Out of the woods: Revenue is set to grow following truncated wood volumes in previous years

The Wood Chipping industry is significantly linked to Japanese paper manufacturing operations. This is because woodchips are primarily made into wood pulp to manufacture paper products. Exports account for over 85% of industry revenue in 2017-18. Most exports are destined for Japan, which is the third-largest paper producing country. Domestic paper manufacturing operations are small compared with other countries, as local paper producing companies typically purchase wood pulp from Asian countries, such as Malaysia, where operating costs and prices are lower. As the industry is heavily linked to Japan, many players, such as Southland Plantation Forest Company of New Zealand Limited, are owned fully or partly by Japanese paper manufacturing companies...read more.

Industry Statistics & Market Size
Revenue
$75m
Annual Growth 13-18
-3.5%
Forecast Growth 18-23
Profit
Employment
409
Businesses
21
Market Share of Companies

Industry Threats & Opportunities

  • Industry revenue is highly volatile and depends on revenue derived from exports
  • The industry heavily exports woodchips, primarily to Japan, where it is made into paper
  • The industry is expected to recover and grow as a significant number of trees reach maturity
  • Industry Report - Industry Investment Chapter

    The Wood Chipping industry is highly capital-intensive. For every dollar spent on capital, an estimated $3.01 is spent on wages. Industry operations require significant investment in capital items, such as machinery and computer systems, to efficiently convert sawlogs to woodchips. However, labour functions are needed for several tasks, such as operating machinery and supervising operations. Over the past five years, capital intensity has increased as players have invested in higher quality machinery to improve operating efficiencies...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

  • Economies of scale
  • Proximity to transport
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Volume of wood harvested and GDP of Japan in the Wood Chipping industry impact industry performance..

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    What's in this report

    What is the Wood Chipping in New Zealand Industry?

    Industry operators produce softwood and hardwood woodchips. Most of these woodchips are exported to Japanese paper manufacturers, with a smaller proportion purchased by domestic customers.

    Industry Products
  • Hardwood woodchips
  • Softwood woodchips
  • Industry Activities
  • Hardwood woodchip production
  • Softwood 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
  • GDP of Japan
  • Domestic price of timber
  • Trade-weighted index
  • Availability of plantation trees

  • Current Performance
  • Revenue and profitability
  • Forests and plantations
  • Participation and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Export markets
  • Industry structure
  • 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 in New Zealand

  • Key Selling Industries
  • Accounting Services in New Zealand
  • Log Sawmilling in New Zealand
  • Port and Water Transport Terminals in New Zealand
  • Water Freight Transport in New Zealand

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

  • Demand Determinants
    Major Markets
  • Japan-based paper manufacturers
  • Domestic manufacturers
  • Other 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
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • 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
    Southland Plantation Forest Company of New Zealand Limited, Pan Pac Forest Products Limited,
  • Table: Southland Plantation Forest Company of New Zealand Limited - financial performance
  • Table: Pan Pac Forest Products Limited - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bdu
  • Bone-dry units. Woodchip trade is conducted in BDUs, which means 0% moisture content in the product.
  • Hardwood
  • The wood from a broadleaved tree, such as eucalyptus.
  • Softwood
  • The wood from a coniferous tree, such as radiata pine.
  • What Our Customers Say

    Why buy this report?

    The Wood Chipping in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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