How to Boost Your Wood Export Business in 2022: A Complete Guide
Wood is one of the most versatile and widely used materials in the world. It has many applications, from construction and furniture to paper and fuel. Wood is also a renewable and sustainable resource, which makes it attractive for environmental and economic reasons.
However, wood export is not an easy business. It involves many challenges, such as complying with different regulations, standards and certifications, finding reliable buyers and suppliers, managing logistics and transportation, dealing with market fluctuations and competition, and ensuring quality and safety of the products.
In this article, we will provide you with a complete guide on how to boost your wood export business in 2022. We will cover the following topics:
- The global market trends and opportunities for wood export
- The best practices and tips for wood export
- The most important resources and tools for wood export
The Global Market Trends and Opportunities for Wood Export
According to the Food and Agriculture Organization (FAO), the global production of sawnwood reached 473 million cubic meters in 2020, a decrease of 3% compared to 2019. However, the global trade of sawnwood increased by 6% to 153 million cubic meters in 2020, driven by strong demand from China, the United States and Europe.
The FAO also reported that the global production of wood-based panels reached 367 million cubic meters in 2020, a decrease of 1% compared to 2019. However, the global trade of wood-based panels increased by 4% to 88 million cubic meters in 2020, mainly due to the growth of imports by China, the United States and India.
The main exporters of sawnwood in 2020 were Canada (21.3% of the total), Russia (10.5%), Sweden (9.5%), Germany (8.3%) and the United States (6.7%). The main exporters of wood-based panels in 2020 were China (35.8% of the total), Germany (7.6%), Thailand (6.4%), Poland (5.4%) and Canada (4.8%).
The main importers of sawnwood in 2020 were China (27.9% of the total), the United States (17.1%), Germany (7%), Japan (6%) and France (4%). The main importers of wood-based panels in 2020 were China (18.8% of the total), the United States (15%), India (7.2%), Germany (6%) and Japan (5%).
The global market for wood products is expected to grow in 2022, as the recovery from the COVID-19 pandemic boosts the demand for construction, furniture, packaging and other end uses. According to a report by ResearchAndMarkets.com, the global wood products market is projected to reach $1.2 trillion by 2025, growing at a compound annual growth rate (CAGR) of 4.8% from 2020.
Some of the key factors that will drive the growth of the wood products market are:
- The increasing urbanization and population growth, especially in emerging economies such as China, India, Brazil and Indonesia, which will create more demand for housing, infrastructure and consumer goods that use wood products.
- The rising awareness and preference for green and eco-friendly products, which will boost the demand for wood products as a renewable and biodegradable material that can reduce greenhouse gas emissions and waste generation.
- The technological innovations and advancements in wood processing, such as engineered wood products, wood-plastic composites, nanocellulose and biorefinery products, which will enhance the performance, quality and diversity of wood products.
- The favorable government policies and initiatives that support the development and trade of wood products, such as subsidies, tax incentives, trade agreements, certification schemes and forest management programs.
The Best Practices and Tips for Wood Export
If you want to succeed in the wood export business, you need to follow some best practices and tips that will help you overcome the challenges and seize the opportunities in the global market. Here are some of them:
Know your target market:
Before you start exporting your wood products, you need to research your target market thoroughly. You need to understand the market size, demand, trends, preferences, regulations, standards, competitors, prices and distribution channels of your potential customers. You also need to identify your unique selling proposition (USP) that will differentiate your products from others.
Choose your product niche:
Wood products are very diverse and have different specifications, qualities and uses. You need to choose your product niche carefully based on your expertise, resources and market demand. You need to focus on a specific type or category of wood products that you can produce efficiently, effectively and competitively.
Establish your supply chain:
Wood export involves a complex supply chain that includes sourcing, processing, packaging, shipping, customs clearance, delivery and after-sales service. You need to establish your supply chain carefully and ensure that you have reliable and trustworthy partners and suppliers that can provide you with quality and timely products and services. You also need to optimize your supply chain to reduce costs, risks and delays.
