Wood Chips Market Size, Share, By Product Type (Softwood, Hardwood, and Manual), Variety Type (Forest Chips, Recycled Chips, Wood Residue Chips, and Others), Raw Material (Pulp Wood and Residual Wood), Application (Combined Heat and Power (CHP), Household Furnishing, Residential Heating, Wood Pulp, and Others), End-User (Construction, Forestry and Biomass, Paper and Pulp, Timber Factories, and Others), and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the market is look forward to enlarge at USD 16.0 Billion.
• Wood chips market size was worth USD 9.9 Billion in 2024.
• Target market is developing at a CAGR of 4.9%.

Woodchips are small- to medium-sized pieces of wood formed by cutting or chipping larger pieces of wood, such as trees, branches, logging residues, stumps, roots, and wood waste. The process of making woodchips is called wood chipping and is done using a wood chipper. The primary source for making wood pulp is woodchips, which may also be utilized as a biomass solid fuel. In addition, it may be used as a substrate for mushroom production, as an organic mulch for gardening, landscaping, and ecosystem restoration in bioreactors, and it also creates a protective layer that prevents soil erosion and areas that are prone to heavy rainfall. These factors led to fueling the wood chips market growth.

Repercussion of AI in this sector:

There are various solutions based on AI technology which can be utilized in the wood chips industry. Some of it is automated quality control of wooden slat, automated quality control of planed board, veener quality control and cutting system, detection of annual rings’ direction, automated glue coating controlling system, measurement of the load capacity, precision measurement of the log, and detection of misaligned boards. These utilization factors help driving market growth.

Key Drivers of Target Market:

Utilization of Wood Chips as Mulch can Skyrocket the Market Growth

Mulching with wood chips conserves soil moisture, reduces weeds, and cools the soil, which in turn makes the plant healthier. Mulch can also help plants grow faster with fewer insect and disease problems. Wood chips are a sustainable way to mulch gardens and to improve soil health, reduce need for watering, protects soil from erosion, and repels insects.

• For Instance, in January 2025, according to an article published by Yankee Publishing Inc., mulch is any material that covers the soil surface. In nature, mulch is simply fallen leaves or debris, whereas, in garden, mulch can include compost, wood chips, rotted manure, and cardboard or even seaweed.

Restraints:

Moisture Retention Property of Wood Chips is Limiting the Market Growth

Wood chips, can retain excessive moisture, leading to mold growth and fungal infections. This damp environment attracts pests, including termites and slugs, negatively impacting plant health and garden aesthetics. Improper application, such as piling wood chips too thick or close to plants, exacerbates these issues.

• Counterbalance Statements: A thin layer of wood chips should be placed and mixed with compost, keeping it away from plant stems and tree trunks to minimize water buildup and insect attraction.

Opportunities:

Integration of Advanced Technologies with Manufacturing Process of Wood Chips can open up New Opportunities in Upcoming Years

Integration of advanced technologies, such as production of wood chip boilers for heating homes and other facilities, using near-infrared (NIR) spectroscopy to measure the moisture content, using image processing techniques to asses particle size distribution of wood chips, and using wet-milling to separate components of wood chips. These technologies help in boosting the wood chips market growth.

• For instance, in March 2024, according to the article published by ACS Publications, there was a comparison between wet-milling and chemical depolymerization processes for the end-of-life of wood waste, in terms of environmental processes. The wet-milling process offered better environmental performance, lower energy balance, and lower operational costs particularly for lower electricity prices and green electricity technologies.

Product type, variety type, raw material, application, end-user, and region are the segments of this market.

Product Type

On the premises of product type, the market is assigned into softwood, hardwood, and manual. The softwood wood chips monopolizes the market due to the increasing demand for softwood products. It is used in gardening mulch, interior moldings, framings, playground surfacing, and generating sheet goods.

• For instance, in February 2023, according to a research paper published by ScienceDirect, biofuels can help replace fossil fuels and decarbonize transportation. ASTM (American Society for Testing and Materials) standard D7566 is being considered to incorporate a novel sustainable aviation fuel manufacturing process that involves the hydrolysis, fermentation, and conversion of softwood residue to isoparaffins.

Variety Type

Contingent to the variety type, the market is grouped into forest chips, recycled chips, wood residue chips, and others. The forest chips segment holds the dominant wood chips market share due to its cost-effectiveness and widely available bio-mass resource. It is applied in paper pulp, garden mulch, and playground surfacing.

