Global Wood Chips Market, By Product Type (Softwood, Hardwood and Manual), Variety Type (Forest Chips, Recycled Chips, Wood Residue Chips and Sawing Residue Chips), Raw Material (Pulp Wood and Residue Wood), Application (Combined Heat and Power (CHP), Household Furnishing, Residential Heating, Playground Surfacing, Barbecue, Mulch, Bio Reactors and Fuel) – Industry Trends and Forecast to 2029
Market Analysis and Size
Over the last few years, as organic mulch, woodchips are widely used in landscaping, gardening, bioreactors for denitrification, and restoration ecology. Furthermore, an in-house study of global economic conditions and other economic indicators and factors was conducted to assess their respective impact on the global wood chips market historically and the current impact to make informed forecasts about future scenarios.
Global Wood Chips Market was valued at USD 10243.39 million in 2021 and is expected to reach USD 15840 million by 2029, registering a CAGR of 5.60% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020 (Customizable to 2014 - 2019)
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Quantitative Units
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Revenue in USD Million, Volumes in Units, Pricing in USD
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Segments Covered
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Product Type (Softwood, Hardwood and Manual), Variety Type (Forest Chips, Recycled Chips, Wood Residue Chips and Sawing Residue Chips), Raw Material (Pulp Wood and Residue Wood), Application (Combined Heat and Power (CHP), Household Furnishing, Residential Heating, Playground Surfacing, Barbecue, Mulch, Bio Reactors and Fuel)
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Countries Covered
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U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E, Saudi Arabia, Egypt, South Africa, Israel, Rest of Middle East and Africa
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Market Players Covered
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Verdo (Denmark), Sojitz Corporation (Japan), Ørsted A/S (Denmark), Oji Holdings Corporation (Japan), Mitsui & Co., Ltd. (Japan), Enviva (U.S.), Cogent Forest Products (U.S.), St.Boniface Pallet (Canada)., American Wood Resources, LLC. (U.S.), Jamrow Trading and Manufacturing Co Ltd. (Jamacia), Eastwood Energy Group (U.S.), UZELAC INDUSTRIES. (U.S.), LA.SO.LE. EST S.P.A (Italy), GREAT NORTHERN TIMBER. (Canada), Axpo Group (Switzerland), Koch Industries, Inc. (U.S.), Sierra Pacific Industries (U.S.), Weyerhaeuser Company. (U.S.), West Fraser (Canada), Georgia-Pacific (U.S.)
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Market Opportunities
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Market Definition
Wood chips are created by cutting and chipping large pieces of wood such as logging residues, roots, stumps, branches, and wood waste. These are used as raw materials in the production of wood pulp. Woodchips are organic mulch that is widely used in gardening, landscaping, and bioreactors for DE nitrification, as well as a substrate for mushroom farming.
Wood Chips Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- High Demand for Wood Chips
The increase in demand from the pulp industry is the most important factor influencing the demand for wood chips. Wood chips are used as a raw material to make pulp, which is then burned to make bio char, also known as charcoal. Furthermore, an increase in demand for renewable energy generation contributes to market growth. The increased use of renewable energy sources such as biomass as a result of depleting conventional energy sources is propelling the wood chips market. Increased demand for wood chips in the pulp industry, where wood chips are used as a raw material to produce pulp, is also boosting the wood chips market. When wood chips are burned, they produce biochar, which is also known as charcoal. It can be used as charcoal or returned to the soil as a fertilizer. This is also expected to drive the wood chips market during the forecast period.
The market is likely to benefit from rising demand for thermal energy generation using renewable and green feedstock materials. Wood chips have a higher energy coefficient, which is expected to keep demand high during the forecast period. Requirements for sustainability-related certifications and restrictions on GHG emissions from wood chips used for energy generation are expected to stymie the wood chips market during the forecast period.
Opportunities
- Increasing Preferences and Trends
Furthermore, the increasing preference for wood chips as an energy generation source and for heating purpose extend profitable opportunities to the market players in the forecast period of 2022 to 2029. Additionally, the rising trend to use of nano-crystalline cellulose (NCC), produced by processing wood pulp in next generation of flexible electronic displays as a latest wonder material in various electronic sectors, is also an opportunity for the growth of wood chips market.
Restraints/Challenges
- Availability of Substitutes
However, the use of wood pellets as a substitute product for wood chips and increasing penetration of wood pellets for power generation in residential and commercial sectors is expected to stymie the growth of the wood chip market.
- Drawbacks of Wood Chips
On the contrary, price volatility caused by changes in raw material costs, changes in weather and stringent regulatory norms governing wood cultivation impede market growth. These factors will pose as a challenge for the wood chips market growth rate.
This wood chips market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the wood chips market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Global Wood Chips Market Scope
The wood chips market is segmented on the basis of product type, variety type, raw material and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Product Type
- Softwood
- Hardwood
- Manual
Variety Type
- Forest Chips
- Recycled Chips
- Wood Residue Chips
- Sawing Residue Chips
Raw Material
- Pulp Wood
- Residue Wood
Application
- Combined Heat and Power (CHP)
- Household Furnishing
- Residential Heating
- Playground Surfacing
- Barbecue
- Mulch
- Bio Reactors and Fuel
Wood Chips Market Regional Analysis/Insights
The wood chips market is analyzed and market size insights and trends are provided by country, product type, variety type, raw material and application as referenced above.
The countries covered in the wood chips market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
Asia-Pacific dominates the market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the high consumption of wood chips in the residential sector in emerging countries such as China, India, and Japan. The emergence of advanced technology in industries within the region.
North America, on the other hand, is estimated to show lucrative growth over the forecast period of 2022-2029, due to the increasing wood chips demand in commercial energy generation industries and increasing stringent regulations related with greenhouse gas emission in the region.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Wood Chips Market Share Analysis
The wood chips market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to wood chips market.
Some of the major players operating in the wood chips market are
- Verdo (Denmark)
- Sojitz Corporation (Japan)
- Ørsted A/S (Denmark)
- Oji Holdings Corporation (Japan)
- Mitsui & Co., Ltd. (Japan)
- Enviva (U.S.)
- Cogent Forest Products (U.S.)
- St.Boniface Pallet (Canada)
- American Wood Resources, LLC. (U.S.)
- Jamrow Trading and Manufacturing Co Ltd. (Jamacia)
- Eastwood Energy Group (U.S.)
- UZELAC INDUSTRIES. (U.S.)
- LA.SO.LE. EST S.P.A (Italy)
- GREAT NORTHERN TIMBER. (Canada)
- Axpo Group (Switzerland)
- Koch Industries, Inc. (U.S.)
- Sierra Pacific Industries (U.S.)
- Weyerhaeuser Company. (U.S.)
- West Fraser (Canada)
- Georgia-Pacific (U.S.)
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