Reclaimed Lumber Market size is forecast to reach $16.2 billion by 2026, after growing at a CAGR of 4.6% during 2021-2026. Reclaimed lumber is recycled wood, retrieved from its original application for purposes of subsequent use such as Wine barrels, wood mantels in homes and others. Additionally, reclaimed wood can been taken from various sources such as Factories, Old barns, stock farms with other places. So, with the increase in use of refurnished woods the demand for reclaimed lumber industry is expected to drive. In addition, with rise in construction of wooded houses, specially in cold places, the reclaimed lumber market is expected to lead. Whereas government initiatives towards housing will enhance the overall market demand for reclaimed lumber market.
COVID-19 Impact
The worldwide crisis of COVID-19 has declined the construction industry as many of the ongoing infrastructure projects are either post-ponded or cancelled which has led to a millions and billions of losses. The International Monetary Fund (IMF) forecasts that real gross domestic product (GDP) will shrink by around 3% worldwide, growing 5.9 percentage points less than the 2.9% growth in 2019. According to which United States will see mass layoffs in the construction sector as in many other industries and building activity in southern Europe is anticipated to contract by 60-70%. So, this has declined the construction industry and hence the reclaimed lumber market has restrained.
Reclaimed Lumber Market Segment Analysis – By Application
Furniture segment held the largest share in the reclaimed lumber market in the year 2020 and is expected to grow at a CAGR of 4.9% during the forecast period. The wood is used strictly in applications such as furniture or decorative purposes. One of the major benefit is, the high-quality, old-growth timber is that it is seasoned and stable, and so is not subject to twisting or shrinking when reused in a building. According to the data provided by Eurostat, the values of EU27 and UK wood furniture production was about USD $45.57 (€42.5) billion in 2019. Therefore, owing to the increasing demand for furniture, the reclaimed lumber market is expected to grow.
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Reclaimed Lumber Market Segment Analysis – By End Use Industry
Commercial sector has been the primary market for reclaimed lumber in the year 2020 and is expected to grow at a CAGR of 5% during the forecast period. Reclaimed wood is considered more of a specialty item rather than a practical solution to large-scale wood flooring and siding projects in commercial sector. In addition, Oak is a the most popular choice for reclaimed wood and in particular flooring due to its versatility in terms of finish and coloring. According to U.S Census Bureau, the construction industry is of worth $11.4 trillion in the year 2019. So, the growing construction industry, the reclaimed lumber market will also grow.
Reclaimed Lumber Market Segment Analysis – By Geography
APAC dominated the Reclaimed Lumber market in the year 2020 and is expected to grow at a CAGR of 4.8% during the forecast period. In this region, China is projected to witness a high demand for reclaimed lumber owing to its vast wood-based construction industry and increasing awareness regarding reducing greenhouse gas emissions. Whereas according to the USDA foreign agriculture service, in India, annual import of logs, lumber and wood products have increased from USD$1.3 billion to $2 billion in the past decade. So, with the increase in demand for wood, the market for reclaimed lumber will drive.
Reclaimed Lumber Market Drivers
Growing demand for green building
Growing governments initiatives towards green building will increase the demand for flooring and this will eventually led to the increase in market growth for reclaimed lumber. Whereas, in September 2020, U.K government had launched a scheme called “The Green Homes Grant”. This scheme is set to help homeowners by funding them the cost of green home improvements and to improve their energy efficiency. The government will be providing two-thirds funding up to $6500 (£5,000 or £10,000) (for low-income homes) to help homeowners make green home improvements.
Governments initiatives regarding construction/ infrastructure
In order to develop their nations, governments globally are focusing on boosting their infrastructure. For an example, in India, according to the Department for Promotion of Industry and Internal Trade (DPIIT), construction development and infrastructure activities sectors received FDI inflow amounting to US$ 25.69 billion and US$ 16.97 billion, respectively, between April 2000-June 2020. These investments had helped the construction industry to develop in the past and would be helping in the upcoming years. Hence with the rising construction industry, the reclaimed lumber market is expected to grow.
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Reclaimed Lumber Market Challenges
High Cost of reclaimed lumber
Reclaimed wood are more expensive than virgin wood because of the process it undergoes. A dealer sorts and prepares the reclaim lumber, so it’s safe for consumer use, whereas there is a lot of nail pulling and extra work involved over using virgin lumber. On the other hand, Companies may treat lumber with chemicals and paint, which can contain volatile organic compounds, adhesives, preservatives, insecticides or lead, this makes reclaimed lumber end product more expensive and might work as challenge for the market growth.
Reclaimed Lumber Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Reclaimed Lumber market. Major players in the Reclaimed Lumber Market are Altruwood, Atlantic Reclaimed Lumber, LLC, Carpentier Hardwood Solutions NV, Elemental Republics, Elmwood Reclaimed Timber, Imondi Flooring, Jarmak Corporation, Longleaf Lumber, Inc., Montana Reclaimed Lumber Co., Olde Wood Ltd., among others.
Key Takeaways
Asia-Pacific dominates the Reclaimed Lumber market owing to increasing demand from applications such as automotive and aviation industries.
Reclaimed Lumber avoids and reduces the consumption of new timber, this is likely to aid in the market growth of reclaimed lumber.
Increasing adoption and government initiatives towards green building will increase the market demand for reclaimed lumber in the near future.
High prices of reclaimed lumber will create hurdles for the reclaimed lumber market.
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