Plywood Market to Reach USD 73.3 Billion by 2027, Driven by Versatility and Sustainable Renovation Trends

According to the report "Plywood Market by Type (Hardwood and Softwood), Application (Construction and Industrial), Usage Type (New Construction and Renovation), and Region (North America, Europe, APAC, MEA, South America) – Global Forecast to 2027", the global plywood market size is projected to grow from USD 54.2 billion to USD 73.3 billion by 2027, reflecting a compound annual growth rate (CAGR) driven by increasing demand in the construction sector.

Thanks to its many advantages, plywood is widely used in large-scale construction projects. It is a cost-effective engineered wood sheet manufactured with precision, offering high dimensional stability and resistance to warping or cracking under atmospheric moisture.

Classification and Versatility of Plywood

Plywood can be classified in various ways, depending on:

• Type of wood used (hardwood or softwood),
• Number of layers,
• Suitability for indoor or outdoor use,
• Compliance with quality standards,
• Intended application.

These classifications help determine the most appropriate plywood type for specific construction or industrial needs.

Key Market Players

Some of the leading companies in the plywood industry include:

• Georgia Pacific LLC (USA)
• Boise Cascade Company (USA)
• Weyerhaeuser Company Ltd (USA)
• UPM-Kymmene Oyj (Finland)
• Svezza Forest Ltd (Russia)
• PotlatchDeltic Corporation (USA) and many others.

Opportunity: Growth Through Recycling and Reuse

The plastics market has recently faced challenges due to the rising cost of raw materials, affecting both intermediate and final product prices. However, a more circular plastics value chain is emerging, where recycled plastics can become more price-competitive.

Policies such as plastic taxes and recycled content targets are being implemented in several countries to limit usage and promote circularity, thus supporting secondary plastic markets.

Positive indicators of these efforts include:

• The recent price decoupling of primary and secondary PET (polyethylene terephthalate) in Europe
• Increased innovation in recycling technologies

Using recycled plastic helps reduce the price of final goods, making them more affordable and appealing to consumers.

Renovation Segment Expected to See Highest CAGR

The renovation usage segment is expected to record the highest CAGR during the forecast period, as sustainability and refurbishment go hand in hand. Renovation creates new value from existing structures, avoiding demolition and its associated environmental impacts.

Research conducted in Rio de Janeiro and São Paulo reveals that new construction still dominates, despite a large stock of existing buildings. Promoting awareness of renovation procedures could support the global implementation of these sustainable practices.

Asia Pacific: The World’s Largest Plywood Market

The Asia Pacific region leads the global plywood market, with analysis covering China, India, Japan, South Korea, Taiwan, Thailand, Malaysia, and the rest of Asia Pacific (including Australia and Indonesia). Among these, China holds a dominant 80% share of the plywood market in Asia Pacific by value.