European parquet consumption continued to decline in the first three quarters of 2024, albeit at a slower pace, reflecting still subdued construction activity and increasing pressure from Chinese imports, the board of the European Parquet Federation (FEP) recently noted. With consumer purchasing power affected, cheaper alternatives are now being considered more frequently. However, these could soon face higher tariffs.

Parquet markets fell in almost all FEP countries during the three first quarters 2024 compared to the same period last year, echoing the still subdued activity in the construction sector.

Country situation

Austria
After a weak third quarter of 2024, Austria recorded a 5% decline in its parquet consumption compared to the same period last year. Forecasts for 2025 are not positive, partly due to the low number of new constructions. Raw material costs are stable, but the quality of oak from Croatia is low due to long storage in wet forests after storms. Energy costs are high compared to China, the USA and others.

Croatia
Croatia reports a 3% increase for Q1-3 2024 compared to the same period last year, when Croatian parquet consumption was very low. Nevertheless, the boom driven by the construction industry is not expected to continue in 2025. There is inflation and salaries will increase next year, while energy costs are quite high. And as a small country, Croatia needs to find new markets, as the German market is very weak.

France
During the first three quarters of 2024, French parquet consumption fell by 13 to 15% compared to the same period last year. The level of new construction is still low. Trends evolve like a rollercoaster every month, reflecting events and the political situation in France. Wood is available, but wet weather conditions make harvesting difficult. High-quality oak is still expensive due to competition with the barrel industry, among other things. Energy costs are relatively cheap thanks to domestic nuclear energy production.

Germany
There is hope that the German market will have bottomed out in Q3 2024. Parquet consumption has fallen by 5-10% in Q1-3 2024 compared to Q1-3 2023. No major development is expected for 2025, as the number of new builds will be only half of what was expected. Experts do not see a recovery before the end of 2025 or even the end of 2026. In the meantime, Chinese imports have increased to build up their stocks in the EU in view of the possible anti-dumping registration and eventual measures.

Italy
For Italian parquet consumption, a decline of 5-10% is observed in the first three quarters of 2024. Inflation is lower, but purchasing power has been lost and cheaper flooring alternatives are being considered. The market fluctuates from month to month. Renovations in the hospitality sector are improving, especially in Rome and Milan, with large projects. On the other hand, final consumers and retailers are not doing well. Raw materials remain expensive.

Netherlands
The Dutch market has declined by 5 to 10% compared to the period Q1-3 2023, which was already characterized by low parquet consumption. Renovations are taking place, but this is not reflected in demand.

Norway
In Norway, renovation is still the driver, while in Sweden both renovation and new construction are stalling. The latter have, however, probably bottomed out and are starting to rise slightly (+5% expected in 2025). In Denmark, investment is being made in housing and the market is stable. Finland is the most pessimistic market, where households are not spending their money. Renovation is going a little better and is recovering from a very low level, than new construction, where company closures are being observed. As Sweden is the largest market, the development of Nordic parquet consumption is still negative overall, with -25% in Q1 2024 and -13% in Q2 2024. The Nordic parquet market should stagnate or rise slightly in 2025. There are no problems with raw materials. Energy costs have generally fallen, inflation is contained, interest rates are falling.

Spain
In Spain, demand was stable in Q1-3 2024. The lack of buildings is affecting prices and a new law protects residents from interference by owners. Consequently, investment in buildings is low. High energy costs and inflation are reducing purchasing power and market opportunities.

Switzerland
The Swiss parquet market was stagnant in the first three quarters of 2024. It should also be stable in 2025. The situation with wood from Croatia and the effects of rising minimum wages are already having an impact on the sector.

Source: FEP