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 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.

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.

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 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.

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.

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

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 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 2024, the UK wood tool market decreased by -1.9% to $9.3M, falling for the second consecutive year after two years of growth. Over the period under review, consumption, however, saw a abrupt decline. Over the period under review, the market reached the peak level at $20M in 2012; however, from 2013 to 2024, consumption remained at a lower figure.

This statistic displays the average price for wood used for pellet mills in 2016, broken down by region. In that year, the average wood price for pellet mills amounted to some 92.5 U.S. dollars per oven-dry ton in Eastern Canada.

Building materials made of copper had some of the highest price growth rates in the U.S. in December 2024 in comparison to the previous year. The growth rate of the cost of many construction materials was much lower than in 2023. 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 the inflation trends in the U.S. at that time, the price growth rate of construction materials in the UK were generally lower 2023 than in 2022. Nevertheless, the cost of some construction materials in the UK still soared that year, with several of those items reaching price growth rates of over 10 or even of over 14 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.

After two years of decline, the UK dissolving grade wood pulp market increased by 13% to $46M in 2024. Over the period under review, consumption, however, recorded a drastic downturn. Dissolving grade wood pulp consumption peaked at $94M in 2012; however, from 2013 to 2024, consumption remained at a lower figure.

In 2024, the Mexican wood tool market decreased by -1.2% to $127M, falling for the second consecutive year after seven years of growth. In general, consumption, however, enjoyed a prominent expansion. Wood tool consumption peaked at $138M in 2022; however, from 2023 to 2024, consumption stood at a somewhat lower figure.

The Algerian densified wood market dropped slightly to $31K in 2024, with a decrease of -2.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption faced a precipitous decline. Densified wood consumption peaked at $2.1M in 2012; however, from 2013 to 2024, consumption remained at a lower figure.

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.

The Panamanian preservative-treated rough wood market dropped to $7.3M in 2024, which is down by -5.7% against the previous year. In general, consumption, however, recorded buoyant growth. As a result, consumption attained the peak level of $8.6M. From 2022 to 2024, the growth of the market remained at a lower figure.

The West African wood tool market dropped to $38M in 2024, remaining constant against the previous year. Overall, consumption posted strong growth. Over the period under review, the market attained the peak level at $39M in 2023, and then reduced slightly in the following year.