Wood Chips, Particles And Residues Market

The global market for wood chips, particles, and residues is projected to continue its upward trend over the next eight years. Consumption, production, and exports of these products have seen fluctuations and growth in various countries. China leads in both consumption and value of these products, followed by the United States and Japan. The market is expected to reach 663M cubic meters and $110.9B in value by 2030. Overall, the trends and patterns in the market indicate a dynamic landscape with opportunities for growth and expansion.

Market Forecast

Driven by increasing demand for wood chips, particles and residues worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +2.1% for the period from 2022 to 2030, which is projected to bring the market volume to 663M cubic meters by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.6% for the period from 2022 to 2030, which is projected to bring the market value to $110.9B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Wood Chips, Particles And Residues

In 2022, consumption of wood chips, particles and residues increased by 1.7% to 561M cubic meters, rising for the second year in a row after two years of decline. In general, consumption continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2018 with an increase of 4% against the previous year. Over the period under review, global consumption attained the peak volume in 2022 and is expected to retain growth in years to come.

The value of the market for wood chips, particles and residues worldwide stood at $83.6B in 2022, picking up by 3.3% 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). Overall, the total consumption indicated a resilient increase from 2012 to 2022: its value increased at an average annual rate of +5.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +71.7% against 2012 indices. Global consumption peaked in 2022 and is expected to retain growth in years to come.

Consumption By Country

China (186M cubic meters) constituted the country with the largest volume of wood chips, particles and residues consumption, comprising approx. 34% of total volume. Moreover, wood chips, particles and residues consumption in China exceeded the figures recorded by the second-largest consumer, the United States (47M cubic meters), fourfold. The third position in this ranking was taken by Japan (37M cubic meters), with a 6.7% share.

In China, wood chips, particles and residues consumption increased at an average annual rate of +3.6% over the period from 2012-2021. The remaining consuming countries recorded the following average annual rates of consumption growth: the United States (+0.4% per year) and Japan (-0.7% per year).

In value terms, China ($49.2B) led the market, alone. The second position in the ranking was held by Brazil ($6B). It was followed by the United States.

From 2012 to 2021, the average annual rate of growth in terms of value in China amounted to +10.7%. In the other countries, the average annual rates were as follows: Brazil (+1.7% per year) and the United States (-1.1% per year).

The countries with the highest levels of wood chips, particles and residues per capita consumption in 2021 were Finland (4,214 cubic meters per 1000 persons), Sweden (2,531 cubic meters per 1000 persons) and Austria (1,103 cubic meters per 1000 persons).

From 2012 to 2021, the biggest increases were recorded for Australia (with a CAGR of +8.0%), while consumption for the other global leaders experienced more modest paces of growth.

Consumption By Type

The products with the highest volumes of consumption in 2022 were wood chips and particles (352M cubic meters) and wood residues (245M cubic meters).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consumed products, was attained by wood residues (with a CAGR of +1.0%).

In value terms, wood residues ($53.4B) led the market, alone. The second position in the ranking was taken by wood chips and particles ($16.2B).

For wood residues, market increased at an average annual rate of +5.1% over the period from 2012-2022.

Production

World Production of Wood Chips, Particles And Residues

In 2021, production of wood chips, particles and residues decreased by -41.6% to 314M cubic meters, falling for the second year in a row after two years of growth. Over the period under review, production showed a abrupt decrease. The growth pace was the most rapid in 2018 with an increase of 4.5% against the previous year. Global production peaked at 558M cubic meters in 2019; however, from 2020 to 2021, production failed to regain momentum.

In value terms, wood chips, particles and residues production dropped sharply to $23.2B in 2021 estimated in export price. In general, production continues to indicate a abrupt setback. The growth pace was the most rapid in 2018 with an increase of 132% against the previous year. As a result, production attained the peak level of $121.7B. From 2019 to 2021, global production growth failed to regain momentum.

Production By Country

The countries with the highest volumes of production in 2021 were the United States (45M cubic meters), China (44M cubic meters) and Australia (33M cubic meters), together accounting for 39% of global production. Vietnam, Russia, Belarus, Canada, Brazil, Chile, Sweden, Germany, Finland and France lagged somewhat behind, together comprising a further 41%.

From 2012 to 2021, the biggest increases were recorded for Belarus (with a CAGR of +21.7%), while production for the other global leaders experienced more modest paces of growth.

