The Economic Intelligence Center (EIC) predicts local rubberwood production in Thailand is set to increase by three per cent in the medium term, from 20 million tonnes in 2016 to about 23 million tonnes in 2020.
This is due to the new plantings between the period 1991 and 1995. A rubber tree’s latex production capacity usually lasts about 25 years, after which the amount of latex produced falls drastically and is cut down to grow new ones.
In fact, according to EIC, Thailand’s rubberwood production is expected to expand by about five per cent annually, reaching 35 million tonnes in 2030.
The country is also a major exporter of rubberwood, shipping over 65 per cent of its rubberwood production abroad. Its competitiveness due to its quality has become a popular choice in the furniture and construction industries. In addition, its impact on the environment is low—an important consideration for today’s buyers.
With expansion in the real estate sector and furniture industry, Thailand’s rubberwood exports to China is set to grow too. In 2016 alone, home sales in China totalled to approximately 9.6 trillion yuan with China’s rising per capita income and the growth of third- and fourth-tier cities being some of the factors for the purchase of wood furniture and other wood-based products. China’s wooden furniture exports are doing well too.
The EIC expects export sales figures to rise even more in the future with increased demand from America as the economy recovers. Currently the U.S. is the biggest importer of Chinese wooden furniture.
This article is part of a longer series in the Sylva Wood 2018 show preview. It was first published in Panels & Furniture Asia (May/Jun Issue). Sylva Wood 2018 runs from 25 – 27 June in Shanghai.
