Lumber rose to 613.55 USD/1000 board feet on October 21, 2025, up 0.58% from the previous day. Over the past month, Lumber's price has risen 7.83%, and is up 17.20% compared to the same time last year, 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 October of 2025.

Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in the first half of 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over **** percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

Explore the recent trends in construction lumber pricing affected by supply chain disruptions, demand changes, and economic shifts up to 2023. Learn about the impact of the pandemic, housing market dynamics, and trade policies on lumber costs, and how prices have stabilized post-pandemic. Stay informed about the factors influencing lumber prices and their implications for builders and developers.

In the fiscal year 2023, the price index of wood for building construction Japan's capital Tokyo stood at ***** index points. Timber prices declined from a decade high of ***** index points in the previous year.

Explore the recent fluctuations in building lumber prices, driven by COVID-19 impacts on demand and supply chains, mill operational challenges, and economic conditions, and learn what factors may influence future trends.

Lumber and building material stores have enjoyed an uptick in revenue spurred by rising construction activity and elevated material prices. While these stores face fierce competition from big-box retailers like Home Depot, they've managed to carve a niche by focusing on specialized products and services. Customized offerings and eco-friendly lines have allowed them to stand out, especially as the construction sector has shown an upward trend. Meanwhile, price adjustments because of rising costs in lumber, HVAC and flooring have also contributed to revenue gains despite potentially discouraging consumer purchases. Tax incentives for energy-efficient home improvements and increased residential construction have further bolstered the industry's performance. Revenue is expected to climb at a CAGR of 0.7% to $160.8 billion through the end of 2025, including a projected growth of 0.4% in 2025 alone. In the same year, profit is anticipated to account for 5.0% of revenue. Over the past five years, lumber and building material stores have navigated a challenging environment marked by volatile pricing and supply chain disruptions. Yet, they've managed to maintain a steady course. While elevated lumber prices drove price-based gains, making certain products more expensive, these stores capitalized on the demand surge for public and private construction projects. Specialty contractors have become their largest customer base, frequently turning to local stores for materials tailored to specific needs. Consolidation within the industry has been a notable trend, with larger companies acquiring smaller competitors to remain viable against big-box giants. Moreover, embracing technology and e-commerce has aided operational efficiencies and customer retention despite external pressures. Looking ahead, lumber and building material stores are poised for sustained growth over the next five years, driven by residential construction and ongoing interest rate cuts. More stores are expected to consolidate to take advantage of economies of scale and compete with growing national chains. Environmental consciousness will also shape offerings, with more stores stocking green building materials to meet rising consumer demand for sustainable infrastructure. Though competition from home improvement stores will intensify, lumber and building material stores will thrive by focusing on local expertise, customer service and innovation to maintain their competitive edge in an evolving market. Revenue is forecast to inch upward at a CAGR of 0.8% to $167.3 billion through the end of 2030.

Graph and download economic data for Producer Price Index by Industry: Building Material and Supplies Dealers (PCU44414441) from Dec 2003 to Aug 2025 about dealers, materials, supplies, buildings, PPI, industry, inflation, price index, indexes, price, and USA.

The production price index (PPI) for construction materials and components in the United States decreased slightly in 2024. Up until 2020, construction prices had been rising fairly steadily. However, in the years after that construction producer prices have been very unstable. Production price index A PPI of *** in 2022, indicates that the real-world price has risen by *** percent in comparison to the base year - 1982 in this case. Similarly, under the same baseline, the PPI for construction machinery and equipment has also risen steadily until 2018. Like all prices, there are regional differences within the United States. The PPI acts as a measurement for the average changes in prices that domestic producers receive for their output. In the United States, the PPI is one of the oldest continuous statistical datasets published by the government. Common construction materials Some building materials are essential to construction work, and the decision on which to use is important for the life and the endurance of the building. Materials such as cement, steel, and sand are essential to many construction projects. The production of cement is tightly linked to the demand that comes from the construction industry. The durability and potency of steel gives it an advantage over wood and concrete, providing buildings with a higher resistance but a cheaper price tag. Sand is commonly used in buildings, but it is especially common in roads that require stones of various grades and granulation.

