The wood market - France

1.2 A healthy global market, driven by the United States and China

The Food and Agriculture Organization of the United Nations updates annually a complete database on wood production and trade balance, by country and wood products/varieties, since ****.

Roundwood

In ****, world production of industrial roundwood amounted to *,*** million m³, a decrease of *.*% from **** (***) [***].

Roundwood production by region World, ****-****, in millions of m³ Source: ****

The United States is by far the leading producer of logs with *** million m³ produced in ****, representing **.*% of the world's total production. Following the USA are Russia, China, Canada and Brazil (***). These five countries produced just over **% of the world's logs in ****.

Distribution of roundwood production by country World, ****, in % Source: ****

Sawn timber

In ****, world sawn timber production amounted to *** million m³, *,*% less than in **** (***).

Regionally, Europe was at the top in terms fo production in **** with *** million m³ (***) [***].

Sawn timber production by region World, ****, in millions of m³ Source: ****

Finally, China and the USA were by far the main producers of sawn timber in ****, with China producing just a little bit more (***). Between **** and ****, China's production  increased by **%, whereas USA's only increased by **% [***].

Distribution of sawn timber production by country World, ****, in % Source: ****

1.3 The French wood market following a negative trend

Turnover on the French market

The entire French timber sector has been shrinking over the last few years. Just between **** and ****, the sector's turnover fell by *%, from €**.* billion to €** billion [***]. Moreover, the number of people employed in this sector also fell, from ***,*** in **** to ***,*** in ****.

Turnover of the French wood market France, ****-****, in billions of euros Source: ****

The figures from the graph above include all activities and related activities of the wood sector (***).

Focusing solely on the sawmill activities, the market has been experiencing a strong growth. According to the FCBA, total invoicing and production in **** for sawmill activities amounted to €*.*** billion, an increase of **% from ****. The **** figure is distributed between hardwoods (***).

Source: ****

Please note that as statistical secrecy covers the value of certain products, the total of the market values may be higher than the total of the products. Some values under statistical secrecy have been estimated at the source.

Foreign trade

In what concerns the trade of raw timber, France imports much more than it exports, and this deficit has only increased in the last few years. In fact, in ****, France had a raw timber trade deficit of *.** billion euros, *.*% higher than in **** and **.*% higher than in **** [***].

Timber ...

1.4 Impact of the Covid-19 pandemic

The covid-** pandemic has equally shaken the wood market as it has the global economic market. As an approximation, official estimates from the French government were that the whole forest-wood sector would fall by *% in ****, in comparison to its **** results [***].

For instance, the pandemic caused a global decrease in demand for harvested wood products (***).

However, projections are optimistic for the period that is to follow from the Covid-** crisis. For instance, once the crisis is dealt with, there will be a greater leeway for the development internal wood activities (***) that would allow the country to compete at a higher level internationally.

2.1 Long-term determinants

The wood sector in the face of the emergence of an environmental awareness

In recent years, the wood sector has been suffering from an increase in environmental awareness from the part of consumers [***]. On the one hand, forest exploitation often connotes with deforestation in popular opinion. However, this is wrong when it comes to French forests which are managed in part by the National Forestry Organisation (***).

On the other hand, wood products are well known as renewable sources of energy, or as eco-materials. The citizens' environmental awareness is then translated into purchases turned towards certified products that respect the environment. This is particularly true for the paper industry, for example with recycled paper, which its consumption increased from **.*% in **** to **.*% in **** [***]. 

Consumption of recycled paper France, ****-****, in % Source: ****

Public policies that promote the use of wood

The desire to promote renewable energies in relation to fossil fuels at European level is thus reflected in a a proactive policy to promote wood in construction (***), for example by recovering scrap lumber for fuelwood [***].

In addition, regulations regarding plastic products (***).

2.2 Short-term determinants

Meteorological disasters

Weather conditions have an impact on the activities of forest-based industries, both on the supply and on demand side. In the latter case, winter temperatures have a strong influence on wood energy consumption. Low temperatures and prolonged cold spells increase heating requirements. Energy wood (***) is generally used as a supplementary heating source to traditional central heating and is even more important during colder times. Thus, during the warmer winters of ****-**** and ****-****, the demand for wood energy decreased. Meanwhile, the low temperatures in the winters of ****-**** and ****-**** caused an increase in consumption and therefore in the price of firewood [***].

However, climate change and increasing temperatures in recent yeras are causing the demand for firewood to decrease. In fact, according to Meteo France, three of the four warmest winters occurred in the last ** years: ****-**, ****-** (***).

Economic growth

Wooden pallets, used in warehouse logistics, are the first products to be impacted by the various economic cycles. These therefore also have a direct impact on the activities of the wood sectors [***].

