The global reclaimed lumber market was valued at USD 49.36 billion in 2020 and is expected to grow at a CAGR of 4.5% during the forecast period. The global market is anticipated to grow during the projected period due to the factors such as increased consumption of recycled materials due to increasing environmental awareness.
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Moreover, the demand for these materials is surging in tandem with advancements in the construction sector. The deconstruction of houses and ancient buildings for reconstruction and renovation purposes has increased the demand for these materials. The rising use of wood in interior design and wardrobe construction has increased the need for reclaimed lumber worldwide.
A new trend in sustainable construction employing Cross-Laminated Timber (CLT) has emerged in the construction industry. The increasing usage of these processed wood in CLT products and the growing preference of engineers, architectures, and developers for tall wooden buildings to reduce carbon imprint in the atmosphere are likely to drive reclaimed lumber industry growth.
Moreover, there has been a rise in the need for green construction worldwide, which has prompted the use of several eco-friendly materials, such as reclaimed lumber. This is aided by several initiatives taken by governments in multiple countries to encourage the use of recyclable materials to reduce waste and achieve green building.
Furthermore, the rising use of these reconstructed wood products in the manufacture of antique furniture is another key growth driver for the upward growth of the reclaimed lumber market. The global COVID-19 pandemic has affected the construction industry since numerous ongoing infrastructure projects have been postponed or canceled.
The lockdown has resulted in a labor scarcity and an interruption in the construction material supply network, both of which will slow the market's growth for reclaimed lumber in the early stages of the projection timeframe.
The global market for reclaimed lumber is seeing steady growth, and the main factors that are driving the growth include increasing advancement from the construction sector, rising acceptance of recycled products due to the surging environmental awareness, and favorable government initiatives in various countries to promote the use of processed materials to achieve green building.
Governments around the world are concentrating on modernizing their infrastructure to improve their countries. For instance, DPIIT reported that infrastructure activities sectors in India had got FDI inflows of USD 25.69 billion and USD 16.97 billion between April 2000 and June 2020, respectively.
These investments have aided the development of the construction sector in the past and will continue to do so in the future. The growing construction sector will further have expected to drive the growth of the global market for reclaimed lumber. Merger and acquisition are some of the critical strategies industry players follow to maintain a competitive edge in the market for reclaimed lumber.
For instance, in January 2020, USA Millwork acquired Mission Bell, an architectural millwork manufacturer in Northern California, intending to expand its national platform and provide engineers and contractors with increased capacity, capabilities, and market-leading practices.
A Barrio Logan-founded company, Old Fashioned Lumber, produces bespoke rustic furniture out of salvaged and reclaimed wood slabs. The initiative creates handmade live-edge furniture from recycled wood purchased locally. The team begins by harvesting, milling, and drying the trees before designing and building furniture and accessories out of them.
The market is primarily segmented on the basis of application, end-use and, region.
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The furniture segment dominated the market for reclaimed lumber, generated the highest revenue in 2020, and is anticipated to witness a high growth rate over the forecast timeframe. Increased demand for old furniture and custom-made furniture is supposed to propel market growth for reclaimed lumber over the coming years. The industry provides a wide range of customized products, which stimulates the market from the residential sector.
The worldwide market has experienced rapid growth, which is expected to continue over the forthcoming years. The effect of the COVID-19 pandemic, on the other hand, could be seen in the overall business outlook. Global industry shutdowns, full lockdowns in many significant areas, and supply chain disruptions have all had a negative impact on business development.
The commercial end-use segment generated the highest revenue in 2020 and is expected to have a high growth rate during the forecast timeframe. Wallcoverings, tabletops, bar tops, flooring, light fixtures, and seats are a few of the commercial uses for the product. The product is preferred due to its rustic nature and one-of-a-kind appearance. The elegance of the design helps to conceal wear and tear in high-traffic areas, which is typical in the commercial industry.
Furthermore, using the commodity for interior applications adds uniqueness to the design, which operators generally desire. The residential segment for reclaimed lumber is expected to see a significant growth rate over the projected timeframe due to the surging adoption of the products in a variety of applications, including cabinets, interior design, paneling, framing, casework, and flooring components.
Europe is expected to be the most significant region for the market for reclaimed lumber in 2020 and is anticipated to maintain the same over the forecast period. The U.K. and Germany are two major economies, contributing considerable revenue in the region. The speedily increasing residential sector and favorable government policies are further boosting the market revenue for reclaimed lumber.
The Asia Pacific reclaimed lumber industry is anticipated to grow at a high growth rate during the forecast period due to the rising concerns about the use of retrieved wood and the massive potential for the construction sector. In addition, rapid urbanization, increasing per capita income, and growing population are few additional factors anticipated to boost the reclaimed lumber market growth.
North America reclaimed lumber industry is expected to show steady market demand due to rising awareness about its durability, appearance, and cost in applications like furniture, flooring, and structural timbers. The U.S. leads the North American regional market for reclaimed lumber due to growing demands from the commercial industry, such as offices, retail, and hospitality for custom lighting and interior decorating applications.
The key market players in the reclaimed lumber industry are trying to maintain a competitive edge by offering high-quality products at low rates and increasing the portfolio of materials. Innovative technology launches, massive research and development activities, and acquisitions are some of the crucial strategies adopted by players in the global market for reclaimed lumber.
Some of the key players functioning in the market include Altruwood, Atlantic reclaimed lumber, LLC, Beam and Board, LLC, Carpentier Hardwood Solutions, NV, Elemental Republic, Elmwood Reclaimed Timber, Imondi Flooring, Jarmak Corporation, Longleaf Lumber, Inc., Montana Reclaimed Lumber Co., Olde Wood Ltd., TerraMai, Trstlewood, True American Grain Reclaimed Wood, and Vintage timberworks, Inc.
Market size value in 2020
USD 49.3 billion
Revenue forecast in 2028
USD 65.2 billion
4.5% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Application, By End-Use, By Region
North America Europe Asia Pacific Latin America; Middle East & Africa
Altruwood, Atlantic reclaimed lumber, LLC, Beam and Board, LLC, Carpentier Hardwood Solutions, NV, Elemental Republic, Elmwood Reclaimed Timber, Imondi Flooring, Jarmak Corporation, Longleaf Lumber, Inc., Montana Reclaimed Lumber Co., Olde Wood Ltd., TerraMai, Trstlewood, True American Grain Reclaimed Wood, Vintage timberworks, Inc.