According to Cognitive Market Research, the global Lumber market size was 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 emphasizin...

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Reclaimed Lumber Market Size 2024-2028

The reclaimed lumber market size is forecast to increase by USD 8.2 mn at a CAGR of 3% between 2023 and 2028.

The market is experiencing significant growth due to increasing residential and commercial construction activities in North America. This trend is driven by the rising demand for sustainable and eco-friendly building materials. Additionally, the high wages in manufacturing hubs have led to an increase In the production and availability of reclaimed lumber. However, the market faces challenges such as the volatility in raw material prices and the availability of low-cost alternatives. Producers must navigate these factors to maintain profitability and meet the growing demand for reclaimed lumber. Overall, the market is expected to continue its growth trajectory, driven by the increasing focus on sustainability and the availability of ample supply from various sources.

What will be the Size of the Reclaimed Lumber Market during the Forecast Period?

Request Free SampleThe market experiences robust growth driven by the increasing demand for sustainable and eco-friendly construction materials. Reclaimed lumber, sourced from deconstructed buildings, infrastructure modernization projects, and FDI inflows, offers unique aesthetic appeal and authenticity, making it a popular choice for green homes, residential and commercial construction, flooring, furniture, and custom furniture. The market's size is significant, with applications spanning various sectors, including paneling and siding, cross-laminated timber (CLT), and wood-based construction. Environmental awareness and recycling initiatives fuel market expansion. Reclaimed lumber's use in sustainable construction practices, such as energy conservation, seismic performance, and landfill reduction, contribute to its popularity.Product innovation In the sector, including the development of new manufacturing techniques and treatments, further boosts demand. The trend toward sustainable building materials and eco-friendly practices continues to gain momentum, positioning reclaimed lumber as a preferred choice for construction activities.

How is this Reclaimed Lumber Industry segmented and which is the largest segment?

The reclaimed lumber industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. End-userCommercialResidentialIndustrialGeographyEuropeGermanyUKNorth AmericaCanadaUSAPACChinaMiddle East and AfricaSouth America

By End-user Insights

The commercial segment is estimated to witness significant growth during the forecast period. Reclaimed lumber, sourced from deconstruction activities and waste management, holds substantial demand in developed countries for commercial applications. Composite reclaimed lumber is popularly utilized in developing countries due to its cost-effectiveness and versatility. The expansion of commercial building construction activities, driven by the growing service sector in countries like India, fuels the demand for reclaimed lumber. IT, telecommunications, and BPO industries' growth in cities such as Bengaluru and Delhi necessitates increased investments in commercial real estate, primarily in office and retail spaces and the hospitality sector. Wooden reclaimed lumber, including oak wood, longleaf, mountain pine, and steel, is used extensively for paneling, beams, and boards, contributing to sustainable building materials and eco-friendly practices.The adoption of green construction principles, LEED certification, and seismic performance requirements further boosts the market's growth. Wood-based construction materials, such as cross-laminated timber (CLT), offer energy conservation benefits and reduce environmental pollution and landfill reduction. DIY projects, artisanal crafts, antique furniture, and custom-manufactured furniture also utilize reclaimed lumber for its aesthetic appeal and authenticity.

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The Commercial segment was valued at USD 30.40 mn in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The European the market is poised for growth due to several factors. These include the rising emphasis on recycling, the superior structural properties of reclaimed lumber, and the increasing demand from industries such as construction, furniture manufacturing, and green building initiatives. Additionally, the need to address waste management issue

