Brazil’s Forest-Based Industry Supports a Major Economic Value Chain

Access to renewable raw materials is a competitive advantage for Brazilian industry, but the economic significance of the planted tree value chain extends far beyond the forest. Figures for 2024 reveal a substantial economic structure, with a strong international presence, significant employment and a supply chain facing increasingly demanding environmental and social requirements.

According to the 2025 Annual Report published by the Brazilian Tree Industry (Ibá), Brazil’s planted forest value chain grew by 10.4% in 2024, compared with 3.4% growth in the country’s GDP.

This performance is particularly evident in international trade. Exports from Brazil’s planted tree industry reached a record US$15.7 billion, accounting for 4.7% of the country’s total exports. The result also surpassed the US$14.3 billion recorded in 2022, previously the highest figure in the series presented by Ibá.

Three markets account for 73% of exports

China, Europe and North America together accounted for 73% of the sector’s exports in 2024.

China remained the leading destination, purchasing US$4.8 billion, or 31% of the total, an increase of 20.8% compared with 2023. Europe moved into second place, at US$3.6 billion, following growth of 45.3%. North America received approximately US$3 billion, up 5.2%.

These figures cover Brazil’s entire planted tree industry – not only the segments associated with furniture manufacturing. Pulp represents a significant share of these exports. Even so, the figures help illustrate the economic and export scale of a forest-based value chain that also supplies wood-based panel producers, wood processing companies and, further downstream, the furniture industry.

It is precisely this scale upstream of furniture manufacturing that distinguishes Brazil from markets that are more dependent on imported raw materials.

Nearly 718,000 direct jobs

The sector’s economic significance can also be seen in employment. In 2024, it accounted for 717,900 direct jobs, an increase of 3.7% over the previous year and the highest level in the series presented by Ibá.

Indirect employment was estimated at 2.06 million jobs, bringing the combined number of direct and indirect jobs associated with the sector to 2.8 million. Total annual payroll reached R$31.3 billion, an increase of 11% compared with 2023.

The geographical distribution of forestry and industrial activities across different regions of Brazil further extends the sector’s impact on local economies, infrastructure and services.

ESG requirements are reaching suppliers

Another indicator reveals a less visible transformation, but one that is particularly relevant to companies seeking to participate in international supply chains.

In a survey conducted by Ibá, 84% of responding companies said they require suppliers to meet ESG criteria that go beyond basic legal compliance.

All respondents reported conducting regular compliance monitoring through document reviews, while 54% also carry out on-site inspections and 50% use risk-based monitoring.

These figures indicate that some of the environmental and social requirements adopted by large companies are extending further into the supply chain. For suppliers, raw material origin, documentation, traceability and compliance are increasingly becoming part of the requirements for doing business.

The value chain behind the product

For those who see only the finished piece of furniture, an important part of Brazil’s production structure remains out of sight. Furniture manufacturing is part of a much broader forest-based and industrial value chain encompassing different activities, markets and products – from pulp and paper to wood-based panels and processed wood.

Ibá’s figures measure this broader industry, not the furniture sector specifically. Nevertheless, they reveal the scale of an economic and industrial base that also includes some of the main suppliers of raw materials to Brazilian furniture manufacturers.

For international buyers, understanding this structure helps place Brazilian furniture in a broader context: not as an isolated manufacturing activity, but as part of a developed and integrated production chain.

Source: Ibá 2025 Annual Report – 2024 data.