Market Overview


China has the largest population. It is evolving into an emerging market economy and the country has experienced significant growth.


Economic Growth


China has the world’s largest population (over 1.3 billion). It is evolving into an emerging market economy and the country has experienced significant growth, with an average annual growth rate in Gross Domestic Product of 9.6% over the past 10 years (source: National Bureau of Statistics of China). This economic growth has been driven by low-cost manufacturing and exports, government and foreign investment, and the increasing personal disposable income of Chinese consumers.


Although China is an enormous and complex country facing large-scale political, economic, social, infrastructure and environmental challenges, its government is introducing economic liberalization at a rapid pace. Many vibrant regional economies within China are driving demand for essential resources such as water, electricity, oil, minerals and wood.


Consumer Demand


Reforms in China over the past two decades have led to one of the fastest transformations in human history in terms of industrialization, urbanization, and the rise of consumerism. There is a rapidly growing segment of middle-income consumers, particularly in coastal provinces where Emerald Plantation primarily operates. Millions of more people are buying or building new homes each year. In 2012, the total investment in real estate development was RMB7.2 trillion, a nominal annual growth of 16.2%. The increase is driving up demand for wood-based, roof and wall framing, flooring, doors, window frames and trim, furniture and interior decoration items. The annual production of wood and bamboo-based flooring and wood furniture in 2007-2011 increased at an average growth rate of 23.0% and 4.2% respectively to help fulfill domestic consumption. (source: State Forestry Administration)


Industrial Demand


Domestic and foreign consumers are driving strong demand for wood fiber in various manufacturing industries. The national annual timber consumption in 2011 was 500 million m3, an increase of 15.8% from 2010. Around 77.8% of the national consumption was for industrial and construction purposes. (source: State Forestry Administration)


China Wood Shortage


Complete and reliable data on China’s annual wood consumption is lacking and there is no definitive authority responsible for estimating the country’s total wood consumption. Latest available data collected from various sources, however, indicated that China’s annual timber consumption in 2011 was approximately 500 million m3, of which 45% was met by imports. The average growth rate of the country’s annual consumption was 8.5% during 2007 – 2011.  (source: State Forestry Administration 2012)



The Chinese economy has been growing robustly  in the past decade, with an annual growth rate in GDP of 9.6%. (source: National Bureau of Statistics of China)


China’s timber consumption has been increasing. Domestic production is inadequate to meet consumption, creating a shortage gap. (source: State Forestry Administration)