• For instance, in January 2023, according to a paper published by ScienceDirect, its study analyzed how a wildfire and post-fire mulching with straw or wood chips affect significant soil chemical and biological characteristics in a pine forest in Central-Eastern Spain. Following the fire and mulching, the only parameters that changed considerably were pH, water field capacity (WFC), dehydrogenase activity (DHA), and basal soil respiration (BSR).

Raw Material

The market is bifurcated into pulp wood and residue wood, on the foundation of raw material. The residue wood or wood residue segment is in the saddle of the market share due to its widespread use as a fuel, raw material for woodchips, and as a landscaping mulch. It is the potential source of biomass feedstock for energy production. The most important benefit of using wood and wood residue to generate energy is that it is renewable and readily accessible globally.

Application

Stemming from application, the market is catalogued into combined heat and power (CHP), household furnishing, residential heating, wood pulp, and others. The application combined heat and power (CHP) exercises control over the market share as these systems are efficient, cost-effective, and sustainable.

• For instance, in January, 2023, BURKHARDT GmbH launched its new V5.90S wood gasifier with combined heat and power (CHP) module. As a further development of the proven BURKHARDT wood pellet gasifiers, the V5.90S with CHP ECO 220 used wood chips as fuel.

End-User

The market is divided into construction, forestry and biomass, paper and pulp, timber factories, and others, on the essence of end-user. The construction industry segment holds the biggest wood chips market share as it uses wood chips in many construction activities such as land clearing, site preparation, and waste management.

• For instance, in September 2022, according to an article published by MDPI, sustainability is a priority in the construction industry, as it is one of the most polluting sectors. The traditional solution for structural masonry walls is ceramic blocks, but an alternative using concrete blocks with wood chips is proposed, making it more environmentally friendly and sustainable.

Region

Regionally, the market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific: This region has highest wood chips market share due to the increasing demand of wood chips in the countries of this region, for applications in domestic heating and in the paper and pulp industry.

North America: This is the fastest growing region in the wood chips market due to strict environmental regulations and the growing use of wood chips for heating and power generation in the countries of this region.

• For instance, in May 2024, Saint-Gobain and TimberHP, entered partnership to offer high performance wood fiber insulation in North America. TimberHP utilized residual wood chips and hydroelectricity to manufacture nature based sustainable insulation solutions from wood fiber, which aligned with Saint-Gobain’s global sustainability goals. After getting fully launched the offering included loose fill, batt, and rigid board insulation products.

Wood Chips Market Report Scope:

Segmentation:

By Product Type:

• Softwood
• Hardwood
• Manual

By Variety Type:

• Forest Chips
• Recycled Chips
• Wood Residue Chips
• Others

By Raw Material

• Pulp Wood
• Residue Wood

By Application:

• Combined Heat and Power (CHP)
• Household Furnishing
• Residential Heating
• Wood Pulp
• Others

By End-User:

• Construction
• Forestry and Biomass
• Paper and Pulp
• Timber Factories
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key strategies of the wood chips market include increasing applications, collaboration with forestry and logging companies, meeting sustainability requirements, and investing in research and development. Some of the key players operating in the market are Verdo, Ewen International, Mattex, and others.

Wood Chips Market Companies:

• Ewen International
• Deep South Wood Products & Fiber
• FAVA Distribution GmbH
• BINHMINHHP
• Panca Cahaya Samudra Co., Ltd
• Wtrade Export
• SUMIRE SMILE INDONESIA
• Mattex
• Cogent
• EVOGROUP
• Enviva
• Pimas S.R.L.
• Verdo
• ENVEA
• NAPCEN

View a Additional List of Companies in Wood Chips Market

• In September 2023, Bruks Siwertell had added the Bruks 1006.3 RT industrial mobile wood chipper to its lineup of wood-processing products. High-capacity chipping capabilities for a variety of applications, including fuel chip manufacturing, were provided by the truck-mounted wood chipping machine's creative, adaptable design.
• In May 2024, Eternali launched a new division devoted to supplying clients in northern Brazil with biomass and chipping wood raw materials. With client orders in place and the purchase of a chipping machine and land for a manufacturing site finalized, the new business area was established in the northern Brazilian state of Pará, specifically in the city of Moju.

Analyst View:

Woodchips can be used as a biomass solid fuel, and are the main source for producing wood pulp. It may also be used as a mushroom production substrate, an organic mulch for landscaping and gardening, and to restore ecosystems in bioreactors. Additionally, due to strict environmental regulations and the growing use of wood chips for heating and power generation and other application of wood chips is expected to drive target market expansion over the forecast period.

More Related Reports

Wood Vinegar Market
Wood Source Biochar Market
IoT Chips Market
Organ-on-Chips Market
IP Core Chips Market