China's forest products manufacturing industry is facing challenges due to forest protection policies and wood scarcity. The industry's spatial distribution is imbalanced, with a core-periphery structure and a tendency to move south. Provinces in the southeast coastal area show high agglomeration. Factors like forest policies, raw material sources, international trade, and marketization influence the industry's spatial agglomeration and evolution. To thrive, the industry should increase spatial agglomeration for economies of scale.