Production By Type

The products with the highest volumes of production in 2020 were wood chips and particles (338M cubic meters) and wood residues (232M cubic meters).

From 2012 to 2020, the most notable rate of growth in terms of production, amongst the main produced products, was attained by wood residues (with a CAGR of +0.8%).

In value terms, wood residues ($51.1B) led the market, alone. The second position in the ranking was held by wood chips and particles ($11.2B).

For wood residues, production increased at an average annual rate of +5.7% over the period from 2012-2020.

Imports

World Imports of Wood Chips, Particles And Residues

In 2021, supplies from abroad of wood chips, particles and residues decreased by -5.4% to 120M cubic meters, falling for the third year in a row after seven years of growth. Over the period under review, imports, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 with an increase of 9.6% against the previous year. As a result, imports attained the peak of 136M cubic meters. From 2019 to 2021, the growth of global imports remained at a somewhat lower figure.

In value terms, wood chips, particles and residues imports shrank slightly to $5.6B in 2021. Overall, imports continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when imports increased by 15% against the previous year. As a result, imports attained the peak of $6.5B. From 2019 to 2021, the growth of global imports remained at a lower figure.

Imports By Country

China (36M cubic meters) and Japan (27M cubic meters) represented roughly 53% of total imports in 2021. It was distantly followed by Finland (11M cubic meters), constituting a 9.1% share of total imports. Canada (5.3M cubic meters), Sweden (4.8M cubic meters), Poland (4.5M cubic meters), Denmark (3.4M cubic meters), Portugal (2.7M cubic meters), Austria (2.7M cubic meters), Lithuania (2.4M cubic meters), Taiwan (Chinese) (2.2M cubic meters), South Korea (2.2M cubic meters) and Italy (1.9M cubic meters) held a relatively small share of total imports.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Denmark (with a CAGR of +27.0%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, China ($2.3B), Japan ($2B) and Finland ($207M) appeared to be the countries with the highest levels of imports in 2021, together accounting for 81% of global imports. Portugal, Denmark, Sweden, Canada, Taiwan (Chinese), South Korea, Austria, Poland, Italy and Lithuania lagged somewhat behind, together comprising a further 12%.

In terms of the main importing countries, Denmark, with a CAGR of +15.8%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

Wood chips and particles prevails in imports structure, recording 110M cubic meters, which was near 90% of total imports in 2020. It was distantly followed by wood residues (12M cubic meters), constituting a 9.5% share of total imports.

Wood chips and particles was also the fastest-growing in terms of imports, with a CAGR of +1.4% from 2012 to 2020. Wood residues (-1.2%) illustrated a downward trend over the same period. From 2012 to 2020, the share of wood chips and particles increased by +1.9 percentage points.

In value terms, wood chips and particles ($5.2B) constitutes the largest type of wood chips, particles and residues imported worldwide, comprising 92% of global imports. The second position in the ranking was held by wood residues ($448M), with an 8% share of global imports.

From 2012 to 2020, the average annual rate of growth in terms of the value of wood chips and particles imports was relatively modest.

Import Prices By Type

The average import price for wood chips, particles and residues stood at $45 per cubic meter in 2020, which is down by -2% against the previous year. Overall, the import price saw a perceptible downturn. The most prominent rate of growth was recorded in 2018 an increase of 4.6% against the previous year. Global import price peaked at $53 per cubic meter in 2012; however, from 2013 to 2020, import prices remained at a lower figure.

Average prices varied noticeably amongst the major imported products. In 2020, the product with the highest price was wood chips and particles ($47 per cubic meter), while the price for wood residues amounted to $39 per cubic meter.

From 2012 to 2020, the most notable rate of growth in terms of prices was attained by wood chips and particles (-1.6%).

Import Prices By Country

The average import price for wood chips, particles and residues stood at $47 per cubic meter in 2021, surging by 3% against the previous year. Overall, the import price, however, saw a mild shrinkage. The pace of growth appeared the most rapid in 2018 an increase of 4.6%. Over the period under review, average import prices attained the peak figure at $53 per cubic meter in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Japan ($72 per cubic meter), while Poland ($10 per cubic meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Finland (+2.0%), while the other global leaders experienced a decline in the import price figures.

