Demand for Finnish forest industry products is expected to increase as the global economy recovers. At the same time, the decline in paper continues, with no clear signs of improvement.
This is according to an analysis by the Metsäntutkimuslaitos, which notes that exports of several key products are growing this year – except for printing and writing paper.
Export growth across segments
A gradual improvement in the global economy, combined with a weaker euro, is supporting exports. Sawn timber is among the segments expected to benefit the most.
Demand for sawn wood is rising, with exports projected to increase by around five per cent. Prices are also expected to strengthen.
Domestic construction activity is showing early signs of recovery, although consumption of wood products remains below last year’s levels.
The plywood sector is also expanding, with higher production and exports. Board and pulp follow a similar trend, with both volumes and export prices forecast to increase slightly.
Global demand drives growth
The expansion is largely driven by rising global demand, particularly from Asia. Consumption of tissue products – such as hygiene and household paper – continues to grow in the region.
This reflects a broader structural shift in the industry. Demand for packaging materials and hygiene products is increasing, while digitalisation continues to reduce the need for traditional paper products.
– The recovery of the global economy and the weakening of the euro are strengthening export conditions, Metla states in its assessment.
Paper remains under pressure
Despite growth in other segments, the market for printing and writing paper continues to weaken. Production and exports are expected to remain below the previous year’s levels.
The decline is driven by long-term structural changes, including digitalisation and shifting consumption patterns. Reduced demand for printed media continues to weigh heavily on Finland’s forest industry, which has historically relied on paper exports.
This trend is forcing the sector to adapt, with increasing focus on alternative products such as board, biomaterials, and speciality products.
Source: Metsäntutkimuslaitos (Metla)
Fact check:
Metla, now part of Finland’s Natural Resources Institute, monitors developments in the forest sector. Over recent decades, global demand for printing paper has declined, while board and pulp have gained importance, particularly alongside the growth of e-commerce.
