Pulpwood Market - By Source, By Type, By Application - Global Forecast, 2025 - 2034

Pulpwood Market Size

The global pulpwood market size was estimated at USD 14.2 billion in 2024 and is estimated to grow at 4.2% CAGR from 2025 to 2034.
 

There was and still is a constant demand stemming from bioenergy as well as the paper, tissue and packaging industry. From 2015 to 2023 the industry’s growth was historically at a 3.2% rise due to the increasing need from e-commerce, packaging, and tissue papers in developing countries. Nonetheless, the decline in demand for printing and writing paper because of digitalization did offset some of this growth. Other factors such as trade flows including the export of Russian softwood to China, along with sustainable forestry, especially in Brazil and Scandinavia, were large reasons behind the growth.
 

Looking forward, the pulpwood industry is expected to increase from 2025 - 2034 at a CAGR of 4.2%. The largest drivers for this growth are anticipated to come from the demand for corrugated boxes for e-commerce, as well as hygiene products and bioenergy. Challenges like competition from recycled fiber as well as deforestation regulations may hinder this growth. There will still be differences between regions with the Asia Pacific spearheaded by China, remaining the largest consumer and Brazil dominating supplying due to the fast growing eucalyptus plantations.
 

Among several industries, the wood demand for major sector of industries like timber (> 33 lakh tonnes), ply and panel (12.16 lakh tonnes), pulp and paper (17.60 lakh tonnes), packing case (2.67 lakh tonnes), matchwood (4.50 lakh tonnes), energy (97.83 lakh tonnes) and miscellaneous (one lakh tonnes) were analysed in order to derive the dynamics of pulpwood industry.
 

Pulpwood Market Trends

• ESG Pressures and Sustainability Certifications – In sustainability regards, there is a gap in sourcing due to conflicts from different brands concerning proof of ethical forestry because of EUDR and investor ESG mandates. This elasticity is more pronounced with leading suppliers like Suzano and its certified eucalyptus pulp. Impact: Compliance cost rise, but sustainable providers have better market access.
   
• Bioeconomy Expansion – Wood’s conversion into energy form is encouraged by the EU Renewable Energy Directive and is now possible alongside paper and packaging revenues. This move by the EU signifies biomaterial movements such as biochemical and biostuff, increasing the diversity in demand. Impact: Demand for pulpwood increases due to expansion beyond traditional paper and packaging use.
   
• Supply Chain Digitalization – The use of blockchain and IoT increases efficiency of monitoring from the forest to the mill and drastically reduces the chance of illegal lumbering. Impact: There is an increase in compliance and efficiency, but new technology comes at a cost.
   
• The Move Towards Recycled Fiber Use – With more brands joining sustainability drives, there is a huge, predominating increase in the use of recycled paper in Europe. This adds strain toward the utilization of raw pulpwood in Europe to achieve objectives established by the circular economy. Consequence: The use of blended paper and self-sufficient pulp factories results in a standstill and even reduction of the consumption of fresh pulpwood.
   

?A substantial effect on the pulpwood market has been exerted recently by U.S. tariff policy under President Trump, particularly through increased tariff levels imposed on timber and lumber product imports. In March 2025, President Trump initiated a Section 232 investigation to probe whether imports of timber, lumber, and their derivatives are a threat to national security. Such investigation could lead to imposition of fresh tariffs or quotas with a view to protect national interests.?
 

One of the most important developments is a proposed 25% tariff on imported lumber and forest products starting in early April 2025. If enacted, the tariff will significantly increase costs for non-U.S. suppliers and will almost certainly exert a severe impact on the U.S. housing market, mainly by increasing construction costs.?
 

Particularly affected is Canada, which provides about 30% of U.S. softwood lumber. Proposed measures may increase duties on Canadian softwood imports from 14.5% to as much as 52%, devastating Canadian producers and further burdening an already troubled U.S. housing market facing high interest rates and labor shortages.
 

Financial Times

Clearly, the tariff increases led to higher domestic lumber prices, which, in turn, escalated construction costs and housing prices. Homebuilders worry that, as these costs escalate, they will render housing even less affordable to U.S. consumers.
 

Tariffs are also compelling some Canadian lumber producers to ponder relocation of operations nearer to the U.S. southern border or new international markets. Such shifts could disturb supply chains and result in increased lumber price and construction costs.
 

