Softwood Market Research Report Information by Type (Cedar, Douglas fir, Pine, Spruce, Redwood, Others), By Form (Plywood, Timber, Lumber, Veneer), By End Use (Walls, Roofs, Underlayment, Fencing, Furniture, Others), By Resistant Capacity (Moisture-Resistant, Fire Resistant, Termite Resistant, Chemical Resistant), and by Region (North America, South America, Europe, Asia Pacific, And Middle East & Africa) –Market Forecast Till 2030

Global Softwood Market Overview

Softwood market size was valued at USD 1,35,547.1 Million in 2022. The Softwood industry is projected to grow from USD 1,39,482.1 Million in 2023 to USD 1,85,387.9 Million by 2030, exhibiting a compound annual growth rate (CAGR) of 4.1% during the forecast period (2023 - 2030). Softwood is a type of wood that comes from gymnosperm trees, which are cone-bearing and typically evergreen. Softwoods are distinct from hardwoods, which come from deciduous trees that lose their leaves annually. The global softwood market growth is expected to be driven by key factors such as rapid economic and urbanization growth followed by increasing adoption of softwood products in packaging industry. Furthermore, the softwood market is facing challenges such as lack of forest management followed by unexpected weather conditions. Moreover, the global softwood industry is about to show a growth opportunity and there is an increasing demand for sustainable wood products.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Softwood Market Trends

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  Rapid Economic and Urbanization Growth in Western and Asia Region is Driving the Softwood Market

  
  

Rapid economic and urbanisation growth in both Western and Asia region has spurred an unprecedented demand for softwood, igniting a surge in the global softwood market. In Western region like North America, and Europe, burgeoning construction projects, fuelled by economic prosperity and population has fuelled the need for softwood lumbers in residential and commercial development. The versatile nature of softwood makes it a preferred material for various applications, including building components (e.g., windows, doors), furniture, medium-density fibreboard (MDF), paper, Christmas trees, and much more. Similarly, in Asian region, particularly emerging economics like India and China urbanisation has accelerated at an exponential rate, triggering a monumental appetite for softwood imports to meet the demand of infrastructure projects, real estate ventures, and manufacturing activities. As these nations continue ton urbanize and modernize their infrastructure, the demand for softwood products such as plywood, particleboard, and timber framing are expected to soar.

Increasing Adoption of Softwood Products in Packaging Industry is Driving the Softwood Market

The burgeoning demand for softwood lumber in the packaging is indisputably reshaping the softwood market landscape. With the advent of the e-commerce revolution and the consequences surge in international trade, the need for robust and sustainable packaging solution has soured. Softwood lumber emerged as a pivotal player in this scenario, finding extensive application in the fabrication of crates, pallets, and boxes. This trend further fueled by the recognition of softwood’s inherent sustainability advantages over hardwood counterparts. Notably, softwood accounts for approximately 80% of the wood utilized in both manufacturing and wood packaging sector, underscoring its dominance in the market. Moreover, softwood’s versatility extends to the production of pulp for packaging material like cardboard boxes, further amplifying its significance in packaging ecosystem. As industries increasingly prioritize eco-friendly practices and seek resilient packaging solution to meet evolving consumer demands, the trajectory of the softwood market appears poised for sustained growth.

Softwood Market Segment Insights

Softwood Type Insights

Based on type, the global softwood market segmentation includes cedar, douglas fir, pine, spruce, redwood, others. The pine segment held the majority Softwood market share in 2022 and is expected to grow at a significant growth rate. A pine is any conifer tree or shrub in the genus pinus of the family Pinaceae. Pines are commonly found in the Northern Hemisphere and to a few parts from the tropics to temperate regions in the Southern Hemisphere. Most regions of the Northern Hemisphere host some native species of pines. Pine may also refer to the lumber derived from pine trees; it is one of the more extensively used types of lumber. Because pine wood has no insect- or decay-resistant qualities after logging, in its untreated state it is generally recommended for indoor construction purposes only (indoor drywall framing, for example). For outside use, pine needs to be treated with copper azole, chromated copper arsenate or other suitable chemical preservative.

Figure 1: Global Softwood Market, by Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Softwood Form Insights

The global softwood market segmentation, based on form is plywood, timber, lumber, veneer. The lumber segment dominated the softwood market in 2022 and is expected to continue dominating the softwood market during the forecast period 2023-2030. Lumber is used to describe processed wood products used for furniture making, home construction and the like. Lumber typically refers collectively to wood that’s been processed for use as a building material—wood that has been milled and cut into boards or planks. This cutting happens in a lumbermill, and the finished product is sold at a lumberyard. Lumber is processed into uniform and useful sizes (dimensional lumber), including beams and planks or boards. Lumber is mainly used for construction framing, as well as finishing (floors, wall panels, window frames). Lumber has many uses beyond home building. Lumber may be supplied either rough-sawn, or surfaced on one or more of its faces. Rough lumber is the raw material for furniture-making, and manufacture of other items requiring cutting and shaping. It is available in many softwood species such as white pine and red pine, because of their low cost.

Softwood End Use Insights

The end use segment of the softwood market size includes walls, roofs, underlayment, fencing, furniture, others. The furniture segment dominated the softwood market in 2022 and is expected to grow at a significant rate during the forecast period 2023-2030. Western red cedar is the most common type of cedar used in furniture. It's naturally resistant to rot and insects, making it a good choice for outdoor furniture, decks, and saunas. It has a warm reddish-brown color and a distinctive cedar scent. Eastern white cedar is similar to western red cedar, but lighter in color and not as durable. It's often used for lining drawers and closets due to its moth-repellent properties. Yellow cedar is more yellow in color than other cedars, and less commonly used in furniture due to its limited availability and higher cost. Douglas fir is the most commercially important fir species. It's strong, stable, and has a beautiful grain pattern, making it a popular choice for furniture, cabinetry, and doors.

