Global Laminated Veneer Lumber Market Report and Forecast 2024-2032

Global Laminated Veneer Lumber Market Size

The global laminated veneer lumber market attained a volume of 5,116.8 thousand CBM in 2023. The market is estimated to grow at a CAGR of 4.0% during 2024-2032 to reach a volume of 7,256.3 thousand CBM by 2032.

Laminated Veneer Lumber Market Outlook

• As of April 2021, around 5 billion pallets were in use globally, with 90% of these pellets produced from wood.

• By 2030, the World Green Building Council (World GBC) aims that all new buildings, infrastructure and renovations should have at least 40% less embodied carbon. Further, all new buildings should have net zero operational carbon.

• By 2030, China aims to achieve 50% of its new construction to be green, while Singapore aims to achieve 80% of its new construction to be green.

Laminated Veneer Lumber Market Growth Rate

Laminated veneer lumber (LVL) is an engineered wood product. LVL’s strength and durability are comparable to steel and concrete structures. Its exceptional strength, lightweight, and sustainability are aiding its adoption in residential and commercial construction.

According to the International Energy Agency (IEA) in 2022, to achieve the Net Zero Emissions by 2050 Scenario (NZE Scenario), the construction sector globally, needs to retrofit at least 20% of its existing building stock to a zero-carbon-ready level by 2030. Compared to energy-intensive traditional building materials, such as cement, iron, and steel, LVL offers an eco-friendlier production while simultaneously serving as a carbon stock.

The carbon dioxide stored in wood remains in LVL products throughout their lifecycle and is not released back into the carbon cycle. LVL and CLT yield a substantial substitution effect of 1 – 2.5 tonnes CO2 for every cubic meter (m3) of engineered wood or 2 – 5 tonnes per ton of engineered wood, with a typical density of around 0.5 kg/m3. Engineered wood products are accredited by various sustainable certifications and green building programs, such as the Leadership in Energy and Environmental Design (LEED) certification.

In 2023, Mainland China held the majority of LEED-certified buildings globally, with 1,563 LEED projects.

Figure: Top 10 Countries with the Most Number of LEED Certified Projects, 2023

Key Trends and Developments

Environment friendly characteristics of LVL; increasing adoption of wood in construction; ability to manufacture unique furniture designs; and presence of a variety of raw materials for the production of LVL are the key trends impacting the laminated veneer lumber market growth

Feb 7, 2024

VMG Lignum Construction launched operations at a EUR 100 million facility in AkmenÄ— Free Economic Zone, Lithuania, aiming to produce EUR 150 million worth of laminated veneer lumber (LVL) and I-beams annually for the Scandinavian, North American, Australian, and major European markets.

Jan 24, 2024

Boise Cascade announced new investments in Alabama and Louisiana to bolster its engineered wood products (EWP) growth strategy. The company is enhancing its Thorsby EWP mill by adding I-joist production capabilities and converting a plywood layup line to a parallel laminated veneer line at the Chapman plywood facility.

Nov 10, 2023

Raute Corporation has signed a contract worth EUR 93 million with Metsä Wood, part of Metsä Group to deliver technology for a new Kerto LVL mill in Äänekoski, Finland.

Sep 4, 2023

Metsä Wood and SRV, a construction company, entered into a contract for the construction of Metsä Wood's upcoming Kerto® LVL mill in Äänekoski, Finland. SRV will serve as the primary contractor for the endeavour, which will proceed under a cooperative project management arrangement. The mill will have an annual production capacity of about 160,000 cubic metres, which represents a 50 per cent increase in the company’s total Kerto LVL capacity.

LVL acts as a carbon stock

Compared to energy-intensive building materials like cement, iron, and steel, engineered wood products, such as LVL are produced in an environmentally friendly manner and serve as a carbon stock. The CO2 stored in wood remains in LVL products throughout their lifecycle and is not released back into the carbon cycle.

Rising popularity of wood as a construction material

Building materials contribute to around 11% of global carbon emissions. There is a rising demand for wood-based construction, especially in urban areas as they offer the benefits of lightweight and sustainability. LVL is a highly efficient wood-based building material. It enables increased prefabrication, facilitating increased output, faster payback, and high-quality construction.

LVL supports unique furniture designs

LVL is widely being adopted in furniture production as it can be designed into a variety of shapes. It is lightweight yet durable and has the potential to meet the rising demand for innovative furniture to enhance the functionality and aesthetic appeals of homes and commercial spaces.

