Forestry And Logging Products Market Definition
The forestry and logging products market consists of sales of forestry products and logs by entities (organizations, sole traders and partnerships) that produce or harvest forestry products and logs and are involved in the growing, cutting and transporting of timber, operations of the timber tract, growing trees for reforestation and collecting forest products such as gums, barks and fibers.
Forestry is the practice of managing forest lands, plantations, and related natural resources for various uses including commercial, agricultural, housing and public. Logging Products primarily involves harvesting, which removes trees in the area either by the forest owner or the logging company. This is followed by the loading of logs to the trucks to be sent to the mills for processing.
Forestry And Logging Products Market Size
The global forestry and logging products market reached a value of nearly $509.8 billion in 2019, having declined at a compound annual growth rate (CAGR) of -0.1% since 2015. Market size in the historic period was supported by the growth in residential construction activity, and strong economic growth in emerging markets. Factor that negatively affected growth in the historic period was forest fires.
The market is expected to grow at a CAGR of 3.5% to nearly $584.7 billion by 2023. Going forward, increasing construction of wooden buildings, and faster economic growth will drive growth. Factors that could hinder the growth of the forestry and logging products market in the future include stringent regulations, and alternate construction materials.
Forestry And Logging Products Market Drivers
The key drivers of the forestry and logging products market include:
Growth In Residential Construction Activity
Increase in residential construction activity, during the historic period has contributed significantly to the growth of the market. With an increase in the global population, there has been an increased demand for housing, thus aiding the growth of the residential construction market. In addition to this, governments of developing countries such as India and Brazil have been investing in residential construction in order to provide affordable housing for all, thus driving the forestry and logging products market. In 2015, the government of India announced its decision to provide housing for all the urban poor by the 2022. In 2016, the government approved an investment of $6.2 billion (INR 439.22 billion) for construction of 0.6 million houses including central assistance commitment of $1.4 billion (INR 100.50 billion) by April 2016.
Forestry And Logging Products Market Restraints
The key restraints on the forestry and logging products market include:
Stringent Regulations
Stringent regulations have always been a major challenge to the forestry and logging products market. Several countries across the globe have imposed total or partial logging bans in natural forests as a response to natural disasters which are believed to have been caused by deforestation. Banning or restricting timber products is thus viewed as a corrective measure to promote forest conservation and protection, and to ensure broader forest benefits for future generations. For instance, in 2017, the government of China announced its decision to impose a total ban on commercial logging in natural forests. In 2013, the EU Timber Regulation came into force, which aims to reduce illegal logging by ensuring that no illegal timber or timber products can be sold in the EU, thus negatively impacting the market.
Forestry And Logging Products Market Trends
Major trends influencing the forestry and logging products market include:
Improved Techniques In Tree-Felling Operations
Advanced techniques in forest logging methods have improved safety, fiber utilization, environmental protection and productivity with minimum damage to residual trees. The different improved methods of logging are harvester/forwarder systems, cable harvesting systems and helicopters logging. Harvester or forwarder type of logging is mostly common in northern and central Europe and the use is expected to increase in the future due to their economic, ergonomic and ecological advantages over motor/manual (saw/skidding) harvesting. Cable harvesting are used in mountainous regions whereas helicopter logging is popular in environmental constraints and remote areas. According to a recent study, improved logging operations result in a 30% increase in wood volume and damage to residual trees can be reduced to 20%. For instance, Markit Forestry Management has employed helicopter logging for some portions of the Dry Lake Hills area as transport of logs, lumbers and felled trees were difficult due to the steep slope of the land.
Increased Use Of Drones In Forestry
Drones are gaining popularity in the forestry and logging products market because they can provide aerial images which show a detailed picture of the forest, providing comprehensive insights and analysis. The detailed images provide photographic insights of dense forests, measures volumes by accurate tree counts, maps harvest units and post-harvest wastes, assess health and damage of each tree, learn site-specific fertilization treatments and provides fire occurrence detection. For example, Domtar, the world’s second-largest producer of uncoated paper in the world, and Stimson Lumber, a wood product company in the U.S have incorporated the use of drones in managing their forests.
