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Global Forestry Plantation Industry

The global forest product industry (part of the agribusiness industry) is characterized by a high degree of fragmentation. It is forecast to continue expanding on the 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.

Plantation 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.

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.

Plantation Regional Market Share

In the North American Free Trade Agreement (NAFTA), Canada represents the leading regional market. In Brazil, Russian Federation, India, and China (BRIC countries) China records the fastest growth. The region is expected to continue leading the market. 

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