Economic aspects of the sector

Brazil’s planted-tree sector reaffirms its role as a strategic driver of economic growth, innovation and sustainability with yet another record-breaking year. Outperforming national GDP, consolidating its global leadership in pulp exports, growing revenue and strengthening the trade balance reflect not only its high international competitiveness but also its solid sustainable development strategy.

Global demand for renewable products, combined with growing domestic output and lower dependence on imports, highlights the key role of the planted-forest chain in the transition to a low-carbon economy, strengthening Brazil’s leadership in the bioeconomy and global sustainability agenda.

The planted-forest production chain grew by 10.4%, well above the 3.4% growth of Brazil’s Gross Domestic Product (GDP).

Trees grown for industrial purposes continue to play a fundamental role in the Brazilian economy and remain one of the pillars of national industry.

Exports and trade balance

Showing strong competitiveness, exports from Brazil’s planted-tree industry reached a record US$ 15.7 billion, surpassing the previous high of US$ 14.3 billion set in 2022, with a compound annual growth rate (CAGR) of 6.3% over the period. The sector accounted for 4.7% of all Brazilian exports.

In 2024, 73% of the sector’s exports went to China, North America and Europe. China remained the main market, taking 31% of exports, or US$ 4.8 billion, up 20.8% on 2023. Europe rose to second place, with exports totaling US$ 3.6 billion and strong growth of 45.3% over the previous year, overtaking North America, which reached about US$ 3 billion in 2024, up 5.2% on 2023.

Job creation

The planted-tree sector reached its highest-ever levels of employment and payroll in 2024, its best performance in recent years. Direct employment reached 717,900 workers, up 3.7% on 2023.

Alongside direct jobs, indirect jobs totaled 2.06 million in 2024, bringing total direct and indirect employment generated by the sector to 2.8 million. When effects on other areas of the economy are included — such as jobs created in retail, services and transport due to the sector’s activities — induced employment reaches 3.86 million people.

Over the same period, the annual payroll grew even faster, rising 11% to R$ 31.3 billion.

Industrial production

Industrial production based on planted trees plays a strategic role in the national economy, combining technology, sustainability and value creation. With operations in every region of the country, the sector has a robust industrial structure of mills and distribution centers, underscoring its relevance and reach across Brazil.

This territorial spread strengthens the sector’s competitiveness, contributing to regional development, job creation and better logistics infrastructure.

Focused on innovation and sustainable practices, the sector operates in an integrated way, serving diverse markets and committed to competitiveness at home and abroad.

Wood panels

In 2024, wood panel production reached the highest level on record, at 9.7 million cubic meters, up 19% on 2023. Over the same period, exports rose 38% and domestic sales 16%.

MDF panels, with domestic sales of 5.3 million cubic meters and a 20% increase over the previous year, accounted for 64% of the domestic market. MDP panels totaled 2.9 million cubic meters in domestic sales, or 36% of the total.

Brazil moved up one place, overtaking Canada, to rank 8th in the world in reconstituted wood panel production, with 9.7 million cubic meters — returning to the position it held in 2022.

Sawn wood

Sawn wood production in 2024 remained at around 8 million m³, in line with recent years. Exports also held steady.

Brazil ranked 9th among the world’s largest sawn wood producers. The United States remains the leader with 63.5 million m³, followed by Russia in second place with 34.9 million m³.

Despite a considerable drop in sawn wood exports to North America, the region remains the main destination (35.1%). Central America and the Caribbean came second, with a significant increase to 29.8% of the total.

Forest areas

Year after year, Brazil’s planted-tree sector has delivered outstanding results. In 2024, the total area planted with trees for industrial purposes reached 10.52 million hectares, up 2.8% on 2023. The growth in planted area follows the opening of new mills.

Plantations are expanding mainly over previously degraded land, replacing low-productivity pasture with trees that capture carbon from the atmosphere and provide a wide range of ecosystem services essential to nature and society, such as protecting biodiversity, soil and water resources.

Forest plantations are concentrated in the states of Minas Gerais (MG), Mato Grosso do Sul (MS), São Paulo (SP), Paraná (PR) and Santa Catarina (SC), each with more than 1 million hectares.