Comply with the regulations and standards:
Wood export is subject to various regulations and standards that vary from country to country. You need to comply with the regulations and standards of both your exporting and importing countries, such as phytosanitary measures, environmental protection, quality control, labeling, certification and documentation. You need to obtain the necessary permits, licenses and certificates that prove the origin, legality and sustainability of your wood products.
Promote your products:
Wood export is a competitive business that requires effective marketing and promotion strategies. You need to promote your products to your target customers and markets using various channels and tools, such as websites, social media, trade fairs, exhibitions, catalogs, brochures, samples and testimonials. You also need to build your brand reputation and recognition by highlighting your USP, values and benefits.
Provide excellent customer service:
Wood export is a long-term business that requires strong customer relationships and loyalty. You need to provide excellent customer service to your existing and potential customers by communicating clearly, responding promptly, delivering on time, resolving issues quickly and satisfying their needs and expectations. You also need to seek feedback and suggestions from your customers and use them to improve your products and services.
The Most Important Resources and Tools for Wood Export
Wood export is a challenging but rewarding business that requires various resources and tools that can help you achieve your goals. Here are some of the most important ones:
- FAO Forestry Statistics: This is a comprehensive source of data and information on the global forest sector, including production, trade, consumption, prices and policies of wood products. It also provides access to various publications, reports, databases and tools related to forestry.
- Global Timber: This is a platform that provides market intelligence, analysis, news and prices of wood products from around the world. It also offers a directory of wood suppliers and buyers, as well as a forum for networking and discussion.
- International Wood Markets Group: This is a consulting firm that specializes in the wood products industry. It provides market research, forecasting, strategic planning, benchmarking and advisory services to wood producers, exporters, importers, distributors and end users.
- International Tropical Timber Organization (ITTO): This is an intergovernmental organization that promotes the conservation and sustainable management of tropical forests. It also facilitates international trade and cooperation in tropical timber and other forest products.
- Trade Map: This is a tool developed by the International Trade Centre (ITC) that provides statistics on international trade in goods and services. It allows users to access data on export performance, international demand, alternative markets and competitive markets for over 5,000 products across 220 countries.
- World Customs Organization (WCO): This is an intergovernmental organization that administers the international customs system. It provides guidance, standards, conventions and tools for harmonizing customs procedures, facilitating trade, ensuring security and combating fraud.
Wood Export: A Global Perspective
Wood is one of the most widely used natural resources in the world, with applications ranging from construction and furniture to paper and bioenergy. According to the Food and Agriculture Organization (FAO), the global production of wood products reached 3.9 billion cubic meters in 2020, of which 1.9 billion cubic meters were used as fuelwood and 2 billion cubic meters were used for industrial purposes, such as sawnwood, wood-based panels, pulp and paper . The global trade in wood products also amounted to US$244 billion in 2020, with sawnwood being the most traded product category, accounting for US$153 billion or 63% of the total value .
The main producers of wood products
The main producers of wood products in the world are the European Union (EU), the United States, China, Canada and Russia. Together, these five regions accounted for 72% of the global roundwood production, 68% of the global sawnwood production and 75% of the global wood-based panel production in 2020 . The EU was the largest producer of roundwood in 2020, with 507 million cubic meters or 13% of the global total, followed by the United States with 472 million cubic meters or 12%. Canada was the largest producer of sawnwood in 2020, with 82 million cubic meters or 17% of the global total, followed by Germany with 48 million cubic meters or 10%. China was the largest producer of wood-based panels in 2020, with 156 million cubic meters or 43% of the global total, followed by the EU with 69 million cubic meters or 19% .
The main exporters of wood products
The main exporters of wood products in the world are Canada, Russia, Sweden, Germany and the United States. Together, these five countries accounted for 54% of the global value of wood product exports in 2020 . Canada was the largest exporter of sawnwood in 2020, with US$10.8 billion or 21% of the global total, followed by Russia with US$5.3 billion or 11%. Sweden was the largest exporter of wood-based panels in 2020, with US$2.5 billion or 9% of the global total, followed by Germany with US$2.4 billion or 9%. The United States was the largest exporter of wood pulp in 2020, with US$13.4 billion or 19% of the global total, followed by Brazil with US$8.7 billion or 13% .
The main importers of wood products
The main importers of wood products in the world are China, the United States, Japan, Germany and India. Together, these five countries accounted for 53% of the global value of wood product imports in 2020 . China was the largest importer of sawnwood in 2020, with US$14.6 billion or 30% of the global total, followed by the United States with US$7.8 billion or 16%. China was also the largest importer of wood-based panels in 2020, with US$8.4 billion or 30% of the global total, followed by Germany with US$2.6 billion or 9%. The United States was the largest importer of wood pulp in 2020, with US$10.5 billion or 15% of the global total, followed by China with US$9.8 billion or 14% .
Wood Export: Trends and Challenges
The global demand for wood products is influenced by various factors, such as economic growth, population growth, urbanization, income levels, consumer preferences, environmental concerns and policies. According to a recent report by FAO and UNECE , the global demand for wood products is expected to increase by about 1.4% per year between 2018 and 2030, driven mainly by Asia and Africa, where population growth and economic development will boost consumption. However, this demand will also face some challenges, such as competition from other materials (e.g., plastics, metals), trade barriers (e.g., tariffs, quotas), environmental regulations (e.g., carbon taxes) and social issues (e.g., land rights).
One of the main trends affecting the global wood market is the increasing use of wood pellets and other agglomerates as a source of renewable energy. Wood pellets are compressed biomass made from sawdust and other residues from wood processing industries. They can be used for heating and power generation in residential, commercial and industrial sectors. According to FAO , the global production of wood pellets and other agglomerates reached 50 million tonnes in 2020, an increase of 3% from 2019 and a more than tenfold increase from 2000. The main producers of wood pellets in 2020 were the United States (9.8 million tonnes), Canada (4.4 million tonnes), Germany (3.1 million tonnes) and Russia (2.7 million tonnes). The main consumers of wood pellets in 2020 were the EU (28.5 million tonnes), the United States (6.8 million tonnes), Japan (2.1 million tonnes) and South Korea (1.9 million tonnes). The main exporters of wood pellets in 2020 were Canada (10.8 million tonnes), the United States (6.6 million tonnes), Russia (2.5 million tonnes) and Latvia (2.3 million tonnes). The main importers of wood pellets in 2020 were the United Kingdom (8.5 million tonnes), Japan (2.1 million tonnes), South Korea (1.9 million tonnes) and Denmark (1.8 million tonnes) .
Another trend affecting the global wood market is the increasing trade in tropical wood, especially from Africa and Asia. Tropical wood is valued for its durability, beauty and diversity, and is used for furniture, flooring, decking, doors, windows and other applications. However, tropical wood also faces some challenges, such as illegal logging, deforestation, biodiversity loss and climate change. To address these issues, some initiatives have been developed to promote sustainable forest management and legal trade in tropical wood, such as the Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan of the EU and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). According to FAO , the global value of tropical wood imports reached US$11 billion in 2020, a decrease of 10% from 2019 and a decrease of 25% from 2000. The main exporters of tropical wood in 2020 were Cameroon (US$3.2 billion), Gabon (US$1.7 billion), Malaysia (US$1.7 billion) and Indonesia (US$1.7 billion). The main importers of tropical wood in 2020 were China (US$4 billion), Vietnam (US$1 billion), India (US$0.9 billion) and France (US$0.8 billion) .
References:
http://ageconsearch.umn.edu/record/124400/files/Belcher%202005.pdf
http://www.rmportal.net/framelib/belcherschreckenberg.pdf
https://www.fao.org/forestry/statistics/80938/en/
https://www.fao.org/3/cb1444en/cb1444en.pdf
Essential Topics You Should Be Familiar With:
