Industry snapshot
Key public data points
Historical & forecast
Base year 2025. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2030.
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What does the Forestry & Logging in Australia industry cover?
The industry comprises businesses primarily engaged in growing standing timber in native or plantation forests, as well as those harvesting and cutting logs. It covers activities such as felling, cutting, and roughly shaping logs into basic products like railway sleepers or posts. It excludes downstream processing activities like sawmilling, woodchipping, and support services such as planting or pruning.
- •Classified under ANZSIC Class 0301 (Forestry) for growing operations and Class 0302 (Logging) for harvesting.
- •Includes both softwood (principally radiata pine) and hardwood (predominantly eucalypt species) resources.
- •Excludes silvicultural support services, which are captured under ANZSIC Class 0510 (Forestry Support Services).
Market Structure and Operators
Who operates in the industry and how is it structured?
Australia's forestry and logging sector is characterized by a mix of state-owned corporations managing public forest estates and large institutional timberland investment management organizations (TIMOs) managing private plantations. The commercial plantation estate is divided between 1.02 million hectares of softwood and 670,900 hectares of hardwood as of 2024-25. Cultivated land and harvesting operations are concentrated in specific regional hubs, notably the Green Triangle (straddling South Australia and Victoria), Tasmania, and regional New South Wales.
- •The total plantation estate stood at 1,709,800 hectares in the 2024-25 period.
- •Direct employment in the national forestry and logging subsector stood at 6,651 people according to the latest ABS Census.
- •State-based public enterprises manage native harvesting and public plantations, while private timberlands are primarily owned by institutional investors.
Demand Drivers
What drives demand in the industry?
The primary driver of log demand is the domestic residential construction sector, which consumes structural sawn softwood. Fluctuations in residential dwelling commencements directly impact the volume requirements for structural timber. Additionally, international export markets for woodchips and lower-grade logs, predominantly in North Asia and India, dictate demand for Australian hardwood plantation estates.
- •Total Australian dwelling commencements grew by 11.9% to 179,000 units in 2024-25, boosting structural wood demand.
- •Wood product exports from Australia reached a total value of $2.89 billion in 2024-25, representing a 6.6% increase.
- •Downstream manufacturing of paper, packaging, and wood panels drives demand for lower-grade pulpwood and sawmill residues.
Competitive Landscape and Notable Public Companies
Who are the notable companies in the industry?
The competitive landscape consists of large-scale private plantation managers and state-backed forest corporations. Private management is heavily consolidated under major international and local investment managers. There are few direct pure-play forestry operators listed on the Australian Securities Exchange (ASX), with most operations organized as private trusts, proprietary companies, or state entities.
- •Forestry Corporation of NSW manages more than 2 million hectares of public native and plantation forests.
- •Hancock Victorian Plantations (HVP Plantations) manages over 240,000 hectares of land in Victoria, supplying over 3 million tonnes of wood annually.
- •HQPlantations Pty Ltd is Queensland's largest plantation manager, controlling more than 300,000 hectares.
- •Forico Pty Limited acts as Tasmania's largest private forest manager, overseeing approximately 173,000 hectares of land on behalf of New Forests.
Recent Trends and Outlook
What are the recent trends and outlook?
The industry is undergoing a structural shift away from native forest logging toward exclusive reliance on commercial plantations. This transition has led to localized supply constraints for hardwood sawlogs, raising the sector's reliance on softwood plantation estates and structural timber imports to meet housing demand. Environmental credentials, carbon sequestration markets, and natural capital accounting are also becoming key strategic areas for large land managers.
- •The volume of native forest logs harvested was 2.4 million cubic metres in 2024-25.
- •The value of commercial plantation log harvests declined by 4.5% to $1.966 billion in 2024-25.
- •Major operators like Forico have integrated Natural Capital Reporting to quantify environmental benefits beyond timber fibre production.
Regulation and Compliance
How is the industry regulated?
Forestry and logging activities in Australia are subject to strict environmental regulations, code-of-practice standards, and international certification schemes. Operations must comply with state-based forestry acts, environmental protection laws, and federal regulations targeting illegal logging. Voluntary third-party certifications are widely utilized to verify sustainable forest management practices to domestic and export markets.
- •The federal Illegal Logging Prohibition Act 2012 regulates the import of timber products and processing of domestic raw logs.
- •Major players maintain certification under the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC/Responsible Wood).
- •The industry is supported by R&D funding from Forest & Wood Products Australia (FWPA), which is financed by statutory grower levies and federal matching grants.
Sources
Government, statistical and trade sources used for this Claight analysis.
- ABARES Australian Forest and Wood Product Statistics 2024-25 ·
- Australian Bureau of Statistics Census of Population and Housing 2021 ·
- ABARES Australian Plantation Statistics Update 2024-25 ·
- NSW Department of Primary Industries Forestry Report 2025
Claight analysis of public industry data.