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April 17, 2025

Swedish forest industry faces weakest domestic demand since the 1990s

The Swedish forest industry is under significant pressure due to a combination of high costs, weak domestic demand, and global trade uncertainty. According to the latest market report published by the Swedish Forest Industries Federation (Skogsindustrierna), the sector has had a more difficult start to 2025 than previously anticipated. Deliveries of wood products to Sweden’s construction sector have dropped to levels not seen since the 1990s crisis. Despite early hopes for a recovery during the spring building season, domestic demand has remained subdued, while rising costs continue to strain profitability across the value chain—from sawmills to pulp ...

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