Opportunities And Recommendations In The Forestry And Logging Products Market
Opportunities – The forestry and logging products market size will gain the most in the USA at $9.16 billion. Market-trend-based strategies for the forestry and logging products market include focusing on reforestation utilizing the aerial seed bombers method for quick plantation of trees, incorporating new and improved techniques in harvesting logs to increase wood volume with less residual damage, using big data to detect the best time for logging and transport, and involving drones in the forests for proper forest management. Player-adopted strategies in the forestry and logging products market include increasing timberland size for more timber production and divesting non-core businesses, expanding state forests through sustainable investments, and expanding through acquisitions of strategic timberland properties and other forest products assets.
Recommendations – To take advantage of these opportunities, The Business Research Company recommends the forestry and logging products companies to consider using big data analytics, focusing on emerging economies, offering competitive priced products, encouraging purchases through financial assistance, and focus on construction and pulp and paper industry, among other strategies.
Forestry And Logging Products Market Segmentation
The forestry and logging products market is segmented by type, and by geography.
By Type -
The forestry and logging products market can be segmented by type into
- a) Logging Products
- b) Timber Tract Operations
- c) Forest Nurseries and Gathering of Forest Products
The logging products market was the largest segment of the forestry and logging products market in 2019 at 89.9%. The timber tract operations market is expected to be the fastest-growing segment going forward at a CAGR of 7.9%.
By Geography- The forestry and logging products market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- Denmark
- Switzerland
- Ireland
- Sweden
- Netherlands
- Austria
- Belgium
- Portugal
- Norway
- Finland
- o Asia Pacific
- China
- Japan
- India
- Australia
- Philippines
- Vietnam
- Indonesia
- Malaysia
- New Zealand
- Hong Kong
- Singapore
- South Korea
- Thailand
- o Eastern Europe
- Poland
- Russia
- Romania
- Czech Republic
- o South America
- Peru
- Argentina
- Chile
- Brazil
- Colombia
- Venezuela
- o Middle East
- Saudi Arabia
- UAE
- Turkey
- Israel
- o Africa
- Nigeria
- Egypt
- South Africa
Asia-Pacific was the largest market for forestry and logging products market, accounting for 37.7% of the global market in 2019. It was followed by North America, South America and then the other regions. Going forward, the fastest growing regions in the forestry and logging products market will be Africa and Western Europe
Forestry And Logging Products Competitive Landscape
Major Competitors are:
- • Weyerhaeuser Company
- • China Forestry Group Corporation
- • Rayonier Inc.
- • PotlatchDeltic Corporation
- • Forestry Corporation of NSW
Other Competitors Include:
- • Washington State Department of Natural Resources
- • Tilhill Forestry
- • Pope Resources
- • Jilin Forest Industry Co., Ltd.
- • CatchMark
- • HVP Plantations
- • China Longjiang Forest Industry
- • China Inner Mongolia Forestry
- • Greater Khingan Mountains Forestry Group
- • Singla Timbers
- • Oji Group
- • EGGER Limited
- • RTS Forestry
- • James Jones and Sons Limited
- • Metsähallitus Forestry Ltd
- • ATA Timber
- • Bergs Timber AB
- • Scottish Woodlands Ltd
- • Holmen Timber
- • BSW Timber
- • The Titan Group
- • Timberwood
- • Russia Forest Products
- • Wotan Forest
- • UNILES Inc
- • Segezha Group
- • SORT-1, LLC
- • KPPD-Szczecinek SA
- • Sawmill Radom
- • Ilim Timber LLC
- • Hancock Timber Resource Group
- • RSH Forest Products
- • Sierra Pacific
- • Benevides Madeiras
- • Duratex
- • Fibria Celulose
- • Klabin
- • Suzano Papel e Celulose
- • Daco Parquet Factory AS
- • Kartonsan
- • Balci Orman Urunleri
- • Merensky
- • Safcol
- • Miro Forestry And Timber Products
- • United Forest Products
- • Chukifywood
- • Firstcut International
- • Royal Castle Trading Enterprises
- • Chrischeriss Global Services Ltd
