Lumber fell to 537 USD/1000 board feet on December 1, 2025, down 1.29% from the previous day. Over the past month, Lumber's price has fallen 1.47%, and is down 9.54% 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 December of 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.

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.

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.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Other Wood Products (WPU084) from Dec 1966 to Sep 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

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.

In 2024, the Brazilian plywood market decreased by -14.8% to $414M, falling for the second consecutive year after two years of growth. Overall, consumption saw a perceptible descent. Over the period under review, the market reached the maximum level at $576M in 2012; however, from 2013 to 2024, consumption failed to regain momentum.

In Q3 2025, In Indonesia, the Plywood Price Index fell by 1.25% quarter-over-quarter, driven by weaker export demand. Check detailed insights for North America, Europe, and South America.

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.

Explore the recent significant reduction in lumber prices, its causes, and its impact on sectors like construction and home renovation, highlighting the market's shift from pandemic highs and resulting economic benefits.

The average plywood import price stood at $527 per cubic meter in April 2025, dropping by -37.9% against the previous month.

Graph and download economic data for Producer Price Index by Commodity: Lumber and Wood Products: Softwood Lumber (WPU0811) from Jan 1947 to Aug 2025 about wood, commodities, PPI, inflation, price index, indexes, price, and USA.

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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.

This lumber pallet mark

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.

In May 2025, the average plywood export price amounted to $1,041 per cubic meter, dropping by -17% against the previous month.

Canada's production of softwood and hardwood lumber has been mostly decreasing between 2017 and 2025. In general, there were many fluctuations in the amount of lumber produced within each single year, with December usually having the lowest production figures. In May 2025, there were **** 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.

Most timber is ultimately used in downstream residential construction markets. Declines in residential construction from a 2021 peak have hurt timber tract operators, as high inflation led to increased interest rates and less demand for new construction. Despite a housing shortage, housing starts fell in 2022 and 2023, creating less need for lumber and causing timber prices to fall from their 2021 levels. This has caused revenue to fall at a CAGR of 3.2% to $1.0 billion in 2025. However, the Federal Reserve has started to cut interest rates and residential construction declines have slowed. This has led to a smaller revenue contraction of 0.4% in 2025. Profit growth in recent years as wood prices have remained elevated above pre-pandemic levels, though they reached a peak in 2021 and have been on the downswing since. When lumber prices began to fall, many small timber tract operators were forced out of the industry. Although small operations still account for the bulk of participation, timber holdings have also increasingly been purchased by institutional investors who seek the highest possible return on the land. This can include sales to real estate developers and could constrain the US timber supply moving forward. Additionally, forestland devastation caused by forest fires has the potential to disrupt the industry. The timber services industry revenue will rise slightly over the coming years. As interest rates fall and construction activity resumes, the price of sawmill timber is expected to grow and strengthen returns. Meanwhile, many wood product manufacturing industries will begin to experience falling import penetration as the value of the US dollar declines, supporting demand for industry services. Construction will likely remain the largest downstream market for timber. Revenue is projected to rise at a CAGR of 1.0% to $1.1 billion over the five years to 2030.

In March 2022, the average plywood export price amounted to $542 per cubic meter, dropping by -5.5% against the previous month.

Over the past five years, the wood panel manufacturing industry in Canada has experienced modest growth, primarily supported by the residential construction market. A significant trend has been its sensitivity to interest rate fluctuations, which directly impact demand for wood panel products. As interest rates rose in 2022, housing-related spending weakened, causing a notable shift in demand. Despite these challenges, the surge in housing starts driven by urbanization and population growth bolstered the industry's resilience. Profitability, however, has seen considerable variations due to changes in raw material prices and fluctuating demand. Over the past year, the industry has achieved a revenue growth rate of 1.8%, reflecting its capacity to adapt to these economic shifts. In 2025, revenue has reached to $11.8 billion, with a CAGR of 1.5%. While recent growth has been encouraging, the industry has faced challenges such as rising interest rates that dampened housing-related expenditures. This economic adjustment has necessitated a reevaluation of market strategies, compelling manufacturers to prioritize operational efficiencies and strategic pricing to maintain profitability. The industry's reliance on favorable trade conditions for exports underscores its vulnerability to international market fluctuations. Nevertheless, stable cross-border trade relations, especially with the United States, continue to provide essential revenue streams and support the industry's economic health. Looking towards the future, the industry is poised for continued, albeit tempered, growth. Expectations of declining mortgage rates and a resurgence in housing starts suggest a revitalization of construction activities, offering new opportunities for wood panel manufacturers. Companies are encouraged to leverage technological advancements and sustainable practices to diversify product offerings and meet evolving consumer preferences. However, the industry must navigate increased international competition, particularly from countries with lower production costs. Additionally, nonresidential market dynamics will play a crucial role, as governmental infrastructure spending and eco-conscious building practices present both challenges and opportunities. Over the next five years, the wood panel manufacturing industry is projected to see a CAGR of 1.3%, with expectations to reach a revenue figure of $12.6 billion by the end of 2030. This outlook reflects a cautiously optimistic growth trajectory, contingent on the industry's ability to innovate and adapt to a changing economic landscape.

The engineered wood industry, encompassing products like plywood, OSB, and CLT, is experiencing robust growth, driven by increasing construction activity globally and a rising preference for sustainable building materials. The market, currently valued at approximately $XX million (estimated based on provided CAGR and market size data), is projected to exhibit a Compound Annual Growth Rate (CAGR) exceeding 5% from 2025 to 2033. This expansion is fueled by several key factors: the burgeoning residential and non-residential construction sectors, particularly in rapidly developing economies like those in Asia-Pacific; growing demand for high-performance, cost-effective, and environmentally friendly building materials; and advancements in engineered wood technology, leading to improved strength, durability, and design flexibility. Key segments like Cross-Laminated Timber (CLT) are witnessing particularly strong growth due to their suitability for large-scale, sustainable construction projects. However, challenges remain, including fluctuations in raw material prices (lumber), potential supply chain disruptions, and environmental concerns related to deforestation and sustainable forestry practices. Despite these restraints, the long-term outlook for the engineered wood market remains positive. The increasing adoption of sustainable building codes and regulations, coupled with ongoing innovation in engineered wood products, is likely to further stimulate market expansion. Geographical variations in growth rates are expected, with Asia-Pacific and North America anticipated to lead the market, driven by robust infrastructure development and a healthy housing market. Competition amongst major players like Boise Cascade, Weyerhaeuser, and Stora Enso will likely intensify, fostering innovation and driving down costs, while simultaneously presenting challenges for smaller players. Strategic partnerships, mergers and acquisitions, and a focus on technological advancements will be crucial for success in this dynamic and competitive landscape. Recent developments include: December 2022: Boise Cascade expanded distribution centers in two new markets by acquiring 45 acres in Walterboro, SC, and purchasing a 34-acre land parcel in Hondo, Texas.October 2022: Boise Cascade announced the expansion of its distribution center through the acquisition of 4.67 acres of land adjacent to its Albuquerque, New Mexico branch.. Key drivers for this market are: Growing Demand from the Non-residential Sector, Increasing Use of Cross-laminated Timber (CLT) as Construction Materials; Other Opportunities. Potential restraints include: Growing Demand from the Non-residential Sector, Increasing Use of Cross-laminated Timber (CLT) as Construction Materials; Other Opportunities. Notable trends are: The Residential Segment to Dominate the Market.