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.

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.

Lumber fell to 652.50 USD/1000 board feet on August 8, 2025, down 0.15% from the previous day. Over the past month, Lumber's price has risen 6.32%, and is up 24.25% 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 August of 2025.

The annual price growth rate of hardwood lumber in the United States fluctuated significantly between 1970 and 2024. During that time, the highest increase was observed in 2021 when hardwood lumber prices increased by **** percent. The producer prices for hardwood lumber fell by ** percent in 1975.

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.

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%.

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.

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The lumber pallet market share is expected to increase by 1561.97 million units from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 5.03%.

This lumber pallet market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers lumber pallet market segmentation by end-user (food and beverage, chemicals and pharmaceuticals, retail, construction, and others) and geography (APAC, North America, Europe, the Middle East and Africa, and South America). The lumber pallet market report also offers information on several market vendors, including Brambles Ltd., Coxco Inc., Faber Group B.V, FALKENHAHN AG, Greif Inc., John Rock Inc, Kamps Pallets Inc., Leap India Food and Logistics, Millwood Inc., Nefab AB, Pacific Pallets PVT. Ltd, Palcon LLC, PalletOne Inc., PECO Pallet, PGS Group, Rowlinson Packaging Ltd., Shur-way Group Inc., UFP Industries Inc., United Pallet Services Inc., and Yellow Pallet B.V., among others.

What will the Lumber Pallet Market Size be During the Forecast Period?

Download Report Sample to Unlock the Lumber Pallet Market Size for the Forecast Period and Other Important Statistics

Lumber Pallet Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post-COVID-19 era. The rise in containerization is notably driving the lumber pallet market growth, although factors such as fluctuating lumber prices and shortage of raw materials may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic's impact on the lumber pallet industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Lumber Pallet Market Driver

The rise in containerization is one of the major drivers impacting the lumber pallet market growth. The growth in containerization is increasing the use of lumber pallets because shipping containers have smooth, level surfaces that permit the quick movement of pallets of different sizes using forklifts. The use of lumber pallets makes it easier to move heavy stacks in containers. Before being moved to containers, the individual items are stacked on a lumber pallet to create a unit load. This can be moved easily and loaded onto containers using a pallet jack, forklift, crane, or any other material handling equipment. Therefore, the growth in containerization is expected to lead to a higher demand for lumber pallets during the forecast period.

Key Lumber Pallet Market Trend

The emergence of pallet pooling is one of the major trends influencing the lumber pallet market growth. The emergence of pallet pooling services has enabled end-users to rent pallets at nominal rates for their entire supply chains, thus eliminating the need to buy crates. Renting a pallet from a shared pool offers substantial savings and significant returns on investments to end-users. Also, the reverse supply chain for end-users is handled by the pallet pooling companies. For instance, the pallet pooling companies deliver the pallet in the quantities ordered by end-users and deal with those pallets once they reach the end of the supply chain. Some pallet vendors, such as LEAP India, Brambles, Northwest, and others, also provide pallets on a rental basis. For instance, LEAP India offers pallets for rent to end-users in the e-commerce, automotive, dairy, beverages, pharmaceuticals, and other industries. There is a significant rise in the leasing or renting of pallets by end-users. This, in turn, is likely to increase the trend of lumber pallet pooling during the forecast period.

Key Lumber Pallet Market Challenge

Fluctuating lumber prices and shortage of raw materials are one of the major challenges impeding the lumber pallet market growth. Volatility in the prices of lumber is mainly attributed to a reduction in the availability of wood and lumber in many countries, such as Nigeria, Pakistan, Colombia, and Brazil, as a result of widespread deforestation and the decline in the number of new tree plantations. The increasing capacity expansion in lumber processing plants across India, the UK, and Canada, without taking into consideration the need for the sustainable procurement of raw materials, is increasing the disparities between the demand for and supply of lumber. Owing to such factors, end-users, such as pallet manufacturers, are expected to experience a shortage of timber. As a result of the shortage of timber in the market, pallet manufacturers will find it difficult to complete their orders. Thus, the shortage of lumber and wood products is expected to slow down the growth of the global lumber pallet market during the forecast period.

