Managed forests and the sustainable forest products industry

February 28, 2025

An industry valued at approximately €640 billion at the end of 2023, the global forest products market is projected to grow by a 13.2% compound annual growth rate between 2025 and 2031.

This growth is driven by increasing demand for renewable and sustainable materials as industries and consumers alike shift towards environmentally friendly alternatives. Products such as timber, paper, and bio-based materials derived from forest resources are seeing heightened interest due to their lower carbon footprints and potential to replace non-renewable materials. Additionally, advancements in forestry management and technology are helping improve resource efficiency and sustainability, ensuring that forests can continue to provide economic, ecological, and social benefits for future generations.

One key factor contributing to this growth is the implementation of stricter environmental regulations and policies globally, encouraging industries to adopt greener practices. Certifications like FSC (Forest Stewardship Council) and PEFC (Program for the Endorsement of Forest Certification) are becoming more widespread, assuring consumers that forest-based products are sourced responsibly. Furthermore, innovations such as engineered wood products and cellulose-based textiles are opening new markets and applications, demonstrating the versatility of forest resources. By investing in sustainable forest management and adopting circular economy principles, the industry is positioning itself as an essential player in combating climate change and fostering a greener future.

At VIVACE, we have worked on a number of harvest plans that seek to balance environmental conservation with the economic viability of forest resources. Our approach emphasizes selective logging techniques, maintaining biodiversity, and promoting forest regeneration to ensure long-term sustainability. This process also involves collaborating with local communities stakeholders, and environmental organizations to develop strategies that align with global best practices in sustainable forestry.

The harvest plan begins by analyzing the stand level, ranging in size from 10 to 200 acres, and considers the age, size, density, health and economic maturity of the timber. A stand is a continuous block of trees of a similar age, species mix and silvicultural regime. At the forest level, ranging in size from 105,000 to 770,000 acres, we consider the long-term sustainability and environmental impact of certain levels of harvesting, a forest’s progression from an unmanaged to a managed forest, and the level of demand for wood within the region. A forest is a broad administrative unit, made up of a large number of stands.

Active forest management involves the conversion of a forest from an unmanaged to a managed state. An unmanaged forest is made up largely of mature and over-mature stands of timber which are growing slowly, both in terms of volume and value. In a managed forest, there exists a range of age classes, from recently planted stands to economically mature stands. The conversion of a forest from an unmanaged to a managed state can take from one to two forest generations, or rotations. Toward the end of the initial conversion process, a decline in the inventory volume is normal as the harvest of mature and over-mature stands ends, and as the younger, faster growing stands have yet to reach final harvest age.

The benefits of transitioning from an unmanaged to a managed forest are numerous, both economically and ecologically. Managed forests not only produce higher yields of timber and other forest products, but they also promote healthier ecosystems by reducing the risks of disease, pests and wildfires. This approach improves carbon sequestration capabilities, as younger, actively growing trees absorb carbon dioxide more effectively than older, slower-growing ones. Furthermore, the diverse range of age classes found in managed forests provides a more stable habitat for wildlife, enhancing biodiversity and ecosystem resilience.

CPM