Laywood as a filament made from 40% recycled wood that is combined with polymer binders allowing it to be melted and extruded.
Parts printed with Laywood have about the same properties as parts printed with PLA filament. One interesting feature of this material is the ability to add ‘tree rings,’ or a subtle gradation in color from a rich brown to a very nice beige. The color can be changed on the fly by setting the temperature of your printer’s hot end to 180° C for a light color, and 230° C for a darker color.
Right now this filament is a bit expensive; $20 USD per half kilogram. So, you’re not likely to want to print any 3D furniture with this material.
Source [with video]: http://hackaday.com/2012/09/21/3d-printer-filament-made-of-wood/