Lumbering on: Growing demand from export markets has boosted revenue

The Wood Chipping industry in New Zealand is significantly linked to Japanese paper manufacturing, as woodchips are primarily made into wood pulp to manufacture paper products. Exports are expected to account for over 85% of industry revenue in 2018-19. Most of these exports go to Japan, which is one of the largest paper producing countries. Domestic paper manufacturing activity is low, and most local paper producing companies 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 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Industry revenue is highly volatile and depends on demand from export markets
  • The industry exports most of its woodchips to overseas paper manufacturers
  • The industry is anticipated to expand further as a significant number of trees reach maturity
  • Industry Report - Industry Analysis Chapter

    Players in the Wood Chipping industry cut or chip logs harvested from trees from New Zealand plantations. Woodchips are used to make wood pulp, which is used to produce paper. Woodchips can be also used as a solid fuel. Industry operators produce both softwood and hardwood woodchips. Softwood pulp is typically used for grocery bags and corrugated boxes, while hardwood pulp is used to make products such as writing paper, printing paper and tissue paper.The industry exports most of its woodchips, due to the relatively small size of domestic paper manufacturing operations. Exports are expected to account for over 85% of industry revenue in 2018-19. The overwhelming majority of hardwood woodchips are exported to Japan to make paper. Jap...purchase to read more.

    Additional Insights for the Wood Chipping Industry

    IBISWorld has determined the most important Key Success Factors for the Wood Chipping 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 and a smaller proportion is sold to 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

  • 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,
  • Table: Southland Plantation Forest Company of New Zealand 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
  • 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Bone-dry units. Woodchip trade is conducted in BDUs, which means there is 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?

    IBISWorld’s Wood Chipping in New Zealand market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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