Overall, the recent tariff policies under the Trump administration have introduced a high degree of volatility in the pulpwood industry, affecting supply chains, pricing, and the entire construction industry.
 

Pulpwood Market Analysis

In 2024, Pulpwood is segmented into Softwood Pulpwood and Hardwood Pulpwood by their type. This market value is accounted for USD 14.2 billion in 2024 and anticipated to rise till staggering value of USD 21.2 billion till 2034. Among which Hardwood Pulpwood accounted for 57.6% of total market owing to their higher consumption in textile and interior applications.
 

• Softwood pulpwood has a market share of 43.4% that is currently driven by the demand for packaging and printing paper that requires long, strong fibers. The US and Canada dominate production owing to large pine plantations however growth is being restrained due to competition from recycled fiber and decreasing usage of paper in Western markets. On the other hand, application in bioenergy spots growth potential.
   
• Hardwood pulpwood accounts for 57.6% market share, driven by tissue, hygiene paper products, and dissolving pulp. Its growth is most pronounced in China due to fast growing eucalyptus in Brazil and Southeast Asia. Expansion fueled by sustainability certifications coupled with needs from the textile industry is hindered by natural forest deforestation concerns.
   
• Regional dynamics contour preferences; softwood dominates in North America and Europe due to packaging and hardwood is found in Asia where tissue production is cheaper. In the future there could be further imbalances due to improvements in recycling technology and the management of plantation.
   

In 2024, the pulpwood market by type is primarily bifurcated into Natural Forests, Plantation Forests and Recycled Wood category. Which is dominated by Natural Forests, holding a significant 61.2% market share, followed by Plantation Forests which is rising at rapid pace in comparison and registered 4.6% growth rate.
 

• An examination of both natural and plantation forests along with recycled wood offers a glimpse into the workings of the market. Policies designed to reduce deforestation impacts natural forests, which have served, for quite some time, as a core source economic resource. Policy compliance balances the harvesting and conservation gap which has led to enhanced demand for raw staple stems. The shift to more responsibly managed forestry has also impacted regulatory cost compliance and, as a result, production costs, supply reliability, and overall cost efficiency. 
   
• The development of recycled wood as a new source of pulp is disruptive for the market in regions with developed circular economies. The increased use of recycled fiber in paper production reduces the dependence on virgin pulpwood, hence increasing the sustainability ratio. However, unreliable quality and treatment limitations are challenges, particularly for higher-grade paper products. Market changes are expected as new recycling technology investments are high because companies are trying to balance sustainability and performance.   

In 2024, the application is divided into Paper Production, Pulp & Fiber Production, Bioenergy & Biomass, Others (Chemical Processing, Composite Wood, etc.) where paper production highlights the major usage.
 

• The major market share of pulpwood is held by the paper production segment, which amounts to 68.9%, since they are the main users due to the construction of packaging, hygiene, and specialty papers. E-commerce also bolstered the market for good quality corrugated boxes, maintaining demand for pulpwood. Their market is, however, increasingly influenced by digital media and by the growing use of recycled fiber, which compels traditional paper manufacturers to shift business model strategies in response to consumer and regulatory shifts.
   
• Another section which particularly caters to the nonwoven textiles markets is the production of pulp and fiber. The fashion and personal care segments are now shifting towards the adoption of biodegradable materials which has further increased the demand for viscose, rayon, and lyocell fibers.
   
• Luxury Fashion market amounts to USD 150.3 billion in 2025. The market is expected to grow annually by 3.1%. Still, the industry faces challenges with the raw materials supply chain, as well as rigid environmental policies which compel producers to source from certified plantation forests and waste-derived fibers.
   
• Emerging sectors also include bioenergy and biomass renewables. Policies supporting biofuels and carbon neutrality are now concentrating investment on renewables, like biomass and wood pellet production. However, there are complex market dynamics due to disputes over land-use, combustion emissions from wood, and competition posed by conventional pulpwood.

The China takes a dominant share in the market owing to high production and even higher consumption scenarios. The China leads the global pulpwood market, holding 35% share of the market which estimates to USD 4.9 billion in 2024 and anticipated to rise till USD 7.4 billon by 2034.
 

