$1.8bn
$XXX.Xm
782
47
$XX.Xm
The Wood Chipping industry has displayed mixed performance because of the Chinese government imposing export bans on woodchips in some years and supply chain disruptions associated with the COVID-19 pandemic. Owing to stringent regulations, the industry comprises a small number of forestry-associated companies. These industry businesses mostly produce woodchips for export markets. The industry also includes smaller companies that operate next to sawmills and convert their residue into woodchips. Generally, the major industry businesses are either integrated forest companies or plantation managers that have expanded into logging and wood chipping.Hardwood woodchip exports to China and Japan's pulp, paper and paperboard manufacturers are the primary source of industry revenue. Mixed demand for woodchips from China has contributed to declining revenue, profitability and exports. Despite Japan's mixed economic performance, the country's large paper producers remain a crucial industry client. Japan has heavily invested in forestry plantations in Australia and controls many domestic plantations.Industry revenue has fallen at an annualised 4.9% over the past five years and is expected to total $1.8 billion in 2023-24 when revenue will drop by an estimated 1.9%. Industry revenue slumped in 2019-20 and 2020-21 because of lower volumes, weaker demand and price falls associated with the COVID-19 pandemic. Industry performance partially recovered in 2021-22, but weak domestic demand led to further revenue declines. Mixed export demand caused woodchip exports to shrink as a proportion of industry revenue.Going forward, the industry's performance will improve. China's paper and paperboard manufacturers are set to expand rapidly. However, Japan's paper manufacturing industries will grow slowly, with lower demand growth for Australian woodchips. Overall, industry revenue is forecast to increase at an annualised 1.9% over the five years through 2028-29 to total $2.0 billion.
Industry revenue has declined at a CAGR of 4.9 % over the past five years, to reach an estimated $1.8bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
New Forests | 410.7 | |
ABP Finance | 206.7 | |
Midway | 199.2 |
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Industry revenue is measured across several distinct product and services lines, including Softwood woodchips, Hardwood plantation woodchips and Hardwood regrowth native woodchips. Softwood woodchips is the largest segment of the Wood Chipping in Australia.
Lower availability of plantation trees has contracted revenue contribution from hardwood plantation woodchips
Industry firms produce softwood and hardwood woodchips from logs and pulp logs that the same firm owns, or as a service to other companies that supply their own logs. Most of the manufactured woodchips are exported to China and Japan, with a smaller proportion used in Australia’s paper and paper products manufacturing industries.
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ANZSIC 1412 - Wood Chipping in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Exports are a major source of revenue for industry businesses. Low export demand during the pandemic and its associated supply chain disruptions heavily weighed on industry r...
Learn about an industry's products and services, markets and trends in international trade.
Environmental concerns have restricted the use of hardwood native forests. Consequently, revenue contribution from hardwood regrowth native woodchips has sunk.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Victoria accounts for nearly one-third of industry enterprises. The state’s large woodchipping operations and substantial export activity support its business concentration.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Competition within the industry is limited because of its high barriers to entry. Significant restrictions surrounding sustainability make it difficult for new businesses to ...
Learn about the performance of the top companies in the industry.
Several companies in the industry have gained market share through consolidation activity. Some businesses that have been involved in acquisitions include New Forests, Midway...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The woodchipping industry is highly regulated because of its reliance on forests and the associated environmental concerns. Some such regulations include Regional Forest Agre...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
The COVID-19 pandemic resulted in substantial supply chain disruptions, restricting international trade. The industry’s dependence on export markets led to poor export demand...
Including values and annual change:
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Key data sources in Australia include:
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The market size of the Wood Chipping industry in Australia is $1.8bn in 2024.
There are 47 businesses in the Wood Chipping industry in Australia, which has declined at a CAGR of 3.4 % between 2018 and 2023.
The market size of the Wood Chipping industry in Australia has been declining at a CAGR of 4.9 % between 2018 and 2023.
Over the next five years, the Wood Chipping industry in Australia is expected to grow.
The biggest companies operating in the Wood Chipping market in Australia are New Forests, ABP Finance and Midway
Hardwood plantation woodchips and Softwood woodchips are part of the Wood Chipping industry.
The company holding the most market share in Australia is New Forests.
The level of competition is moderate and decreasing in the Wood Chipping industry in Australia.