The wood market is undergoing a significant transformation, with several emerging trends expected to shape the industry in the coming year. As we enter 2025, the dynamics of the wood sector will evolve rapidly under the influence of ecological, technological, economic, and political changes, particularly those stemming from the impact of the U.S. elections.
At Compagnia del Legno, we explore the key trends each year that will define the wood market in the upcoming year, ensuring that we are ready and responsive to these changes and can offer the best services to our clients. Here’s our analysis for 2025.
1. Recovery of production
After a significant decline in 2024, global wood production is expected to increase by 2-3% in 2025. This recovery is attributed to a possible rebound in the construction sector, driven by lower interest rates, which could stimulate investments in construction1. In particular, the softwood industry is expected to show signs of recovery after a period of contraction post-COVID. With the growing global population and increasing urbanization, residential construction is driving demand for eco-friendly and sustainable building materials. The continued use of laminated timber integrated with Cross-Laminated Timber (CLT) is gaining popularity, even for the construction of taller buildings and modern residences, as it offers both sustainability and thermal and acoustic insulation advantages.
The choice of wood as a building material will increasingly be driven by market demand for prefabricated solutions. This need arises from the shortage of skilled labor in construction and the speed at which structures must be completed.
According to a report from MarketsandMarkets2, the CLT market is expected to grow by 10% annually, with strong demand from countries like the U.S., Canada, Germany, and Sweden. In particular, the increasing adoption of wood as a “vertical” construction material is opening new opportunities for multi-story buildings, helping to reduce energy consumption and improve living quality.
2. Sustainability and European Regulations
The growing focus on sustainability is having a profound impact on the wood sector. New European regulations regarding sustainability and circularity are pushing the industry toward more eco-friendly practices. Companies are increasingly motivated to meet environmental goals, which could lead to higher demand for certified wood and low environmental impact products1,3. This trend is particularly evident in Italy, where there is significant development potential in the wooden construction sector, still underdeveloped compared to other European countries.
FSC (Forest Stewardship Council) and PEFC (Program for the Endorsement of Forest Certification) certifications will be increasingly required by consumers and businesses, driving the supply chain toward responsible forest management and low-impact production.
According to MarketsandMarkets2 report, the global wood market for bio-building and sustainable architecture is growing, with increasing demand for materials that promote carbon neutrality. In 2025, demand for certified wood is expected to rise significantly, fueling a market that could exceed $500 billion by 2027.
3. Technology and innovation in materials
Technology is transforming wood production and processing. Advances in digitization and automation are improving efficiency and product quality, while reducing waste. In 2025, it is expected that the use of technologies such as Artificial Intelligence (AI) and robotics in wood processing will continue to grow.
Additionally, wood treatment using innovative techniques like thermal treatment or modified wood is becoming common practice to improve durability and resistance to external agents, with applications ranging from construction to furniture production.
In this regard, the market for wood-based panels is experiencing steady growth, with demand for products like Oriented Strand Board (OSB) panels, used in structural applications, expected to increase4. The market size is estimated to reach 474.36 million cubic meters by 2029, growing at a compound annual growth rate (CAGR) of over 3%. The increasing attention to innovative and sustainable materials presents an opportunity for manufacturers.
4. Growth in the Asia-Pacific region
In 2025, emerging markets, particularly in Asia and Africa, will play an increasingly important role in the global wood trade, thanks to rising construction activities and growing demand. The expansion of the middle class in these regions and the increasing demand for housing, infrastructure, and quality furniture products are driving growth in wood consumption. Countries like India and Southeast Asian territories are showing strong growth in the production and use of wood-based panels, significantly contributing to global market growth, while countries like Brazil and South Africa are also seeing strong expansion.
Conclusion
The wood market for 2025 appears to be a dynamic and evolving field, with significant opportunities arising from sustainability, innovation in materials, and an expected recovery in production.
For industry players, adapting to these changes will be key to success, while consumers will increasingly be drawn to responsible choices and eco-friendly materials. In an increasingly interconnected global context, the future of wood lies in balancing tradition, innovation, and sustainability.
If you are interested in discovering how Compagnia del Legno can help you navigate these trends and make the most of the opportunities in the wood sector, feel free to contact us!
Visit our website for more information on our products and services.
- https://www.ilsole24ore.com/art/legno-la-battuta-d-arresto-2025-mercato-pronto-ripartire-AG6H3AAB
- https://www.marketsandmarkets.com/Market-Reports/cross-laminated-timber-clt-market-192075256.html
- https://www.confartigianato.it/2024/12/studi-le-tendenze-del-settore-legno-arredo-nel-turbolento-autunno-2024-nel-report-confartigianato/
- https://www.mordorintelligence.it/industry-reports/wood-based-panel-market