Softwood Resistant Capacity Insights

The resistant capacity segment of the softwood market size includes moisture-resistant, fire resistant, termite resistant, chemical resistant. The moisture-resistant segment dominated the Softwood market in 2022 and is expected to grow at a significant rate during the forecast period 2023-2030. Cedar is a naturally moisture-resistant softwood due to the presence of oils and resins in its heartwood. It is commonly used for outdoor applications like decks, siding, and shingles. Redwood is another naturally moisture-resistant softwood with good dimensional stability. It is often used for outdoor furniture, decks, and siding. Pine is a softwood with moderate moisture resistance. However, its sapwood is more susceptible to moisture damage than its heartwood. Pressure-treated pine is often used for outdoor applications where moisture resistance is needed.

Softwood Regional Insights

By Region, the Softwood market report provides market insights into North America, South America, Europe, Asia Pacific, and Middle East and Africa. The North America Softwood market held the largest market share in 2022 and is expected to exhibit a significant CAGR growth during the forecast period. The North America softwood market comparing the US and Canada primary contributors, hold sustainable significance within the global lumber industry. Its vitality stems from its close ties to residential construction, where softwood lumber finds extensive use. Fluctuations in housing starts, renovation projects and broader economic condition profoundly influence demand. Moreover, the intricate web of international trade relationship, particularly the historically significant US-Canda lumber trade, shapes market dynamics.

The Asia Pacific Softwood market held the second largest market share in 2022 and is expected to exhibit an adequate CAGR growth during the forecast period. The Asia-Pacific region is expected to see sustainable growth in the softwood lumber market. This is due to the region's rapid growth in construction and furniture manufacturing, which increases product consumption. The rapid economic growth of China has made the Asia Pacific region a growing priority for timberland investors in recent years.  Both Australia and New Zealand are significant producers of softwood timber, largely radiata pine. With over 100 years of experience in establishing and managing softwood plantations, the region has a solid track record of silviculture, genetics, and technical capacity. Both countries operate open economies and have been seen as preferred, low-risk regions for timberland investors seeking to diversify outside the United States. 

Figure 2: Global Softwood Market Size By Region 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

The Europe Softwood market held the third largest market share in 2022 and is estimated to grow at a highest CAGR during the forecast period. The Europe softwood market encompasses a wide range of countries with varying degrees of forest resources, industrial capacity, and market demand. About 38% of European softwood lumber exports are from sawmills in the Nordic countries, down from a peak of 45% in 2016. In 2022, the total volume from the sub-region reached increased 5% from the previous year. However, environmental regulations and sustainability concerns also play a crucial role in the Europe softwood market. Many consumers and businesses prioritize sustainably sourced wood products, leading to certification like FSC (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification) becoming increasingly important.

Softwood Key Market Players & Competitive Insights

The softwood market, encompassing softwood components like lumber, timber, plywood, etc. used for construction, furniture, and various other applications, is a dynamic and diverse industry. The softwood market is characterized by a mix of established companies, emerging players, and specialized niche manufacturers. The global softwood market is characterized by the presence of many regional and local vendors. The key players operating in the global softwood market include Weyerhaeuser, Georgia-Pacific, Sierra Pacific Industries, Interfor Corporation, Canfor Corporation, West Fraser Timber, Tolko Industries, UPM, Kronospan, Metsa Group, among others. The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have strong reach globally along with diverse product portfolios. Companies such as Weyerhaeuser, UPM, Metsa Group, West Fraser Timber, and Canfor Corporation dominate the market due to brand reputation, product differentiation, financial stability, and diversified regional presence. Numerous regional players cater to specific needs and offer localized advantages. Smaller companies focus on niche markets like high-end lumber or sustainable forestry practices.

Key Companies in the Softwood Market include

• Weyerhaeuser


• Georgia-Pacific


• Sierra Pacific Industries


• Interfor Corporation


• Canfor Corporation


• West Fraser Timber


• Tolko Industries


• UPM


• Kronospan


• Metsa Group

Softwood Market Industry Developments

• In September 2023, Canfor Corporation announced that it will be investing approximately $200 million to build a new state-of-the-art manufacturing facility in Houston, British Columbia. This low cost, high efficiency facility will have an annual production capacity of approximately 350 million board feet.


• In December 2022, Weyerhaeuser Company and American Forests, the nation's oldest national nonprofit conservation organization, announced a new partnership on an innovative initiative to expand American Forests' Tree Equity program into smaller, more rural communities and provide environmental education focused on careers in urban and community forestry to hundreds of youth.


• In November 2019, Kronospan announced that its Kronobuild® brand for construction and building materials is now complemented with a new product – plywood. Produced in its plant in Smorgon, Belarus, the versatile and highly workable building material is manufactured by layering thin sheets of veneer from coniferous wood species, which guarantees a long-lasting premium product.

Softwood Market Segmentation

Softwood Market Type Outlook

• Cedar


• Douglas fir


• Pine


• Spruce


• Redwood


• Others

Softwood Market Form Outlook

• Plywood


• Timber


• Lumber


• Veneer

Softwood Market End Use Outlook

• Walls


• Roofs


• Underlayment


• Fencing


• Furniture


• Others

Softwood Market Resistant Capacity Outlook

• Moisture-Resistant


• Fire Resistant


• Termite Resistant


• Chemical Resistant

Softwood Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Rest of APAC
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of MEA