Global trade in wood and paper products plummeted by 12 percent in 2023. This came after a record-high trade in 2021 and 2022. The latest data released by the Food and Agriculture Organization of the United Nations (FAO) in its Global Forest Products Facts and Figures 2023 report shows that exports declined by $64 billion. They dropped to $482 billion. Although exports still exceed pre-2021 levels, this decrease signals a broader slowdown in economic growth. At the same time, there is an accelerating shift to digital media. Paper production and trade were particularly affected, continuing a longer-term trend.
Key Insights from the FAO Report
- Wood and Paper Products: The FAO report reveals a broad decline across most major wood-based products. Paper production is shrinking by 3 percent globally. The transition from printed media to digital alternatives is cited as a key driver.
- Economic Factors: Global supply chain disruptions have compounded the challenges in forest product trade. Slower consumer demand also adds to these challenges. Furthermore, trade restrictions contribute to the difficulties. The report notes that these short-term disruptions are coupled with longer-term trends. One significant trend is the decline in paper production due to digitalization.
BREAKDOWN OF KEY FOREST PRODUCTS
- Industrial Roundwood:
- Global production of industrial roundwood, which includes pulpwood and sawlogs, fell by 4 percent in 2023. Trade also dropped by 13 percent, reaching its lowest level since 2009. This decline is largely attributed to the reduced demand for timber and other wood in construction and other sectors.
- Sawnwood:
- Sawnwood production decreased by 4 percent. There was a notable 8 percent drop in international trade. These mark the lowest figures since 2014. The slowdown is a result of reduced construction activity and a general decline in consumer demand for wooden products.
- Wood-based Panels:
- Production of wood-based panels grew marginally by 1 percent to 381 million m³. This growth was driven by increased production in the Asia-Pacific region. However, trade in these products fell by 7 percent, hitting a low not seen since 2016.
- Wood Pulp:
- Wood pulp production declined by 2 percent. However, trade rose by 3 percent to a record level of 71 million tonnes. This suggests that despite the production decline, the demand for wood, particularly for non-paper uses, remained robust.
- Paper and Paperboard:
- Global production of paper and paperboard dropped by 3 percent. The most significant decline was in graphic papers, which fell by 9 percent. This sector’s overall trade declined by 7 percent, marking the lowest levels since 2010. The shift to digital formats and reduced demand for printed materials contributed significantly to these figures.
- Wood Pellets:
- Production and trade of wood pellets, which have seen rapid growth due to bioenergy demand, stagnated in 2023. Production fell by 2 percent, and trade decreased by 5 percent. This indicates the first slowdown in this sector in recent years, likely influenced by changing energy policies and market conditions.
- Engineered Wood Products:
- The FAO also published its first-ever data on engineered wood products in 2023. Notable figures include:
- Laminated veneer lumber (LVL): 4 million m³ produced, with 1 million m³ exported.
- Glue-laminated timber (glulam): 7 million m³ produced, with 2 million m³ exported.
- Cross-laminated timber (CLT): 1 million m³ produced, with 0.6 million m³ exported.
- I-beams: 1 million tonnes produced, with 0.3 million tonnes exported.
- The FAO also published its first-ever data on engineered wood products in 2023. Notable figures include:
DIGITALIZATION’S IMPACT ON PAPER PRODUCTS
One of the most significant long-term trends highlighted in the report is the ongoing decline in paper production, particularly graphic papers. The rise of digital media is reducing demand for printed newspapers, books, and other paper-based products. This transition to digital alternatives is expected to continue. Further declines in paper production and trade are anticipated over the next several years.