The market for wood - Germany

Tropical forests account for about 7% of the global forest area but are home to more than half of the world's tree species. They are at the center of environmental issues related to the global timber market. Globally, the timber market is estimated at over $1,000 billion (CAGR of 4.1%), with the most developed segments being mainly packaging and paper. There is a growing demand for sustainable packaging made from recycled paper. There is an imbalance between supply and demand, as Nordic countries and North America dominate global wood production, while demand comes mainly from developing countries. The German timber market is also growing, with production approaching 60 million cubic meters. Germany is the largest wood producer in Europe and has a historically well-established wood processing industry. Strong demand for FSC(Forest Stewardship Council) and PEFC(Programme for the Endorsement of Forest Certification) certified wood reflects the country's commitment to sustainable forest management. Many companies are active in the German timber market. Klöckner & Co (the leading German company in the sector) and the Austrian giant Binderholz are the most important. Consumers and companies increasingly seek sustainable and responsible wood products (with appropriate certifications). Digitization and automation are gaining importance in the wood industry, which will change the value chain in this market in the future, as higher quality products at lower cost will be more in demand.