projects and furnishing of bedrooms and dining rooms has increased the potential use of plywood globally. The lightweight properties and sustainability of plywood are encouraging its market worldwide. The growing demand for plywood is also boosting the plantation across the globe. This has gained support from environmentalists to meet environmental goals.
Thus owing to the climate change issues, the environment-friendly strategy of the plywood dealers has also helped in increasing the growth of plywood in the global market. Commercial vehicle manufacturers have also increased the demand for chequered plywood as it is highly used in automotive flooring. Also, the technological advancements by the major companies not only have reduced manufacturing costs and increased profitability but have also enhanced the quality of the plywood.
Regional Market
North America has been dominating the plywood market globally due to the increased consumption of plywood in the construction industry. Europe is the second-largest market for plywood dealers after North America owing to the rising demand from countries like Germany and the UK. However, in the last few years, the production of plywood is migrating from North America and Europe to China due to the ever-increasing construction sector.
The countries such as Brazil, India, and the other South-East Asian countries have a great potential to develop a leading plywood market owing to the presence of rich forest resources and dense wood plantations.
Major players in the market include:
- Boise Cascade Company
- Georgia-Pacific
- Jaya Tiasa Holdings Berhad
- Roseburg Forest Products Co.
- Seihoku Corporation
- Subur Tiasa Holdings Berhad
- Uniply Industries Ltd.,
- UPM-Kymmene Corporation
- Weyerhaeuser Company
- WTK Holdings Berhad
Challenges
The growing popularity of alternative materials such as cardboard and plastic in the packaging sector can be a cause of hindrance in the growth of plywood based packaging solutions and to plywood dealers. One of the major challenges is the higher prices of plywood in comparison to OSB which provides benefits almost similar to plywood. OSB has emerged as a tough competitor in recent times. However, it is unable to substitute plywood completely in different parts of the world due to the versatile nature of the plywood. The market for plywood is bound to increase globally due to its versatile and dynamic nature.
The Global Plywood Market is expected to grow at a CAGR of around 9.7% over the next few years to reach approximately $75.2 Billion by 2023. There will be an increase in demand for plywood owing to its varied applications in the construction industry. With the growing technological advances and passing time, the economical price of plywood will further attract the market.