💰Paulownia and Investments

Here are 5 reasons why Paulownia is an interesting investment opportunity:

1. Paulownia is a unique tree that does not die after being cut down, but constantly regenerates and recovers, reaching a volume of 1m3 in 5 years for the second time. Paulownia lives for at least 100 years, which allows to obtain significant volumes of wood 5-6 times, every 5 years.

2. Paulownia is the fastest growing tree in the world. The return on investment is only 5-6 years. After this period, the tree will be fully ready for processing and further regeneration;

3. Paulownia absorbs carbon dioxide, dust and noise 4 times more than a normal tree. Paulownia is a real oxygen factory. In terms of its ability to purify the air, Paulownia tree is the best compared to any other species.

4. Paulownia is used as premium wood in the production of ships (including yachts and boats), construction, finishing (market - $5.3 billion), production of premium furniture (market - $6 billion), musical instruments ($5 billion) and in many other areas.

To illustrate, we conducted a direct comparison of investments in paulownia and bank deposits.

We chose this sector for comparison because traditional bank deposits are a relatively safe way to invest money. They offer guarantees of the return of funds and interest rates, which are usually higher than inflation. However, bank deposits do not offer high yields - the investor is more likely to protect their funds from inflation than earn anything.

Factors	Investments in Paulownia	Bank Deposit
Profitability	25-45%	3-4%
Risk	Medium. The price of paulownia wood can fluctuate depending on the supply and demand	Low. However, investors who deposit their funds with banks may be at risk of losing their money in the event of a bank bankruptcy or insolvency
Investment Period	Mixed	Mixed
Features	Paulownia is a sustainable, environmentally friendly and inflation-proof investment. It is resistant to drought and diseases, and has a lower risk of loss than other types of trees	Bank deposits offer guarantees of the return of funds, and many banks offer "inflation protection". This is an interesting option for investors who want to preserve their capital rather than increase it

Paulownia is always in demand and is priced high, due to its premium quality and high growth rate.

For example, paulownia is part of the global laminate market, which is estimated at $42 billion and is expected to grow to $55 billion by 2033. CAGR is about 2.7% [source].

The high strength-to-weight ratio and low density of paulownia also make it suitable for boatbuilding. The global market for recreational boats, including sailboats, jet boats, watercraft, etc., was estimated at $41.1 billion. A significant growth in the segment of new recreational boats is projected from 2021 to 2028, due to the introduction of new technologies in boats, such as artificial intelligence and the internet of things, which should stimulate the growth in demand for building materials for boats.

As the paulownia market is still in its early stages of development, data on the size of the overall market is limited. It is known that China is the largest producer and exporter of paulownia timber today, but it is also grown and sold in small quantities in some parts of Europe, Australia, the United States, and other parts of Asia.

According to Chinese customs, China exports more than $43 million worth of paulownia timber (specifically, sawn timber more than 6 mm thick). According to this statistic, the largest importer of Chinese paulownia was the United States, which imported $16.3 million [source]. Australia and Germany are also major importers, but the total import value is less than $2 million.

The US Customs and Border Protection only tracks trade data for unprocessed paulownia, so these figures are much lower than China's. The total value of US exports was $426,000, of which $374,000 went to Japan. Imports of unprocessed paulownia from the United States were around $1.2 million (2020), of which almost 100% came from China.

It is important to note that the market of traditional timer is huge, exceeding the current market of Paulownia by hundreds of times. However, Paulownia can easily become a profitable replacement for widespread types of wood, as it can offer the same products - furniture board, lining, board, imitation timber and much more, while with much more advantageous characteristics (absence of knots, moisture resistance, 2 times higher ignition temperature, flexibility and strength) and at the same time at competitive prices. It is important to note that the business plan of the project and the profitability announced to investors are calculated not by unique expensive Paulownia blanks, but by the minimum current prices of the most common sawn timber, which Paulownia easily exceeds in quality. This creates a higher protection for the investor, since in this case the demand is not limited only to the Paulownia market, the project products will be presented in a wide lumber market. In addition, Paulownia is a premium wood used where traditional wood species cannot provide the necessary characteristics - yacht finishing, production of musical instruments, snowboards and downhill skis. This also creates additional opportunities and additional investment stability for the investor, but, as already mentioned, is not taken into account in calculating the profitability of investments.

Next, we will describe the technology and process that creates the conditions for Paulownia to grow and thrive, so that our investors can be confident in the safety of their assets.

💎Web3Eco and Paulownia