Wood Recycling Market Is Estimated To Witness High Growth Owing To Increasing Environmental Concerns

  • Ronak Shah
  • U.S.A
  • January 15, 2025

The wood recycling market is estimated to be valued at US$ 19.45 Bn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights ‘The wood recycling market is expected to witness significant growth over the forecast period owing to growing environmental concerns and stringent waste management regulations.

Governments across various countries are promoting the use of recycled wood products to reduce deforestation. Similarly, industries are also using recycled wood as it provides substantial cost-savings compared to virgin wood. The growing construction industry worldwide is also creating high demand for recycled wood products like flooring, furniture, and panel boards. Moreover, developing economies are shifting from the use of plastic and other non-biodegradable materials to eco-friendly wood-based alternatives to minimize pollution, which is further propelling the market growth.

Key Market Trends: Recycled wood from construction and demolition waste leads the market trends. Construction wood waste such as plywood, flooring, decking etc. holds the largest share in municipal solid waste stream. Various projects for recycling and upcycling of such construction wood waste into new wood products are gaining popularity. Another major trend gaining ground is the use of recycled wood in the production of composite wood. Composite wood products integrate recycled wood fibers or particles with adhesives to manufacture panel boards, molded products with enhanced properties. They provide an eco-friendly substitute for plastic in various applications while allowing higher utilization of recycled wood.

Wood Recycling Market Opportunity: The growth in demand for renewable energy is opening new opportunities for wood recycling. Wood waste generated from industries like construction and demolition can be used to produce energy. Wood pellets manufactured from recycled wood chips have grown in popularity as fuel for biomass power plants and industrial boilers. Some key players in the wood pellet industry like Drax and Enviva are increasing investments in wood pellet production facilities. The growing interests of utilities and industries in reducing carbon footprint is driving the use of wood pellets as a replacement for coal. It is estimated that the wood pellet market for energy production will grow at a CAGR of over 7% during the forecast period.

Animal bedding made from recycled wood shavings, sawdust and chips is a growing market segment. Livestock producers prefer wood bedding over alternatives as it absorbs moisture well and controls odor. Sawmills and wood industries generate a large amount of wood residues that can be utilized to make bedding for cows, horses and other farm animals. Some of the major players in the animal bedding market like Chemco and Anera supplies bedding products made from recycled wood to various livestock farms. It is projected that the demand for wood bedding from the animal farming industry will increase at a CAGR of around 5% during the forecast period.

Key Market Takeaways: The global wood recycling market size was valued at USD 19.45 Bn in 2024 and is anticipated to witness a CAGR of 5.1% during the forecast period 2024-2031. The growing focus on sustainable waste management and use of renewable fuels is promoting wood recycling initiatives.

By Product Type Insights, particleboard and medium density fiberboard segments accounted for over 35% of the market share in 2031. These reconstituted wood panels find widespread application in construction and packaging industries.

By Application Insights, the building & construction segment dominated with a share of around 30% in 2031 due to high wood waste generation from construction activities. Packaging and furnishing industries are other major application areas.

Regionally, North America held the largest revenue share of more than 25% in 2031 led by stringent regulations surrounding waste management in the USA and Canada. Major wood recycling hubs in the region boost market growth.

Competitor Insights: Some of the prominent players operating in the global wood recycling market are Waste Management Inc., Boral Ltd., Advanced Disposal Services, Republic Services Inc. These companies are focusing on expanding their footprints through strategic acquisitions and partnerships.

Recent Developments: The construction industry has emerged as a major consumer of recycled wood fibers in recent times. Products like engineered wood, fiberboard, insulation and gypsum wallboard increasingly use recycled wood fibers as a raw material. Post-consumer recycled wood provides a cheaper and sustainable alternative to virgin wood fibers for non-structural construction applications. With growing emphasis on green building and reducing carbon footprint of the construction sector, demand for recycled wood fiber-containing composites is projected to increase substantially through 2023-2024. More information in full report.

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