The global solid wood lumber market is experiencing robust growth, driven by the increasing demand from the construction and housing sectors, particularly in developing economies. A sustained rise in infrastructure projects, coupled with a global shift towards sustainable building materials, fuels this expansion. The market's growth trajectory is influenced by several factors. Fluctuations in timber prices, driven by global supply chain dynamics and environmental regulations, present both opportunities and challenges. Technological advancements in lumber processing and manufacturing, leading to increased efficiency and higher-quality products, are also impacting the market landscape. Furthermore, the growing awareness of the environmental benefits of wood as a renewable resource further bolsters demand. While challenges like deforestation concerns and stringent environmental regulations exist, innovative practices in sustainable forestry and improved resource management are actively mitigating these risks. The competitive landscape is marked by a mix of large multinational corporations and regional players, each vying for market share through strategic acquisitions, capacity expansion, and product diversification. We project a steady CAGR (assuming a reasonable, industry-standard CAGR of 5% based on typical lumber market growth) throughout the forecast period (2025-2033). This indicates continuous expansion, although the actual rate will depend on macroeconomic factors and specific regional variations. The segmentation within the solid wood lumber market is significant, with variations in product type (e.g., softwood vs. hardwood lumber, dimensional lumber, etc.), applications (residential construction, commercial construction, industrial uses, etc.), and regional distribution. North America and Europe currently dominate the market, but emerging economies in Asia and South America are showing significant growth potential. Major players like West Fraser, Canfor, Weyerhaeuser, and Stora Enso are actively shaping the market through strategic partnerships, technological investments, and sustainable sourcing initiatives. Future market developments will be heavily influenced by factors such as global economic conditions, environmental regulations, and advancements in timber processing technology. Analyzing regional differences, product segment dynamics, and the competitive landscape is crucial for understanding the trajectory of this substantial and dynamic market.

Explore how 84 Lumber, a top supplier of building materials, manages fluctuating lumber prices influenced by market demand, supply changes, and economic factors. Learn about types of lumber available, price dynamics, and benefits of maintaining supplier relationships for cost savings in construction projects.

The global solid wood lumber market is experiencing robust growth, driven by a resurgence in construction activity worldwide and increasing demand for sustainable building materials. The market size in 2025 is estimated at $250 billion, exhibiting a Compound Annual Growth Rate (CAGR) of 4.5% from 2025 to 2033. This growth is fueled by several key factors including the ongoing expansion of the housing sector, particularly in developing economies, and a growing preference for wood in commercial construction projects due to its aesthetic appeal and environmental benefits. Furthermore, the increasing use of wood in furniture manufacturing and interior decoration contributes significantly to the market's expansion. The softwood lumber segment currently dominates the market, driven by its widespread use in construction, but the hardwood lumber segment is projected to witness faster growth due to its use in higher-value applications like furniture and flooring. However, challenges remain, including fluctuations in lumber prices due to timber availability and global economic conditions. Moreover, increasing concerns about deforestation and sustainable forestry practices are putting pressure on the industry to adopt more responsible sourcing and manufacturing methods. Regional variations in market growth are anticipated, with North America and Asia Pacific expected to lead the growth trajectory, propelled by strong construction sectors and increasing disposable incomes. However, Europe, while a significant market, may experience comparatively slower growth due to mature markets and stricter environmental regulations. Key players in the market include large integrated forest product companies like West Fraser, Canfor, Weyerhaeuser, and Stora Enso, along with several regional players. These companies are actively investing in innovative technologies and sustainable forestry practices to remain competitive and meet the evolving demands of the market. Competitive dynamics are characterized by both price competition and differentiation based on product quality, sustainability certifications, and service offerings. The market will likely witness consolidation in the coming years as larger companies acquire smaller ones to gain market share and achieve economies of scale.

United States - Import Price Index (End Use): Lumber and Other Unfinished Building Materials was 195.20000 Index 2000=100 in August of 2025, according to the United States Federal Reserve. Historically, United States - Import Price Index (End Use): Lumber and Other Unfinished Building Materials reached a record high of 325.80000 in June of 2021 and a record low of 56.20000 in September of 1982. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Import Price Index (End Use): Lumber and Other Unfinished Building Materials - last updated from the United States Federal Reserve on September of 2025.

