According to UnivDatos analysis, rising global demand for timber in construction, furniture, and paper industries, coupled with increasing investments in sustainable forestry practices, are the major factors driving the growth of the Roundwood market. As per their “Roundwood Market” report, the global market was valued at USD 4,45,220 million in 2024, growing at a CAGR of about 3.54% during the forecast period from 2025 - 2033 to reach USD million by 2033.  

Roundwood is the unprocessed timber directly extracted from trees that have been cut and have their original cross-section and appearance in a natural round shape. It can be made available in both hardwood and softwood, depending on the nature of the trees and the end-use specifications. This raw material is available in cubic meters and serves as a fundamental resource in various industries, including construction, furniture manufacturing, the paper industry, and renewable energy production. Roundwood is the primary product of the wood supply chain and is harvested using either sustainable or commercial forestry practices, serving as an essential connection between the resources found in forests and the manufacturing and trade that occur around the world.

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Growing Role of Carbon Credits in Forestry Economics

Carbon credits are becoming a significant trend in the forestry economy, shaping the roundwood market. With governments and corporations striving to reach net-zero, sustainably managed forests are being increasingly appreciated, not just as a source of carbon sequestration, but also in the context of timber production. Carbon credit trading now gives landowners an alternative source of revenue in addition to roundwood sales, as they can monetize carbon storage. This motivates sustainable forestry, reforestation, and lower levels of deforestation, which eventually leads to improved stability in long-term timber supply. Carbon markets are transforming forestry economics with their integration affecting investment approaches and resulting in the demand of certified and sustainably sourced roundwood.

Investments and Strategic Acquisitions Fuel Growth in the Global Roundwood Market

High investments in roundwood by major forestry/timber firms are a major catalyst for market growth because these companies are able to boost production capacity, ensure a sustainable supply of raw material, and value chain integration. One of the major types of investments is continuous mergers and acquisitions (M&A), as they enable businesses to grow geographically, diversify their products, and enhance supply chains. Investments such as growth in sawmills, timber processing plants, and forestry licence acquisitions enable the companies to have direct access to high-quality roundwood material and decrease the reliance on third parties. These strategic moves not only contribute to market share but also contribute to innovation, operational efficiency, and long-term competitiveness in the global roundwood market.

For instance, in January 2025, the Austrian HS Timber Group signed an agreement to acquire the Latvian wood processing company "Kurekss SIA". This acquisition is expected to be a significant step in HS Timber Group's expansion in the Baltic region.

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Sustainable Forestry and M&A Activities Boost Global Roundwood Market Outlook

The roundwood market is well poised to continue on a consistent uptrend, driven by an increase in demand in the construction, furniture, and paper industries, as well as due to an international move toward sustainable forestry. Strategic investments are also crucial in enhancing production capacity, ensuring a stable supply of raw materials, and improving the integration of the value chain. With the growing development of sawmills, manufacturing plants, partnerships, mergers, and acquisitions, companies are expected to improve their operational efficiency and long-term competitiveness in the global roundwood industry.

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