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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.

Housing Inventory: Price Increased Count in Wood County, OH was 2.00000 Level in June of 2025, according to the United States Federal Reserve. Historically, Housing Inventory: Price Increased Count in Wood County, OH reached a record high of 96.00000 in July of 2021 and a record low of 0.00000 in September of 2016. Trading Economics provides the current actual value, an historical data chart and related indicators for Housing Inventory: Price Increased Count in Wood County, OH - last updated from the United States Federal Reserve on August of 2025.

The price of wood saw record-high growth in 2021, contributing to industry expansion as demand surged from the booming housing market stimulated by historically low mortgage rates. The key materials in this industry—such as round or hewn wood products, rough and dressed softwood lumber and various types of veneer and plywood—are sensitive to price fluctuations, which directly impact industry revenue. Pandemic-induced supply chain disruptions further exacerbated the issue by limiting the wood supply, leading to unprecedented price increases and profit volatility. However, as mortgage rates climbed by more than double in the latter half of the current period, residential construction slowed, curbing demand for wood products and resulting in industry contraction when wood prices plummeted in 2023. As the industry looks toward 2024, revenue is anticipated to contract due to decreased housing market demand. Despite a rise in lumber prices throughout 2024, prices are expected to remain below 2023 levels, contributing to reduced industry revenue. This decline in lumber prices on an annual basis is linked to a drop in new housing starts and increased housing inventory within the US construction sector. Factors such as higher financing costs, elevated mortgage rates and shortages of both labor and land have contributed to the reduction in housing starts. Despite the projected 1.2% decline in 2024, revenue is projected to grow at a CAGR of 0.4% to reach $28.8 billion this year. Projected declines in mortgage rates are expected to stimulate residential construction, subsequently increasing demand for wood panels. Growth in the housing market will contribute to industry growth, which is anticipated to be in the low-single-digit range over the outlook period, in line with historical trends. This growth projection assumes stable prices for input materials, as any significant fluctuations could substantially impact revenue. Additionally, competition from imported goods is expected to decline due to a combination of factors, including exchange rates and tariffs on imports. Overall, industry revenue is projected to increase at a CAGR of 1.7% to reach $31.3 billion by 2029.

Canadian lumber wholesalers have grappled with global lumber price volatility, creating challenging conditions both for wholesalers and for downstream clients like construction contractors, home improvement stores and hardware stores. In 2021 and 2022, the price of lumber soared globally as demand for new construction soared, especially in the United States. While exports and imports are not tracked at a wholesale level, many companies do sell across the border; as a result, conditions in the United States affect revenue. As lumber prices and Canadian residential construction activity have fallen from their respective 2021 and 2022 peaks, so too has revenue for the Lumber Wholesaling industry in Canada. With industry revenue forecast to remain level in 2025 alone, the overall industry is expected to have decreased at a five-year CAGR of 1.8% to reach $15.6 billion in 2025. The fate of wholesalers has largely been tied to the volatility of downstream construction markets. High interest rates stifled previously hot residential construction markets in both Canada in the US till both the Bank of Canada and the Federal Reserve began cutting rates. While this is set to improve construction activity, and therefore demand for lumber, both the Bank of Canada and the Federal Reserve have held rates steady in their most recent 2025 decisions as volatile US-Canada tariff policy has created an uncertain economic situation. The US and Canada have had an ongoing trade dispute over lumber prices since before the US put in place broader tariffs in April 2025. The uncertain business environment caused in part by these tariffs has kept the average industry profit margin from expanding through the end of 2025. Lumber wholesalers are expected to see growth moving forward. Interest rates are expected to be gradually cut over the coming years, stimulating demand from downstream construction markets. In tandem, the selling price of lumber is expected to climb, though it will not likely see the rampant inflation of recent years. Demand for housing construction in Canada demand is also set to remain strong into the near future. Consequently, industry revenue is forecast to expand at a CAGR of 1.4% to $15.6 billion over the five years through 2030.

