The core trends in the global timber industry in 2025 are supply-demand imbalance, price divergence, stricter policies, and accelerated transformation, with a market size of approximately US$620 billion, representing an annual growth of about 4.2%. Key points are as follows (as of December 2025):

I. Core Data Overview

- Market Size: Global timber and wood products market size approximately US$620 billion, trade volume approximately US$386 billion (YoY +5.2%).

- Supply and Demand Structure: Softwood supply is tight (North American SPF price approximately US$610/thousand board feet, YoY +15.88%), while hardwood prices are diverging (rosewood/rosewood prices are rising, while common hardwood prices are weakening).

- Trade Flows: China is the largest importer (accounting for 29% of global imports), with diversified sources in Southeast Asia, Africa, and South America.

- Profitability: Profits at European and American sawmills are shrinking due to weak demand, high costs, and tariff disruptions; capacity utilization at Chinese processing enterprises is approximately 76%.

 II. Core Characteristics

- Supply Side: Exports from traditional supply regions (Russia, North America, Southeast Asia) declined by 3.7% year-on-year, while emerging production areas in Africa and South America rose; compliance certification (FSC) accelerated, illegal logging accounted for 10%-15%, increasing pressure on companies to trace the source.

- Demand Side: Residential and construction demand in North America and Europe remained weak; China was dragged down by the real estate market, but existing housing renovations and customized furniture supported essential demand; engineered wood (CLT) penetration in green buildings increased.

- Prices and Costs: Softwood prices rose due to increased production capacity and tariffs, while hardwood prices diverged due to bans and seasonal factors; shipping, labor, and environmental protection costs increased, forcing companies to improve efficiency and reduce losses.

- Technological Transformation: AI visual scanning, flexible production lines, carbon sinks, and biomass energy applications accelerated; leading companies allocated 70% of their capital expenditure to sustainable production.

III. Opportunities and Challenges

- Opportunities: Green building, existing housing renovation, bio-based materials, and ESG investment (over $30 billion in annual forestry green bond issuance) brought incremental growth.

 - Challenges: Weak demand, policy barriers (such as US tariffs on China/EU), rising compliance and environmental costs, and accelerated industry consolidation.

IV. Regional Performance

- North America: Limited supply + tariffs, prices are relatively strong; weak residential demand puts pressure on sawmill profitability.

- Europe: Green policies promote CLT and biomass energy, traditional capacity declines, and import dependence increases.

- Asia Pacific: Weak domestic demand in China, processing shifts towards higher value-added products; Southeast Asian hardwood exports are diverging, and compliance is tightening.

- Africa/South America: Emerging supply sources are growing rapidly, becoming alternatives to major importing countries like China.

V. Key Trends

- Green Compliance: Widespread adoption of FSC and other certifications, traceability becoming a standard procurement practice, promoting the construction of sustainable supply chains.

- Technological Efficiency: AI scanning, flexible manufacturing, and digitalization reduce losses (China's processing loss rate is 18%-25%), increasing added value.

- Structural Upgrading: The proportion of high value-added products exceeds 40% for the first time, with engineered wood and bio-based materials becoming new growth points.