Volume of wood harvested in New Zealand - Data and Analysis (2005-2032)

IBISWorld forecasts the volume of wood harvested to increase by 4.8% in 2024-25 to reach 28.4 million cubic metres. This includes products such as logs; sawn timber; and wood-panel. A sustained recovery in demand for New Zealand's timber products is expected to support growth in the volume of wood harvested during the year. Rising demand in export markets for sawn timber and woodchips as well as growing business confidence in New Zealand is set to support overall growth in wood harvesting activity.Over the past five years, the volume of wood harvested has slumped due to troubles in both export and local demand. The COVID-19 pandemic tanked the volume of wood harvested in 2019-20, with this trend reversing the following year. With almost a third of forestry output eventually destined for China, weak construction activity in that country is has been a key determinant of lower wood volumes harvested in recent years. The number of dwelling consents issued has plummeted over the past few years, exacerbating drops in the volume of harvested wood. China has become a vital market over the period, accounting for over 50% of forestry product exports since 2018-19. This is largely due to China's ban on commercial logging of their natural forests, which accelerated demand for the import of logs.The COVID-19 pandemic and associated lockdowns dramatically disrupted business activity in 2019-20 as the country went through strict lockdown measures. In 2020-21, harvested volumes bounced back quickly as overseas demand resurged, particularly from China and domestic construction activity performed better than expected following the end of national lockdowns. However, further COVID-19 outbreaks and lockdowns in 2021-22 contributed to harvested volumes falling. Inflationary pressures led to delays and cancellations as construction companies became unprofitable and projects unfeasible. However, harvest volumes in 2024-25 are set to rise above 2019-20 levels. Overall, IBISWorld forecasts the total volume of wood harvested in New Zealand to increase at a compound annual rate of 0.6% over the five years through 2024-25.