Market Study for wood chips, sawdust and other wood products including furniture (demand and supply)

This nationwide study examines the growing demand and supply dynamics of wood-based products in Bangladesh, with a focus on wood chips, sawdust, and furniture. Driven by rapid urbanization and a furniture sector growing at 15–20% annually, the country faces increasing pressure on timber resources. While local production and imports contribute to meeting demand, restrictions on harvesting from natural forests have widened the supply gap. Cross-sectoral policy barriers from forestry to infrastructure, further affect the market.

To address this, a detailed field study was conducted across 18 districts, including key forest regions: Hill Forests, Plain Land Sal Forests, and Coastal Mangroves. The study mapped stakeholders across the wood value chain, from nurseries, sawmills, and processors to importers and regulatory bodies, and analyzed data collected through surveys, interviews, FGDs, and institutional consultations.

Key outputs include a national demand-supply analysis of wood products, an assessment of the wood processing industry’s technical capacity and by-product utilization, and the development of a prototype online market information system with mobile app integration. The study also explored the feasibility of forest certification systems (e.g., FSC/PEFC), marketing cooperatives for social forestry groups, and digital platforms for auctioning and timber imports, including the potential application of blockchain for securing the wood-based value chain.

Funded by the Bangladesh Forest Department under the SUFAL Project, the study contributes to SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 15 (Life on Land).