Industry Overview
The US woodworking industry was valued at $258.5 billion in 2018 and is expected to reach $291.3 billion by 2024. This industry includes wood product manufacturing, which is a $6 billion industry. The construction industry, a major consumer of woodworking products, is also expected to grow by 2.2%.
In the United States, there are around 20 million hobbyists who engage in woodworking. This accounts for a market that is worth $5 billion. Around a third of these hobbyists are considered serious woodworkers, and they spend an average of $1,600 on woodworking tools and supplies each year. The market for hobby woodworking is growing, as more people become interested in the craft.
North America is a major market for woodworking tools, with a high demand for advanced tools and machinery, featuring countries like the United States and Canada. Europe too commands a significant share in the market with Germany, the United Kingdom, and Italy being some of the top countries in the region.
Identifying Market Opportunities
You’re looking for a market gap to fill. For instance, maybe the local market is missing a woodworking business that makes wooden toys, wooden cutting boards, or custom furniture made to a customer’s specifications. You could target a niche by specializing in products like wooden dining tables or wood armoires.
Marketing Strategies and Market Research
Flea markets are excellent venues to start marketing your woodworking projects. They are typically low cost to set up and can attract a good amount of foot traffic. Many woodworking vendors report making $200-$500 each day at a flea market after the vendor fee.
After establishing that there is a market, it’s crucial to determine the specific traits of your target market through research.
The Growing Segment of Woodworking Tools
Router bits account for 14% of the overall market for woodworking tools worldwide. With an increasing trend towards automation in many industries, demand for wood CNC router bits is expected to rise. Router bits are used in various woodworking operations including milling, drilling, grooving, profiling, engraving, and carving.