North America Hardwood Market

North America Hardwood Market Outlook 2031

• The industry in North America was valued at US$ 42.5 Bn in 2022
• It is projected to grow at a CAGR of 7.2% from 2023 to 2031 and reach US 79.9 Bn by the end of 2031

Analysts’ Viewpoint

Increase in number of building and renovation projects are predicted to fuel the North America hardwood market size. Furthermore, technological developments in hardwood processing, including sustainable harvesting methods are likely to boost market progress.

Hardwood flooring is becoming highly valued as a visually pleasing and renewable alternative as customers increasingly emphasize on environmental sustainability. Demand for rare wood species is expected to soar, and the market is expected to witness advances in engineered hardwood goods.

North America hardwood market trends include meeting the evolving customer demands for unusual wood species, environment-friendly procedures, and state-of-the-art flooring options.

Offering durable and visually beautiful flooring solutions across the region, the industry is poised for success with a strong foundation and a dedication to meeting environmental concerns.

Market Introduction

The hardwood market in North America is a significant part of the local building and flooring industries sector owing to a diverse range of trends and dynamics. With a strong base, the industry is driven by an increase in both residential and commercial buildings in the U.S., Canada, and Mexico, which is offering lucrative opportunities for market expansion.

Surge in demand for natural and visually beautiful materials has led to continuous expansion of the hardwood flooring industry. The building industry in the U.S. is thriving, and hardwood floors are popular due to their timeless beauty and durability.

Similar to other countries, Canada has seen a noticeable movement toward using sustainable construction materials, emphasizing hardwood as an eco-friendly option. Mexico is experiencing a rise in popularity of hardwood flooring in both residential and commercial settings, due to cultural and aesthetic influences.

Technological developments in hardwood processing and finishing methods are critical to the market's evolution. Products made of engineered hardwood are becoming more popular since they are sustainable and versatile.

Rapid Urbanization Propelling North America Hardwood Market Revenue

Rapid urbanization directly impacts the consumption of hardwood. The first stage of urbanization is urban migration, which leads to the development of housing. According to the Gresham House's report on hardwood, global urban pollution is expected to rise by 53% by 2050.

The increase in population and movement of people from rural to urban areas is driving the rate of urbanization. The U.S. government is initiating the construction of public housing to prevent the impact on the physical environment, which is spurring the North America hardwood market value.

The U.S. is continuously experiencing a rise in urban population. Urban population accounted for 80.7% share of the total population in the U.S. in 2010. Its share further increased to 82.66% in 2022. Thus, rapid urbanization is one of the key factors boosting the North America hardwood market growth.

Demand for furniture, pallet cabinets, and wood caskets has moderately increased in the U.S., driving market development in the country.

Emerging Trend of Remodeling and Renovation a Key Market Catalyst

A major factor propelling the hardwood market in North America is the rise in remodeling and refurbishment projects. There has been a discernible movement in customer preferences in recent years from choosing new buildings to renovating existing houses.

Numerous factors, such as evolving lifestyle patterns, the demand for contemporary, energy-efficient designs, and a desire for individualized spaces, are driving this trend.

Hardwood flooring is a popular choice for homeowners who want to improve the aesthetics and value of their houses. Its timeless appeal, durability, and capacity to provide warmth and character to any area make it a desirable option.

The remodeling and renovation trend is especially noticeable in the U.S. due to an aging housing stock and a sizable market for home repair projects. Hardwood flooring is a popular choice among renovators who want to remodel and renovate their houses while leaving a beautiful and long-lasting effect.

Furthermore, hardwood's adaptability makes it an ideal option for a timeless and traditional look, allowing it to blend in with a wide range of design styles.

Remodeling is on the rise in Canada as well, with hardwood flooring being preferred for its natural beauty and eco-friendliness. Engineered hardwood in particular is being preferred since it can be put in damp regions and provides stability in climates that change, increasing the potential of renovation projects.

Additionally, the renovation trend is in line with a societal awareness of fine workmanship and original design, which is augmenting the demand for exotic wood species and hardwood flooring with eye-catching patterns.

Industrial Expansion in the U.S. and Varied Applications of Hardwood

The trend of industrial expansion in the U.S. is increasing the production and shipping rate of products. This is expected to boost the pallets industry, which in turn, is estimated to propel the market. An increase in the rate of exports is projected to boost the hardwood pallets industry in the U.S. This, in turn, is likely to augment the hardwood market in the U.S.

Furthermore, according to The National Association of America Wineries, the U.S. accounts for significant wine production in the world. The significant expansion of the wine sector in the U.S. is expected to bolster the North America hardwood industry.

Hardwood railway ties are the traditional ties for railroads. Expansion of railroads and regular replacement of old ties are boosting the demand for hardwood ties in the wood ties industry. The rise in demand for hardwood ties is likely to drive the hardwood market in the U.S. Thus, increase in industrial expansion in the U.S. is projected to drive the North America hardwood industry growth.

Country-wise Analysis

According to the latest North America hardwood market forecast, demand for hardwood is projected to increase in the U.S. in the next few years. The country accounted for the largest market share in 2022.

The North American hardwood market exhibits a range of national patterns that are representative of the different consumer inclinations and market conditions in the US, Canada, and Mexico. Installing hardwood is becoming fairly common in the residential sector as customers realize the long-term investment and classic charm that hardwood offers.

An important trend in Canada is the growth in emphasis on sustainable construction techniques. The Canadian market's environmental concern is in line with hardwood's status as a naturally occurring and renewable resource.

Analysis of Key Players

The hardwood market in North America is home to several large and medium-sized manufacturers that are competing with each other. Most businesses are investing significantly in R&D activities to expand their product portfolio.

Danzer Holdings AG, Northwest Hardwoods, Inc., Baillie Lumber Co., Inter-State Hardwoods Co., Inc., Forest Hawkeye Products L P, Potter Lumber Co., LLC, AFP Logs & Lumber Inc., The Wagner Companies, and Gutchess Lumber are the prominent North America hardwood manufacturers.

Key Developments

• On May 15, 2023 – Danzer, a hardwood company specializing in wood from temperate forests of the Northern Hemisphere, recorded a 23% increase in revenue for the year 2022, reaching 209 million Euros compared to 170 million Euros in 2021. The business of sawn hardwood products benefited from the sustained strong demand in Europe and North America.
• On January 29, 2021, Northwest Hardwoods, Inc. (NWH) announced that it had completed its financial restructuring process. Through restructuring, NWH has substantially reduced its long-term debt obligations by nearly US$ 270 million and significantly reduced its debt service obligations. Consequently, the company holds a strong position to re-invest in long-term growth and continue to provide industry-leading quality and service to its customers.

Each of these companies in the hardwood market report have been profiled based on various parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments.

North America Hardwood Market Snapshot