West Fraser Timber current price/book ratio as of June 27, 2025 is 0.85. West Fraser Timber average price/book ratio for 2024 was 0.97, a 12.79% decline from 2023. West Fraser Timber average price/book ratio for 2023 was 0.86, a 4.88% increase from 2022. West Fraser Timber average price/book ratio for 2022 was 0.82, a 31.67% increase from 2021. Price/book ratio can be defined as

The price of millwork in the United States continued its growth-trend in 2021, peaking at nearly ***. In contras, the previous year that index value was at over ***. 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.

Over the past five years, the sawmills and wood production industry has experienced moderate growth, driven largely by a surge in residential construction activity during the early pandemic years. Elevated lumber prices, spurred by supply chain disruptions and a housing boom, helped lift industry revenue and profitability in 2020 and 2021. However, this momentum was disrupted as inflationary pressures and rising interest rates cooled the housing market and caused demand for lumber to drop. Profit margin, which had expanded during the peak of price spikes, began to level off as mills operated below capacity and faced reduced pricing power. Still, investments in automation and efficiency allowed many operators to preserve profitability even as market volatility intensified. The industry also contended with shifting trade dynamics and global economic uncertainty. Ongoing trade disputes with Canada and reduced exports to key markets like China and Mexico contributed to weaker external demand. At the same time, domestic supply chains improved, and inventory buildup from prior overproduction softened raw material costs. While facility closures and consolidation helped restore a better supply-demand balance, overall growth remained modest. Industry revenue rose at a CAGR of 3.2% over the past five years, reaching $5.3 billion in 2025. Looking ahead, the industry is expected to grow more slowly as it adjusts to structural shifts in housing demand and evolving building practices. While lower interest rates could help stabilize residential construction, long-term affordability challenges are likely to dampen recovery. However, emerging opportunities such as cross-laminated timber in mid-rise buildings and the repurposing of wood waste for energy and industrial inputs may help diversify revenue streams. Consolidation, paired with modest technological innovation and workforce expansion, will support operational resilience. Over the next five years, industry revenue is projected to grow at a slower CAGR of 1.8%, reaching $5.8 billion by 2030.

United States Import Price Index: IS: SB: LO: Lumber & Wood data was reported at 250.200 2000=100 in Nov 2021. This records an increase from the previous number of 239.200 2000=100 for Oct 2021. United States Import Price Index: IS: SB: LO: Lumber & Wood data is updated monthly, averaging 112.900 2000=100 from Dec 1980 (Median) to Nov 2021, with 388 observations. The data reached an all-time high of 584.100 2000=100 in Jun 2021 and a record low of 50.800 2000=100 in Mar 1982. United States Import Price Index: IS: SB: LO: Lumber & Wood data remains active status in CEIC and is reported by U.S. Bureau of Labor Statistics. The data is categorized under Global Database’s United States – Table US.JA234: Import Price Index: by End Use: 2000=100.

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 2020, the construction boom in the U.S. set off an unprecedented demand for sawnwood, outpacing the rate of recovery from disruptions due to Covid. With stocks depleting, product prices have skyrocketed over the previous year. From February 2021, lumber mill utilization began to fall following a softened activity in the construction sector. According to the results of the year, growth in the sawnwood market is predicted, stimulated by a continuing increase in construction.

The U.S. reconstituted wood product market is estimated at approx. $12B. Over May-June 2020, the production and imports recovered from the lockdown-related drop and continued to grow. It is driven by rapidly growing suburban construction and the related need to equip homes with furniture. Should the pandemic wane in 2021, the market is to continue measured growth.

The Cuban preservative-treated rough wood market dropped to $X in 2021, with a decrease of -5.9% against the previous year. The market value increased at an average annual rate of +1.0% from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Preservative-treated rough wood consumption peaked at $X in 2016; however, from 2017 to 2021, consumption stood at a somewhat lower figure.