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.

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.

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 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.

Explore the Reclaimed Lumber Global Market Report 2025 Market trends! Covers key players, growth rate 6.5% CAGR, market size $75.27 Billion, and forecasts to 2033. Get insights now!

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.

Explore the stabilization of the lumber market as industry confidence grows. Discover global sawnwood consumption and production trends with insights into future planning.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Logs, Bolts, Timber and Pulpwood (WPU08510502) from Dec 2011 to Feb 2025 about logging, wood, commodities, PPI, inflation, price index, indexes, price, and USA.

United States - Producer Price Index by Commodity: Lumber and Wood Products: Hardwood Lumber was 270.01500 Index 1982=100 in February of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Hardwood Lumber reached a record high of 316.10800 in May of 2022 and a record low of 24.30000 in January of 1947. 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: Hardwood Lumber - last updated from the United States Federal Reserve on March of 2025.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Softwood Lumber, Made from Purchased Lumber (WPU08110701) from Dec 2003 to Feb 2025 about purchase, wood, commodities, PPI, inflation, price index, indexes, price, and USA.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: All Other Miscellaneous Wood Products (WPU08490901) from Jun 1984 to Feb 2025 about miscellaneous, wood, commodities, PPI, inflation, price index, indexes, price, and USA.

United States - Producer Price Index by Commodity: Lumber and Wood Products: Logs, Bolts, Timber and Pulpwood was 109.57400 Index Dec 2011=100 in February of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Logs, Bolts, Timber and Pulpwood reached a record high of 118.22800 in July of 2022 and a record low of 100.00000 in December of 2011. 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: Logs, Bolts, Timber and Pulpwood - last updated from the United States Federal Reserve on March of 2025.

Explore the Wood Products Market trends! Covers key players, growth rate 7.1% CAGR, market size $1215.03 Billion, and forecasts to 2034. Get insights now!

According to Cognitive Market Research, the global Pine Wood market size will be USD XX million in 2024 and will expand at a compound annual growth rate (CAGR) of 4.70% from 2024 to 2031.

North America held the major market, accounting for more than 40% of global revenue. With a market size of USD XX million in 2024, it will grow at a compound annual growth rate (CAGR) of 2.9% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD XX million.
Asia Pacific held a market 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 6.7 % from 2024 to 2031.
The Latin America market will account for more than 5% of global revenue and will be USD XX million in 2024, growing at a compound annual growth rate (CAGR) of 4.1 % from 2024 to 2031.
Middle East and Africa held the major market of around 2% 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.
The Furniture segment had the largest share in the global Pine Wood market by application.

Market Dynamics of Pine Wood Market

Key Drivers of Pine Wood Market

Advancements in Life Sciences Research to Increase the Demand Globally 

The Pine Wood Market is experiencing robust growth due to increasing environmental concerns and a growing preference for sustainable construction materials. Pine wood is renewable, biodegradable, and sourced from responsibly managed forests, making it an eco-friendly choice for construction projects. The global emphasis on reducing carbon footprint and promoting green building practices has propelled the demand for pine wood, particularly in residential and commercial construction applications. Furthermore, certifications like Forest Stewardship Council (FSC) accreditation add credibility to pine wood products, attracting environmentally conscious consumers and businesses. Innovations in sustainable forestry practices, such as selective logging and reforestation efforts, are also contributing to the availability and sustainability of pine wood resources.

Expanding Applications in Biotechnology and Pharmaceuticals to Propel Market Growth

Another significant driver of the Pine Wood Market is its versatility and cost-effectiveness. Pine wood is known for its ease of processing, making it suitable for a wide range of applications such as framing, flooring, furniture, and packaging. Its affordability compared to other hardwoods and engineered materials makes it a preferred choice for budget-conscious consumers and industries seeking durable yet cost-effective solutions. Additionally, technological advancements in wood treatment and preservation methods have enhanced the durability and longevity of pine wood products, further boosting their demand across residential, commercial, and industrial sectors. The development of engineered wood products, such as cross-laminated timber (CLT) and glued laminated timber (glulam), has expanded the application scope of pine wood in construction, enabling sustainable and innovative building designs.

Embracing the Sustainable Practices to Boost the Market

Restraint Factors Of Pine Wood Market

Environmental Concerns and Deforestation Risks to Limit Market Growth

One significant restraint in the Pine Wood Market is environmental concerns and the risk of deforestation. While pine wood is renewable when sourced from responsibly managed forests, unsustainable logging practices can lead to deforestation, habitat loss, and ecosystem degradation. Concerns about biodiversity conservation and forest preservation are prompting regulatory scrutiny and consumer activism, potentially impacting the availability and sustainability of pine wood resources.

