Global Wood Bio Products Market Outlook
Revenue, 2023
$286B
Forecast, 2033
$694B
CAGR, 2024 - 2033
9.3%
The Wood Bio Products industry revenue is expected to be around $341.2 billion in 2024 and expected to showcase growth with 9.3% CAGR between 2024 and 2033.
Wood based bio-products are set to revolutionize sectors, with their eco-friendly characteristics that cater to a wide range of needs in the market landscape. In 2023 the global market for wood bio products hit a value of $285.6 billion and is anticipated to soar to $532.2 billion by 2030 and even further to $830 billion by 2035 at a compound annual growth rate of 9.3%. This surge underscores the growing interest in options across industries and solidifies wood bio products as a key player, in the future materials supply-chain.
Wood based bio-products fall under the category of renewable materials and are sourced from biomass mainly consisting of wood material. These products are recognized for their ability to decompose naturally in the environment and for being replenish-able resources. They encompass a range of derivatives like cellulose, lignin, hemicellulose and bio char showcasing their adaptability and eco-friendly nature
Market Key Insights
- The Wood Bio Products market is projected to grow from $285.6 billion in 2023 to $695 billion in 2033. This represents a CAGR of 9.3%, reflecting rising demand across Energy, Construction and Packaging .
- Enviva, Drax Group, UPM are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Wood Bio Products market and are expected to observe the growth CAGR of 6.8% to 9.8% between 2023 and 2030.
- Emerging markets including Brazil, India and Indonesia are expected to observe highest growth with CAGR ranging between 8.9% to 11.6%.
- Transition like Circular Economy is expected to add $25 billion to the Wood Bio Products market growth by 2030.
- The Wood Bio Products market is set to add $409 billion between 2023 and 2033, with manufacturer targeting Bioplastics & Chemical Feedstocks Application projected to gain a larger market share.
- With Sustainability focus, and Government regulations, Wood Bio Products market to expand 143% between 2023 and 2033.
Opportunities in the Wood Bio Products
The increasing emphasis on renewable energy in the Asia Pacific region presents opportunities for using wood based bio products, in the production of biomass energy
Growth Opportunities in North America and Europe
The market, for wood based bio-products in North America thrives due to a energy industry and government efforts to cut down carbon emissions. U.S., with major companies like Enviva and Drax Group leading the way in expanding production facilities focused on biomass energy. The increased usage of materials is propelled by premium pricing and has seen widespread acceptance in industries like construction and packaging. These advantages are fueled by regulations and consumer interest in goods which bode well for future expansion in the region
The market for wood based products in Europe is driven by regulations and goals for carbon neutrality. Leading companies such as UPM and Stora Enso are leading the way in developing bioplastics and based chemicals to reduce dependence on petroleum derived products. Despite the high costs of production, Europe continues to excel in sustainability efforts with countries like Germany and Finland investing in cutting edge bio refineries. The competitive landscape emphasizes eco innovation and cooperation establishing Europe as a hub for the growth of wood based products
Market Dynamics and Supply Chain
01
Driver: Sustainability Focus, and Technological Advancements
The growing trend towards sustainability has also led to a need for eco-friendly materials that decompose naturally. This has also made wood based products crucial in sectors such as packaging, textiles and energy Advancements in 2nd & 3rd generation wood-based biorefining techniques are also addressing the raw material supply-chain issues effectively. This results in lowered costs and wider usability across sectors
Regulatory incentives aimed at reducing carbon emissions, especially in North America and Europe, are also bolstering wood bio-product adoption across various sectors
02
Restraint: High Production Costs
The intricate manufacturing procedures involved in producing wood based bio-products, like bioplastics and other derived chemicals may lead to increased expenses. This can hinder the acceptance of these products in regions where cost plays a role, in market adoption
03
Opportunity: Bioplastic Demand and Construction Innovation
The rising regulatory driven demand for eco-friendly packaging materials is creating opportunities for bioplastics made from wood. These offer options as a substitute for plastics derived from petroleum
The green building & low energy trends in the construction sector offers a chance for timber based products such as CLTs to have an edge over alternative materials
04
Challenge: Supply Chain Disruptions
Issues with the availability of right raw materials and rising transportation expenses have led to challenges in maintaining a flow of wood based bio-products, specifically for manufacturers in developing economies
Supply Chain Landscape
1
Raw material suppliers
2
Manufacturers
3
Distributors
4
End-Users
1
Raw material suppliers
2
Manufacturers
3
Distributors
4
End-Users
Use Cases of Wood Bio Products in Energy & Construction
Energy : In the field of energy production wood bio-products play a key role in creating renewable energy sources like wood pellets, which fosters lower carbon emission as compared to conventional fossil fuels when utilized in power plants for generating electricity. Companies such as Drax Group are actively utilizing wood bio-products to advance biomass energy solutions and promote wood as a substitute for coal in the industry
Construction : Wood bio products such as cross-laminated timber used in construction projects, provide a sustainable and environmentally friendly option that is both lightweight and long lasting compared to conventional building materials and being championed by companies like Metsa Wood for sustainable architecture solutions
Packaging : The packaging sector is seeing advantages from bio-based options such as lignin and cellulose derivatives used in bioplastics materials. Stora Enso is taking the lead in shifting from plastic made from petroleum to products derived from wood sources and providing eco-friendly packaging solutions that are both sustainable & compostable in response to the growing demand from environmentally conscious consumers
Textile Manufacturing : Wood derived fibers are becoming more popular, in the textile industry as bio-based substitutes for cotton and fibers. Companies such as Sappin leading the way, in creating innovative wood based fabrics that not only reduce water usage but also have a smaller environmental footprint – this all contributing to a more sustainable fashion industry
Recent Developments
The recent changes highlight the markets move towards renewable options. Investors are focusing on bioplastics and bioenergy as drivers of growth
January 2024 : UPM revealed plans to expand its manufacturing facility with a goal of substituting petroleum based plastics in the European market
June 2023 : Borregaard has unveiled a line of chemicals derived from lignin for eco-friendly adhesives applications to broaden its footprint in the chemical feedstock sector
September 2023 : Drax Group has received funding to increase the production of wood pellets, in North America as part of its efforts to strengthen its biomass energy initiatives
Impact of Industry Transitions on the Wood Bio Products Market
As a core segment of the Bio-Based C&M industry,
the Wood Bio Products market develops in line with broader industry shifts.
Over recent years, transitions such as Circular Economy and Green Energy Transition have redefined priorities
across the Bio-Based C&M sector,
influencing how the Wood Bio Products market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Circular Economy
The rise of circular economy concepts is increasing the demand for materials such as wood based products in industries such as packaging and manufacturing that prioritize waste minimization This industry transition is expected to add $25 billion in the industry revenue between 2023 and 2030.
02
Green Energy Transition
The global shift toward green energy has increased investment in bioenergy solutions, positioning wood bio-products as key to decarbonizing energy systems