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.

Non-seasonal prices paid for softwood lumber in the United States have remained relatively stable in 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 yar. The price of softwood veneer and plywood in the United States has also followed a similar trend.

The price of lumbe 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 1,670 U.S. dollars. Yet, after reaching this peak the price then fell to below 500 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 576 U.S. dollars as of January 29, 2025.

The Wholesale Price Index of wood and wood products across India during financial year 2024 was over 146.6. The price index value of wood related products increased by about 41 percent from the base year of 2012. An overall increase in the price index was seen over the years from financial year 2013 in the country.

According to Cognitive Market Research, The Global Cedar Wood market size will be USD 0.35 billion in 2023 and will grow at a compound annual growth rate (CAGR) of 6.9% from 2023 to 2030.

The global Cedar Wood market will expand at a significant rate of 6.9% CAGR between 2023 and 2030.
The demand for Cedar Woods is rising due to the rise in demand from the pharmaceutical sector. 
Demand for Conventional remains higher in the Cedar Wood market.
The Offline category held the highest Cedar Wood market revenue share in 2023.
North America will continue to lead, whereas the Asia Pacific Cedar Wood market will experience the strongest growth until 2030.

Rise In Demand From Pharmaceutical Sector to Provide Viable Market Output

The growing demand from the pharmaceutical industry is driving significant growth in the Cedar Wood Market. Cedarwood is prized for its natural fragrant components and healing qualities. The pharmaceutical sector is using it more and more to extract essential oils and active substances for use in a variety of therapeutic goods, such as ointments, herbal medicines, and natural treatments.

As per data from the Canadian Construction Association, the construction sector stands as one of the leading employers, providing jobs for approximately 1.4 million individuals, and is a substantial contributor to the nation's economic prosperity. Notably, this industry is comprised of around 70% of small and medium-sized enterprises (SMEs), and it plays a crucial role by contributing approximately 7.5% to the country's Gross Domestic Product (GDP).

(Source: www.cca-acc.com/about-us/value-of-industry/)

With the growing preference for natural and holistic healthcare solutions, cedarwood's applications in pharmaceuticals are expanding, significantly driving the demand for cedarwood and positioning it as a valuable resource in the market.

Technology Innovations to Propel Market Growth

Technology innovations are driving the Cedar Wood Market by improving sustainability and resource management. Advanced forestry techniques, such as drone-assisted tree monitoring and selective harvesting, allow for more sustainable cedar wood sourcing. Additionally, new treatment technologies enhance the durability and longevity of cedar wood, expanding its range of applications.

In October 2022, doTERRA introduced a range of fresh essential oils sourced naturally and sustainably. This latest collection encompasses eucalyptus essential oil and guaiac wood essential oil.

(Source: www.doterra.com/IN/en_IN)

Digital marketing and e-commerce platforms make it easier for consumers and businesses to access cedar wood products. Furthermore, improved supply chain management and tracking technologies ensure efficient distribution. These technological advancements contribute to the cedar wood market's growth and environmental sustainability.

Market Dynamics For The Cedar Wood Market

Lack of Awareness to Hinder Market Growth

The cedarwood market faces challenges due to a need for more awareness among consumers and builders about the advantages of cedar wood. Many potential users may need help comprehending the wood's natural durability, decay resistance, and insect-repelling properties. This lack of awareness can lead to the selection of alternative materials that may offer different benefits. Educating the market about cedar wood's qualities and sustainable sourcing practices is essential to overcoming this challenge and ensuring that consumers make informed choices, ultimately contributing to the wood's wider adoption and market growth.

Impact of COVID-19 on the Cedar Wood Market

The COVID-19 pandemic had mixed effects on the Cedar Wood Market. Initially, there was a slowdown in construction and renovation activities, affecting the demand for cedar wood products. Supply chain disruptions and reduced workforce availability also impacted production. However, with more people investing in home improvement and outdoor projects during lockdowns, there was an uptick in demand for cedar wood as consumers focused on enhancing their living spaces. The market's recovery was influenced by evolving consumer preferences and changing economic conditions. What is Cedarwood?

The Cedarwood market is experiencing growth due to several factors. Cedar wood is renowned for its natural durability, resistance to decay, and appealin...

Throughout the timeline, hard sawn wood has had higher prices than any other type of timber. In 2023, its price amounted to 678 U.S. dollars per cubic meter, which is twice higher than that of hard timber logs. During that period, hard logs were the cheapest type of timber at approximately 212 U.S. dollars per cubic meter. Meanwhile, lumber prices in the U.S. have fluctuated a lot since February 2020.

Timber prices in the United Kingdom fell in 2023, after having risen at a fast pace in 2021 and 2022. The price index of imported sawn or planed wood grew from 132 in 2020 to 195.6 in 2022. Meanwhile, the cost of imported plywood have increased less sharply, and therefore also had a smaller fall.

In 2023, approx. 9.6M tons of wood pellets were exported from the United States; with an increase of 6.9% on the previous year.

