Wood production in Europe

This is an opportunity to discover how wood production can be both beneficial for the economy and respectful of our planet. Let’s dive together into this captivating universe where innovation and sustainability come together to shape a better future.

Sector overview

Wood production in Europe is dominated by countries such as Sweden, Finland, and Germany. In 2022, the region produced around 490 million cubic meters of roundwood, used mainly for the paper, panel, and construction industries. Sustainable forest management is a priority, with almost 40% of European forests certified. Demand for wood has increased due to climate policies favoring the use of renewable materials and biomass energy.

Overall wood consumption

Overall wood consumption in Europe is expected to increase to between 90 and 92 million m³ in 2021. This increase is partly driven by the recovery in housing starts after a significant drop in 2020. Indeed, the number of housing starts decreased from 1.9 million in 2019 to 1.5 million in 2020, but estimates for 2021 predict an increase of 0.2 to 0.3 million starts.

Wood supply imbalance in 2021

In 2021, the wood production sector in Europe faced a significant imbalance. Although the harvest was dynamic, it was not enough to meet the growing demand. The overall balance sheet for the year revealed a shortfall of 1.9 million m³. For comparison, in 2020, supply exceeded demand by around 1.0 million m³, illustrating the rapid turnaround in just one year.

Exports and international markets

Europe continues to increase its exports, particularly to the United States, with a rapidly growing market share. In January-April 2023, exports increased by 25% compared to the same period in 2022, reaching 1.79 million m³. However, pressure on domestic supply could complicate export efforts in the short term.

Imbalance in wood supply in 2021

In 2021, the wood production sector in Europe faced a significant imbalance. Although the harvest was dynamic, it was not enough to meet the growing demand. The overall balance sheet for the year revealed a shortfall of 1.9 million m³. For comparison, in 2020, supply exceeded demand by around 1.0 million m³, illustrating the rapid turnaround in just one year.

Towards a market adjustment

In 2021, the European timber sector is facing an imbalance between supply and demand. With insufficient supply and rising consumption, particularly due to the recovery in construction starts, the market remains under pressure. Forecasts for the third and fourth quarters do not predict any major changes, suggesting a difficult year for the sector. Proactive stock management and a reassessment of export strategies will be essential to meet these challenges and ensure the long-term sustainability of the sector.

Faced with rising climate issues, the conflict in Ukraine, which was a major timber producer, and the pressure of global demand, can Europe continue to exploit its forests sustainably without compromising the ecological and economic balance of the region?