American wood exports to PH to grow by 30%

Cargos of wood from the United States are expected to rise by about 30 percent to $28 million in 2025. This is driven by rising demand for quality wood and challenges in local sourcing.

The US Department of Agriculture-Foreign Agricultural Service (USDA-FAS) said in a report that softwood lumber, commonly used in construction, will make up 60 percent of US wood exports.

The agency also said it sees emerging opportunities for hardwood and glue-laminated wood.

“The Philippines remains a net importer of logs and lumber to meet growing domestic demand driven by construction, furniture manufacturing and infrastructure development,” the USDA-FAS said.

Despite the projected growth, the report anticipates challenges to the wider adoption of American wood products in the Philippines.

These include higher shipping costs, competition from lower-priced wood imports from Southeast Asian neighbors and a shift to lower-grade wood for affordability.

Concerns about US wood products’ performance in tropical climates, the limited awareness of the quality of US softwood and hardwood and the misconceptions about the strength and durability of softwoods may hamper exports to the archipelago.

Further, limited expertise in production, value-adding processes and the application of US wood in construction designs may further curb exports.

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“Despite these obstacles, the Philippine market presents significant untapped potential for US exporters, particularly in construction and furniture manufacturing,” USDA-FAS added.

The agency said Philippine-bound American wood cargos reached a value of $22 million in 2024. That meant a 33-percent increase from a year earlier.

The US delivered sawn, chipped, sliced or peeled pine or other coniferous wood, cooperage products, nonconiferous veneer sheet, cross-sectional of pine, sawn, chipped, sliced or peeled oak wood and pallets to the Philippines.

The report said the US was the top buyer of Philippine furniture exports last year, valued at $76 million and cornering a 60-percent market share. It noted growing opportunities for American wood products.