The global reclaimed lumber market size is expected to reach USD 16.09 billion by 2025 expanding at a CAGR of 4.6%, according to a new report by Grand View Research, Inc. Growth in the demand for recycled wood furniture on account of low cost and environmental benefits will drive the global market over the forecast period. Various government mandates and rising cost of landfill space to reduce waste have encouraged the wood waste recovery. The industry has registered a notable change from the reclamation of salvaged wood with little or no flaws to the recovery of higher-value applications, including doors, wall panels, and fences to increase the recovery value percentage.
Reclaimed lumber exhibits superior quality than the sustainable harvested wood and virgin timber, but is available at a higher price as compared to its counterparts. In addition, the industry witnesses a significant demand-supply gap, which leads to a high consumption of the substitute products, thereby limiting the industry growth. There is a large number of regional companies operating across the global market. The market entry is not capital-intensive, which is expected to intensify the competition due to emerging companies. In addition, rising profit margins coupled with growing demand for the product is further expected to attract new companies to the industry.
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Further key findings from the study suggest:
- Flooring led the market in 2017 and accounted for 25.5% of the total volume due to demand for durable and aesthetically pleasing products in residential and commercial sectors
- Commercial sector is expected to be the fastest-growing segment over the forecast period due to preference for rustic look and unique designs for applications including flooring, wall covering, tabletops, and light fixtures
- The industry is concentrated in North America and is estimated to reach a revenue of USD 8.97 billion by 2025 on account of an upward trend for green building materials and positive developments in green building code
- Growing product demand for structural applications including Cross-Laminated Timber (CLT) and Glued Laminated Timber (Glulam) in Europe is estimated to fuel the regional growth
- Global reclaimed lumber market exhibits increased integration of companies across the value chain with the deconstruction contractors often forward integrated to distribution, whereas product manufacturers generally exhibiting backward integrated to processing