Demand for American oak reaches an all-time high in India

Total exports of U.S. hardwood lumber and veneer to India in the first three quarters of 2024 reached USD 6.321 million, according to the American Hardwood Export Council (AHEC), the leading international trade association for the American hardwood industry. Statistics compiled from the latest data released by the United States Department of Agriculture (USDA) revealed that U.S. hardwood lumber exports to India reached USD 5.41 million whilst U.S. hardwood veneer exports were valued at USD 911,000. In addition, USD 2.62 million worth of American hardwood logs were imported into the country during the same time period.

According to the data, total hardwood lumber shipped from the United States to India increased by

0.5 percent in value to reach USD 5.41 million (up from USD 5.838 million) and declined by 10 percent in volume to reach 8,013 cubic meters (down from 8,887 cubic meters). However, this downturn was entirely due to a decline in India’s imports of just two species – ash and maple. Exports of the oaks, particularly red oak, as well as hickory and walnut to India during the period increased significantly, with the top four being white oak (USD 1.573 million and 2,224m3), red oak (USD 1.441 million and 2,258m3), hickory (USD 1.282 million and 1,423m3), and walnut (USD 399,000 and 501m3).

“With so much of India’s furniture produced from American hardwoods being for export, market demand is negatively affected by softer global markets for furniture, particularly in the United States and Europe, to where the majority of Indian-made items are shipped. However, as the domestic market for solid hardwood furniture continues to grow, there is likely to be less reliance on exports. This is already being seen as some of the larger export-oriented furniture manufacturers have established new domestic market-focused companies and brands,” said Roderick Wiles, AHEC Regional Director.

India’s annual import of logs, lumber, and wood products has seen a dramatic rise over the past two decades, climbing from USD 630 million to USD 2.3 billion, according to market data. The U.S. has made significant inroads into this expanding market, with its market share reaching a record high of USD 84 million in 2023. This surge in imports is driven by a combination of limited domestic supplies and booming demand from sectors such as retail furniture, handicrafts, and hospitality. According to AHEC, the long-term future potential of India as a major market for American hardwoods will be for products that stay in India.

India’s emergence as a major player in the global wood trade reflects the changing dynamics of international commerce. Countries like Belarus, Russia, and the United States are all looking to India to expand their exports, tapping into the country’s large demand for wood products in construction and manufacturing, where wood is used in a variety of applications, from flooring to furniture. This trend highlights India’s increasing role in the global economy, particularly in sectors like construction. As more countries turn to India to meet their wood export needs, it is clear that the country’s market is poised for significant growth in the coming years.

“In the context of global regulations and shifting trade relationships, India’s position as a key importer of wood is becoming more crucial than ever. Given that products made for the domestic market are less subject to cost constraints than products manufactured for export, the importance of India’s domestic market cannot be ignored. It is extremely encouraging to see India embrace American oak, particularly red oak, which is suitable for a wide range of applications including furniture, flooring, doors, architectural joinery, mouldings and kitchen cabinets. Looking ahead, we hope to significantly increase this interest and demand for American hardwoods in India,” concluded Wiles.

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