Manufacturing of LVL with a wide variety of wood

LVL plywood can be made from a variety of common woods such as pine, acacia, eucalyptus, and rubberwood. These woods are favoured for their widespread availability, cost-effectiveness, and ability to create strong engineered wood products like LVL.

Laminated Veneer Lumber Market Trends

Wood is increasingly being used as a construction material, owning to its ease of transportation and handling compared to materials like concrete or bricks. Typically, LVL, an engineered wood product, can be produced in a variety of shapes depending on its use.

LVL structural elements can be opted in prefabricated construction, due to its lightweight. These solutions reduce build time and translates to faster construction times and fewer errors on the building site. Additionally, LVL's lighter weight compared to traditional materials can provide builders to utilize smaller cranes and foundations, streamlining the construction process and potentially reducing costs.

Also, LVL offers impressive strength and insulating properties, enabling the construction of more energy-efficient structures compared to traditional concrete or masonry alternatives. LVL is typically made from softwood. In Europe, spruce and pine are common, while North American manufacturers use various pine species, Douglas fir, western hemlock, yellow poplar, and red maple to produce LVL plywood.

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Laminated Veneer Lumber Industry Segmentation

“Global Laminated Veneer Lumber Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Application

• Residential

• Commercial

• Others

Market Breakup by End Use

• Construction
  • New Construction 
  • Replacement

• Non-Construction

Market Breakup by Region

• North America 

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Laminated Veneer Lumber Market Share

Based on application, the residential sector accounts for a significant share of the market

There is a rising popularity of wood-based construction in Europe. Around 70% of the wood consumed in the EU is used in construction and furnishings. Further, around 8-10% of single-family homes in the EU have a wooden frame. LVL is widely deployed in permanent structural applications, such as beams, lintels, and truss chords.

As of August 2023, Germany held the largest housing stock in Europe with 43.4 million dwellings. France and Spain followed Germany with 37.6 million and 26.1 million dwellings, respectively.

Based on end use, the construction sector is a major contributor to the laminated veneer lumber market revenue

Construction companies are focusing on building materials, such as LVL that are functional and environmentally responsible. LVL studs can be up to 2.5 times stronger than standard framing lumber of the same dimension in compression and tension. Hence it provides exceptional strength against wind and shear loads.

Leading Laminated Veneer Lumber Market Manufacturers

The market players are focusing on providing products at competitive prices and high quality, with improved customer service, product support, and performance features.

Murphy Company

Murphy Company produces hardwood and softwood plywood, engineered wood, and veneer in the Pacific Northwest. The company has a strong presence in the United States, with 6 mills including 1 plant of softwood plywood and 3 softwood veneer plants and 2 division offices.

METSÄ Group Companies

METSÄ Group Companies, also known as METSÄ Group, is an international operator in sustainable bioeconomy. The company produces 34 million m3 wood procured, with 85% of the wood from Finland, and 15% from elsewhere in Northern Europe.

Roseburg Forest Products Co.

The company is engaged in providing products such as engineered wood, lumber, composite panels, and hardwood. The company conducts manufacturing operations within the United States and distributes its products across North America.

STEICO SE

STEICO develops, produces, and markets ecological construction products made of renewable raw materials. The company’s headquarters with an employee base of around 150 is located in Germany, while the other sites include Poland and France.

Other notable players operating in the laminated veneer lumber market are Stora Enso Oyj, Boise Cascade Company, Weyerhaeuser Company, Pacific Woodtech Corporation, and Juken New Zealand Ltd., among others.

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Laminated Veneer Lumber Market Analysis by Region

North America is one of the leading regional markets for LVL. The United States is witnessing a rapid adoption of engineering wood, as it provides a lower carbon footprint than traditional steel and concrete, while also being cost-effective. As of June 2023, the United States had the presence of 1,860 completed or planned engineering wood construction projects.

Wood as a construction material is being favoured in the Chinese market due to its advantages of sustainability and low-carbon environmental protection. The application of engineered wood is increasing at a significant rate, with the increased promotion of the trend of 'carbon neutrality' and 'carbon peaking.

Key Highlights of the Report

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Laminated Veneer Lumber Market Report Snapshots

Laminated Veneer Lumber Market Size

Laminated Veneer Lumber Market Growth

Laminated Veneer Lumber Market Trends

Laminated Veneer Lumber Market Share

Laminated Veneer Lumber Manufacturers

Laminated Veneer Lumber Market Regional Analysis