LONDON--(BUSINESS WIRE)--Technavio analysts forecast the wood manufacturing market in Romania to grow at a CAGR of close to 5% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global wood manufacturing market in Romania for 2016-2020. The report also lists sawmilled and planed wood; veneer sheets and wood-based panels; and other wood products as the three main product segments where sawmilled and planed wood accounted for 50% of the wood manufacturing market by revenue in 2015, followed by veneer sheets and wood-based panels with approximately 44% and other wood products with 6% of the market share.
Technavio chemicals and materials analysts highlight the following four factors that are contributing to the growth of the wood manufacturing market in Romania:
- Growth of furniture industry
- Rise in popularity of biomass-based energy
- Easy availability of raw materials
- Demand from European countries
Growth of furniture industry
According to the Italian center for Industrial Studies, Romania is the 28th largest producer, 13th largest exporter, and 48th largest consumer of furniture globally. Innovation is high in the market, with an increasing number of manufacturers offering products with aesthetic appeal and durability. Manufacturers work closely with furniture manufacturers to produce innovative products. “Also, increase in popularity of luxury products, such as modular kitchens and wooden flooring, has led to increased adoption of MDF boards and particle boards. All these factors are contributing to the growth of the market,” says Chandrakumar Badala Jaganathan, a lead analyst at Technavio for textile, fiber, and composites research.
Rise in popularity of biomass-based energy
More than 50% of the forests in Romania are owned by the state. The volume of wood available in these forests amounts to approximately 45.91 billion cubic feet. Biomass-based energy is the dominant source of energy in the country. Between 2012 and 2015, more than 230 million cubic feet of wood was used for the production of biomass-based energy. It is estimated that more than 272 million cubic feet of wood will be used for the production of biomass-based energy between 2015 and 2020. This will lead to demand for the raw materials used to generate biomass-based energy, including firewood, wood pellets, and wood chips.
Easy availability of raw materials
Around 28% of the land in Romania is covered with forests. The Institute for European Environmental Policy (IEEP) implemented new afforestation policies which led to the re-forestation of thousands of square kilometers of land in Europe, including Romania. The forests in Europe are now growing at approximately 0.45 million hectares every year. This has led to easy availability of wood for the wood manufacturing industry.
Demand from European countries
More than 50% of the wood produced in Romania is exported to European countries such as Germany, Italy, Turkey, Belgium, Austria, France, Italy, Switzerland, and Spain. It was the major source of wood products in Europe during the economic crisis. Romania ranks 10th among the furniture exporting countries in the EU, with Germany, Italy, and Poland leading the market. Germany, France, UK, and Italy together account for more than 50% of the demand for furniture in the EU. “This makes Romania a very lucrative market for furniture manufacturers as they can avail the opportunities provided by the markets in these countries,” says Chandrakumar.
Browse Related Reports:
- Paper Manufacturing Market in Bosnia and Herzegovina 2016-2020
- Wood Manufacturing Market in Bosnia and Herzegovina 2016-2020
- Wood Manufacturing Market in Serbia 2016-2020
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