The global plywood market was 105.9 million cubic meter in 2018, according to Global Plywood Market Report, by Product Type (Hardwood Plywood, Softwood Plywood, Decorative Plywood, Tropical Plywood, and Others), by Application (Construction, Furniture, Packaging, Transportation, Flooring, and Others), and by Region (North America, Latin America, Asia Pacific, Europe, and Middle East and Africa), published by Coherent Market Insights
The global plywood market was estimated at 105.9 million cubic meter in 2018 and is expected to grow substantially, exhibiting a CAGR of 3.3% over the forecast period (2019-2027). The market is expected to witness significant growth over the forecast period, attributed to increasing demand for plywood from various end-use industries such as construction and furniture.
The growth of the construction industry is predicted to boost demand for plywood over the approaching years. For instance, according to Global Construction Perspectives and Oxford Economics in 2015, the global construction market is projected to reach US$ 8 trillion by 2030, reaching a total size of US$ 17.5 trillion and grow at an average annual rate of 3.9% till 2030.
In addition to this, the growth of furniture industry worldwide is expected to propel demand for plywood over the next coming years. For instance, according to The British Furniture Confederation, the U.K. bed and furnishings manufacturing is a leading industry contributing a significant share of the overall GDP of the country. According to government statistics published in 2017, 8,489 companies contributed about US$ 16.0 billion to the country’s GDP. Moreover, out of this, around US$ 11.0 billion is from the U.K. furniture manufacturing, which is about 1.6% of the total manufacturing output.
However, the shortage of raw materials and skilled labor is projected to hinder growth of the plywood market in the near future. As labor was cheaper earlier, the wood and wood industry was developed using labor intensive production processes. According to the International Labour Organization currently, due to low labor cost, labor is no longer readily available and hence, many factories are running at around 60% of their capacity.
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