Poland's forestry and timber industry is entering another difficult year as weaker European demand, rising raw material costs and tighter timber availability continue to weigh on production across the value chain. Since 2022, sold production has declined by more than PLN 35 billion (EUR 8.2 billion), while employment has fallen by approximately 45,000 jobs, highlighting the depth of the downturn affecting one of Europe's largest wood-processing industries.<\/p>\n
Despite current market conditions, the sector remains one of Poland's largest industrial employers and exporters. Forestry, wood products, paper and furniture manufacturing generated PLN 203.1 billion (EUR 47.4 billion) in sold production in 2025, accounting for 9.9% of the country's industrial output. The industry employs approximately 423,000 people across more than 81,000 companies and generates an annual positive trade balance of PLN 69.9 billion (EUR 16.3 billion), making it Poland's second-largest export contributor after the food industry.<\/p>\n
Production and profitability continue to weaken<\/strong><\/p>\n The slowdown has accelerated over the past three years. Sold production declined from PLN 238.5 billion (EUR 55.6 billion) in 2022 to PLN 203.1 billion (EUR 47.4 billion) in 2025, while forecasts indicate a further decline to PLN 199.5 billion (EUR 46.5 billion) in 2026.<\/p>\n Lower production has been accompanied by a sharp deterioration in profitability. Gross sales margins in furniture manufacturing fell from 5.7% in 2022 to 4.4% in 2025, while profitability in the wood products sector dropped from 10.9% to 3.6%. Financial pressure is becoming increasingly widespread, with almost one-third of medium and large woodworking companies reporting losses, alongside more than one-quarter of furniture manufacturers and one-fifth of paper producers.<\/p>\n Employment has followed the same downward trend. Since 2022, approximately 29,000 jobs have been lost in furniture manufacturing and another 16,000 in the woodworking sector, reducing total employment by around 45,000 positions in just three years.<\/p>\n Chinese imports gain ground<\/strong><\/p>\n At the same time, Polish manufacturers are facing increasing competition from imported furniture.<\/p>\n Furniture imports from China reached a record EUR 1.11 billion in 2025, compared with EUR 417.6 million in 2018, while import volumes more than doubled from 169,300 tonnes to 429,500 tonnes. The shift has been accompanied by a significant change in pricing. While the average export price of Polish furniture increased from EUR 2,986 to EUR 3,198 per tonne, the average price of Chinese furniture imported into Poland declined from EUR 3,687 to EUR 2,595 per tonne over the same period.<\/p>\n The widening price gap has made it increasingly difficult for Polish manufacturers to compete in the lower-priced furniture segment, where Asian suppliers have steadily expanded their presence. Across Europe, furniture imports from outside the continent reached approximately EUR 20 billion in 2025, with China accounting for nearly 70% of total imports.<\/p>\n Timber availability becomes the industry's biggest concern<\/strong><\/p>\n While weaker demand has affected production across Europe, Polish manufacturers argue that domestic timber policy has become an additional challenge.<\/p>\n Average timber prices increased from approximately PLN 197\/m\u00b3 (EUR 46\/m\u00b3) in 2020 to around PLN 281\/m\u00b3 (EUR 66\/m\u00b3) in 2025 despite softer demand from the construction and furniture industries. At the same time, the State Forests reduced its timber sales plan from 40.18 million m\u00b3 in 2024 to 37.18 million m\u00b3 in 2026, removing around 3 million m\u00b3 of timber from the domestic market.<\/p>\n Manufacturers argue that lower timber availability is increasing procurement costs at a time when finished product prices remain under pressure, reducing competitiveness both within Europe and against imported products.<\/p>\n Forest protection measures reduce planned harvests<\/strong><\/p>\n The reduction in planned timber supply follows a series of environmental measures introduced by Poland's Ministry of Climate and Environment since 2024. These include harvesting moratoria, the expansion of community forests, new nature reserves, additional protection for old-growth forests, the \"Green Shield East\" programme and plans to place 20% of Poland's most valuable forests under enhanced protection. According to estimates presented during the market review, implementing the 20% target would place approximately 1.43 million hectares under harvesting restrictions while excluding at least 787,000 hectares from commercial harvesting.<\/p>\n The forestry and timber sector argues that no comprehensive assessment has yet been published on the economic consequences of these measures for sawmills, panel manufacturers, paper producers and furniture companies. The industry is calling for further restrictions affecting timber supply to be suspended until such an assessment has been completed. It is also seeking an additional 2 million m\u00b3 of timber supply during the second half of 2026 and wants timber availability in 2027 restored to at least 41 million m\u00b3.<\/p>\n Poland's forest resources continue to expand despite current harvesting levels. Annual timber harvesting reached approximately 41 million m\u00b3 in 2024, while annual forest growth was estimated at around 66 million m\u00b3. Standing timber resources are estimated at 2.72 billion m\u00b3, meaning annual harvesting represents only about 1.5% of the country's growing stock.<\/p>","protected":false},"excerpt":{"rendered":" Poland’s forestry and timber industry is entering another difficult year as weaker European demand, rising raw material costs and tighter timber availability continue to weigh on production across the value chain. Since 2022, sold production has declined by more than … Continue reading