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Global Forestry Plantation Industry

The global forest product industry (part of the business of agricultural products) expanded by more than 16% in 2010 to exceed $1.2 trillion, reports MarketLine. The market is expected to record 26% growth over the five-year period ending 2015 to exceed $1.5 trillion. The industry is expected to grow 5% over the five-year period ending 2015 to exceed 3,000 million cubic meters.

Overall, the global forest products market is characterized by a high degree of fragmentation. It is forecast to continue expanding on foot of recovery in the housing industry, wood energy demand, and rising urbanization. The forest industry has an impact on the economy in various ways, reports Global Industry Analysts, providing jobs through the production of forest-based products, but also touching on other industries such as tourism and leisure.

Key Market Segments

MarketLine: “Wood fuel represents the leading market segment with more than 30% overall market share. Asia-Pacific represents the leading region holding close to 55% overall market share.”

The wood energy sector is being driven by state initiatives, financial incentives and environmental awareness regarding the importance of alternative energy sources. Energy sources such as coal and oil continue to climb in price, while attitudes toward nuclear power plants continue to become less and less favorable. In this context, demand for wood energy is set to continue rising.

Forest products necessary for housing construction are in greater demand as the building sector recovers following the lows of the global recession and the collapse of the housing sector in the US and the EU between 2008 and 2009. Sawn softwood and wood panels in particular are witnessing growing demand. Overall consumption of wood panels is expected to reach almost 300 million cubic meters by 2015, according to Global Industry Analysts.

Non-wood forest products represent a market segment of increasing size over recent years. Such products include gums, spices, herbs, resins, mushrooms, condiments, edible fruits, aromatic plants and nuts, reports Global Industry Analysts.

Regional Market Share

North American Free Trade Agreement (NAFTA) countries generated combined forest products market revenue of almost $57 billion in 2010, reports MarketLine. Canada represented the leading regional market at close to $34 billion in 2010, and is forecast to continue leading the market through 2015.

Brazil, Russian Federation, India and China (BRIC) countries generated combined forest products market revenue of almost $591 billion in 2010. China recorded the fastest growth at a yearly rate exceeding 23% between 2006 and 2010. China’s forest products market generated almost $407 billion in 2010. The region is expected to continue leading the market to exceed $756 billion in 2015.

The top five emerging nations generated over $570 billion in 2010, having recorded yearly growth of almost 17% for four years, reports MarketLine. These nations are forecast to generate forest products industry revenue of close to $936 billion in 2015, recording in excess of 10% yearly growth for five years. China leads the top five, generating almost $407 billion in 2010, and has a forecast worth in excess of $756 billion predicted for 2015.

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Related industries: Cereal Production, Horticulture, Livestock, Market Gardening, Viticulture

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