Furniture

Ukraine’s wood processing industry holds considerable potential for further development and could play a key role in strengthening the national economy.

In 2024, the total production volume in the wood, paper, and printing sectors reached 130.8 billion UAH, representing 3.6% of the country’s total industrial output. The sector comprises over 26,000 operators.

Ukraine consistently maintains a positive trade balance in wood and wood products. In 2024, exports of wood processing products exceeded 1.4 billion USD, accounting for more than 3.5% of Ukraine’s total exports, while imports amounted to 217.1 million USD. Ukraine ranks among the global leaders in the export of wood veneer, wood wool and flour, charcoal, stakes, tool handles, and wooden packaging.

The pulp and paper industry comprises over 2,900 operators producing approximately 50 varieties of paper and over 20 types of cardboard products. In 2024, exports in this segment totalled 239.6 million USD, In contrast, imports significantly exceeded this amount, reaching 918.7 million USD.

As of 2024, foreign direct investment (FDI) stock included: sawmilling and planing at 76.9 million USD, products of wood manufacturing at 181.5 million USD, and paper and cardboard manufacturing at 214.8 million USD.

Ukraine ranks among the top 10 European countries for wood reserves and forest area. The total forested area in Ukraine amounts to 10.4 million hectares, of which 9.6 million hectares are covered with forest vegetation. Forests cover 15.9% of Ukraine’s territory. The country’s forests consist of over 30 species of trees.

The total wood stock is 2.3 billion m³, or about 235 m³ per hectare, ensuring a strong resource base. The annual growth of wood is approximately 35 million m³, while the actual annual harvesting is about 15 million cubic meters, which is around 40% of the total growth. This indicates the presence of considerable economic and environmental potential in Ukraine’s forests.

In 2024, the furniture industry generated revenue of 40.5 billion UAH, with a total production volume of 35 billion UAH. More than 11,800 operators in the furniture sector were officially registered in Ukraine in 2024.

Ukraine’s furniture sector shows a strong trade surplus. In 2024, exports reached USD 909 million, more than double the USD 413.5 million in imports. Furniture accounts for 2.2% of Ukraine’s total exports and ranks among the country’s top ten export categories. Exports to European markets continue to grow steadily.

In 2024, the stock of foreign direct investment in furniture manufacturing amounted to 148.2 million USD. This represents approximately 0.4% of total FDI across all economic sectors and around 2% of manufacturing-related FDI.

The total estimated cost for restoring the residential sector is 83.7 billion USD for the period 2025-2035, accounting for 16% of Ukraine’s overall recovery needs. This factor is expected to significantly boost domestic demand for wood and furniture products.

At the same time, forest resources, the key raw material base for the wood processing sector, have suffered substantial losses. As a result of fires caused by military actions, 83 million m³ of timber have been lost, equivalent to about 4.5 billion USD and representing 2.7% of the total direct damages. Nearly 20% of Ukraine’s forests remain inaccessible due to temporary russian occupation, landmines, and ongoing hostilities.