# Wood products Stratum 1 · First transformations Source page: https://www.materialinsights.org/industries/wood_products/ Stratum 1 · First transformations ## Wood products Grows and harvests trees and turns logs into sawnwood, plywood, veneer, particleboard, MDF, engineered timber, joinery and wood pellets for construction, furniture and packaging. In 2023 the world removed 1.92 billion m3 of industrial roundwood and made 445 million m3 of sawnwood and 381 million m3 of wood-based panels, while exports of wood and paper products were worth US$ 482 billion (FAO). Supply is concentrated in forest-rich regions such as North America, the Nordic countries, Russia, Brazil and New Zealand, while panel growth is centred in Asia-Pacific.^[1](https://openknowledge.fao.org/handle/20.500.14283/cd3650en) **India.** India is short of timber: ITTO projects roundwood demand rising nearly 70% from 57 million m3 in 2020 to 98 million m3 in 2030, with a growing share met by imports because conservation policy limits harvesting from natural forests^[2](https://www.itto.int/news_releases/id=6815). Farm-grown plantation wood such as eucalyptus and poplar feeds a branded plywood and MDF industry that is expanding with housing demand. Depends on 0 of 35 industries · 0 directly Relied on by 21 industries, directly or indirectly Enterprise types 11 in 5 stages Chokepoints 0 rated 5 of 5 Size about US$ 482 billion of wood and paper product exports; 1.92 billion m3 of industrial roundwood removed 2023 ## [Where ₹100 of wood products output goes](https://www.materialinsights.org/industries/wood_products/cost-mix/) Where ₹100 of wood products output goes Every rupee of sales is paid out to someone along the chain. This splits ₹100 of output by who finally receives it, so you can see how exposed the industry is to commodity, chemical and energy prices. Commodities ₹32.6 Chemicals ₹0.3 Energy ₹2.1 Wages and… ## [Price links with supplier industries](https://www.materialinsights.org/industries/wood_products/price-links/) Price links with supplier industries How the industries this one buys from shape its prices: the share of its costs they make up, and how their prices have moved together. Tap a row for the charts. Hover or tap ? for what each measure means. Supplier industry Cost share Raw-material mix… ## [Follow one offering through the chain](https://www.materialinsights.org/industries/wood_products/story/) Follow one offering through the chain 1 Example story · 6 steps · India A sheet of plywood from farm trees Follow a poplar or eucalyptus log from a farmer's field through a peeling lathe and a hot press to a dealer. 1 / 6 · Growing wood Poplar and eucalyptus on farm boundaries ~96% domestic… ## [Value chain, from upstream to the customer](https://www.materialinsights.org/industries/wood_products/value-chain/) Value chain, from upstream to the customer Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Growing wood Industrial forest and plantation owners 4 · Critical Own or lease forests and plantations, plan rotations and sell standing… ## [What the whole chain draws on](https://www.materialinsights.org/industries/wood_products/materials/) What the whole chain draws on Every commodity, chemical and energy tile named by the enterprises above; ×n shows how many of them depend on it. Open any tile for its full detail. Commodities (5) Tm Timber ×8 H₂O Water ×2 P Phosphate rock N Nitrogen (ammonia) St Steel Chemicals (11) Ur Urea ×4 HCHO… ## [Chokepoints and risks](https://www.materialinsights.org/industries/wood_products/risks/) Chokepoints and risks Slow supply response: plantations take years to mature, so price spikes last. India's import dependence as roundwood demand rises toward 98 million m3 by 2030 2 . Trade rules: the EU deforestation regulation and log export bans can cut sources quickly. Formaldehyde emission… ## [Sources](https://www.materialinsights.org/industries/wood_products/sources/) Sources Global forest products facts and figures 2023 shows fall in global trade in wood and paper products Food and Agriculture Organization of the United Nations, 2024 Demand for wood to surge in India by 2030: new report International Tropical Timber Organization, 2021 ## Relationship cards - [Paper and packaging](https://www.materialinsights.org/links/paper-and-packaging-and-wood-products/): Indian paper mills and plywood and MDF makers draw on the same farm-grown eucalyptus and other plantation wood, so they compete for logs as well as trading with each other. A plantation gap after the 2020 to 2021 lockdowns nearly doubled wood prices, and wood is now about half of an integrated mill's production cost. *(researched)* - [Timber](https://www.materialinsights.org/links/timber-and-wood-products/): Timber is the raw material of the wood products industry: logs become sawnwood, veneer, plywood and panels. In India the chain runs mostly on farm-grown poplar, eucalyptus and other short-rotation trees, because forest policy restricts harvest from natural forests, and rising demand is increasingly met by imports. *(researched)* - [Transport and logistics](https://www.materialinsights.org/links/transport-and-logistics-and-wood-products/): Transport and logistics buys from Wood products; wood products buys from Transport and logistics; wood products depends on transport and logistics; transport and logistics depends on wood products. - [Construction and infrastructure](https://www.materialinsights.org/links/construction-and-infrastructure-and-wood-products/): Construction and infrastructure buys from Wood products; construction and infrastructure depends on wood