Lumber fell to 599.02 USD/1000 board feet on July 11, 2025, down 1.89% from the previous day. Over the past month, Lumber's price has fallen 2.99%, but it is still 37.54% higher than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on July of 2025.

Non-seasonal prices paid for softwood lumber in the United States have remained relatively stable since 2023, after reaching a peak in March 2022. While the price of softwood lumber in May 2021 was valued at over 581 index points, that figure dropped to 274 in September of that year. The price of softwood veneer and plywood in the United States has also followed a similar trend.

The price of lumber in the United States fluctuated widely over the last five years, from a low of 240 dollars per 1,000 board feet in January 2016 to a peak of over 1,500 dollars in April 2021. This overall increase has not been linear though, with, for example, lumber prices falling by around 50 percent between June and September 2018, and again between August and October 2020. The value fell again by around 75 percent between May and August 2021. As of the end of December 2024, the price of lumber stood at 550.5 U.S. dollars per thousand board feet. Which nations are at the forefront of lumber production? The production of lumber is dependent on the availability of forest resources, market demand, and technological advances. Sustainable forest management practices a continuous supply of timber, while economic factors and construction activity drive demand. Among the countries countries with the largest production of lumber were China and the United States. Other countries with a relatively high lumber production rate were Russia, China, and Brazil.

Graph and download economic data for Index of Wholesale Prices of Lumber for United States (M0464BUSM349NNBR) from Jan 1947 to Feb 1954 about wood, wholesale, price index, indexes, price, and USA.

Explore the dynamic landscape of lumber prices in the U.S., affected by factors like supply chain disruptions, the COVID-19 pandemic, geopolitical tensions, and economic trends. Discover how housing market fluctuations, tariffs, and environmental events such as wildfires impact this volatile market, and gain insights into the prospects for price stabilization as of late 2023.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Lumber (WPS081) from Jan 1967 to May 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

Series Is Presented Here As Two Variables-- (1)--Original Data, 1913-1951 (2)--Original Data,1947-1954. See 1931 Bls Bulletin For Revisions From 1926-1931. Beginning In 1935, Revised Indexes Are Based Upon A Larger Sample Of Lumber Prices And An Improved Method Of Weighting Is Used. The Price Data Were Not Available For An Adequate Number Of Types Of Lumber To Make It Feasible To Compute Revised Indexes Prior To January, 1935. However, A Continuous Index (1926=100) Has Been Constructed Using The Revised Index For January, 1935 At The Same Level As The Series Which It Replaces. In October, 1940, The Bls Lumber Index Was Revised Back To January, 1935. Figures For November And December, 1942, Were Shown In Monthly Wholesale Prices (Mimeographed) For April, 1944; Not Published Elsewhere. Figures For September-December, 1943 Were Shown In Monthly Wholesale Prices (Mimeographed) For June 1945; Not Published Elsewhere. After December, 1951, Index On 1926 Base Was Discontinued. Source: Bls Bulletin Of 1930 And Following Issues Of "Wholesale Prices" Through 1941; Bls Bulletin Nos. 736, 759, 785, 870, 877, 920, 947, 973, 1007, And 1083 Through 1950; Monthly Labor Review, 1952 Issues For 1951.

This NBER data series m04164a appears on the NBER website in Chapter 4 at http://www.nber.org/databases/macrohistory/contents/chapter04.html.

NBER Indicator: m04164a

Lumber wholesalers distribute a wide range of lumber, plywood, millwork and wood panel products to contractors, home improvement stores, hardware stores and other miscellaneous buyers, like government agencies, businesses for end use, consumers and farms. The industry has faced severe volatility through most of the current period as a result of the pandemic, massive supply chain disruptions and surging interest rates. In particular, higher rates offset growth realized at the start of the pandemic from torrid housing starts and home improvement markets, leading to five-year declines in the industry. Overall, revenue has faltered at an expected CAGR of 1.1% to $150.7 billion through the current period, despite a 1.3% jump in 2025, where profit reached 4.3%. Supply chain disruptions have also had an outsized impact on the industry's performance. In particular, major lumber shortages caused prices to skyrocket more than 36.0% in 2021. Wholesalers faced shrinking inventories and heightened demand from housing markets, with demand overwhelming availability. Companies were able to heavily raise prices, reaping 14.0% growth in the year. As prices ebbed and construction markets cooled, revenue dropped significantly, erasing gains from the start of the current period. In general, the cyclical nature of construction markets contributes to major boom-or-bust cycles. Lumber wholesalers will continue to contend with uncertainty through the outlook period. While interest rate cuts in 2024 and 2025 point toward healthier construction markets in the near future, tariffs may likely create economic uncertainty. Additionally, trade policies may introduce new supply chain complexities, raising lumber prices and potentially encouraging contractors to adopt alternative materials in home building. Additionally, companies will start to prioritize cost-saving technology and systems, like robotics and inventory management systems, improving connectivity with buyers and suppliers while reducing labor reliance. Wholesalers will also need to effectively manage inventories, ensuring products meet sustainability standards to attract and retain buyers. Overall, revenue will rebound at an expected CAGR of 2.0% to $166.7 billion through the outlook period, where profit will reach 4.4%.

American lumber prices have decreased threefold, closing in on pre-COVID levels, which should drive global prices down. The change in lumber prices is largely influenced by slumping demand for real estate which became more expensive from diminished access. In Russia, the world’s largest supplier, a sharp increase in lumber exports led to a shortage in the domestic market. Attempting to hold the price growth instigated by that, the Russian government implemented 10% export duties on lumber until the end of 2021. Due to this, the main importers of Russian goods may opt for other suppliers.

The price of lumber has seen both an overall increase, and large amounts of volatility since 2019. From its low in early April 2020 to its peak in May 2021, the price per 1,000 board feet of lumber increased almost sevenfold, reaching ***** U.S. dollars. Yet, after reaching this peak the price then fell to below *** U.S. dollars per 1,000 board feet in August 2021 before rising again to reach over 1,000 U.S. dollars in the beginning of 2022. Since then, the price per 1,000 board feet of lumber decreased overall, reaching *** U.S. dollars as of January 29, 2025.

According to Cognitive Market Research, the global Lumber market size will be USD XX million in 2024. It will expand at a compound annual growth rate (CAGR) of 5.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD XX million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.
The sustainable products category is the fastest growing segment of the Lumber industry

Market Dynamics of Lumber Market

Key Drivers for Lumber Market

Increased infrastructure development fuels lumber consumption and market growth to Boost Market Growth

The key drivers that dominate the growth of the lumber market due to increased infrastructure development include rising urbanization, population growth, and an expanding construction sector. As countries invest heavily in infrastructure projects such as roads, bridges, and residential and commercial buildings, there is a growing demand for Lumber as a primary building material. Additionally, the increasing focus on sustainable and eco-friendly construction practices has led to a preference for wood-based products, driving up lumber consumption. Government initiatives and policies aimed at enhancing urban development and improving infrastructure further stimulate the demand for Lumber. Moreover, the growing trend of wood's aesthetic and environmental benefits in interior design and construction projects contributes to market growth. The continuous development of new technologies in lumber processing and efficient supply chain management also boosts the availability of quality lumber, enhancing its consumption in the market. These factors collectively fuel the global lumber market growth.

Rising home construction projects drive lumber demand and prices

Rising home construction projects are a key driver of increased lumber demand and prices. The expansion of residential construction, fueled by population growth, urbanization, and low interest rates, boosts the need for Lumber. As more people seek homeownership and housing inventory remains limited, the demand for building materials, particularly Lumber, intensifies. Supply chain disruptions, limited mill capacity, and labor shortages further exacerbate the supply-demand imbalance, contributing to price hikes. Additionally, increasing government investment in infrastructure and housing projects, along with the shift toward sustainable building practices, is expected to continue driving demand for Lumber in the coming years.

Restraint Factor for the Lumber Market

Unpredictable timber costs affect pricing and profitability

Unpredictable timber costs pose significant restraints in the timber industry, directly influencing pricing and profitability. Fluctuations in raw material costs, driven by factors like supply chain disruptions, environmental regulations, and demand shifts, make it difficult for businesses to forecast expenses. This uncertainty can lead to pricing instability, forcing companies to either absorb higher costs or pass them onto consumers, which impacts competitiveness. Additionally, profitability is threatened as businesses struggle to maintain margins amidst rising or volatile timber prices. Long-term planning and financial stability are hindered, limiting growth opportunities and operational efficiency.

