ResourceWise’s 2024 Forest Product Industry Predictions
By Pete Stewart and Matt Elhardt
The inventory destocking that occurred in virtually every industry in 2023 is coming to an end. Destocking occurred as supply chains normalized in a post-COVID world.- Most new forestry investments in 2024 will be concentrated in the US South. Forestry investments in the US South have seen notable activity in 2024, signaling the region’s continued significance in timberland markets.
- Housing starts will be relatively strong in 2024, hanging between 1.3–1.5 mm starts.
- Increase in investment in bio-economy production at pulp mills. As the industry continues to recognize the potential of bio-economy production, it offers an exciting avenue for pulp producers to directly address environmental concerns. The changes are especially important as new low-carbon fuel mandates, most notably sustainable aviation fuel, begin implementing in 2025.
- Global operating rates in the pulp and paper industry will continue to improve, bringing stability to the sector.
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