The total area planted with eucalyptus in Brazil reached 8.1 million hectares in 2024, making it the country’s main forest crop. The Southeast leads with 43% of plantations — about 3.5 million hectares — followed by the Center-West, with roughly 22% of the national total.

By state, Minas Gerais is the largest eucalyptus producer, with 2.2 million hectares, about 27% of the country’s total area.

Mato Grosso do Sul is now the second-largest state by planted area, with 1.5 million hectares, or 19% of the total. The state stands out as the main frontier of forestry expansion in Brazil: of the sector’s 234,000 new hectares in 2024, 80% were in MS.

Pine plantations in Brazil held at 1.9 million hectares in 2024, a slight 2% decrease on the previous year, mainly in the state of Paraná.

Unlike eucalyptus, which is more widely distributed, 89% of pine plantations are concentrated in southern Brazil, equivalent to about 1.69 million hectares. This concentration is directly linked to the ideal soil and climate conditions for the species. Outside the South, São Paulo has the largest pine plantations, with 154,200 hectares.

Sustainability

Brazil’s planted-tree sector is guided by the principles of sustainable development. The industry shows in practice that it is possible to produce and conserve at the same time. It is a sector that makes smart use of land, respects nature and cares for people.

In response to growing public demand for responsibly produced sustainable solutions, companies in the sector have expanded their role as agents of development. Besides promoting socio-productive inclusion through jobs and income, they adopt strict social and environmental standards, ensuring responsible practices throughout the value chain.

At the same time, they invest in research, innovation and low-impact technologies, driving competitiveness with sustainability. They also fund social initiatives that directly improve living conditions and strengthen the communities where they operate.

As a result, the sector is also an ally in tackling the greatest challenge of our time: climate change. This chapter reports the social and environmental contributions of the planted-tree sector, showing how these principles are put into practice.

Forest certification

As a pioneer and on a voluntary basis, the sector has for more than two decades adopted strict international labels that validate its commitment to sustainability, going well beyond legal compliance.

Through third-party audits, forest certifications serve as a control mechanism demonstrating companies’ commitment to good environmental, social and economic management practices, as well as to the traceability of the wood supplying their mills.

The standards cover everything from planting to harvesting, taking into account the prevention and mitigation of potential impacts on the environment, neighboring communities and workers’ health and safety.

In Brazil, the most widely used systems are FSC® (Forest Stewardship Council®) and PEFC (Programme for the Endorsement of Forest Certification), and dual certification is possible.

From 2020 to 2024, the total certified area (productive planted forests plus conservation areas) grew significantly, from 6.8 million to 10.7 million hectares, an expansion of about 57%.

This growth came mainly from the increase in FSC-certified areas, which rose from 2.4 million to 4.7 million hectares. In the last year, however, total area grew less, by just 0.2 million hectares, concentrated in dual-certified areas.

This was accompanied by a decline in areas certified only by FSC or only by PEFC, suggesting a consolidation of multiple labels as a strategy to meet the varied requirements of markets in global supply chains.

Looking only at certified planted area — that is, the productive area — there was a steady increase between 2020 and 2023, from 3.7 million to 7.8 million hectares, holding at that level in 2024.

This represents an expansion of more than 110% in certified forest plantations over the period. PEFC certification drove most of the growth, rising from 0.5 million hectares in 2020 to 2.5 million in 2024 — more than a fivefold increase.

Dual certification (FSC/PEFC) also grew steadily through 2024, reaching 2.8 million hectares. FSC-only certification reached 2.6 million hectares in 2023 but fell 13% in 2024.

Brazil remains a global leader in certification, ranking 4th in FSC-certified area and 11th in PEFC, as well as among the top 11 in FSC Chain of Custody (CoC) certifications and 36th in PEFC.

ESG in the supply chain

With structured selection, assessment and engagement practices, companies in the sector seek to build an ethical, resilient supply chain aligned with their values and sustainability standards.

In 2024, 84% of companies responding to the Ibá survey reported requiring their suppliers to meet ESG criteria stricter than mere legal compliance.

Responsibility for indirect impacts along the production chain calls for an increasingly preventive, collaborative and transparent approach. The three main actions taken with suppliers to ensure ESG compliance were periodic compliance monitoring through document review (adopted by all responding companies), periodic compliance monitoring with on-site inspections (adopted by 54%), and periodic risk-based compliance monitoring (adopted by 50%).