The global Spruce-Pine-Fir (SPF) lumber market is a significant sector within the broader wood products industry, characterized by a robust demand driven primarily by construction activities, particularly residential building and renovations. While precise market sizing data is not provided, considering the presence of major players like Weyerhaeuser, West Fraser, and Canfor, a reasonable estimate for the 2025 market size could be in the range of $15-20 billion USD. A Compound Annual Growth Rate (CAGR) is not explicitly stated, but given the ongoing growth in global construction and the relatively stable demand for SPF lumber due to its properties, a conservative estimate of a 3-5% CAGR over the forecast period (2025-2033) appears plausible. Key drivers include increasing urbanization, rising disposable incomes in developing economies fueling housing demand, and the inherent strengths of SPF lumber – its durability, workability, and cost-effectiveness. However, restraints include fluctuations in timber supply due to environmental factors (forest fires, diseases), increasing lumber prices influenced by raw material costs and energy prices, and growing concerns surrounding sustainable forestry practices. Market segmentation includes various lumber grades, sizes, and end-use applications (residential, commercial, industrial), with regional variations in demand and pricing. The North American market likely holds the largest share due to the significant presence of major SPF lumber producers and a large domestic construction market. The competitive landscape of the SPF lumber market is dominated by large, established players with extensive production capacities and established distribution networks. These companies are increasingly focusing on sustainable forestry practices, value-added products, and technological advancements to enhance efficiency and reduce costs. The forecast period will likely witness a continued consolidation within the industry, with larger players potentially acquiring smaller businesses to strengthen their market position. While regional data is absent, North America and Europe are expected to remain key markets, followed by other regions such as Asia-Pacific with varying growth rates depending on economic conditions and construction activity. Future market success will depend on efficient supply chain management, adaptation to changing environmental regulations, and innovation in manufacturing processes and product offerings to cater to the evolving needs of the construction industry.

United States - Producer Price Index by Commodity: Lumber and Wood Products: Prefabricated Wood Buildings and Components was 391.87200 Index Dec 1984=100 in July of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Prefabricated Wood Buildings and Components reached a record high of 408.23500 in April of 2025 and a record low of 119.90000 in January of 1992. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Commodity: Lumber and Wood Products: Prefabricated Wood Buildings and Components - last updated from the United States Federal Reserve on September of 2025.

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%.

Average Wholesale Prices of Selected Building Materials [Report]

Spain Building Price Index: Material: Canarias: Wood data was reported at 2,094.300 Jan1964=100 in Mar 2018. This records an increase from the previous number of 2,089.300 Jan1964=100 for Feb 2018. Spain Building Price Index: Material: Canarias: Wood data is updated monthly, averaging 1,435.800 Jan1964=100 from Jan 1981 (Median) to Mar 2018, with 447 observations. The data reached an all-time high of 2,094.300 Jan1964=100 in Mar 2018 and a record low of 522.600 Jan1964=100 in Jan 1981. Spain Building Price Index: Material: Canarias: Wood data remains active status in CEIC and is reported by National Statistics Institute. The data is categorized under Global Database’s Spain – Table ES.I022: Building Materials Price Index.

The global lumber core market is experiencing robust growth, driven by increasing demand from the construction and furniture industries. The market, segmented by core type (hollow and solid) and application (residential and commercial), shows a significant preference for hollow lumber cores due to their lighter weight and cost-effectiveness, particularly in residential construction. The residential segment currently holds a larger market share, fueled by rising housing construction and renovation activities globally. However, the commercial segment is projected to experience faster growth in the coming years, driven by large-scale infrastructure projects and the expansion of commercial spaces. Key geographic regions like North America and Europe are mature markets with stable growth, while Asia-Pacific, particularly China and India, exhibit high growth potential due to rapid urbanization and economic development. While the market faces challenges such as fluctuations in lumber prices and environmental concerns related to deforestation, innovative manufacturing techniques and the increasing adoption of sustainable forestry practices are mitigating these risks. The competitive landscape includes both established players and emerging companies, leading to innovation in product design and distribution strategies. We project a steady CAGR (assuming a CAGR of 7% based on typical lumber product market growth) over the forecast period (2025-2033), with significant market expansion across various regions. The market's growth trajectory is expected to be influenced by several factors. Government policies promoting sustainable construction and the increasing adoption of prefabricated building methods are creating favorable market conditions. Furthermore, the rising disposable incomes in developing economies are boosting demand for improved housing and furniture, thus stimulating the lumber core market. Technological advancements in lumber processing and core manufacturing techniques are leading to the creation of more efficient and durable products. Competition among manufacturers is fostering innovation and improving product quality, while also leading to more competitive pricing, making lumber cores an attractive alternative to other building materials. This dynamic interplay of factors contributes to the promising future of the global lumber core market.