2.3 Overview of the main customer markets

New construction market

Given how one of the main uses of timber is in the construction of buildings, how this sector performs has a significant impact on the demand for the product. Since the beginning of ****, the number of authorisations for housing construction has been following a downwards trend, recently accelerated by the Covid-** pandemic (***).

Between January **** and September ****, the number of authorisations for housing construction decreased by **%, a fall of approximately ***,*** authorisations in the span of nearly * years. However, in the years prior to ****, the number of authorisations had increased by **% since **** [***].

The recent fall in authorisations for the construction of new houses has a negative impact on the demand for wood, as this product has been becoming an increasingly popular material to be used in construction of new houses. 

Number of authorisations for housing construction France, ****-****, in thousands of authorisations Source: ****

Furniture market

Similarly, the performance of the furniture sector also influences the demand for wood products. On the contrary to the construction sector, the furniture market is growing, with a *.*% increase in its value between **** and **** [***].

Value of the furniture market France, ****-****, in billions of euros Source: ****

Breaking down the value of the furniture market, decorating ...

3.1 French production of the raw material wood

In ****, **.* million cubic metres of roundwood (***) were commercialised in France, a decrease of *% compared to ****. However, despite this slight decrease, the harvest of roundwood have been somewhat stable since ****, ranging between ** and ** million [***].

Roundwood sales France, ****-****, in millions of cubic meters Source: ****

In terms of types of wood harvested, softwood lumber contributes to **% of the total harvests, followed by industrial wood (***).

Breakdown of wood harvest by type of wood France, ****, in % Source: ****

3.2 Panorama of French forests

According to the National Forestry Office, public forests cover *.* million hectares in metropolitan France or *% of the territory. Of these, *.* million hectares are state-owned, and *.* million hectares are owned by local authorities. The overseas territories include * million hectares of public forests, supported by French Guiana. [***]

If we add private forests, the forest area in **** covers **% of the national territory, or **.* million hectares in metropolitan France [***]. Thus, **% of all French forests are privately owned. Two thirds of the forests are composed of deciduous trees, the rest are populated by coniferous trees, softwoods and mixed forests.

Forest cover in France has been increasing by an average of *.*% per year since ****. It is the most important land use after agriculture, which covers more than half of metropolitan France. The main reasons for this increase are attributed to agricultural decline and afforestation of these lands, among others. To a lesser extent, climate change also contributes to tree growth and productivity [***].

Only four departments in metropolitan France have a forest cover higher than **%: South Corsica, Var, Landes and Alpes Maritimes.

In ****, forest sales in France reached €*.* billion, an increase of *.*% compared to **** [***]. Sales of unbuilt forests increased by *.*% at an average price of €**** per hectare.

Forest ...

3.3 French sawmills are in difficulty

When observed over the long term, sawmill operations have drastically decreased. From the **,*** sawmills that existed in **** in France, only **% of these operate in **** (***).

Number of sawmill establishments France, ****-****, in units Source: ****

However, the trend is moving towards consolidation; large sawmill companies continue to grow faster than average, when small structures close due to a lack of buyers.

Sawing of softwood (***) trees

Softwood sawmill production decreased by *% between **** and ****, reaching *.** million cubic metres. In fact, the overall trend is a decreasing one since its peak in ***** [***].

Production of softwood sawn timber France, ****-****, in millions of cubic meters Source: ****

By far the most sawn species is spruce and fir, which represents **% of the volume of softwood sawing (***) ranks third, having been declining in production since ****, having reached *.** million cubic meters in ****. 

Breakdown of softwood sawn timber by type France, ****, in % Source: ****

Sawing of hardwood trees

The total production of hardwood sawn timber in **** was *.** million cubic metres, *.*% less compared to ****. Compared to ****, the decrease is only of *.*% [***].

Breakdown of hardwood sawn timber by type France, ****-****, in millions of cubic meters Source: ****

Oak is leading in the hardwood sector with **% of the volumes, despite being the wood that suffered the ...

3.4 The timber trade is mainly dependent on construction

Wood trading activities are clearly dependent on the construction activities in France. These are therefore constrained by the decline in the number of authorisations for housing constructions in **** (***).

The turnover of wood traders increased by *.*% in ****, but is expected to slow down in the coming years [***]. This is because traders are facing the rise of supermarkets, their main competitors in these activities. In addition, the development of digital and specialized online vendors is also impacting the sector's performance.

On the other hand, wood traders can count on the dynamism of public works in ****. Moreover, traders can also enter the retail market: with the rise of the "do it yourself". As a result, demand for materials and in particular for construction wood has increased in this sector, implying that wood traders are developing their consulting activities for the renovation and launch of domestic work.

The main brands operating in this sector in France are Saint Gobain, with its subsidiaries such as Point P, Brossette, CEDEO or Asturienne, then GEDEX (***) and BigMat.

4.1 Pulpwood and energy

Pulpwood is used for the manufacture of cellulose pulp, fibreboard and particleboard. It is obtained by the combined action of friction and high pressure on the material under consideration.

