Plywood market’s CAGR is looking good

The Global Plywood Market size was valued at $55.7 billion in 2022, and is projected to reach $100.2 billion by 2032, growing at a CAGR of 6.1% from 2023 to 2032.

Plywood is available in various grades, thicknesses, and sizes, making it suitable for a wide range of applications in construction, furniture manufacturing, cabinetry, packaging, and other industries. It is commonly made from both hardwoods and softwoods, and the choice of wood species can affect the appearance, strength, and suitability of the plywood for different purposes.

A significant increase in the number of buildings can be seen across the globe. This is largely attributed to the increasing global population and rapid urbanization. For instance, according to U.S. Department of Housing and Urban Development, in 2023, 1,469,800 housing units were authorized by building permits in the U.S. Such buildings utilize wood-based panels in flooring, furniture, doors and window panels, and others. Therefore, a rise in building construction is anticipated to increase the demand for plywood. The plywood industry is witnessing surge in growth owing to factors such as increasing number of dwellings, increasing disposable income, and development in the e-commerce industry. Furthermore, owing to the COVID-19 pandemic, people globally were forced to work from home, for which they demanded tables and chairs, leading to a boost in the market.

There is a widespread stereotype among certain circles that Millennials are killing a variety of industries, but for plywood manufacturers and distributors, this rumour couldn’t be further from the truth. In fact, Millennials are a major factor that’s increasing the interest in the world of wood!

Millennials are generally very keen on using natural materials and textures, such as stone and wood. They want to create spaces that are inviting and comfortable. It is possible that growing up in a world of fluorescent lights and white tile floors has driven them in the opposite direction, to seek more natural options. In any case, this is great news for the plywood industry. This generation has rediscovered glistening wood floors and wooden wall paneling. They seem to prefer lighter-colored wood products and they are creating a demand that can potentially drive up profits for plywood manufacturers, as well as distributors.

Another reason Millennials like using wood in their homes is because it can make a space feel more open and is more cost-effective than using materials like marble or stone. There’s also an attraction to wood products that look to be hand crafted. By using 3D laser cutters, these customers can decide if they’d like something that seems polished or if they’d prefer a more rustic look. Customizable options make Millennials feel like they’re in control and don’t have to settle for what’s on the shelf at their local hardware store. Instead, they get to create a home that’s made for them, to insert their personality into their interior design, as they like to do with other aspects of their lives.

There are numerous plywood grades available in the market, such as MR Grade, BWR Grade, BWP Grade, FR Grade, and others. The fire resistant plywood are more popular owing to its usage in commercial space. For instance, in May 2023, India based plywood manufacturer Greenply has developed a fire retardant plywood that addresses the pressing issue of hazardous fires in residential and commercial spaces.

The most common usage for plywood is in structural applications. Plywood is inherently resistant to stress and extreme weather conditions. Structural plywood is ideally suited for beams and hoardings, although it is also widely used in crates, bins, interior constructions, outdoor furniture, and boxes.

Structural plywood is used for wall and roof reinforcement. Furthermore, plywood’s capacity to withstand warping, cracking, splitting, and shrinkage makes it a dependable building material. Its constant thickness also enables precise and accurate installation. These advantages have led architects and constructors to prefer plywood over more traditional options including solid wood or particle board. Many companies are focusing on improving its plywood production. These capital improvement projects involve the development and completion of new facilities, along with the enhancement of current operations.

The growth of manufacturing industries creates demand for flat commodities including plywood, which might enhance the plywood industry. The increased hospitability industry is raising the market for plywood. Furthermore, increased building activity and infrastructure development in countries including India and China have the potential to greatly boost the plywood market.  Furthermore, investments in physical and storage infrastructure are expected to meet increased manufacturing demand. This expansion is fueled by a number of reasons including economic development, building projects, and increased consumer demand for wood-based products. In order to take advantage of such customers, plywood makers are implementing flexible manufacturing methods, combining cutting-edge technology for increased efficiency, and undertaking extensive market analyses to align capacity increases with changing market demands.

The adoption of sustainable methods, along with adherence to quality control standards, let the sector grow in the face of rising demand. As the plywood industry evolves, these strategic activities provide a strong reaction to market trends and a solid platform for future success.

Here at Wood Plastix, plywood is one of our key materials. As an OEM company, we shape plywood sheets into a variety of products for various international brands. These products range from climbing walls, to furniture, to a number of custom-made items.