China's wood resource efficiency has paramount importance in shaping the global wood utilization landscape. This research aims to explore the impact of spatial agglomeration on wood resource efficiency and evaluate the feasibility of improving efficiency by expanding wood-processing clusters. Findings reveal a dilemma within China's wood-processing industry, wherein the wood resource efficiency exhibits persistent stagnation, and need a breakthrough. Econometric results unveil the substantial positive influence of spatial agglomeration on wood resource efficiency within China's wood-processing industry, indicative of the prospects for enhancing wood resource utilization efficiency through the deliberate exploitation of agglomeration effects. These findings indicate that industrial clusters serve as pivotal catalysts for efficiency enhancements. The misalignment between China's wood-processing industrial parks and the regional distribution of artificial forests reveals the necessity of reconfiguring the industrial layout to maximize resource efficiency. Insights from China's wood industry can be a valuable guide for those seeking to achieve forest sustainable development.