Furthermore, the reliance on pine wood for various applications, especially in the construction sector, has led to increased demand and potential overexploitation of forest resources. Balancing the demand for pine wood products with sustainable forestry practices, reforestation efforts, and responsible sourcing strategies is crucial to mitigating environmental risks and ensuring the long-term viability of the Pine Wood Market.

Impact of COVID-19 on the Pine Wood Market

The COVID-19 pandemic had a mixed impact on the Pine Wood Market. Initially, the market experienced disrup...

United States - Producer Price Index by Commodity: Lumber and Wood Products: Prefabricated Stationary Wood Buildings, Shipped in Panel Form (Complete Units) was 605.42100 Index Dec 1984=100 in January of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Commodity: Lumber and Wood Products: Prefabricated Stationary Wood Buildings, Shipped in Panel Form (Complete Units) reached a record high of 773.02400 in April of 2022 and a record low of 100.00000 in December of 1984. 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 Stationary Wood Buildings, Shipped in Panel Form (Complete Units) - last updated from the United States Federal Reserve on March of 2025.

According to Cognitive Market Research, the global Laminated Veneer Lumber market size will be USD 5621.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 3.20% 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 2248.60 million in 2024 and will grow at a compound annual growth rate (CAGR) of 1.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 1686.45 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 1292.95 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 281.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.6% 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 112.43 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.9% from 2024 to 2031.
The Laminated Strand Lumbar category is the fastest growing segment of the Laminated Veneer Lumber industry

Market Dynamics of Laminated Veneer Lumber Market

Key Drivers for Laminated Veneer Lumber Market

Infrastructure Development and Rapid Urbanization to Boost Market Growth

Rapid urbanisation and infrastructure development are significant factors driving the laminated veneer lumber (LVL) market. The demand for sustainable and efficient construction materials is increasing as cities continue to expand and new urban areas are established. LVL is an optimal choice for a variety of construction applications, such as residential, commercial, and infrastructural projects, due to its exceptional dimensional precision, durability, and strength. Furthermore, the material's appeal is further enhanced by its lightweight nature and ease of installation, which reduce construction time and labour costs. Furthermore, LVL's market growth is facilitated by its environmental benefits, including a reduced carbon footprint and minimal waste production, as well as its resistance to rot, insects, and mould. These attributes resonate with the growing emphasis on sustainable building practices.

Expansion of the housing sector to Drive Market Growth

The demand for LVL is substantially stimulated by the expansion of the housing sector, which is driven by population growth and increasing income levels. The construction industry experiences a surge in housing projects, both in urban and suburban areas, as more individuals seek new homes. LVL is a preferred material in the housing sector due to its use in structural framing, beams, joists, and other critical components. Its capacity to sustain substantial loads and guarantee stability guarantees the longevity and safety of structures. LVL is an appealing choice for prefabricated structures and customised wooden houses due to its uniform texture and finish. Additionally, its aesthetic appeal is noteworthy. The increasing prevalence of luxury properties, such as vacation homes and city apartments further bolsters the demand for high-quality construction materials such as LVL.

Restraint Factor for the Laminated Veneer Lumber Market

Stakeholders' Limited Awareness Will Limit Market Growth

Despite the numerous benefits of Laminated Veneer Lumber (LVL), such as its durability, sustainability, and high strength, its adoption is impeded by a lack of awareness among builders, architects, and contractors. Due to their familiarity and lack of understanding regarding the advantages and applications of LVL, numerous stakeholders continue to favour conventional materials such as concrete, steel, and lumber. This lack of awareness can impede market penetration, particularly in regions where LVL is relatively new. Manufacturers and industry associations must allocate resources to marketing campaigns and educational initiatives that are specifically tailored to address this obstacle. They can promote the widespread acceptance and adoption of LVL in a variety of construction projects by emphasising its superior structural properties, environmental benefits, and cost-effectiveness, thereby fostering market growth.

Impact of Covid-19 on the Laminated Veneer Lumber Market

The laminated veneer lumber (LVL) mar...

Explore the Finished Wood Products Market trends! Covers key players, growth rate 7.6% CAGR, market size $492.42 Billion, and forecasts to 2034. Get insights now!

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Hardwood Cut Stock and Dimension (WPU08120311) from Jun 1984 to Feb 2025 about floor coverings, stocks, wood, commodities, PPI, inflation, price index, indexes, price, and USA.

In 2024, the global dissolving grade wood pulp market increased by 0.5% to $11.2B, rising for the fourth year in a row after two years of decline. Overall, the total consumption indicated noticeable growth from 2012 to 2024: its value increased at an average annual rate of +3.6% 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 increased by +44.2% against 2020 indices.

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.