Reclaimed Lumber Market Size, Share & Trends Analysis Report By Application (Flooring, Beams & Boards, Furniture), By End-use (Residential, Commercial), By Region (Asia Pacific, Europe), And Segment Forecasts, 2021 - 2028

Report Overview

The global reclaimed lumber market size was valued at USD 49.27 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.6% from 2021 to 2028. Raising environmental awareness, increasing inclination towards recycling, and intensifying provisions to deal with waste management-related issues are some of the factors favoring the market growth. The construction sector has been observing an emerging trend of sustainable construction using Cross-Laminated Timber (CLT). Increasing use of reclaimed lumber in CLT products, rising inclination of architectures, developers, and engineers towards the tall wooden buildings to reduce the carbon footprint in the environment are expected to boost the product demand.

China is projected to have significant product demand owing to increasing awareness for reducing Greenhouse Gas (GHG) emissions and the presence of vast wood-based construction industry in the country. China has seen increased growth in wooden construction in recent years, as it offers excellent seismic performance and energy conservation and conserves the Chinese tradition.

The use of these products in construction results in a reduction in the percent of materials being sent to landfills, facilitating a significant reduction in environmental pollution. The rising cost of landfill spaces and state mandates to reduce the waste have encouraged the wood waste recovery strategies, leading to growth in recovered wood from deconstruction activities.

Product manufacturers attempt to retrieve both the quality and quantity of the recyclable and reusable materials to reduce the demolition debris and supply low-cost construction materials, which may otherwise be far too expensive. Availability of old structures for deconstruction and increasing labor costs have a major impact on the material prices in this stage.

Green buildings have gained momentum in the construction field as building practices and materials are being inspected for their environmental impact. The stringent regulatory framework, including various policies and regulations, such as The European Union Timber Regulation (EUTR), and certifications, such as Forest Stewardship Council (FSC), restructures the market prospect.

Application Insights

The furniture segment led the global market with a revenue share of over 31% in 2020 and is projected to witness significant growth from 2021 to 2028. High demand for antique furniture and custom-manufactured furniture, including chairs, shelves, etc. is expected to drive the segment growth over the forecast period.

Based on application, the market is segmented into furniture, paneling & siding, flooring, beams, and others. Flooring is one of the prominent applications. Materials ranging from clear, vertical grain to naily grade are preferred for flooring applications.

The others application segment includes architectural millwork and small item manufacturing, such as gift boxes and slingshot handles. Small-item manufacturing requires small wood pieces, which can be easily obtained from the waste wood of primary and secondary wood manufacturing sectors. The material used is often inexpensive; however, the product cost is usually high due to high labor costs.

The global market has witnessed significant growth and is projected to maintain its pace over the forecast period. However, the impact of the Covid-19 pandemic can be seen on the overall market prospect. Temporary shutdown of the global industries, complete lockdown across several key regions, and supply chain interruptions have severely affected the market growth.

End-use Insights

The commercial end-use segment dominated the market in 2020 and accounted for over 57% of the global revenue share. The segment is projected to witness the fastest CAGR from 2021 to 2028. The product has several applications in the commercial sector, including wall coverings, flooring, tabletops, seats, and light fixtures. The product is preferred for its rustic design and unique look. The design aesthetic helps to disguise the wear and tear in high traffic areas, which is a common occurrence in the commercial sector. Moreover, product usage for interior applications offers uniqueness to the design, which is often preferred by the operators.

Reclaimed wood products offer an ideal choice for many residential applications, such as framing, casework, paneling, flooring, trim, cabinets, and interior design components. The product demand in high-quality decorative applications is expected to fuel the segment growth over the forecast period. Reclaimed lumber products meet LEED and FSC certifications and are associated with responsible forestry and sustainability. However, the industrial applications accounted for a minor share in the market on account of the dynamic nature of the industrial processes and stringent policies & regulations regarding the materials used in the industrial premises.

Regional Insights

Europe dominated the market and accounted for over 41% of global revenue in 2020 owing to significant growth and increased private investments in the construction sector. The regional market will expand further at a steady CAGR from 201 to 2028 due to the rapidly growing residential sector in the region and rising product demand from developed economies, such as Germany and the U.K.

Asia Pacific is expected to register the fastest CAGR from 2021 to 2028 owing to rapid urbanization, rising population, and an increasing number of construction activities in the region. The market is majorly driven by product penetration in the commercial sector. Flourishing tourism has led to growing requirements for restaurants and food chains in the region, which is projected to fuel the product demand.

North America exhibits a steady product demand due to increasing awareness regarding its functionality, look, feel, and cost in applications, such as flooring, furniture, and structural timbers. The U.S. dominates the North America regional market owing to the surge in demand from the commercial sector, including retail, hospitality, and offices.

The Rest of the World segment includes South Africa and Brazil, where the market is projected to have a substantial growth due to demand for reclaimed furniture and other household accessories on account of the rise in construction activities. Moreover, increasing product demand in interior decoration applications is anticipated to bolster the segment growth.

Key Companies & Market Share Insights

Players in the global market primarily compete based on product quality, customer service, and product price. The players focus on providing high-quality materials and follow a focused cost leadership. Many companies try to gain a competitive advantage based on competitive prices, the wide selection of materials, and turnaround time. The market is competitive and exhibits increased integration of players across the value chain. However, companies across every stage of the value chain face limitations on the expansion of their geographical scope due to increasing transportation costs. Some prominent players in the global reclaimed lumber market include:

• Vintage Timberworks, Inc.

• Carpentier Hardwood Solutions, NV

• Imondi Flooring

• TerraMai

• Jarmak Corporation

• Elemental Republic

• Olde Wood Ltd.

• Trestlewood

• True American Grain Reclaimed Wood

• Beam and Board, LLC

• Altruwood

Reclaimed Lumber Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global reclaimed lumber market report on the basis of application, end-use, and region:

• Application Outlook (Volume, Million Sq. m.; Revenue, USD Million, 2017 - 2028)

  • Flooring

  • Paneling & Siding

  • Beams

  • Furniture

  • Others

• End-use Outlook (Volume, Million Sq. m.; Revenue, USD Million, 2017 - 2028)

  • Residential

  • Commercial

  • Industrial

• Regional Outlook (Volume, Million Sq. m.; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Russia

  • Asia Pacific

    • China

    • Japan

  • Rest of the World

    • Brazil

    • South Africa