Lumber increased 124.05 USD/1000 board feet or 22.55% since the beginning of 2025, 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 March of 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.

Impact of Covid-19 on the Lumber Market

The COVID-19 pandemic significantly impacted the lumber market, causing supply chain disruptions and labor shortages. As construction activities were temporarily halted and sawmills faced closures or reduced operations, lumber production dropped, leading to supply shortages. The demand for Lumber surged as housing...

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.

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.

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 Wood Pulp Market Reportis Segmented by Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Study Covers Production Analysis (Volume), Consumption Analysis (Value and Volume), Export Analysis (Value and Volume), Import Analysis (Value and Volume), and Price Trend Analysis of Wood Pulp At A Macro Level, in Addition To the Value Chain. The Report Offers Market Estimation and Forecast in Value (USD) and Volume (metric Tons).

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Lumber (WPU081) from Jan 1926 to Feb 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

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 Canadian wood pulp market amounted to $5.9B in 2024, growing by 6% against the previous year. Overall, consumption continues to indicate a relatively flat trend pattern. Over the period under review, the market reached the maximum level in 2024 and is expected to retain growth in the near future.

The wood pellets market is projected to be valued at US$ 10,037.6 Million in 2023 and is expected to rise to US$ 24,345.6 Million by 2033. The sales of wood pellets are expected to register a significant CAGR of 10.2% during the forecast period.

Attributes	Details
Market Estimated Size (2023)	US$ 10,037.6 million
Market CAGR (2023 to 2033)	10.2%
Market Forecasted Size (2033)	US$ 24,345.6 million

Scope of the Report

Attributes	Details
Growth Rate	CAGR of 10.2% from 2023 to 2033
Base Year of Estimation	2023
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Revenue in US$ billion and Volume in Units and F-CAGR from 2023 to 2033
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, growth factors, Trends, and Pricing Analysis
Key Segments Covered	Feed Stock End-user Industry By Region
Regions Covered	North America Latin America Europe East Asia South Asia The Middle East & Africa Oceania
Key Countries Profiled	United States Canada Brazil Mexico Germany Italy France United Kingdom Spain Russia China Japan India GCC Countries Australia
Key Companies Profiled	Energex Enviva LP Graanul Invest Drax Biomass Pinnacle Sinclar Group Forest Products Lauzon Wood Pellet Energy (UK) Ltd. United Company Highland Pellets LLC Groupe Savoie Inc. I.C.S. (Lacroix) Lumber Inc. Vermont Wood Pellet Company AVPGroup Farm Fuels
Customization & Pricing	Available upon Request

The revenue of the spruce wood market in the European Union amounted to $X in 2017, standing approx. at the previous year. The spruce wood consumption continues to indicate a measured setback. The pace of growth was the most pronounced in 2011, when it surged by X% y-o-y. Over the period under review, the spruce wood market attained its peak figure level of $X in 2007; however, from 2008 to 2017, it failed to regain its momentum.The spruce wood production stood at X cubic meters in 2017, standing approx.

The revenue of the spruce wood market in Northern America amounted to $X in 2017, jumping by X% against the previous year. The market value increased an average annual rate of +X% over the period from 2007 to 2017; the trend pattern remained consistent, with only minor fluctuations over the period under review. The growth pace was the most rapid in 2008, when it surged by X% y-o-y. In that year, the spruce wood market reached their peak level of $X.

The Thai wood tool market fell slightly to $46M in 2024, with a decrease of -3.4% against the previous year. In general, consumption, however, posted a remarkable increase. Over the period under review, the market attained the peak level at $50M in 2021; however, from 2022 to 2024, consumption remained at a lower figure.

The Japanese preservative-treated rough wood market dropped to $299M in 2024, shrinking by -10.2% against the previous year. Overall, consumption, however, recorded prominent growth. As a result, consumption attained the peak level of $401M. From 2022 to 2024, the growth of the market remained at a somewhat lower figure.

In 2024, the global wood tool market increased by 0.8% to $4.3B for the first time since 2021, thus ending a two-year declining trend. Over the period under review, the total consumption indicated prominent growth from 2012 to 2024: its value increased at an average annual rate of +6.0% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by -9.8% against 2021 indices.

The Chinese densified wood market stood at $1.1B in 2024, standing approx. at the previous year. Over the period under review, consumption saw a noticeable decline. Over the period under review, the market reached the maximum level at $2.1B in 2012; however, from 2013 to 2024, consumption stood at a somewhat lower figure.

The global pine wood market revenue amounted to $X in 2017, increasing by X% against the previous year. In general, pine wood consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2008, when market value increased by X% against the previous year. In that year, the global pine wood market attained their peak level of $X.

The Dutch wood chips and particles market skyrocketed to $X in 2022, with an increase of X% against the previous year. Overall, consumption recorded buoyant growth. Wood chips and particles consumption peaked at $X in 2013; however, from 2014 to 2022, consumption stood at a somewhat lower figure.

The Bangladeshi wood tool market fell slightly to $147M in 2024, stabilizing at the previous year. The market value increased at an average annual rate of +2.3% over the period from 2012 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Wood tool consumption peaked at $172M in 2017; however, from 2018 to 2024, consumption remained at a lower figure.

In 2020, the Thai wood residues market increased by X% to $X, rising for the sixth year in a row after two years of decline. In general, the total consumption indicated a notable expansion from 2012 to 2020: its value increased at an average annual rate of X% over the last eight years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2020 figures, consumption increased by X% against 2014 indices. Over the period under review, the market hit record highs in 2020 and is likely to see steady growth in years to come.