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Germany woodworking Report

Executive Summary

Growing global demand for sustainable materials and smart technologies is driving new opportunities in Germany’s wood industry. Home to Europe’s largest timber reserves and the world’s second-largest furniture exporter, Germany remains a key market for wood products and machinery. In 2025, the sector is expected to stabilize, supported by innovation in automation, AI-driven production, and green construction. With rising exports to regions like the U.S. and MENA, Germany offers strong potential for international companies focused on sustainable building, advanced manufacturing, and high-quality wood solutions.

Introduction  

For the purpose of this report, the German wood industry will be divided into the forestry & logging, woodworking, woodworking machinery, and furniture industries. Tied with Sweden, Finland, and Spain, Germany has the largest timber reserves in Europe. They are estimated at almost 3.7 billion cubic meters, made of spruce, pine, beech, and oak tree forests.  The German woodworking industry is comprised of the following sub-sectors:

  • Sawmills
  • Semi-finished wood products
  • Wood derivate
  • Parquet flooring
  • Building materials
  • Wood packaging
  • Other wood products 
     

Market Overview

German Forestry & Logging Industry  

Germany’s forestry and logging industry, supported by one of Europe’s largest timber reserves covering over 30% of the country, faced significant challenges in 2023 and 2024. Timber harvests declined by 10.3% in 2023 to 70.6 million cubic meters, primarily due to a 13.2% drop in damaged timber. In 2024, the sector’s revenues fell sharply by 21.6% to an estimated €7.0 billion, reflecting ongoing difficulties linked to a weak construction market, bureaucratic hurdles, and persistent consumer uncertainty, contributing to a second consecutive year of recession for the broader German wood industry.

German Furniture Industry 

In 2024, the German furniture industry faced a 7.4% decline in total revenues, falling to €16.4 billion, with domestic sales dropping 6.8% to just under €11 billion and exports, which make up 33% of sales, decreasing by 8.6% to €5.4 billion. Employment also declined by 5.4%, with 71,231 workers in companies of at least 50 employees. Major European export markets such as France, Switzerland, Austria, the Netherlands, and the UK all saw declines, while exports to the United States grew slightly by 1.3%, driven by a 13% increase in kitchen furniture sales. In 2023, China, Poland, and Switzerland were the top exporters of furniture to Germany, with China supplying nearly half of all imports.

German Woodworking Machinery Industry 

In 2024, the German woodworking machinery industry saw a 15% drop in production to €3.6 billion, alongside a 13% decline in exports to €1.8 billion. This followed a strong 2023, when exports rose 10% to €2.7 billion, led by key markets such as the USA (€307 million, up 20%) and China (€255 million, down 1%). However, exports in the first quarter of 2024 fell 17% year-on-year, with significant decreases in major markets like the USA, China, and France, while regions such as the Middle East, North Africa, Australia, and New Zealand recorded growth.

German Woodworking Industry

In 2024, the German woodworking industry saw total sales decline by 7.9% to €37 billion, largely due to reduced consumer demand and a slump in the construction sector. The furniture industry accounted for 44% of turnover (€16.4 billion), while construction-related and supplier industries made up 48% (€17.8 billion). Key subsectors like sawmills and wooden building materials were hit particularly hard: sawmill production fell to 23 million cubic meters of softwood lumber and planed timber—a 5.6% drop from 2022—while the wooden building materials sector declined to €6.5 billion, driven by high costs and a sharp drop in building permits, which fell far short of government targets.

Woodworking Market Outlook  

The German woodworking industry is currently facing a challenging economic environment. In 2024, the sector experienced a 15% decline in production, bringing the total value to €3.6 billion, down from €4.2 billion in 2023. This downturn is primarily attributed to sluggish investment decisions within the wood and furniture industries, stemming from weak construction activity and reduced furniture consumption.  

Business sentiment further reflects this downturn; a survey by the German Economic Institute (IW) revealed that 31 out of 49 business associations perceived the current situation as worse than in 2023. Challenges such as high energy, labor, and material costs, along with bureaucratic hurdles, are contributing to this pessimism. Additionally, half of the associations anticipate job cuts in the coming year, particularly in sectors like iron and steel, mechanical engineering, and construction.    

However, there are emerging signs of optimism. The VDMA Woodworking Machinery Association reports that order intake has likely bottomed out, with initial improvements noted in large orders and standard machinery activities.  Looking ahead, the association forecasts stabilization in 2025, anticipating an increase in orders from the third quarter onward.  They also highlight that innovations in automation, sustainable building materials, and AI-driven production processes could serve as catalysts for future growth.    

In summary, while the German woodworking industry has faced significant challenges in 2024, there are emerging indicators that, with strategic innovations and market stabilization, the sector may experience gradual recovery in 2025.

U.S. Department of Commerce, International Trade Administration, Contact Information: 

For additional Information, please contact:

Ulrike Riegeler
Commercial Specialist 
U.S. Commercial Service 
ulrike.riegeler@trade.gov 
+49 69 7535 3157 
Frankfurt, Germany