Trend Factor for the Lumber Market

Sustainable forestry and eco-certified lumber are gaining momentum

The lumber market is undergoing a significant transformation towards sustainability, characterized by an increasing demand for eco-certified and responsibly sourced wood products. Stakeholders including consumers, builders, and governments are emphas...

As of June 20 2025, 2x4 western spruce-pine-fir (kiln dried) Utility #3 was the lowest priced type of lumber in North America, at *** U.S. dollars per 1,000 board feet. Meanwhile, 2x4 eastern spruce-pine-fir stood at *** Canadian dollars per 1,000 board feet.

Explore the factors influencing the price of 2x12x20 lumber, including market fluctuations, seasonal construction demands, and economic conditions. Understand how trade policies, environmental practices, and global events impact this lumber size used in building frameworks. Stay updated with market trends and supplier consultations for the latest pricing in the North American lumber market.

Lumber Market Outlook 2032

The global lumber market size was USD 337.8 Billion in 2023 and is projected to reach USD 425.4 Billion by 2032, expanding at a CAGR of 3.3% during 2024–2032. The market growth is attributed to the growing infrastructure investments across the globe.



Rising infrastructure investments is a significant driver of the lumber market. Governments and private entities across the globe are making substantial investments in infrastructure development. This includes the construction of public facilities, commercial spaces, and residential complexes. Such development activities lead to a high demand for lumber, given its versatility and strength-to-weight ratio. Additionally, advancements in engineered wood products have further increased the use of lumber in structural applications, driving the lumber market.

Impact of Artificial Intelligence (AI) in Lumber Market

Artificial Intelligence has a significant impact on lumber market, by enhancing efficiency, accuracy, and productivity. The integration of AI in lumber operations has led to the development of smart sawmills that utilize machine learning algorithms to optimize the cutting of logs, thereby reducing waste and increasing yield. AI-powered drones and satellite imagery are now used for forest management, enabling precise inventory tracking and health assessment of trees.



AI has revolutionized supply chain management in the lumber industry, facilitating real-time tracking, predictive analytics for demand forecasting, and automated decision-making processes. This has resulted in reduced operational costs, improved customer service, and increased profitability. Furthermore, AI-driven predictive maintenance systems have been instrumental in minimizing equipment downtime, thus boosting overall productivity. The advent of AI has undeniably reshaped the lumber market, driving sustainability and growth.

Lumber Market Dynamics

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Get the latest insights on price movement and trend analysis of Softwood Lumber meal in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

The price of millwork in the United States continued its growth-trend in 2021, peaking at nearly 319. In contras, the previous year that index value was at over 274. This value of index was set at 100 in 1982. In contrast, the price of softwood lumber in the United States has fluctuated much more in the past years.

The global softwood lumber market is experiencing robust growth, projected to reach a market size of $150 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 4.5% from 2025 to 2033. This expansion is fueled by several key drivers, including the burgeoning construction industry, particularly in North America and Asia Pacific, where residential and commercial building projects are driving significant demand. The packaging sector also contributes substantially, with softwood lumber used extensively in the creation of pallets and crates for goods transportation. Furthermore, the manufacturing sector utilizes softwood lumber for various applications, including furniture production and industrial components. Trends such as sustainable forestry practices and the increasing adoption of engineered wood products are shaping the market landscape. However, factors such as fluctuating lumber prices, concerns about deforestation, and potential disruptions to global supply chains pose constraints to market growth. The market is segmented by application (construction, packaging, manufacturing, and others) and type (fir, cedar, pine, and others), with construction dominating the application segment and pine holding a leading position in the type segment. Major players in the industry include Canfor Corporation, West Fraser Timber, and Weyerhaeuser, among others, who are strategically investing in capacity expansion and technological advancements to meet increasing demand. The significant regional variation in market share reflects differing levels of construction activity and economic growth. North America currently holds the largest market share, driven by strong domestic demand and established production capacity. However, the Asia-Pacific region is anticipated to exhibit the fastest growth rate over the forecast period, fuelled by rapid urbanization and infrastructure development in countries like China and India. European markets, while relatively mature, are projected to show steady growth driven by renovation and construction projects. The competitive landscape is characterized by a mix of large multinational corporations and smaller regional players. The future growth of the softwood lumber market hinges on the sustained strength of the construction sector, successful implementation of sustainable forestry practices, and the ability of industry players to navigate fluctuating raw material costs and geopolitical uncertainties. Strategic partnerships and technological innovations will play a crucial role in shaping the market's evolution in the coming years.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Hardwood Lumber (WPU0812) from Jan 1947 to May 2025 about floor coverings, wood, commodities, PPI, inflation, price index, indexes, price, and USA.

