ABSTRACT
This chapter reviews current market conditions and trends in demand for tropical timber products. An understanding of how markets respond to changes in the prices of tropical timber and the availability of substitute products is essential in formulating appropriate timber management and trade policies. Projections of consumption of forest products in developing and developed countries show that the anticipated growth in consumption in developing countries will exceed that in developed countries. The nature of market demand for tropical timber products can be described in terms of various standard measures of price elasticity. An important factor determining the demand for tropical timber products is the extent to which other types of wood products are potential substitutes. Tropical timber products may also be substituted by other, non-wood products in end uses. The reluctance of UK consumers to pay a premium for ‘sustainably’ produced timber products may have been influenced by the prevalence of a major economic recession during the time of survey.
