Wood Chipping in Australia Industry Market Research Report Now Updated by IBISWorld

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The March 2011 Japanese tsunami and Fukushima nuclear disaster had major negative effects on the industry's exports. For these reasons, industry research firm IBISWorld has updated its report on the Wood Chipping industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Major industry players are either integrated forest companies or plantation managers that have expanded into logging and woodchipping.

Hardwood woodchip exports to Japan's paper manufacturers are the main source of revenue for the operators in the Wood Chipping industry in Australia. Despite declines in Japan's economic health in the past five years, these large paper producers are the industry's largest clients. According to IBISWorld industry analyst Alen Allday, “Japan has invested heavily in forestry plantations in Australia and controls a large proportion of domestic plantation areas.” The March 2011 Japanese tsunami and Fukushima nuclear disaster had major negative effects on the Australian Wood Chipping industry's exports for the later months of 2010-11 and throughout 2011-12. This followed declines in exports to Japan in 2008-09 and 2009-10, due to Japanese papermaking companies sourcing woodchips from other countries and reducing their overall demand. As demand from Japan has decreased in most of the five years through 2014-15, industry revenue is expected to decline by an annualised 2.9%. Total exports as a proportion of industry revenue have increased from 81.7% in 2009-10 to an estimated 85.0% in 2014-15 as exports to China have increased strongly and industry revenue has declined at a faster rate than exports.

In 2014-15, the industry is forecast to generate revenue of $596.9 million, up 10.6% from the previous year as a result of some export growth to Japan and higher domestic demand. “Due to stringent regulations, the industry comprises a small number of forestry-associated companies that produce woodchips mostly for export,” says Allday. It also includes smaller firms that operate next to sawmills and use their residue for conversion into woodchips. The major players are either integrated forest companies or plantation managers that have expanded into logging and woodchipping. The industry exhibits a high level of market share concentration. Major players include Mitsui Bussan Woodchip Oceania Pty Ltd, Midway Limited, South East Fibre Exports Pty Ltd and WA Plantation Resources Pty Ltd.

Despite its recent struggles, the Wood Chipping industry is forecast to return to growth in the five years through 2019-20 as demand from Japan increases again. As the Japanese economy continues to recover from the 2011 tsunami, the country's paper manufacturing industries are expected to expand strongly, driving growth in demand for woodchips.

For more information, visit IBISWorld’s Wood Chipping industry in Australia report page.

Firms in the industry produce softwood and hardwood woodchips. The majority of these woodchips are exported to Japan, with a smaller proportion used in Australia's paper and paper products manufacturing industries.

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IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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