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.

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.

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.

In February 2023, the wood fuel price amounted to $252 per cubic meter (CIF, Japan), shrinking by -8.8% against the previous month.

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.

United States Listings w/ Price Drops: sa: All Residential: Fort Leonard Wood, MO data was reported at 13.349 % in Jul 2020. This records a decrease from the previous number of 22.077 % for Jun 2020. United States Listings w/ Price Drops: sa: All Residential: Fort Leonard Wood, MO data is updated monthly, averaging 16.228 % from Jan 2015 to Jul 2020, with 67 observations. The data reached an all-time high of 22.077 % in Jun 2020 and a record low of 6.483 % in Jan 2015. United States Listings w/ Price Drops: sa: All Residential: Fort Leonard Wood, MO data remains active status in CEIC and is reported by Redfin. The data is categorized under Global Database’s United States – Table US.EB042: Listings with Price Drops: by Metropolitan Areas: Seasonally Adjusted.

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 May 2023, the price of Wood Fuel was $29.2 per cubic meter (CIF, South Africa), showing a decrease of 4.6% compared to the previous month.

Graph and download economic data for Producer Price Index by Commodity: Pulp, Paper, and Allied Products: Wood Pulp (WPU0911) from Jan 1926 to Feb 2025 about wood, paper, commodities, PPI, inflation, price index, indexes, price, and USA.

In August 2022, the mechanical wood pulp price stood at $397 per ton (CIF, Australia), waning by -2.5% against the previous month.

The price of Wood Concrete Shuttering and Shingle in June 2023 was $1,741 per ton (CIF, Poland), showing a decrease of -25.2% compared to the previous month.

The price of the Wood Milling Machine in June 2023 was $853 per unit (FOB, Italy), experiencing a decrease of -1.6% compared to the previous month.

In March 2023, the wood concrete shuttering and shingle price stood at $1,755 per ton (FOB, Germany), shrinking by -1.5% against the previous month.

The number of home sales in the United States peaked in 2021 at almost seven million after steadily rising since 2018. Nevertheless, the market contracted in the following year, with transaction volumes falling to 4.8 million. Home sales remained muted in 2024, with a mild increase expected in 2025 and 2026. A major factor driving this trend is the unprecedented increase in mortgage interest rates due to high inflation. How have U.S. home prices developed over time? The average sales price of new homes has also been rising since 2011. Buyer confidence seems to have recovered after the property crash, which has increased demand for homes and also the prices sellers are demanding for homes. At the same time, the affordability of U.S. homes has decreased. Both the number of existing and newly built homes sold has declined since the housing market boom during the coronavirus pandemic. Challenges in housing supply The number of housing units in the U.S. rose steadily between 1975 and 2005 but has remained fairly stable since then. Construction increased notably in the 1990s and early 2000s, with the number of construction starts steadily rising, before plummeting amid the infamous housing market crash. Housing starts slowly started to pick up in 2011, mirroring the economic recovery. In 2022, the supply of newly built homes plummeted again, as supply chain challenges following the COVID-19 pandemic and tariffs on essential construction materials such as steel and lumber led to prices soaring.

In May 2023, the price of the Wood Drilling Machine per unit was $2,304 (FOB, Germany), showing a decrease of -30.8% compared to the previous month.

The Asia-Pacific wood tool market dropped slightly to $2.8B in 2024, declining by -4.5% against the previous year. Over the period under review, consumption showed a prominent expansion. The level of consumption peaked at $3.2B in 2021; however, from 2022 to 2024, consumption stood at a somewhat lower figure.

In September 2022, the wood charcoal price amounted to $2,526 per ton (FOB, China), shrinking by -17.2% against the previous month.

The Paraguayan densified wood market dropped slightly to $3.2M in 2024, stabilizing at the previous year. Overall, the total consumption indicated a modest increase from 2012 to 2024: its value increased at an average annual rate of +1.7% over the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2024 figures, consumption decreased by +0.8% against 2022 indices.