The global plywood market size is projected to grow from USD 54.2 billion in 2022 to USD 73.3 billion by 2027, at a CAGR of 6.2%. The increasing demand for plywood from end uses, such as building & construction, packaging, industrial, and furniture sector, drives the market. Demand for multifarious plywood is encouraged by many companies to formulate different developmental strategies in the plywood market to expand their footprint in the market. The companies have adopted various strategies, such as investment & expansion, merger & acquisition, new product launches, and joint ventures to increase their global presence and maintain sustained growth in the plywood market.
Plywood finds prominent end uses in new construction and rehabilitation. The new construction accounted for the major share of the plywood market in 2021. Construction is the world's largest industry, accounting for 13% of the global GDP. It comprises real estate, infrastructure, and industrial structures. From spectacular skylines and massive infrastructure to continual innovation, construction is responsible for a wide spectrum of spectacular achievements. However, in the past couple of decades, it also has been plagued by dismal performance. Over the last two decades, annual productivity growth has been just a third of overall GDP norms. Risk aversion, complexity, and difficulty in obtaining digital talent all stifle innovation. In almost every other industry, digitalization is lower. Despite significant risks and numerous insolvencies, profitability is poor, with an EBIT margin of roughly 5%. Regular time and budget overruns, as well as long claims procedures, impede customer satisfaction. These positive factors are expected to drive the use of plywood in the near future.
The plywood market in the Asia Pacific is forecasted to register the highest CAGR, in terms of value, between 2022 and 2027. Asia Pacific is a rapidly developing region that offers many opportunities for various industry players. Most of the leading players in North America and Europe are planning to move their production base to this region because of the availability of inexpensive raw materials, low production costs, and the need to serve the local market better. The demand for premium products is increasing in the region with the growth in the middle-class population. Government initiatives are also helping in the growth of the wooden sectors. These factors will play an important role in driving the plywood market.
