Tree change: Overseas markets continue to grow as a source of industry demand

The Wood Chipping industry has grown significantly over the past five years as woodchip exports to China have surged. Due to stringent regulations, the industry comprises a small number of forestry-associated companies. These industry operators mostly produced woodchips for export markets. The industry also includes smaller firms that operate next to sawmills and convert their residue into woodchips. The major industry players are either integrated forest companies or plantation managers that have expanded into logging and wood chipping.Hardwood woodchip exports to China's and Japan's pulp, paper and paperboard manufacturers are the main source of revenue for the Wood Chipping industry...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
5.7%
Forecast Growth 19-24
Profit
Employment
828
Businesses
59

Industry Threats & Opportunities

  • The industry has performed well over the past five years as exports to China have surged
  • The industry has consolidated as larger players have acquired smaller companies to boost growth
  • Greater use of plantation logs should alleviate some of the environmental concerns about the industry
  • Industry Report - Industry Key Buyers Chapter

    The Australian Wood Chipping industry has a high concentration level, with the top four producers projected to account for 76.6% of industry revenue in 2018-19. A concentration level over 70% indicates that an industry is highly concentrated. Furthermore, the eight largest companies operating in the industry are expected to account for approximately 90% of market share for the year, providing limited market share to the industry's remaining companies. This high level is due to the extensive economies of scale and log supplies required to operate in the industry.The industry concentration level has increased over the past five years due to volume growth by the major players. Thi...purchase to read more.

    Additional Insights for the Wood Chipping Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wood Chipping Industry are

  • Output is sold under contract - incorporate long-term sales contracts
  • Guaranteed supply of key inputs
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Volume of wood harvested and Domestic price of timber in the Wood Chipping industry impact industry performance..

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    What's in this report

    What is the Wood Chipping Industry?

    Industry firms produce softwood and hardwood woodchips. Most of these woodchips are exported to China and Japan, with a smaller proportion used in Australia’s paper and paper products manufacturing industries.

    Industry Products
  • Softwood woodchips
  • Hardwood plantation woodchips
  • Hardwood native woodchips
  • Industry Activities
  • Hardwood (broadleaf) woodchip production
  • Softwood (coniferous) woodchip production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Volume of wood harvested
  • Domestic price of timber
  • Trade-weighted index
  • Availability of plantation trees
  • Demand from pulp, paper and paperboard manufacturing

  • Current Performance
  • Industry revenue surges
  • Employment and enterprises
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry controversies
  • Revenue and profit
  • Employment and enterprises
  • International trade
  • Table: Wood Chipping Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wood Chipping Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pulp, Paper and Paperboard Manufacturing
  • Paper Stationery Manufacturing
  • Fabricated Wood Manufacturing

  • Key Selling Industries
  • Log Sawmilling
  • Water Freight Transport
  • Water Transport Terminals

  • Products & Services
  • Hardwood plantation woodchips
  • Softwood woodchips
  • Hardwood native woodchips
  • Chart: Wood Chipping Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to China
  • Domestic manufacturers
  • Exports to Japan
  • Other export markets
  • Chart: Major Market Segmentation for the Wood Chipping Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Wood Chipping

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wood Chipping Industry

  • Industry Globalization
    New Forests Pty Limited, ABP Finance Pty Limited, Mitsui Bussan Woodchip Oceania Pty Ltd, Midway Limited, WA Plantation Resources Pty Ltd,
  • Table: New Forests Pty Limited - financial performance
  • Table: ABP Finance Pty Limited - financial performance
  • Table: Mitsui Bussan Woodchip Oceania Pty Ltd - financial performance
  • Table: Midway Limited - financial performance
  • Table: WA Plantation Resources Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wood Chipping Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wood Chipping Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Woodchip Volume (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hardwood
  • From broadleaf trees, hardwood is used for fine, virgin paper, some structural building products, and for some furniture items.
  • Softwood
  • From coniferous trees such as pine, fir and cedar, softwood is more suitable for newsprint, tissue and cardboard.
  • Woodchip
  • Chips of wood used in paper and cardboard manufacturing, and as a heating and power source.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wood Chipping market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wood Chipping:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wood Chipping market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wood Chipping, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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