Swedish Forestry Industry Facing Challenging Times

Swedish forestry companies have had a tougher start to 2025 than expected, according to High North News (4-16-25), citing a report from the Swedish Forest Industries Federation.

The report points to a combination of higher costs and lower demand, which has taken a toll on Swedish sawmills and pulp and paper producers. In addition, increased tariffs create uncertainty, as well as the strong Swedish krone.

Sweden is one of the world’s largest exporters of pulp, paper, and sawn wood products. More than 80% of the products are exported and the largest market is Europe.

The report states that the Swedish wood products sector is under pressure, and demand for wood products in the country last year was the worst since the 1990s. The construction industry in Sweden did not expand as expected, and consumption that drives pulp and paper production has declined. An increasingly pressured profitability situation is starting to have consequences, which is particularly noticeable at sawmills, the Swedish Forest Industries Federation said.

Swedish exports within the forest industry remain strong despite a declining economy in 2024. However, the recent development of increased tariffs creates significant uncertainty.

“As one of the world’s largest exporters of pulp, paper, and wood products, the Swedish forest industry is also particularly vulnerable in the trade war, even though the US itself is not the primary concern.”