The global timber raw material market is experiencing robust growth, driven by increasing demand from the construction and furniture industries. The market size in 2025 is estimated at $150 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 4% from 2025 to 2033. This growth is fueled by several key factors. Firstly, the ongoing expansion of the residential, commercial, and industrial construction sectors globally fuels the demand for timber as a primary building material. Secondly, the rising popularity of sustainably sourced timber and engineered wood products, coupled with growing awareness of the environmental benefits of using wood over other materials, is contributing to market expansion. Finally, advancements in timber processing technologies are leading to the creation of more durable and versatile wood products, widening their application across various industries. However, the market faces certain restraints. Fluctuations in timber prices due to factors such as weather patterns, forest management practices, and global economic conditions can impact market growth. Sustainability concerns, especially regarding deforestation and illegal logging, remain a significant challenge. Furthermore, competition from alternative building materials, such as concrete and steel, and rising transportation costs pose further hurdles to market expansion. Segment-wise, the residential building application currently holds the largest market share, followed by commercial building. Amongst types, preservative wood and hardwood dominate the market due to their durability and aesthetic appeal. Geographic regions like North America, Europe, and Asia Pacific are key contributors to market revenue, with China and the United States being major consumers. The forecast period of 2025-2033 presents significant opportunities for market players to capitalize on the increasing demand, while simultaneously addressing sustainability concerns and ensuring responsible sourcing practices. This comprehensive report provides a detailed analysis of the global timber raw material market, offering invaluable insights for industry stakeholders, investors, and researchers. The market, valued at approximately $250 billion in 2023, is poised for significant growth, driven by burgeoning construction and increasing demand for sustainable building materials. This report delves into key market segments, regional trends, competitive dynamics, and future growth projections.

The lumber industry has experienced significant volatility in recent years, with fluctuating prices impacting both the market and wider economy. During the pandemic, a housing boom driven by low interest rates and increased disposable income led to a surge in demand for lumber, significantly boosting mill revenues. However, prices later tumbled, affecting revenue as higher interest rates cooled the housing market and reduced demand for construction. Lumber production and shipments experienced declines, and the industry faced operating losses due to decreased demand. Looking ahead, prices are expected to rise due to tariffs on Canadian lumber imports and previous supply shortages, although high mortgage rates may still dampen demand. The ongoing trade dispute between Canada and the U.S. has resulted in increased tariffs, impacting Canadian producers who supply softwood lumber to the US market. Industry revenue is expected to rise at a CAGR of 2.6% to $51.6 billion through the end of 2025, with 2.0% growth forecast for the current year. Industry profit is expected to recover alongside rising lumber prices this year as well. The US housing market plays a crucial role in the lumber industry by driving demand for wooden materials used in construction and renovation. Despite past challenges with high interest rates and elevated home prices hurting residential investments and reducing lumber demand, there is optimism that the recent Federal Reserve rate will eventually translate to lower mortgage rates, potentially rejuvenating the housing market and building material demand. Even with these promising signs, a significant affordability barrier remains as home prices continue to overshadow median incomes, discouraging many first-time buyers and thus impeding growth in the housing market, impacting lumber demand negatively. The industry is also dealing with profitability challenges due to high costs and declining lumber prices, which have led to sawmill closures and under-utilization of capacities, emphasizing the importance of operational efficiency. As a response, the industry is likely to see consolidation within domestic mill operations to maintain profitability amid market fluctuations. A notable development in the sector is the growth of the cross-laminated timber (CLT) specialist subsector, which promises a boom, supported by innovations in fire retardant technology and approvals for new timber certifications, like eastern hemlock trees, broadening opportunities for sustainable construction. Revenue is expected to increase at a CAGR of 1.6% to $55.9 billion through the end of 2030.