According to the latest figures from Agreste published in **** for the last quarter of ****, crushing wood prices increased by *.*%, while firewood prices decreased by *.*% between Q* **** and Q* ****. The largest increase is found in hardwood (***), while white softwood had a decrease of *.*%. Since ****, prices have increased by **.*% for hardwoods, **.*% for white softwoods and **.*% for red softwoods.

Source: ****

Concerning firewood, the prices for all categories decreased. Wood logs decreased by *.*% between Q* **** and Q* ****, while forest chips decreased by *.*%. On the other hand, roundwood decreased by *.*% over the last three months of ****.

Soure: Agreste

The definitions given by the Agresto for the different wordings are as follows:

Roundwood: wooden logs longer than one metre. Logs: wood that is generally split and up to one metre long. Forest chips: wood chips obtained by direct shredding of wood before transport. White softwood (***): coniferous forest species with whitish-coloured woods such as fir and spruce. Red softwood (***): coniferous forest species with reddish-coloured woods such as pine, Douglas fir and larch.

4.2 Whole trunk woods

A log defines the trunks of trees that are not yet squared, i.e. cut at right angles. The Centre d'Etudes de l'Economie du Bois (***) provides quarterly information on the prices recorded for the various logs.

The oak tree

There are different products made directly from oak wood. Depending on the diameter of the trunk, the use to which it will be put (***), oak prices may vary. Below is the summary table of prices recorded for the third quarter of ****.

Source: ****

Of all the logs produced in France, oak is the one that has seen the strongest increase in these prices in recent years.

The spruce tree

The prices of this log have increased little in the last year. Prices have been fairly stable for almost ** years, except for choice planks and bastaings, which have risen by **.*% in almost ** years. Overall, the prices for this log vary between *** and ***€ per cubic meter.

Source: ****

The pine tree

Depending on whether they are maritime or Scots pines, prices may vary, the latter being generally cheaper for the same choices. Prices vary from *** euros per cubic meter for maritime pine in choice *, and *** euros per cubic meter for maritime pine in choice *A.

All ...

4.3 Technical costs of machinery and forestry operations

According to the the FCBA memento for the year ****, the productivity and cost of technical forestry machines are summarized in the table below:

Source: ****

These costs include fixed costs (***) and staff costs. They do not take into account other expenses related to the business.

The main factors of variation are site conditions, annual production, depreciation periods, etc.

5.1 Nomenclature of French Activities

The Nomenclature des Activités Françaises, or NAF, refers to the classification of economic activities set up by INSEE. There have been several versions since ****. The last revision of NAF was adopted at the end of ****, and implemented in ****.

According to the ec.europa.eu, "it is a four-digit nomenclature for the collection and production of a wide range of statistical data on economic activities in the field of economic statistics (***). »

To allow for a better comparison between States and harmonisation, this classification is in accordance with the Statistical Classification of Economic Activities in the European Community, or NACE.

For this study, we mainly selected the following fields of activity:

**** : Logging **** and ****: Other forestry products ****: Sawing and planing ****: Wood-based panels ****: Assembled parquet flooring ****: Carpentry and joinery ****: Wooden packaging **** : Miscellaneous wooden objects **** and ****: Pulp and cardboard **** to ****: Furniture manufacturing

5.2 National policy framework

According to the unece.org, "two major documents provide a framework for national policy on forests and wood. This is the National Forest and Wood Program (***).

The first was prepared in **** and was published by decree on * February ****. Its design brought together all the professional and institutional players in the sector. This inter-ministerial programme sets four objectives for the sector

Increase wood harvesting in France while ensuring the renewal of the forest Fully integrate citizens' expectations of the forest (***) Taking climate change into account on its two components (***) Create opportunities for products from French forests.

The additional wood mobilization objective included in the PNFB is fully reflected in the National Low Carbon Strategy (***), thus demonstrating the coherence between the objectives of the national forest policy and those of the national energy transition policy. The second was signed at the end of **** by the ministers responsible for forestry, economy and industry, housing, ecology and energy, the Association of French Regions and the professional organisations in the sector, from upstream to downstream

The actions to be carried out in this contract, both by public authorities and professional organisations, concern management tools necessary for the sector , the financing and support of the companies, the ...

6.1 Segmentation

• Office National des Forêts
• Alliance Forêts Bois
• Smurfit Kappa Comptoir du Pin
• Comptoir des bois de Brive
• Egger
• ISB grpupe
• Swiss Krono
• Unilin (Mohawk industries)
• Palette Gestion Services (PGS Groupe)
• TFF Group
• Oeneo
• Saint-Gobain Groupe
• Ikea France
• Fargesbois
• Gedex Gedimat Gedibois
• Ducerf Groupe
• Rougier Groupe
• O2 Factory