products. - [Electrical equipment](https://www.materialinsights.org/links/electrical-equipment-and-wood-products/): Wood products buys from Electrical equipment; wood products depends on electrical equipment. - [Finance: banking, insurance, markets](https://www.materialinsights.org/links/finance-banking-insurance-markets-and-wood-products/): Wood products buys from Finance: banking, insurance, markets; wood products depends on finance: banking, insurance, markets. - [Furniture](https://www.materialinsights.org/links/furniture-and-wood-products/): Furniture buys from Wood products; furniture depends on wood products. - [Machinery and equipment](https://www.materialinsights.org/links/machinery-and-equipment-and-wood-products/): Wood products buys from Machinery and equipment; wood products depends on machinery and equipment. - [Professional services](https://www.materialinsights.org/links/professional-services-and-wood-products/): Wood products buys from Professional services; wood products depends on professional services. - [Software and IT services](https://www.materialinsights.org/links/software-and-it-services-and-wood-products/): Wood products buys from Software and IT services; wood products depends on software and IT services. - [Textiles and leather](https://www.materialinsights.org/links/textiles-and-leather-and-wood-products/): Textiles and leather buys from Wood products; textiles and leather depends on wood products. - [Adhesives and sealants](https://www.materialinsights.org/links/adhesives-and-sealants-and-wood-products/): Wood products depends on adhesives and sealants. - [Biomass](https://www.materialinsights.org/links/biomass-and-wood-products/): Wood products depends on biomass. - [Biomass combustion and CHP](https://www.materialinsights.org/links/biomass-combustion-and-chp-and-wood-products/): Wood products depends on biomass combustion and CHP. - [Combustion road vehicles](https://www.materialinsights.org/links/combustion-road-vehicles-and-wood-products/): Wood products depends on combustion road vehicles. - [Crude oil](https://www.materialinsights.org/links/crude-oil-and-wood-products/): Wood products depends on crude oil. - [Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/links/distribution-grids-mini-grids-and-interconnectors-and-wood-products/): Wood products depends on distribution grids, mini-grids and interconnectors. - [Electric motors and drives](https://www.materialinsights.org/links/electric-motors-and-drives-and-wood-products/): Wood products depends on electric motors and drives. - [Energy in buildings](https://www.materialinsights.org/links/energy-in-buildings-and-wood-products/): Wood products depends on energy in buildings. - [Formaldehyde](https://www.materialinsights.org/links/formaldehyde-and-wood-products/): Wood products depends on formaldehyde. - [Fungicides](https://www.materialinsights.org/links/fungicides-and-wood-products/): Wood products depends on fungicides. - [Herbicides](https://www.materialinsights.org/links/herbicides-and-wood-products/): Wood products depends on herbicides. - [Insecticides](https://www.materialinsights.org/links/insecticides-and-wood-products/): Wood products depends on insecticides. - [Lubricant additives](https://www.materialinsights.org/links/lubricant-additives-and-wood-products/): Wood products depends on lubricant additives. - [Methanol](https://www.materialinsights.org/links/methanol-and-wood-products/): Wood products depends on methanol. - [Muscle power](https://www.materialinsights.org/links/muscle-power-and-wood-products/): Wood products depends on muscle power. - [Natural gas](https://www.materialinsights.org/links/natural-gas-and-wood-products/): Wood products depends on natural gas. - [Nitrogen (ammonia)](https://www.materialinsights.org/links/nitrogen-ammonia-and-wood-products/): Wood products depends on nitrogen (ammonia). - [Paints and coatings](https://www.materialinsights.org/links/paints-and-coatings-and-wood-products/): Wood products depends on paints and coatings. - [Phenol and acetone](https://www.materialinsights.org/links/phenol-and-acetone-and-wood-products/): Wood products depends on phenol and acetone. - [Phosphate rock](https://www.materialinsights.org/links/phosphate-rock-and-wood-products/): Wood products depends on phosphate rock. - [Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/links/polyurethanes-mdi-tdi-polyols-and-wood-products/): Wood products depends on polyurethanes (MDI, TDI, polyols). - [Ship propulsion](https://www.materialinsights.org/links/ship-propulsion-and-wood-products/): Wood products depends on ship propulsion. - [Steel](https://www.materialinsights.org/links/steel-and-wood-products/): Wood products depends on steel. - [Sunlight](https://www.materialinsights.org/links/sunlight-and-wood-products/): Wood products depends on sunlight. - [Urea](https://www.materialinsights.org/links/urea-and-wood-products/): Wood products depends on urea. - [Water](https://www.materialinsights.org/links/water-and-wood-products/): Wood products depends on water. ## Other sections - [Where ₹100 goes](https://www.materialinsights.org/industries/wood_products/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/wood_products/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/wood_products/story/index.md) - [Value chain](https://www.materialinsights.org/industries/wood_products/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/wood_products/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/wood_products/risks/index.md) - [Sources](https://www.materialinsights.org/industries/wood_products/sources/index.md)