In June, the price of urea resin in the United States amounted to 690 USD/T. The United States market demonstrated a fall in comparison with Q1, which began in April with a minor decline and continued with substantial decreases in May and June. The driving factor behind this development was a fall in the demand for downstream wood and furniture, which began to decline following a significant 5.3% lumber price drop in April. The well-supplied urea-formaldehyde resin and the U.S. banking crisis after April additionally magnified this decline, and the country’s high inflation and rising interest rates only increased the downturn in demand.

Urea Resin Prices June 2023

Explore IMARC’s newly published report, titled “Urea Resin Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of urea resin pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

The cost of manufacturing softwood veneer and plywood has fluctuated significantly during the past years in the United States, with its index value falling to 301.5 in August 2024. The price of this product peaked in June 2021 at 702.5, only to fall to 302 in September of that year. 1982 is the date used as a reference point, in which the index value was fixed at 100.

In 2023, purchases abroad of wood pellets decreased by -15.3% to 6.4M tons, falling for the second year in a row after two years of growth.

Building materials made of copper had some of the highest price growth rates in the U.S. in December 2024 in comparison to the previous year. The growth rate of the cost of many construction materials was much lower than in 2023. 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 the inflation trends in the U.S. at that time, the price growth rate of construction materials in the UK were generally lower 2023 than in 2022. Nevertheless, the cost of some construction materials in the UK still soared that year, with several of those items reaching price growth rates of over 10 or even of over 14 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 Wood Processing Market trends! Covers key players, growth rate 6.8% CAGR, market size $293.91 Billion, and forecasts to 2034. Get insights now!

This graph displays the French producer price index for wood products, paper and paperboard for the French market from January 2004 to January 2017. It shows that the PPI for January 2008 had reached 105.

Canada's production of softwood and hardwood lumber has been decreasing between 2017 and 2024. In general, there were lots of fluctuations in the amount of lumber produced within each single year, with December usually having the lowest production figures. In March 2024, there were 4.8 million cubic meters produced. There are also some factors that tend to impact United States cross-border purchases of Canadian lumber. Nominal price movements and the U.S. dollar to Canadian dollar exchange rate can also make an impact.

Between 2022 and 2024, the construction price of residential and non-residential buildings in Canada has grown at the same pace. The price of both types of buildings was roughly six percent higher in the last quarter of 2024 than in 2023, which is the year when the index base was set at 100. Nevertheless, that only considers the cost of buildings in 15 selected metropolitan areas in Canada. Toronto was by far the metropolitan region with the highest construction costs in Canada.

What determines construction costs? The growth rate of the construction price of different types of buildings tends to follow similar trends to some extent. For example, price growth rates in Canada for most types of buildings were more moderate in 2023 than in previous years. However, those figures show a lot of disparity, with the cost of building a high rise apartment building growing much faster than that of other types of buildings. This might be because the construction costs depend on elements such as the location, materials, and complexity of the building, which tend to be quite different for each type of building.

Lumber building materials in Canada In 2023, Canada was the world’s second-largest exporter of wood building materials such as veneer sheets, parquet flooring, particleboard, laminated wood, and builders’ joinery and carpentry. Forestry, logging, and processing wood into ready-to-use materials are important industries in the Canadian economy. High price growth rates of building materials impact negatively the construction industry as their activities become more expensive. However, the forestry and logging industry benefited from the cost of lumber rising in 2020 and 2021. In the past years, the price of lumber, however, has fallen again.

In December 2024, the producer price index (PPI) value of structural timber was measured at 165.1 across six capital cities in Australia. The highest PPI recorded in the given time period was in September 2022. Producer price indexes are used to measure the price change of products, goods, and services during the production process.

In 2023, concrete blocks and bricks were the construction materials with the highest price increase in Canada. The average price of that product was over 15.6 percent higher in 2023 than in the previous year. Meanwhile, the price of lumber and other sawmill products decreased in 2023, after its price soared in 2020 and 2021. Due to inflation, supply chain disruptions, and other problems, the price for most construction materials increased very significantly in 2021 and 2022.

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 342 in 2022, indicates that the real-world price has risen by 242 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.

In the fiscal year 2023, the Japanese construction cost deflator for buildings stood at 123.6 index points, increasing from 121.2 points in the previous year. The construction cost deflator is a weighted index estimating the inflation-adjusted price development of construction in Japan, considering expenditures for materials, labor, and investment. What are features of the construction cost deflator? Since 1951, the government has been compiling a deflator for construction costs. It helps, for example, to determine contract prices for public works like roads. Today’s version includes various sub-indices, such as the one for buildings; they may be residential or non-residential, and their structural frames may be either wood, steel, or reinforced concrete. While the deflator considers all of Japan, other price indices give more detailed insight into specific buildings, materials, and regions. Rising energy-prices have spilled over to materials Japan has not been spared by recently inflating energy prices. Accordingly, the domestic construction industry is monitoring the monthly construction material price index. Unlike the deflator, it also provides regional-specific data, showing that although inflation impacted all materials throughout the country, some materials and places were more affected than others. In Tokyo, cement prices have increased by over 42 points since fiscal year 2021 – in Osaka, by around 50.