• The volume of paper and packaging that China produces and imports drives a strong domestic demand. This makes China the leader of the world’s market. China’s government policies supporting afforestation and sustainable forestry practices further strengthened the supply chain. This alongside the e-commerce boom is increasing the application of pulpwood, resulting in higher demand.
   
• Imports of wood pulp and paper scrap for China hit USD 21 billion in 2024, thereby solidifying China's status as the largest importer in this category for the year. Brazil, and Indonesia, Canada, Chile, and the United States are the primary suppliers.
   

In the US, the pulpwood market is shaped by sustainable forest management and strong environmental regulations. The United States has an advantage due to the presence of well-established plantation forests and an increasing focus on recycled fiber. Due to rising demand, In 2023 alone, the United States imported approximately 5.9 million metric tons of wood pulp, with Canada, Brazil, Sweden, Uruguay, and Finland being the primary suppliers.
 

Due to the vast natural forest reserves Russia possesses, they significantly contribute to the world production of pulpwood. The country’s evolving environmental policies, geopolitical uncertainties, and logistical constraints determine the growth potential of the pulp and paper industry in this region.
 

Pulpwood Market Share

Over 60% of the market share is held by the major 7 companies in the pulpwood industry are International Paper, WestRock Company, Stora Enso, UPM-Kymmene Corporation, Oji Holdings Corporation, Nippon Paper Industries, and Mondi Group.
 

These are prominent companies within the global market operating in their respective regions. These companies hold strong positions globally due to their extensive experience. Their diverse product portfolios, backed by robust production capabilities and distribution networks, enable them to meet the rising demand across various regions.
 

International Paper - They design and manufacture paper-based products while practicing sustainable forestry and circular economy principles. They lead North America in recovering and recycling used paper and renewable fiber initiatives.
 

WestRock Company– They provide eCommerce driven fiber-based packaging and containerboard solutions. They support sustainable forestry, recycling, and innovation which helps reduce environmental impact, enhance supply chain efficiency, and promote sustainability.
 

Stora Enso - Develops bio-based materials and practices sustainable forestry by shifting from traditional wood-based pulp to renewable packaging and wooden construction materials. They are also involved in high-performance fibers along with bioeconomy.
 

UPM-Kymmene Corporation– They hold leadership in the European market for renewable and high value fiber materials, like biofuels and specialty pulps. They are involved in innovating wood based products as alternatives to fossil based ones.
 

Oji Holdings Corporation– They are the largest manufacturer of pulp and paper in Asia. They advanced the forestry management and eco-friendly pulp production into packaging, specialty paper, and industrial applications.
 

Nippon Paper Industries– They are one of the biggest producers of pulp and paper in Japan. They focus on wide range of applications, including but not limited to hygiene and functional materials, bioethanol, and sustainable forestry and recycling.
 

Pulpwood Market Companies

Some of the eminent market participants operating in the pulpwood industry include:

• International Paper
• WestRock Company
• Stora Enso
• UPM-Kymmene Corporation
• Oji Holdings Corporation
• Nippon Paper Industries
• Mondi Group
• Sappi Limited
• Nine Dragons Paper Holdings
• Smurfit Kappa Group
• Domtar Corporation
• Suzano S.A.
• Asia Pulp & Paper (APP)
• Metsä Group
   

Pulpwood Industry News

• In July 2023, Beyond manufacturing, foresight-driven policies by Tamil Nadu Newspaper & Paper Limited (TNPL) included enhancing the environmental sustainability that they practice through the use of pulpwood planting. They reserved socially responsible harvesting and pledged to replenish harvested stock through plantation schemes that marked the responsible sourcing of TNPL pulpwood.
   
• In October 2024, Stora Enso made the announcement concerning the full acquisition of the Finnish sawmill firm Junnikkala Oy. These moves targeted a sustained and economical sourced wood supply for Stora Enso’s packaging board facility located in Oulu, Finland. The deal was a part of the company's plans to deepen its foothold on sustainable wood products in the area and to boost operational efficiency to drive overall value in the region.
   

The pulpwood market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion from 2021 – 2034 for the following segments:

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Market, By Type

• Softwood pulpwood
• Hardwood pulpwood

Market, By Source

• Natural forests
• Plantation forests
• Recycled wood

Market, By Application

• Paper production
• Pulp & fiber production
• Bioenergy & biomass
• Others (Chemical Processing, Composite Wood, etc.)

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE