Saudi Arabia Wood Market - Industry Trends and Forecast to 2029

Saudi Arabia Wood Market Analysis and Size

Rising commercial and residential building demand is an important driver for the Saudi Arabia wood market. In addition, the growing uses in packaging and transportation applications are accelerating market growth.

Data Bridge Market Research analyses that the Saudi Arabia wood market is expected to reach the value of USD 4,101.80 million by the year 2029, at a CAGR of 2.2% during the forecast period. Mahogany Accounts for the most prominent timber type segment.

Market Definition

The wood industry is the industry concerned with forestry, logging, timber trade, and the production of primary forest products and wood products (for instance furniture) and secondary products such as wood pulp for the pulp and paper industry. Some of the largest producers are also among the biggest owners of timberland. The wood industry has historically been and continues to be an important sector in many economies. Wood is relatively light in weight and strong because wood's efficiency for structural purposes has qualities similar to steel. Wood is usually classified as either hardwood from broad-leafed trees, such as Beech and Oak, or softwood from conifers such as Pine and Fir. Because they're replaceable, fast-growing species like Pine trees tend to be more sustainable than slow-growing trees like Oak. Oak forests must be managed carefully to make them sustainable, grown, and harvested correctly, but it can be done.

Engineered wood is generally made from the same hardwoods and softwoods used to manufacture lumber but mixed with additives like adhesives. This type of wood often utilizes waste wood from sawmills and are treated through chemical or heat processes to produce wood that meets size requirements that are hard to find in nature. Engineered wood is used in various applications, from home construction to commercial buildings to industrial products. Saudi Arabia has introduced legal measures to protect its woodlands and forests, and these days more trees are planted than felled. It's great news for the future, with Saudi Arabia's forests actually growing instead of diminishing.

The Market Dynamics of the Saudi Arabia Wood Market Include:

Drivers

• Rising demand in commercial and residential building sectors

Wood and timber are currently commonly utilized in building materials and are quickly replacing concrete and steel as the material of choice due to their lower carbon footprint. Currently, the building sector accounts for 25% of Saudi Arabia's greenhouse gas emissions, and the industry thinks that green building construction may assist cut CO2 emissions and storing carbon. Wood is proven to have the requisite resilience, hardness, durability, and strength while delivering distinct advantages over steel and concrete in commercial, residential, and industrial structures. Timber allows architects and builders to create sustainable, economical, and ecologically friendly structures. For more ambitious projects, wood and lumber are used as building materials. It is a costly material for building construction, and furniture manufactures, such as doors, windows, cabinets, cupboards, shelves, tables, and many others. Timber is also extensively used as plywood (Plywood blocks and plywood boards) and raw wood. Heavy patterned doors and windows are composed of solid wood/timber for strength, toughness, and longevity. As a result of these characteristics and applications, Timber and wood have become major building materials.

• Growing uses in packaging and transportation applications

Wood and timber play an important part in packing and shipping. Wooden packaging has been utilized since ancient times for its great strength and inexpensive cost... In the past, few other materials surpassed wood in terms of packing. However, rising awareness of sustainable growth and environmental preservation aided in reintroducing wood as the primary packaging material. Compared to other materials, the wooden packaging is said to be more stable and ecologically friendly. These materials are long-lasting, renewable, environmentally benign, suitable for heavy objects, and stackable. Wooden packaging material is best suited for sectors dealing with heavy-weight items. It is regarded as the most cost-effective packaging solution due to its great strength and cheap cost.

• Rising importance of light wood material

As sustainable timber, light wood is a potential alternative for building homes, decorations, furniture, exterior design, and products such as paper, picture frames, shelves, cabinets, wardrobes, garden fences, planter boxes, and others. Its key benefit over hardwood is its lightweight and low density. Similarly, light wood species may develop quickly while producing high-quality timber. Lightwood has the potential to be a game changer in the building sector. Because these species grow quickly, one can obtain quickly, high-quality, and sustainable wood and other wood products. As a high-quality timber building material, light wood may give a strategic advantage as a timber business and has a distinctive standing in technical wood goods and modern mass timber construction. Using wood to its full potential allows one to enhance the impact of climate advantages such as CO2 sequestration (forest carbon stock), CO2 storage (carbon in materials), the substitution of high-emission products, and recycling (end of life cycle).

Opportunities

• The thriving commercial sectors are paving the path for wood plastic composites (WPC)

In recent years, Saudi Arabia has seen tremendous expansion in commercial areas such as offices, retail, industrial, healthcare, leisure, and others. To begin with, utilizing actual wood necessitates the removal of trees, which play a critical role in lowering CO2 emissions. Wood is also heavier than plastic, so delivering and transporting genuine wood is more expensive, requiring more fuel and leaving a larger carbon impact. Despite its numerous benefits, it has some detrimental environmental consequences. As people became more concerned about the environment and realized the worth of trees, they began to prefer alternatives to wood. This is where wood plastic composite (WPC) comes in, an excellent replacement for wood with similar qualities and strong environmental advantages.

• Rising investment in R&D and various projects

Saudi Arabia is investing in R&D to diversify its economy. The research, development, and innovation sector aim to boost the kingdom's competitiveness. The RDI plans rely significantly on open innovation and science, including establishing special programs through the center for special residents that will draw experts from across the world and make migration to the kingdom simple. Changes in the Kingdom's long-term plans are driving the Saudi economy, particularly with a growing population that is more accustomed to a digitalized economy. The most crucial is the forward-thinking atmosphere provided by Saudi Vision 2030, a strategy framework initially announced in 2016 to reduce the country's reliance on oil earnings by growing domestic consumption and supporting private-sector development. The government is committed to diversifying its revenue sources away from oil. As a result, it aids in the transition away from plastics and toward wood and timber material items.

Restraints/Challenges

•  Availability of substitutes such as plastics and metal products

Engineers have long used wood, metal, and concrete to construct numerous constructions. Timber walks were employed in forest preserves, and park authorities frequently acquired metal seating. Wood was also employed by manufacturers for cribbing. Engineers developed recycled plastic lumber, which is more environmentally friendly, more durable, and less expensive than wood. Although metal, concrete, and wood have several advantages, many people are moving away from wood in a variety of building projects in order to aid the earth's earth and preserve our natural resources. Steel construction is out of reach for clients on a limited budget due to the high costs of manufacture, shipment, and installation. While concrete is a long-lasting and low-maintenance material, there are alternative materials on the market, such as plastic lumber, that fit the bill and the project better. Metal (expense, fire danger, corrosion), concrete (time, contraction), and lumber all have drawbacks (shrinking, swelling, deterioration, health hazard).

• Potential direct and indirect impact of climate change on the timber industry

Forest wood has been a vital necessity for humanity since the dawn of civilization and remains the primary supply for many applications in our daily lives. Trees serve to sustain the water cycle and provide habitat for species. The Saudi Arabia’s impact of both direct and indirect climate change has hampered the expansion of wood production. The largest loss of forest related to climate is forest fire, which kills many trees each year. This is caused by severe summer and winter temperatures. Nature sparked the fire, which resulted in a massive loss of forest cover.

• Stringent rules and regulations regarding the timber

Saudi Arabia's forests are threatened by a harsh environment characterized by low fluctuating rainfall, severe drought, high temperatures, and human effects such as urban and agricultural development, as well as fuel wood harvesting. A scarcity of competent forestry professionals in comparison to what is necessary to carry out the activities required to sustainably manage the resources exacerbates the mix of natural and manmade causes. In response to these causes, the Saudi government has undertaken and/or supported a number of institutional and/or legislative efforts, as well as a number of programs, to reduce forest degradation and maintain, extend, and develop existing forests.

• Shrinking of the forests causes wide-reaching problems

Deforestation entails chopping down trees to a considerable amount, whether they are forests, barren ground, or trees one passes on their walk to school every day. Natural forests are being destroyed to cultivate the land, create houses and industries, log, clear land for livestock grazing, extract oil, mine, build dams, or acquire wood for furniture and fuel. The loss of forest cover impacts biodiversity, which in turn threatens people's lives. Forest shrinkage causes widespread issues such as soil erosion, less crops, floods, water cycle disturbance, greenhouse gas emissions, climate changes, and biodiversity loss.

For Instance,

• In 2021, according to Timber Exchange due to increasing demand in Riyadh, Jeddah, Dammam, and Khobar, Saudi Arabia requires one million additional houses over the next ten years. The demand will create 628,000 units, with Riyadh accounting for 48 percent of the units.

Saudi Arabia Wood Market Scope

The Saudi Arabia wood market is segmented on the basis of timber type, application, use, end-user, and wood type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

 By Timber Type

• Ash
• Beech
• Birch
• Cedar
• Fir
• Mahogany
• Maple
• Oak
• Pine

On the basis of timber type, Saudi Arabia wood market is classified into ash, beech, birch, cedar, fir, mahogany, maple, oak, and pine.

Application

• Fuel Wood
• Industrial Round Wood
• Engineered Woods

On the basis of application, Saudi Arabia wood market is classified into fuel wood, industrial round wood, and engineered woods.

Use

• Construction
• Flooring
• Packaging
• Transport
• Others

On the basis of use, Saudi Arabia wood market is classified into construction, flooring, packaging, transport, and others.

End Use

• Residential and commercial
• Industrial

On the basis of end-use, Saudi Arabia wood market is classified into residential and commercial, and industrial.

Wood Type

• Hardwood
• Softwood

On the basis of wood type, Saudi Arabia wood market is classified into hardwood, and softwood.

Competitive Landscape and Saudi Arabia Wood Share Analysis

The Saudi Arabia wood market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Saudi Arabia presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to Saudi Arabia wood market.

Some of the major market players engaged in the Saudi Arabia wood market are Saudi Modern Factory Company, Trust Wood, Asala Wood, ITCO, Gupta Timbertrader Pvt. Ltd., and Airolam decorative laminates.

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