China: Annual report on the solid wood market for 2025

China: Annual report on the solid wood market for 2025

    According to the annual report of the Overseas Agricultural Service (GAIN) of the US Department of Agriculture, prepared by the attache in Beijing, the Chinese solid wood market in 2025 was characterized by multidirectional trends. The growth of domestic production against the background of the maturation of commercial forests was combined with serious challenges from the demand side caused by the recession in the construction sector and pressure on the furniture industry.

Production: record growth due to commercial forests

    The key event of 2025 was a significant increase in domestic wood production. Production is estimated to have reached 144 million m3, which is 5% higher than in the previous year.

    The main growth driver is the maturation of managed commercial forests. For decades, China has invested in reforestation and the creation of plantations of fast-growing species. By 2025, these investments began to bring tangible results: significant volumes of wood from commercial forests entered the market, partially replacing imported raw materials.

Production structure:

•     The main volume falls on plantations of fast-growing species (poplar, eucalyptus, pine).
• Commercial forests provide raw materials for the pulp and paper industry, the production of stoves and inexpensive furniture.
• High-quality wood for the production of solid wood and joinery is still partially imported.
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Construction sector: fundamental decline in demand

    Throughout 2025, the Chinese housing market continued to experience serious difficulties. The recession in the construction sector had a direct impact on the demand for lumber and wood products.

• - Construction of new houses: significantly decreased compared to the peak figures of previous years.
• - Sales of commercial housing: showed a steady decline throughout the year.

    For the wood market, this means a reduction in consumption in the traditionally largest segment, construction and decoration. Frame house construction, formwork, joinery — all these areas were experiencing a shortage of demand.

Furniture industry: double pressure

    China's furniture sector faces serious challenges in 2025. Two key factors have created a difficult situation for manufacturers:

1. - Increased internal competition: Against the background of stagnating demand, the struggle for consumers has intensified. Manufacturers are forced to compete on price, which squeezes margins and limits opportunities for investment in development.
2. - American duties: US trade restrictions continued to put pressure on export-oriented furniture manufacturers. Duties on Chinese furniture make it difficult to access the world's largest market and force manufacturers to look for alternative markets or move production to other countries.
3.  

Foreign trade: imports and exports are declining

    The year 2025 was marked by a reduction in both imports and exports of wood products. The reasons for these trends are different, but the result is the same — the contraction of international trade.

Structural changes and adaptation

    Against the background of the described challenges, structural changes are taking place in the Chinese timber industry:

• - Sales diversification: Exporters are actively looking for new markets in Southeast Asia, the Middle East and Africa, offsetting losses in traditional destinations.
• - Increased processing: Manufacturers seek to increase the depth of processing and produce products with higher added value in order to avoid price competition.
• - Cost optimization: In conditions of margin compression, companies are actively implementing lean manufacturing and automation technologies.
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Key market indicators:

Forecast and prospects

    In 2026, experts expect the main trends to continue:

1.     - Domestic production will continue to grow, albeit at a more moderate pace, as new commercial forests mature.
2.     - The construction sector is likely to remain weak, with no signs of a rapid recovery.
3.     - The furniture industry will continue to adapt, shifting its focus to the domestic market and new export destinations.
4.     - Imports can stabilize at the achieved level, since it is not yet possible to completely replace imports of high-quality wood with domestic production.
5.  

The key conclusion for market participants is: 

    The Chinese solid wood market is entering a "new normal" phase characterized by moderate production growth, stagnation of traditional demand segments, and fierce competition. Those companies that can adapt to these conditions through increased efficiency, sales diversification, and product innovation will be successful.

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