Exports

World Exports of Wood Chips, Particles And Residues

In 2021, global exports of wood chips, particles and residues declined modestly to 125M cubic meters, dropping by -2.5% compared with the previous year. In general, exports, however, saw a relatively flat trend pattern. The growth pace was the most rapid in 2018 when exports increased by 12%. As a result, the exports attained the peak of 141M cubic meters. From 2019 to 2021, the growth of the global exports remained at a somewhat lower figure.

In value terms, wood chips, particles and residues exports contracted to $4.3B in 2021. Overall, exports continue to indicate a mild shrinkage. The pace of growth was the most pronounced in 2018 with an increase of 14% against the previous year. Over the period under review, the global exports attained the maximum at $5.6B in 2019; however, from 2020 to 2021, the exports stood at a somewhat lower figure.

Exports By Country

In 2021, Vietnam (28M cubic meters), distantly followed by Australia (13M cubic meters), the United States (12M cubic meters), Russia (10M cubic meters), Chile (8.4M cubic meters), Belarus (7.3M cubic meters) and Latvia (7M cubic meters) were the major exporters of wood chips, particles and residues, together mixing up 69% of total exports. Brazil (5.1M cubic meters), Germany (4.2M cubic meters), Estonia (3.6M cubic meters), Thailand (3M cubic meters), South Africa (2.8M cubic meters) and Uruguay (2.2M cubic meters) followed a long way behind the leaders.

Exports from Vietnam increased at an average annual rate of +7.9% from 2012 to 2021. At the same time, Belarus (+17.3%), Estonia (+9.8%), Brazil (+8.4%), Russia (+5.2%) and Uruguay (+3.2%) displayed positive paces of growth. Moreover, Belarus emerged as the fastest-growing exporter exported in the world, with a CAGR of +17.3% from 2012-2021. By contrast, Latvia (-1.2%), Chile (-1.8%), South Africa (-1.9%), the United States (-1.9%), Germany (-2.7%), Australia (-3.9%) and Thailand (-8.8%) illustrated a downward trend over the same period. Vietnam (+11 p.p.), Belarus (+4.5 p.p.), Russia (+3 p.p.), Brazil (+2.1 p.p.) and Estonia (+1.6 p.p.) significantly strengthened its position in terms of the global exports, while the United States, Thailand and Australia saw its share reduced by -1.9%, -3.1% and -4.6% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Vietnam ($1.5B), Australia ($778M) and Chile ($257M) were the countries with the highest levels of exports in 2021, with a combined 60% share of global exports. The United States, Thailand, Brazil, Russia, South Africa, Latvia, Germany, Belarus, Estonia and Uruguay lagged somewhat behind, together comprising a further 27%.

Belarus, with a CAGR of +7.9%, recorded the highest growth rate of the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

Wood chips and particles dominates exports structure, resulting at 94M cubic meters, which was approx. 93% of total exports in 2020. It was distantly followed by wood residues (6.9M cubic meters), generating a 6.8% share of total exports.

Wood chips and particles experienced a relatively flat trend pattern with regard to volume of exports. Wood residues (-1.8%) illustrated a downward trend over the same period. The shares of the largest types remained relatively stable throughout the analyzed period.

In value terms, wood chips and particles ($4B) remains the largest type of wood chips, particles and residues supplied worldwide, comprising 88% of global exports. The second position in the ranking was held by wood residues ($521M), with a 12% share of global exports.

For wood chips and particles, exports remained relatively stable over the period from 2012-2020.

Export Prices By Type

In 2020, the average export price for wood chips, particles and residues amounted to $36 per cubic meter, falling by -10% against the previous year. Over the period under review, the export price recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2013 an increase of 6%. As a result, the export price reached the peak level of $40 per cubic meter. From 2014 to 2020, the average export prices remained at a lower figure.

Prices varied noticeably by the product type; the product with the highest price was wood residues ($76 per cubic meter), while the average price for exports of wood chips and particles totaled $42 per cubic meter.

From 2012 to 2020, the most notable rate of growth in terms of prices was attained by wood chips and particles (+1.4%).

Export Prices By Country

In 2021, the average export price for wood chips, particles and residues amounted to $35 per cubic meter, waning by -3% against the previous year. Overall, the export price showed a slight slump. The pace of growth was the most pronounced in 2013 an increase of 6%. As a result, the export price attained the peak level of $40 per cubic meter. From 2014 to 2021, the average export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Thailand ($76 per cubic meter), while Uruguay ($4.5 per cubic meter) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Australia (+5.4%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform